Bumiputera contractors: A wasteful national mission to date 
By Koon Yew Yin (CPI)
It is an indictment of our system that IJM is able to compete internationally for contracts but yet is required to work as a sub-contractor to Bumiputera companies on the North-South Highway in Malaysia.
On Oct 25, 2009 our Second Finance Minister Ahmad Husni Mohamad Hanadzlah said that government has vowed to cut down on wasteful spending to lower its budget deficit and all major public projects must go through the open tender system.
Earlier, the Auditor-General’s report for 2008 revealed continuing financial management weaknesses at every level of the government. Delays in project completion seem to be a perennial problem and the lack of oversight by various ministries and departments in the procurement of goods and services continue to cost the government hundreds of millions of ringgit.
These statements indicate perhaps that our Prime Minister Najib Razak may want to reverse his announcement on January 9 in Kuala Teregganu that the government would always look after Class F contractors. (Non- Bumiputeras cannot register as a Class F contractor).
The government had in fact already set aside RM900 million, which was RM300 million more than last year, for works to be undertaken by Class F contractors this year.
Producing competitive Bumiputera contractors
As reported on May 1, 2005, Malaysia had one contractor for every 614 persons. Most likely there are more contractors by now. This ratio is again likely to be amongst the highest in the world and is obviously costing the public a significant amount of money besides affecting our overall economic performance.
I would like to pose a few questions which may appear unkind or insensitive but nonetheless need to be asked.
Out of hundreds of high-rise buildings in Kuala Lumpur does anyone know of any Bumiputera contractor who has won any of the building contracts through an open competitive tender process? Out of hundreds of kilometers of highway in Malaysia, can any Bumiputera contractor who won any part of the highway contracts through open tender be identified?
The answer to the above questions unfortunately is in the negative. The evidence is that all the government’s well-intentioned efforts in trying to produce competitive Bumiputera contractors since 1957 have failed.
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Comments (22)
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written by allmenarebrothers, November 18, 2009 22:34:57
written by allmenarebrothers, November 18, 2009 22:34:57
The whole world don't have any respect for parasites, leeches, people who forever place both their hands out for handouts, people physically able but move about in wheel chairs or clutches, people who ask for handicaps & discounts, people who demand for privileges, people who harbour the belief that the rest of the world owes them a living & many other absurdities..
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written by Sabahfan, November 18, 2009 21:38:31
written by Sabahfan, November 18, 2009 21:38:31
Haaa ha ha ha... U guys think you know everything about Bumi contractors? well I am a bumi myself and have seen, smell, ate, heard and screws bumi contractors...
There is a small handful of bumi contractors who has done well for themselves. I met them, seen them in action. Initially they may have started with help from YBs but eventually they go and tender in open bid, get some, lose some. and all of them are local sabahan non-moslems.
However the majority, whether moslem or non moslems, yes majority of them all ali baba.
Got licence to tender, then sell them, even if the project only cost RM5000, small job, they still sell them.
Some tried the do the work themselves, small works lah, but they will always go take a loan with MARA. The thing is after they completed 10 small works albeit with lousy quality, they still go back to MARA for more loans, never become financially independent. or simply wants to use rakyats cheap loan all the time.. aaah USE Mara rakyats money bah.
Amazingly the UMNO govt policy is this.... Small job, they pretend to have open tender... but let only Bumi bid amongst themselves. Project up to say RM200K, bid amongts bumi contractors only, sorry chinaman, even if you are small time contractor, there is NO work for you, you have to go and beg from the so called bumi for subcontract.
There is this one smart and lazy bumi contractor, he wins most of the tender by bidding the lowerst price. He bribes a few clerks to get the info of the departments estimates and use the info to try and will the small jobs. After which he increase the profit margin by low quality work or even skip a few items, to be certified by inside friends....
the story goes on but once there are big projects one million and above, aaahaa, all the UMNO ministers have their runners to arrange who will get these, must go to bumi contractors with big markups and kickbacks to all the ministries.... we all know the rest.
SO FOREVER NEP ALSO THERE WILL BE NO GENUINE BIG BUMI contractors.... THATS WHY BN KEEPS WINNING because if LIM GUAN ENG should be PM and all projects big and small go to open tender... all these kuncu bumi contractors will be DEAD...
There is a small handful of bumi contractors who has done well for themselves. I met them, seen them in action. Initially they may have started with help from YBs but eventually they go and tender in open bid, get some, lose some. and all of them are local sabahan non-moslems.
However the majority, whether moslem or non moslems, yes majority of them all ali baba.
