Selangor to issue its own Class F licences

In order to broaden the playing field for state government contracts to and be more inclusive for all contracting companies, the Selangor government will soon start to issue its own Class F contractor classification licences to both bumiputera and non-bumiputera.

"Now there will be Selangor Class F licences for all contractors. I have proposed this in a closed-door exco meeting," said state executive council member Dr Xavier Jayakumar (left).

While he described the process of pushing the matter through as having been "difficult", Jayakumar said that the decision has been made to do so and in Selangor, at least, "now contracts are for all".

Jayakumar was addressing a session of the forum organised by the Malaysian Indian Business Association (Miba), aimed at gathering politicians from across the divide, academia, civil society and businesspersons to give their views on 'the battle to win the hearts and minds for the Indian vote'.

Jayakumar was addressing in particular, a question posed by a member of the audience in a previous session on when a firm owned by a Chinese or an Indian can bid for government projects.

With the move, he added, the way is now clear for more companies to bid for contract works.

Criticisms from all sides

Several big projects, he noted, had already been tendered out by the Selangor government, such as the River of Life Klang river restoration project and the Tanjung Dua Belas, Bukit Beruntung and Ijok residential and mixed township development schemes.

"All they have to do is to fill in a form at the Selangor State Economic Planning Unit (Upens). The minimum requirement is a registration with the finance ministry, or better, if they are registered with CIDB," he explained, referring to the Construction Industry Development Board.

The announcement over Class F licences is seen as significant as it would allow all contractors to bid for government contracts.

The federal government had long ago frozen the issuance of new class F licences, thereby hampering many new companies - especially non-bumiputera firms - to compete for government jobs.

Many quarters had criticised the federal government's requirement that only 100 percent bumiputera-owned firms be allowed to bid for government contracts as being problematic.

While it ensured the special position of the Malays vis-a-vis constitutionally guaranteed quota on public works projects, it was seen as taking the share of contractors of other races.

Some had also questioned what they said was the unequal distribution of the Class F classification in favour of businesspersons close to the Malay-based Umno leadership. - Malaysiakini