Govt’s push for 51 pct Bumi equity in freight forwarding companies not fair – Ganabatiru

KLANG, Sept 24 – The Federation of Malaysian Freight Forwarders is questioning the government’s move to push for 51 percent Bumiputera equity in freight forwarding companies, saying that it is an unfair move.

According to a letter from the Finance Ministry, issued January this year, all local freight forwarding commpanies would have to comply with the condition by Dec 31, 2021 while foreign companies and those listed on Bursa Malaysia have been exempted from the requirement.

Selangor State Exco and Assemblyman for Kota Kemuning, Ganabatiru Veraman

“This move by the government should be condemned as it is unfair and is giving priority for foreign companies while squeezing local companies,” said Selangor State Exco and Assemblyman for Kota Kemuning, Ganabatiru Veraman in a statement issued here late Thursday.

“Why is there a need for the Finance Ministry to put such a condition? This will force local companies to sell their equity to Bumiputera and they will no longer be the major shareholders of companies that they built with their hard work and sweat,” he said.

“Already there is a 30 percent equity condition and this is already a strain on local industry players. Is this the way to destroy the logistics industry?” Ganabatiru asked.

He said the ministry should be protecting the local companies by exempting them from the conditions set for equity ownership, rather than pushing them to let go of their majority shareholding.

Ganabatiru hoped that the government will review its decision and not show any discrimination towards local companies, especially those in the industries owned by non Bumiputera.

“The government should be encouraging healthy competition in order to ensure a conducive and fair business environment.”