May 10 2007
Cabinet orders Maybank to stop
Written no less than Datuk Wong Chun Wai himself…
A mini victory for MCA, Gerakan. As usual, the educated leadership of MIC choose to remain silent and focus on more important things.
Maybank adheres to Cabinet order
http://www.thestar.com.my/news/story.asp?file=/2007/5/10/nation/17681264&sec=nation
By WONG CHUN WAI
KUALA LUMPUR: The Cabinet has ordered the country’s largest bank, Maybank, to withdraw its requirement that law firms must have a bumiputra partner with at least a 50% stake before they could do any business with the bank.
The move, which generated controversy and criticism that it was discriminatory, was discussed at the weekly Cabinet meeting yesterday.
Highly-placed sources said the Cabinet took the stand because it felt it was not a government policy and that the Finance Ministry had also not issued any such directive to banks.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is also Finance Minister, chaired the Cabinet meeting.
The sources said that while the bank’s decision was an internal directive, the Cabinet felt it was not a proper decision.
MCA president Datuk Seri Ong Ka Ting, when contacted, said the Cabinet discussed the issue, and felt that Maybank’s decision was inappropriate and not in line with government policy.
The Housing and Local Government Minister considered the matter settled and resolved.
The Maybank decision had been criticised by various groups including the MCA, Bar Council and the Associated Chinese Chambers of Commerce and Industry, which said firms should be judged on their merit and not ethnic composition.
In Boston, FOO YEE PING reports that Deputy Prime Minister Datuk Seri Najib Tun Razak as saying the government’s policy is to help both bumiputras and non-bumiputras.
He said Maybank should understand that the government policy was to encourage government-linked companies (GLC) to provide work for both bumiputras and non-bumiputras.
On Tuesday, MCA vice-president Datuk Seri Dr Chua Soi Lek questioned the ruling, asking how Malaysia could compete globally if a government-linked company like Maybank still adopted such a position.
Wanita MCA chief Datuk Dr Ng Yen Yen, who is Deputy Finance Minister, expressed regret with Maybank, saying the condition had no legal basis and was certainly not in line with the spirit of the Federal Constitution.
Bar Council chairman Ambiga Sreenevasan had earlier described the requirement as discriminatory and said that all lawyers should be judged on merit.
Yesterday, Maybank issued a statement that the bank wanted to emphasise that selection of solicitor firms would continue to be based primarily on performance, efficiency and merit.
“Moving forward and with immediate effect, all solicitor firms, whether with bumiputra or non-bumiputra equity ownership, are eligible for consideration,” it said.
It said all other revised criteria for emplacement of solicitor firms pursuant to its annual review remain unchanged.
DAP secretary-general Lim Guan Eng, meanwhile, said that Bank Negara should have ordered Maybank to revoke its decision instead of waiting for the Cabinet to act.
“If Bank Negara can order banks to merge, we cannot accept that Bank Negara could not intervene earlier because it was a Maybank internal matter,” he said.
Lim said similar requirements were set out by Ambank Bhd, claiming there had been tacit discrimination by other banks in refusing to parcel out work to those without the 50% bumiputra equity requirement.
However, a statement from the AmBank Group said no restrictions or quota of shares were imposed.
“The group does appoint legal firms that do not have bumiputra partners. This policy has been in place for more than two decades,” it said.
However, to encourage bumiputra participation in the financial services industry, the AmBank Group had always encouraged legal firms to have bumiputra partners, it added.
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