Got licence to tender, then sell them, even if the project only cost RM5000, small job, they still sell them.
Some tried the do the work themselves, small works lah, but they will always go take a loan with MARA. The thing is after they completed 10 small works albeit with lousy quality, they still go back to MARA for more loans, never become financially independent. or simply wants to use rakyats cheap loan all the time.. aaah USE Mara rakyats money bah.
Amazingly the UMNO govt policy is this.... Small job, they pretend to have open tender... but let only Bumi bid amongst themselves. Project up to say RM200K, bid amongts bumi contractors only, sorry chinaman, even if you are small time contractor, there is NO work for you, you have to go and beg from the so called bumi for subcontract.
There is this one smart and lazy bumi contractor, he wins most of the tender by bidding the lowerst price. He bribes a few clerks to get the info of the departments estimates and use the info to try and will the small jobs. After which he increase the profit margin by low quality work or even skip a few items, to be certified by inside friends....
the story goes on but once there are big projects one million and above, aaahaa, all the UMNO ministers have their runners to arrange who will get these, must go to bumi contractors with big markups and kickbacks to all the ministries.... we all know the rest.
SO FOREVER NEP ALSO THERE WILL BE NO GENUINE BIG BUMI contractors.... THATS WHY BN KEEPS WINNING because if LIM GUAN ENG should be PM and all projects big and small go to open tender... all these kuncu bumi contractors will be DEAD...
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written by Eskay345, November 18, 2009 20:46:00
written by Eskay345, November 18, 2009 20:46:00
Giving out un-tendered projects through lucky-draws is immoral.
The practice of giving out thousands of big and small projects annually costing hundreds of millions of ringgit to Class F Bumi-contractors is immoral. In fact this is a corrupt system practised by the Government to thank these group of people who are considered to be the BN vote bank..
Like an "annual bonus lucky draw" where Class F Bumi-contractors line up to draw for projects. Lucky ones get big projects costing millions, others get smaller jobs. But every contractor is a winner.
The practice of giving out thousands of big and small projects annually costing hundreds of millions of ringgit to Class F Bumi-contractors is immoral. In fact this is a corrupt system practised by the Government to thank these group of people who are considered to be the BN vote bank..
Like an "annual bonus lucky draw" where Class F Bumi-contractors line up to draw for projects. Lucky ones get big projects costing millions, others get smaller jobs. But every contractor is a winner.
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written by lakian, November 18, 2009 18:24:16
written by lakian, November 18, 2009 18:24:16
Bumi contractors are really the shit sucking the blood of the country.Just imagine,70millions project when sub sub to the bottom only sub 4millions.Where the hell the money gone?BN..BN.. no need the rakyat to tell you.You are very very clear about all these shits.
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written by Jan, November 18, 2009 18:20:39
written by Jan, November 18, 2009 18:20:39
Some of you, in particular Jaz are doubting Pakatan and whether they can do the job. Look, BN is already doing a lousy job, so lousy anybody else won't do any worse. Give Pakatan a chance if they are no good we can kick them out in the following election.
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written by jasonsel, November 18, 2009 17:02:56
written by jasonsel, November 18, 2009 17:02:56
Most Bumi contractor just get the contract and subcon.....just collect money...
It defeats the purpose and makes the project more expensive.
It defeats the purpose and makes the project more expensive.
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written by miwaki, November 18, 2009 15:40:21
written by miwaki, November 18, 2009 15:40:21
This is the legacy of Mamak Kutty,something he is proud of !
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written by penangboi, November 18, 2009 15:33:10
written by penangboi, November 18, 2009 15:33:10
Look it's NOT a secret. Everybody knows the truth and the truth is that the NEP is formulated to help a very narrow band of Malays who have the 'connection' to UMNO/BN politicians by awarding them government projects which are marked up astronomically so that these group of Malays and the politicians can help themselves to plunder the nation's money.
But these Bumiputera companies are just pure 'Ali Baba' setups. They could have use the opportunity to learn the skills of the trade and uplift themselves but of course that means putting in hard work.
No siree, it's easy to just sub the works to others while they skim off the top.
What we are left with now are:
1. The Bumi companies NOT gaining any experience at all;
2. The Rakyat have to pay many many times over what the actual cost of the project are;
3. The non-Bumi companies have to scrape the bottom of the pot to get some token profits;
4. The project suffering from poor quality and workmanship because there is no room to do better by the subcontractors.
5. We end up with a economic system which is extremely uncompetitive.
All these can only happen within Boleh Land. Try get these same Bumi companies to compete for work outside BolehLand and you'll see the true capabilities of this byproduct of Malaysia's discriminatory government policies.
