Question over Bumi equity exemption for foreign freight forwarders

[superadmin]

PETALING JAYA: An economist has questioned the lack of Bumiputera equity requirements for foreign freight forwarding companies classified as International Integrated Logistics Services (IILS) providers.

While the finance ministry has put on hold plans to enforce a controversial 51% Bumiputera equity rule for freight forwarders with customs brokerage licences until December next year, there are no such equity requirements for foreign IILS providers.

IILS is a status the Malaysian Investment Development Authority (Mida) grants to logistic companies that provide integrated door-to-door logistics services as a single entity on a regional or global scale.

“The logic in this is wrong. The rule should apply to everybody and should not be discriminatory,” said Ramon Navaratnam.

“This will send the wrong message to the non-Malays – that the government has a preference for foreigners as opposed to the local people.

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