51% Bumiputera Equity
What is the real agenda of MoF and MITI by enforcing the 51% Bumiputera equity in forwarding & logistics companies for Customs license approval ?
The only options the Non Bumi busines owners have is either to appoint a Bumi partner who is going to take over the company ( 51% ) that was built through hardship and struggles over the years or to close business because they cannot obtain/renew license.
Are you trying to wipe out Non Bumi business owners in this industry by next 5 years ? What are the other industries you are aiming at?
If you want to statistically increased Bumi business owners , mould them and give them more incentives and opportunities ( as though whatever that is being allocated is not enough ) and not by killing or stealing the Non Bumis hardship. This is not how you grow.
Almost zero proposals can succeed in government approval without Bumi Holding in the company , the first question ask is – Is It A Bumi Company ? Why ? Isnt there are other criteria you would like to check other than race? Arent Non Bumis Malaysians enough to qualify for tenders , projects , contract and licenses ?
In January 2021 , MOF issued a letter to state that all custom licenses must comply with Bumiputera equity requirement , but no percentage of Bumiputera equity requirement was specified.
Logistics companies have slowly built up their business over a lengthy period as compared to other industries as the industry fragmented and highly competitive. The sudden decision by MOF in 2021 for all customs licenses to comply with Bumiputera equity requirement ( 51% ) would pose immense difficulties to the logistic companies.
It appears that company would have no choice but would be compelled 51% equity to the Bumiputera investors.
The questions is , within this short timeframe frame and difficualt prevaling economic conditions , would there be Bumiputera investors wanting to buy over 51% equity ?
And , if present logistic companies are compelled to sell a majority share to Bumiputera investors , it would mean that the government is telling us to sell our business to Bumiputera or close down our business.
Selling 51% also would mean the present owner can no longer control or run his business.
If we can’t find Bumiputera to actually invest in the companies before the deadline of 31/12/2021 , it means that all the logistic companies with custom licenses would could down.