FOMCA CONCERNED ABOUT FOREIGN DOMINATION

By Sajad Hussein

PETALING JAYA (Malaysia), July 31 (Bernama) -- The Federation of Malaysian
Consumer Associations (Fomca) Friday called on the government to be "cautious"
when listing government-linked companies (GLCs) on the stock exchange as it
could be detrimental to the well-being of the people and country.

FOMCA is a national non-governmental organisation that is voluntary,
non-profit and ono political. It is an umbrella body of registered consumer
associations in Malaysia.

Its secretary-general Muhammad Shaani Abdullah said what was worrying was
such listing might erode the controlling stake in the companies and subject them
to foreign domination.

He was commenting on the report that a Hong Kong-based company Wang Tak Co.
Ltd had emerged as one of the biggest shareholders of Padiberas Nasional
Berhad (Bernas), a GLC which holds the monopoly for the import of rice.

Wang Tak now holds 31.36 per cent of the total 470.4 million shares in
Bernas.

Muhammad Shaani said Fomca was not against foreign investment or foreign
participation in the country's growing economy, but was concerned with the
management of such companies.


"Investors the world over are interested in only profits and little else,
and hence depending on them for social contribution to national development is
not an option at all.

"Therefore, we must ensure that our assets are not controlled by foreigners
because they will slowly strip them and transfer them to their own
countries," he told Bernama.

Meanwhile, Cuepacs also voiced its concern over the liberalisation of
healthcare services in the country.

It secretary-general Ahmad Shah Mohd Zin said under the liberalisation plan
announced by the government recently, foreign corporations would be given
permission to set up private hospitals in the country and also be allowed to
import their own doctors and paramedical staff.

With this, he added, foreign-managed care organisations (MCOs) and the
health management organisations (HMOs) would set up their network bringing along
their own insurance companies to provide personal health insurance packages to
locals.

He said these developments might be "good on paper as it will provide
competition and spur local hospitals and healthcare services to improve, but in
reality it will undermine the existing healthcare system".


"This is because there will be rampant pinching of specialists, doctors and
paramedical staff from the government hospitals, thus worsening the brain
drain and affecting the quality of services.

"The MCOs and HMOs together with the insurance companies will dominate the
healthcare system, thus depriving the lower-income group of quality healthcare
services," he reasoned.

Ahmad Shah pointed out that 90 per cent of civil servants depended on
government medical services and if such services were poor, then they would
suffer, particularly the retirees.

"In view of this, we appeal to the government to be very careful in opening
up our healthcare services to foreigners," he added.

Ahmad Shah also expressed concern over medical tourism because "if not
properly controlled, it may also erode the quality of medical care for
Malaysians".

-- BERNAMA