MCA: 51% bumi equity for freight forwarders against country's goals of creating pro-business environment

PETALING JAYA: The requirement of 51% bumiputra equity in freight forwarding companies is unfair to local businesses and is against the country's goals of creating a pro-business environment, says Datuk Tan Teik Cheng.

The MCA vice-president urged the Finance Ministry to abolish such a requirement.

"According to reports, foreign companies and listed companies do not need to comply with this requirement for bumiputra shareholding, but local companies must abide by this rule.

"Wouldn't this discourage local SMEs and give foreign companies and listed companies more competitive advantage? This is obviously very unreasonable," he said in a statement on Friday (Sept 24).

Tan, who is also the Penang Port Commission (PPC) chairman,said this regulation was no longer in line with current times, noting that the government should abolish it in order to create a business-friendly, transparent and performance-based environment to cater to an increasingly competitive market.

He added that the government can formulate other policies to support bumiputra development, but it should not cause injustice to the non-bumiputras.

Otherwise, Tan said such a policy is only self-defeating, a stumbling block that hinders national progress and economic development that will ultimately only see the people suffer.

On Sept 22, online portal MalaysiaKini reported that the Federation of Malaysian Freight Forwarders had voiced concerns about such a requirement that would have an impact on the future of these companies.