Great Eastern exempt from foreign ownership ruling after pledging RM2 bil to B40 health scheme

Lim Guan Eng says other foreign insurance companies which contributed to the health scheme will also be exempted from having to reduce their equity. (Great Eastern pic)

PUTRAJAYA: Singaporean insurance giant Great Eastern has been exempted from a Bank Negara Malaysia foreign ownership ruling after it pledged a minimum RM2 billion contribution to a health scheme for the Bottom 40 (B40), revealed Finance Minister Lim Guan Eng.

He said this when asked where the funds for the national health protection fund came from.

Former prime minister Najib Razak had previously claimed there was a high likelihood that the RM2 billion for an insurance scheme for the B40 came from Great Eastern, which still owned 100% of the shares it held in its Malaysian operations.

This is despite a 2017 Bank Negara ruling that foreign insurance companies in the country must release at least 30% ownership to local companies.

Lim said that forcing foreign insurance companies to reduce their equity from 100% to 70% and divest it to local institutions will only benefit a few people.

“We prefer that ordinary people benefit; we are talking about millions and millions of ringgit.

“Either way, it goes to Malaysians but this way the B40 will get the benefit. The other way, very few will benefit, not even 40,” he told a press conference today.

He added that other foreign insurance companies which contributed to the scheme will also be exempted from having to reduce their equity.

On a separate matter, Lim hit out at MCA president Wee Ka Siong over the issue of 1MDB funds purportedly given to MCA, saying he did not need to lodge a report with the Malaysian Anti-Corruption Commission (MACC) on the matter.

Lim said the matter was already being investigated by MACC and that his call for MCA to return some RM16.5 million given to it by Najib was because it was his duty as finance minister.

Lim said if Wee could admit that the money came from 1MDB and return it, it would be faster than going through a legal process.

Yesterday, Wee challenged Lim to lodge a report with the police and the MACC if he had proof that the party had accepted funds from 1MDB.

Lim said he believed the money Najib gave MCA came from 1MDB as news reports had revealed that the accounts of certain MCA branches and divisions were frozen because of 1MDB links.

“Wee said he cannot check the source of the money given by Najib as banks cannot reveal it,” he said, alluding to laws governing banking secrecy.

“But did he ask Najib where the money came from?”

He urged Wee to investigate and seek the truth and, if the money was from 1MDB, to return it. - FMT