The legislator urges the government to involve all stakeholders on the issue of fairness in the logistics of Bumiputera | Malaysia
KUALA LUMPUR, September 25 – Bangi MP Ong Kian Ming today called for objective discussions on the finance ministry’s proposal to require local logistics operators to own 51 percent of Bumiputra.
He said the ministry’s decision to postpone the requirement was not a long-term solution.
Instead, Ong said relevant stakeholders including Ministry of International Trade and Industry, Ministry of Transport, Malaysia Investment Development Authority (MIDA), port operators, logistics operators, chambers trade, financial institutions and politicians must discuss the issue comprehensively.
âI am sure that my colleagues and I who have experience in MITI, MOF and MOT would be ready to participate in an honest and open dialogue, in the spirit of the MoU recently signed by PH and the government of Keluarga Malaysia, so that we can have a mature discussion and avoid playing politics through the headlines, âhe said in a statement today.
On September 23, the MOF announced the postponement of the capital requirement to December 31, 2022.
In a 2018 review, local logistics companies whose licenses were registered before 1976 had no Bumiputera capital requirement, while a 30% quota was imposed on those registered between 1976 and 1990.
A 51 percent Bumiputera requirement was required for licenses registered after 1990 – the year the Bumiputera equity policy was first implemented.
However, Integrated International Logistics Service Providers (IIES) do not need to have Bumiputera capital.
Ong, a former deputy minister of international trade and industry, also noted that there could be major trade repercussions if the finance ministry ultimately enforces the fairness requirement.
He said that aside from those raised by FMFF earlier this week, such as the short timeframe and the challenge of finding suitable Bumiputera buyers who are willing to pay a fair price when economic conditions are still very fragile, the national operators can also choose to relocate. their holdings abroad.
One said this was because Bumiputra’s capital requirement did not affect companies majority owned by foreign companies.
âIn the longer term, these companies could even move some of their logistics activities out of Malaysia, which will reduce the flow of goods and services through Westport and Northport to Port Klang, PTP to Johor and Penang Port, and name a few.
“This type of policy will also reduce the incentives for domestic logistics providers to expand their business in Malaysia due to the fear that once they reach a certain size, they will be forced to sell part of their business and even sell off. lose control of their business, âhe said.
Ong also said the move would send the wrong signal to foreign investors in the logistics sector, including those considering making Malaysia their regional hub, as they fear they will be forced to abandon the majority stake in the logistics sector. their operations here.