Solve 51% Bumi equity issue now, says DAP’s Ong

 

The finance ministry has put off till December next year a ruling that all freight forwarding companies must be 51% Bumiputera-owned.

PETALING JAYA: The decision to postpone enforcement of a 51% Bumiputera ownership requirement for freight forwarding companies to December next year will not solve the issue and will only serve to chase investors away, says DAP MP Ong Kian Ming.

For a long-term solution, Ong called on the relevant stakeholders, including the international trade and industry ministry (Miti), Malaysian Investment Development Authority (Mida), transport ministry, port and logistics operators, business chambers (both local and foreign), financial institutions and politicians from both sides of the political divide to hold discussions on the issue.

The Bangi MP also called for an open dialogue among stakeholders on the issues affecting the wider logistics sector.

He said the discussions should be held in the spirit of the memorandum of understanding (MoU) signed recently by Pakatan Harapan (PH) and the government to avoid politicking.

Ong Kian Ming.

On Sept 18, the Federation of Malaysian Freight Forwarders (FMFF) had urged the government to clarify its position on Bumiputera equity in logistics companies, with only months left before its end-of-year deadline.

FMFF president Alvin Chua said the finance ministry had stated in January that all Customs brokerage licence holders must comply with Bumiputera equity requirements by Dec 31.

The expected 51% Bumiputera equity rule will see all such companies being taken over by Bumiputeras. Those without such licences would not be allowed to carry out transactions with the Customs department, such as the clearance of goods.

The finance ministry later issued a directive that it was putting off enforcement of the rule to the end of next year

Ong said many domestic players started out small before becoming international players.

“If logistics providers, who are not publicly listed and not majority Bumiputera controlled, are subjected to this equity requirement, many of them may choose to remain small and reduce their investments in the logistics sector,” said Ong, who is DAP’s assistant political education director.

Ong warned that dissatisfied local logistics providers may then relocate to Singapore.

“This will decrease the flow of goods and services through Westport and Northport in Port Klang, Johor and Penang Port, just to name a few,” he added. - FMT