YOURSAY | ‘By the way, how would the bumi masses benefit from this?’

Freight forwarders raise concern over 'bumi equity' rule

'Unfair to enforce 51pct bumi equity on freight forwarders retrospectively'

Dr Raman Letchumanan: The reason is the catch-all New Economic Policy (NEP). It says 30 percent should be controlled by bumiputera.

But our clever politicians/bureaucrats made it almost 100 percent for all government or government-owned entities. But still, they cannot rest in peace, looking at the private sector thriving despite all the handicaps.

So, a novel idea. Impose 51 percent shareholding and implement it during a time of grave pandemic and economic crisis. Most companies are making losses, therefore their valuation is at rock bottom - it’s time for a forced fire sale.

By the way, how do the bumi masses benefit from it? Do they get to buy these companies? Or they have to pay for substandard services at exorbitant prices? It reminds me of the ‘highly successful’ Low Yat II venture.

Even though the nation was on total lockdown, many opportunists have been scheming, like this case, the Kuala Langat North Forest Reserve (KLNFR) and many more.

The pundits have all got it wrong. We are not failing. Money literally grows on land and on trees. We just need to harvest it as much as we want. A country of endless wealth for the gifted people of the lands.

Ex-Wfw: It certainly looks like they are not aware of the fact that other international players are also eyeing this issue with concern. If the government can take such action against their local players, what is there to stop them from doing it against foreign players?

They seem to be oblivious to the fact that the international logistics industry is being gobbled up by the huge mega-players across the world and those 1,500 members of Federation of Malaysian Freight Forwarders (FMFF) are struggling to compete against these foreign players even without the additional pressure against them.

Should they fail in this struggle, it is assured that the mega-international foreign players will take over this industry and the local shippers will encounter even more serious challenges, especially in rates.

Some players informed that the Customs Department had issued some 5,000 permits. Who are the 3,500 permit holders who are not members of FMFF? Are there still in operation? Or merely permit holders seeking rental? Can the department publish the list of all permit holders?

Unless the government take positive steps to resolve this problem, our local logistics industry will encounter serious challenges, given the fact that we have agreed to liberalise the logistics industry within Asean.

Freethinker: “They (freight forwarders) also must do it in time before the end of this year, which is the deadline to renew their licences under the new equity requirements.”

Just read between the lines. Profit-making companies are made to sell their shares to bumiputera or risk losing their business licence. Is that how market forces work?

The quota system is now not only in government-owned entities and projects, they want to extend it to the private sector as well.

First, it’s 30 percent, now 51 percent. In future, it might be 80 percent, or even making it exclusive to the bumiputeras, who knows. Would anyone even be surprised?

GreenZebra9364: Selling 51 percent stake also means putting it under bumiputera control. People worked hard for years to build up the business but with one stroke of the pen, the company was passed to bumiputeras.

Who would want to invest and do business here? This is akin to daylight robbery.

KitP: The fiction being propagated is that the NEP is no longer in force. This issue shows that it is very much in force, and in fact, it is being tightened further.

How does this help Malaysia compete in the global economy? Nobody owes Malaysia a living - you either survive or starve.

Goliath: For decades, we have had such privileges put in place, did it ever help the rural bumiputera after so many years? Or did the rich bumiputera get richer while the poor get poorer? Did they stand up, become more competitive and work doubly hard?

On the contrary, it’s the direct opposite. The repercussion is that the non-bumis work harder and smarter to stay competitive because it becomes more challenging to survive in their very own country.

The government might think this is a great way to even up and resolve poverty among the bumiputera and the bumiputera might think this is their given privilege, but in the end, this practice simply destroys everyone.

This isn’t so much a call for racial equity, this is a call to wake the bumiputera up and define a better strategy to ensure social equity. These old-school thoughts by generations of PMs are why Malaysia seems stuck in mediocrity.

OCT: In the 80s, investors are required to give 30 percent to the bumiputera as a joint venture. Yes, the government can do that in the 80s as the neighbouring countries are still backward. Now, the neighbouring countries are opening up to attract foreign investors.

With such outdated rules, no foreign investors will come to invest anymore. The government is killing the hardworking entrepreneurs as they either close shop or go and invest overseas.

This is not the right way to bring up the wealth of the Malays. By having 51 percent bumiputera majority, the bumiputera have the final say and operate it as if they own the company without any value-added expertise.

The government has forced the non-Malays to give up plantations, banks, bus routes, tenders and anything that needs a permit.

Soon there will be no business sectors in which the non-Malays can operate without a bumi partnership. The government is giving the Malays fish but not teaching them how to fish.

Malaysia is one of the few countries where discrimination is practised legally by the government. In most countries, the majority looks after the minority to ensure their welfare is well taken care of.

However in Malaysia, it is the reverse. The minority has to sacrifice more and more to support the majority.

Where is the Malaysian Family spirit where there shouldn’t be any discrimination of the minority? 

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