End Bumi equity, says MCA Ong Ka Ting

The MCA has called for the abolition of the 30 per cent Bumiputera equity requirement.

“Economic policies should be further liberalised and equity restrictions which limit business development should be abolished so companies will be more competitive in this challenging economic situation,” party president Datuk Seri Ong Ka Ting said in his opening speech at the 55th MCA General Assembly today.

“There are businesses already running but are suddenly told orally that they must have a 30 per cent Bumiputera equity and then given a year to meet this requirement. If not, their licences will not be extended. It has happened and is still happening.”

He said the policy was causing capital flight and that “the implication is when investors flee, these outlets will be empty and operators of office buildings and shopping malls are Malaysians. So there is a chain reaction.”

The outgoing MCA president said the implementation of policies was not consistent with the thinking of the Cabinet and national leaders.

“I have no problems with our leaders, Datuk Seri Abdullah Ahmad Badawi and Datuk Seri Najib Razak, with their role in the Cabinet and Barisan Nasional,” he said of the BN chairman and his deputy.

“The problem is not the leadership but people on the ground.”

He cited the “prejudice and narrow-mindedness” of government officials in the handling of licences and tenders as an example.

“Before, it did not matter if a supplier was Bumi or not for projects and contracts below RM50,000.

“Suddenly at the end of 2006, a circular said this was only for Bumis under the Government Procurement and Services Policy. But I thank the PM and DPM for correcting it when it was brought up in the Cabinet.”

Ong, however, stressed that “we need a solution, not fire-fighting”.

“At the structural level of the government, this has to stop. We must put in place a system of monitoring where the private sector can reach authorities quickly to correct these shortcomings.”

He also said the public was “disgusted with politicians in the BN who make extreme racist statements or threaten other races”.

“Among them are those who have amassed great wealth soon after holding positions in the party or local council.”

Ong highlighted the issue of religious freedom as the government has given guarantees of freedom of religion as enshrined in the constitution.

“When a non-Muslim converts after marriage and then divorces, the authorities do not deal with issues such as custody of children and family estate according to the principle of religious freedom,” he told the 2,378 delegates present.

The former Housing and Local Government Minister also called on the government to have an adequate allocation for vernacular education.

“The MCA can no longer go around collecting contributions. Do not wait for us to make noise and then consider a new allocation so parents will not scold the MCA or MIC.”

In praising Abdullah’s plan to introduce reforms before he steps down in March, he added that the people were living in a state of fear due to the rising crime rate and the cost of living.

“We have seen the price of fuel drop. But how come the prices of goods do not drop as well?” he asked.

He said that all these issues created a “perception problem”.

“Umno is seen as being far more dominant and decides on important policies, then other parties must defend these policies in the name of ‘BN spirit’.”

“The power sharing is sincere from leaders but the perception is that it is just lip service.

“This must be addressed by BN and corrected. If not, component parties can do everything but people will not be convinced,” he said.

But Ong said he trusted the “wisdom of our leaders" to carry out the necessary “amendment of laws and even the constitution” to address the negative perception of the BN.