DAP: Zafrul must clarify increase of bumi equity in 5G rollout works

DAP today urges Finance Minister Tengku Zafrul Aziz to clarify if it has unilaterally implemented a new policy regarding the bumiputera quota for major government projects.

This comes after Zafrul told a press conference several days ago that Putrajaya would maintain the single wholesale network (SWN) model in its planned rollout of the 5G mobile telecommunication network, but its appointed hardware provider Ericsson Malaysia Sdn Bhd would optimise contract work and services for local vendors of which 61 percent would cater to bumiputera interests.

DAP secretary-general Lim Guan Eng in a statement today said that the federal government should explain if there is a major policy change, as such action should only be done by consulting all stakeholders first.

"The government should clarify this increase to 61 percent of Bumiputera interest, whether this is now the new benchmark for major government procurement contracts. For the East Coast Rail Link (ECRL) the previous BN government had set bumiputera interest and participation of local vendors at 40 percent.

"Bumi companies can still bid for the non-bumi portion through open tender. To unilaterally expand to 61 percent is a major policy change that should be done with full consultation with all stakeholders because it deals with issues of justice or fair play, encouraging competitiveness and whether it helps to work towards a level playing field," he said.

According to a Bernama report on March 16, Zafrul told a press conference that Putrajaya has decided to maintain the SWN model for its 5G rollout via Digital Nasional Bhd (DNB), a company that MOF owns 100 percent, and offer telecommunication companies up to 70 per cent equity stake in the company.

Bumiputera interests

The minister reportedly said that Ericsson Malaysia has drawn up the implementation plan, where it would be optimising contract work and services for local vendors, of which 61 per cent would cater to Bumiputera interests.

In Lim's statement, the former finance minister also claimed that freight forwarding companies that had been operating since before 1990 are also under threat of having to surrender control of their companies.

According to him, there were attempts to increase bumiputera equity policy on the companies to 51 percent when Pakatan Harapan was in power, but MOF had agreed that freight forwarders who were issued licenses before 1990 did not have to lose control of their companies and dispose of off their shares to comply with the 51 percent bumi equity ruling.

Companies that were issued licenses after 1990 were still required to have 51 percent bumiputera equity.

"And now there is a new benchmark of 61 percent. Can the government or MCA President, MIC and GPS Ministers clarify when this was approved in Cabinet?" he said. - Mkini