Am I making all these up? Look no further... take away the crutches and see how Proton is doing now!!!
But these Bumiputera companies are just pure 'Ali Baba' setups. They could have use the opportunity to learn the skills of the trade and uplift themselves but of course that means putting in hard work.
No siree, it's easy to just sub the works to others while they skim off the top.
What we are left with now are:
1. The Bumi companies NOT gaining any experience at all;
2. The Rakyat have to pay many many times over what the actual cost of the project are;
3. The non-Bumi companies have to scrape the bottom of the pot to get some token profits;
4. The project suffering from poor quality and workmanship because there is no room to do better by the subcontractors.
5. We end up with a economic system which is extremely uncompetitive.
All these can only happen within Boleh Land. Try get these same Bumi companies to compete for work outside BolehLand and you'll see the true capabilities of this byproduct of Malaysia's discriminatory government policies.
Am I making all these up? Look no further... take away the crutches and see how Proton is doing now!!!
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written by Prince Vincent, November 18, 2009 15:05:04
written by Prince Vincent, November 18, 2009 15:05:04
[On Oct 25, 2009 our Second Finance Minister Ahmad Husni Mohamad Hanadzlah said that government has vowed to cut down on wasteful spending to lower its budget deficit and all major public projects must go through the open tender system.]
PM and MK2 telah meluluskan projek penyelenggaraan berjumlah RM200 juta kepada keluarga Ban Nan Man secara rundingan terus.
PM and MK2 telah meluluskan projek penyelenggaraan berjumlah RM200 juta kepada keluarga Ban Nan Man secara rundingan terus.
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written by jaz, November 18, 2009 14:53:18
written by jaz, November 18, 2009 14:53:18
Okay, I don't just mean the PKR cybertroopers, I don't really know who they are. But the PKR supporters too. So, I'll just assume they are from the same boat. Whoever they are really need to their homework. I'm not convinced.
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written by jaz, November 18, 2009 14:48:27
written by jaz, November 18, 2009 14:48:27
Sydput,
That is exactly what I wanted to find out. If the PKR is equivalent to BN. What for would we vote for them. Too bad to this day, no one could tell me a good reason to vote them. Seriously, the PKR's should train their cybertroopers how to convey their messages better. But all they can do is urge you to vote and gave away nothing else. Frustrating to deal with them, really.
That is exactly what I wanted to find out. If the PKR is equivalent to BN. What for would we vote for them. Too bad to this day, no one could tell me a good reason to vote them. Seriously, the PKR's should train their cybertroopers how to convey their messages better. But all they can do is urge you to vote and gave away nothing else. Frustrating to deal with them, really.
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written by Msian Idol3, November 18, 2009 14:33:26
written by Msian Idol3, November 18, 2009 14:33:26
Not just limited to contracting --- every aspect of doing business. We be a bankrupt nation soon. Our ringgit would be like Zimbawe currency where things are valued in millions even a water melon.
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written by sydput, November 18, 2009 14:09:06
written by sydput, November 18, 2009 14:09:06
I would like to know the opposition party's stand on this.
If if is similar to BN's then may as well not vote next election.
If if is similar to BN's then may as well not vote next election.
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written by This e-mail address is being protected from spambots. You need JavaScript enabled to view it , November 18, 2009 14:08:29
written by This e-mail address is being protected from spambots. You need JavaScript enabled to view it , November 18, 2009 14:08:29
The more protection the BN government gives to the Class F contractor, the more regressing they get. Is this what 1 Malaysia is all about?
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written by loosecannon, November 18, 2009 14:00:23
written by loosecannon, November 18, 2009 14:00:23
As reported on May 1, 2005, Malaysia had one contractor for every 614 persons.
So what is the ratio of number of contractors Vs BN cronies? 1:1 perhaps?
So what is the ratio of number of contractors Vs BN cronies? 1:1 perhaps?
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written by jaz, November 18, 2009 13:43:46
written by jaz, November 18, 2009 13:43:46
advocatusdiaboli,
Yeah, why is that? Why does the bumi-puteras get to hog all the projects. Why do they get top priorities in everything? Why do they get special treatment? Didn't we all pay the taxes? It's not like the Chinese and Indians didn't contribute our share of taxes. Why are they the ones who gets admitted to the local universities build with OUR money, and why are they the only ones who gets scholarships paid with OUR money?
*OUR= Citizens of Malaysia, regardless of race, or religion.
