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Monday, October 4, 2021

Piracy ashore: Unlawful 51pct equity policy for forwarding companies

 


We have heard much about the 51 percent equity policy - rather, the inequity scheme. I am grateful to my brother Malays who have spoken up for the non-Malays. Yes, it is nothing but a racist policy. Unfair and unlawful.

Blatant. As if our world trading partners are not watching the violation, exploitation, and total disregard of the rule of law. With that comes the loss of confidence in Malaysia, and the services offered by Malaysians. All Malaysians lose.

And I am glad we are calling a spade a spade.

Logistic companies are an integral part of the supply chain - they bring essentials and luxuries to our door. They connect our manufacturers to domestic and international markets and ensure demands for products are efficiently met.

They are the peripheral arteries that carry lifeblood to society. We just don’t notice them.

They are a critical aspect of the international connectivity of goods by sea and air. Speed, efficiency, and reliability are fundamental to Malaysia’s competitive advantage, and economic well-being.

It takes years to build skills, networks, and a reputation to compete with international counterparts.

The commerce of shipping is only as effective as the weakest link in this long chain of service providers. Disrupting logistics is to disrupt the efficacy of the domestic shipping industry.

It gravely undermines our economy. It is short-sighted, to say the least.

Being successful is not about waking up one morning and waving a wand to say “I want 51 percent of theirs”. You work to get it and you work to keep it. It can all be lost in the blink of an eye. So obvious to all but our policymakers!

It has been called theft, daylight robbery. All of the above. But piracy suits it best. We have coast guards protecting against piracy and looting at sea, but who protects us against the pirates in government and commence?

Unlawful commandeering of business ownership

A 51 percent equity equals management control. It is the ownership of a company. It means creating and sustaining a vision and business strategies.

Ownership is the pride and incentive to work hard, to succeed. Remove the freedom of ownership, and you kill business creativity and initiatives.

You have an unwelcome intruder, made master of the house you built. Why bother maintaining the plumbing? The company will die. The domestic logistics business will die.

Shares are property. Ownership of shares is ownership of property. Demanding 51 percent shares is demanding management control and property of another. It is unconstitutional.

It contravenes Articles 5, 8, and 13 of the Federal Constitution of Malaysia. It even contravenes Article 153. These are entrenched rights and freedom of every Malaysian; to life and livelihood, and to own property.

The words are clear. Their application is broader. A violation of a right to livelihood is a violation of a right to life. Policies, by the way, are not law. Articles 5(1), 8 (2) and 13 (1) state:

“5(1) No person shall be deprived of his life or personal liberty save in accordance with law.

8(2) Except as expressly authorised by this Constitution, there shall be no discrimination against citizens on the ground only of religion, race, descent, place of birth, or gender in any law or in the appointment to any office or employment under a public authority or in the administration of any law relating to the acquisition, holding or disposition of property or the establishing or carrying on of any trade, business, profession, vocation or employment.

13(1) No person shall be deprived of property save in accordance with law.”

Demanding 30 percent equity was already unconstitutional, but non-bumiputeras just let it slide. Working harder. Becoming more resilient.

Now 51 percent has certainly exceeded all limits of decency and morality, and should not go unchallenged. The law was long breached, from 50 years ago.

It is sheer audacity to speak of ‘extensions’ given twice for the implementation of this 51 percent unlawful policy, now deferred through the ‘magnanimity’ of the violators to December 2022.

We don’t live in isolation. We live in a real world populated by a multiracial and multinational community that looks for efficiency, excellence, and integrity.

Confidence in Malaysia is paramount to our social and economic well-being. Unfair practices will be punished. Directly or indirectly.

This 51 percent policy is correctly perceived as the thin end of the wedge. What next? - Mkini


SITPAH SELVARATNAM is an advocate and solicitor practicing shipping law.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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