The MCA Youth Economic Bureau has hit out against the Domestic Trade
and Consumer Affairs Ministry’s proposed trade guidelines that will
affect some 400 types of retail businesses.
Describing some of the requirements of the guidelines as
“ludicrous”, the bureau’s chief, Datuk Henry Wong, said the matter
should be viewed seriously as it would have far reaching implications.
He objected to the ministry’s proposed Guidelines to Foreign
Participation in the Distributive Trades as it was contrary to the
spirit of the World Trade Organisation (WTO) and appeared restrictive,
especially to young entrepreneurs.
The guidelines aim to regulate the businesses that have at least a 15% foreign equity.
According to Wong, the guidelines states that all retailers,
wholesalers, and specialty stores would be asked to restructure to meet
a minimum 30% bumiputra requirement, to raise its paid-up capital to at
least RM1 million and to ensure the composition of the directors and
employees reflect the racial composition of the country.
“The requirement that the composition of the directors, managers and
employee structure reflect the racial composition is also ludicrous,”
he said in a statement today July 24, 2006).
Wong said the guidelines was contrary to the spirit of the World Trade Organisation (WTO), to which Malaysia was a signatory.
“It is understood that to be part of the global trade nowadays, we
can’t shift policies from liberal to non-liberal – this is literally
reversing the traffic,” Wong said, adding that the bureau would take up
the issue when it meets on Wednesday (July 26, 2006).
“We need a clear stand on this because among the Barisan Nasional component parties, we have already agreed that there should not be enforced micro-restructuring.
“We are here to grow new businesses together,” said Wong.
Souce: The Sun