Yeah, why is that? Why does the bumi-puteras get to hog all the projects. Why do they get top priorities in everything? Why do they get special treatment? Didn't we all pay the taxes? It's not like the Chinese and Indians didn't contribute our share of taxes. Why are they the ones who gets admitted to the local universities build with OUR money, and why are they the only ones who gets scholarships paid with OUR money?
*OUR= Citizens of Malaysia, regardless of race, or religion.
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written by Jan, November 18, 2009 13:15:40
written by Jan, November 18, 2009 13:15:40
No country can continue to run the way it's run by BN here. We are heading down the drain and it will be worse when the oil runs out. The one who suffers the most will be the bumiputras who have not learned to "fish". All this is manifested by the country going into mediocrity and foreign investors not wanting to come in due to the lack of talent. It seems everybody wants to be bumiputras nobody wants to work hard anymore. The future for Malaysia is very bleak thanks to UMNO and it's misguided and race divisive policies.
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written by by2020, November 18, 2009 13:13:19
written by by2020, November 18, 2009 13:13:19
What, are you challenging us Ketuanan UMNOPUTRA?
We UMNOPUTRA are having a few licenses per member..., these are our birth right...! These projects income are used to cover our escalating political expenses ..., especially during BUY-Elections..., and a little bit for the simple thinking rakyat to confuse them. It is the best creation by Malaysian UMNO to ensure the peace and harmony of this country..., otherwise we UMNOPUTRA will be raising dragger everyday..., how can the country achieve peaceful? How can the country stable for even one day...? There may be many suicide killing committed by our members jumping from the tall building out of desperation of no income and inadvertently hit and kill the innocent passer-by...!
Stop the slander by writing article of this sort..., we smell your DAP background.... MACC sure will jnock on your door soon!
We UMNOPUTRA are having a few licenses per member..., these are our birth right...! These projects income are used to cover our escalating political expenses ..., especially during BUY-Elections..., and a little bit for the simple thinking rakyat to confuse them. It is the best creation by Malaysian UMNO to ensure the peace and harmony of this country..., otherwise we UMNOPUTRA will be raising dragger everyday..., how can the country achieve peaceful? How can the country stable for even one day...? There may be many suicide killing committed by our members jumping from the tall building out of desperation of no income and inadvertently hit and kill the innocent passer-by...!
Stop the slander by writing article of this sort..., we smell your DAP background.... MACC sure will jnock on your door soon!
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written by Jan, November 18, 2009 13:05:14
written by Jan, November 18, 2009 13:05:14
......why the need for Class F contractors?
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As if you don't know. These are usually given to lower rung leaders in the UMNO hierachy. It's almost like giving away money to retain their support for the top rung leaders. Bodohwi went one step further, he gave away RM3 mil to each and every UMNO Divisional leader so that they remain loyal to him. Other BN leaders didn't get it and the money wasn't even camouflaged in a contract.
Lim Kit Siang complained about this in parliament but what can he do? It's like their father's money.
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As if you don't know. These are usually given to lower rung leaders in the UMNO hierachy. It's almost like giving away money to retain their support for the top rung leaders. Bodohwi went one step further, he gave away RM3 mil to each and every UMNO Divisional leader so that they remain loyal to him. Other BN leaders didn't get it and the money wasn't even camouflaged in a contract.
Lim Kit Siang complained about this in parliament but what can he do? It's like their father's money.
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written by Ghifarix, November 18, 2009 12:56:09
written by Ghifarix, November 18, 2009 12:56:09
The irony though is that, the Chinese money are behind the bumi acquisition and the jobs too, so what's the real point here?
May I remind you Koon Yew Yin (CPI), PKFZ ain't finish bend the corner yet.
Stop the race shit that's what I'd really hope to convey.
Equality for ALL!
May I remind you Koon Yew Yin (CPI), PKFZ ain't finish bend the corner yet.
Stop the race shit that's what I'd really hope to convey.
Equality for ALL!
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written by storm62, November 18, 2009 12:40:31
written by storm62, November 18, 2009 12:40:31
A good piece of article that all umno malays don't like !!!
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written by advocatusdiaboli, November 18, 2009 12:39:14
written by advocatusdiaboli, November 18, 2009 12:39:14
This Class F contractorship is apartheid in Malaysia. It clearly stinks of blatant racism in Malaysia. This government with its clear racist laced policies have caused the existing and prevalent mediocre performance in many aspects of our country management. When the taxpayers are all Malaysians irrespective of race, colour, religion or creed then why the need for Class F contractors? More than 80% of tax contributions are from the non bumiputras. Our money is wasted on this unqualified and useless contractors. Throw Najib and BN out of Malaysia. Racist bastards!
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