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Sunday, November 06, 2005

A Kadir Jasin opposed Johor Corp take over KFC

Editor-In-Chief of Malaysian Business, Datuk A Kadir Jasin, in his column "Other Thots" on latest issue of Malaysian Business (1 November 2005 issue) stated that:

The purchase of the majority control of QSR Brands by Kulim effectively removed the Bumiputra ownership of the company. Kulim is a government-link company ( GLC ) by virtue of its 60% ownership by Johor Corporation Bhd, the investment arm of the Johor Government. ................................


.........QSR Brands, which was previously controlled and managed by Bumiputra individuals, is now own by a GLC ..................... GLCs, though largely managed by Bumiputras, are not stricly Bumiputra companies. They are state-owned companies.They belong to all Malaysian. ..........

......Kulim's Purchase of QSR Brands' shares came only months after the Prime Minister was quoted in the Press advising the GLC not to compete with Bumiputras. The Berita Harian newspaper on July 30 reported:" GLCs cannot make profits by taking over successful Bumiputra companies or set up subsidiary companies to compete with them,said Datuk Seri Abdullah Ahmad Badawi ).

The sale of the QSR Brands shares to Kulim at a time when Umno is pressing for the reinstatement of the NEP or some elements of it worth greater exemination and understanding.

...........The QSR-Kulim type deal will further erode Bumiputra ownership of the corporate sector.

...............if the GLCs are allowed to freely prey on Bumiputra-owned corporate entities, there is a danger that in due course there may not be many Bumiputra-conntrolled companies left.

The above has coincidentally same view point with my post on KFC fall under Johor state government , KFC fall under Johor state government 2 and GLC classified as Non-bumiputra.













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