MayBank Policy Paradox

The Star reported that the Cabinet had ordered MayBank to withdraw the discriminatory policy requiring law firms to have at least 3 Bumi partners and at least 50% Bumi shareholdings.

In a statement yesterday, as reported, MayBank said the guidelines have been reviewed and revised to reflect the concerns of the various parties.

"Moving forward and with immediate effect, ..."; that's the fantastic choice of words used by MayBank to soothe the affected parties.

In the NST report, DPM Najib was cited to have said that it was the government's policy to encourage GLCs to give work to Bumiputeras and non-Bumiputeras.

"There should not be any 'Hard and Fast Rule'. There should be effort to help both sides," Najib was quoted to have said.

Asked whether the government would direct MayBank to revoke the requirement, Najib replied: "I think as long as they know what the government's policy is, they should understand it."

It does seemed that Najib didn't know that the cabinet had already directed MayBank to withdraw the policy, or, he is suggesting some reservation as to the policy.

What surprised me and puzzled me was his further statement below:

"It was unfortunate that the policy was sometimes interpreted by certain quarters in their own way. ...There are times when you (the GLCs) need to give work to Bumiputera companies."

This really puzzled me. Who interpret the policy in their own way? Was it the officers in the GLC or was it those who voiced their dissent? Secondly, Najib seems to highlight that GLCs at times need to give work to Bumi companies. I thought this is afortiori... almost all GLC contracts are given to Bumis and most of it are given to UMNOputeras. Observed Telekom Malaysia, PNB, MayBank, Khazanah, Sime Darby, Petronas, and institutions such as JKR, DID, Bandaraya and local councils, and you will discover that almost all the projects are prequalified to be "For Bumiputera registered contractors ONLY". If you have not forgotten, there were instructions to local councils and government departments that office stationaries and spare-part supplies are also to be awarded to Bumiputera-registered companies. Mahathir's son was awarded Telekom's projects, Scomi too, and all my Bumi friends too, except those who have no political links to UMNO.

So, do we Malaysians need to be reminded that GLCs need to give some projects to Bumi companies? Fait Accompli!!! All PWD Turnkey-Design & Built contracts are awarded absolutely to Bumiputera registered PKK companies. All Class F contractors are Bumis absolutely. So does it make sense to say that - some projects must be given to Bumi? It will make greater sense to say, 30% be given to non-Bumi as they are Malaysian citizens by default and under the constitution, they are granted equality within the law.

Surprisingly, some of the non-Bumi banks were directed by policy decisions from Bank Negara to comply to the policy as was issued by MayBank; yet they don't dare to announce it...they feared, they feared reprimand. Public Bank was observed to have issued the same policy; they need to confirm whether it was true; but I was told.