The Dandelions

.. the mutual admiration and bashing society.

FIC was never legal anyway

Posted by Oscar the Grouch on July 2, 2009


Now that Najib has announced the disbanding of the Foreign Investment Committee (FIC), and the ending of the FIC Guidelines, I’m sure many of us have our personal thoughts on the issue.

Some may think that the doing away of the 30% bumiputera requirement is a good thing; others may think its replacement with requirement of 50% stake of public offering in listing companies makes the whole exercise redundant and superfluous.

However, I’m not going to touch on those issues. I want to highlight some revelations on the FIC which I think most Malaysian knows not of.

The FIC was set up on 20th February 1974 to promote and protect the New Economic Policy that has just been implemented then.

The FIC comes under the auspices of the Economic Planning Unit (EPU). The EPU itself is not a ministry or government department – but as the namesake suggests – it is the economic planning unit of the Prime Minister’s Department. Over the years, this subsection has become increasingly powerful, overshadowing even that of other Ministries. In fact, some Ministries have become indirectly subservient to the EPU, waiting for directions before implementing or embarking on any governmental projects.

The FIC is merely a committee – albeit a powerful one – consisting of senior civil servants led by the Director-General of the EPU.

The FIC has – over the years – issued many guidelines, commonly known as the FIC Guidelines, to regulate and coordinate matters on foreign investment, acquisition of assets or interest, mergers and takeovers of companies and businesses by both local and foreign investors.

Once the FIC Guidelines is imposed to a particular transaction, the parties would have to apply to FIC for approval. The FIC will then impose conditions for approval. The conditions include: –
• for companies with less than 30% Bumiputera equity, to increase the Bumiputera equity to at least 30%;
• for companies with more than 30% Bumiputera equity but less than 50%, to maintain the Bumiputera equity at least at 30%;
• for companies with more than 51% Bumiputera equity, to maintain the Bumiputera equity at least at 50%;

What we need to understand is this – the FIC is not a proper ministry or body set up under the law. It is merely a committee. It is, to put it crudely, a working group; or at most, a board, with no real executive powers given in law.

Consequently, the FIC Guidelines also do not have force of law. It is not an Act of Parliament. It is not a law or by-law. It is merely a guideline, or garispanduan. None of us need to follow it.

This issue has been taken up in the courts. In the case of Ho Kok Cheong Sdn Bhd & Anor v Lim Kay Tiong & Ors (1979) 2 MLJ 224, the High Court confirmed that the FIC Guidelines have no force of law. The judge, Justice Wan Hamzah said: –

“The guidelines were issued not pursuant to any power given by law, and in my opinion they have no force of law but are of advisory character merely. I do not think that non-compliance with the guidelines can be taken as an act opposed to public policy. The guidelines reflect the government’s political policy but government’s political policy is not public policy.”

In a later case of Malaysia Overseas Investment Corporation Sdn Bhd v Sri Segambut Supermarket Sdn Bhd (1986) 2 MLJ 383, the High Court again re-affirmed its stand on the FIC Guidelines when Justice Siti Norma Yaacob held that the guidelines have: –

“… no force of law but of advisory character only and non-compliance whatsoever will have no effect as to the legality or otherwise of the contract.”

If the FIC Guidelines have no force of law, what happens if we don’t comply with it? The answer is nothing.

In the case of Thong Foo Ching & Ors v Shigenori Ono (1998) 4 MLJ 585, the Court of Appeal held that non-compliance of the FIC Guidelines would have no effect on the parties and the transaction. Justice Siti Norma Yaacob, now sitting in the Court of Appeal, explained the court’s decision as follows: –

“A reading of the guidelines shows that there is no penalty imposed for non-compliance of any of their provisions. From the nature of the document itself and its purpose to eradicate poverty by restructuring the Malaysian society so as to correct any racial economic imbalance, at most I would say the guidelines impose a moral obligation only on those affected to comply with their provisions.”

So, in the midst of all the hullaballoo of the end of the FIC and the de-regularisation of the Guidelines, let us pause to think of all the Malaysians that have been hoodwinked into complying with a 30% equity requirement that was never valid or legal in the first place.

20 Responses to “FIC was never legal anyway”

  1. reek said

    Islam in Malaysia is suppressing humanity, dignity and desire of a normal human being.

    Islam in Malaysia is causing trouble to non-Muslims who goes about their everyday life to do what any other normal human being on earth are doing.

    Islam in Malaysia does not respect traffic law when Muslims can park their cars all over the road and cause inconvenience to everybody.

    Islam in Malaysia does not contribute to the progress of the malay race and any other race in Malaysia.

    Islam felts threaten in Malaysia, when nobody actually gives a damn about them.

  2. yuking said

    Malaysia is be a Taliban state! Teaching kids to kill people, preaching hates and angers, chasing away investors with their

    seditious, racist, insensitive, incendiary, extremist utterances, unfair to non-malays.

    Enough is enough!

    To all the people out there, Please vote for a change! Vote the opposition! Vote the DAP!

  3. fargowin said

    I have suggested in the past that Chinese Malaysians should just gather their wealth and leave Malaysia and let malays them

    become backwards.

    Singapore is desperately looking for skilled foreign workers due to dwindling birthrates. Many Indians are working over there.

    Seriously Chinese Malaysians should look into moving to Singapore.

    I am sure China can make good use of the wealth of Chinese Malaysians. Is there any policy the China government have

    enacted to encourage overseas Chinese to come back and make China their home once again?

    That will teach the Malaysians a lesson. Their economy will crumble and will put them back 50 years.

  4. ruyom said

    Hi I am a malay. And I have never liked the concept of Ketuanan Melayu in the first place. I believe in equality and justice. I believe in fairness. I believe that Malaysia should be for all Malaysians not just malays.

    It is wrong to be double standards. It is wrong to discriminate and oppress the minorities. It is after all, against Islam. But oh, the Muslim people I know would rather talk about appearance and threat rather than addressing the basic issue of human right and justice in Malaysia.

    I am sorry that you guys have to suffer the consequence. We should all turn our backs on MCA, MIC, Umno and those craps. Opposition seems to be fighting for the better Malaysia for all Malaysians. And I support the effort.

  5. coolooc said

    That is why malay is the most arrogant, corrupted, racist and terrorist race in the world. To the world population, malay is only a minority. And yet, still keep on talking about Islam, Muslim, Syariah law. Shame on you!

  6. Dear all,

    It is not my intention for this post to create racial or religious animosity.

    Whilst understandably the topic of the NEP – and perhaps to a lesser extend the FIC – indirectly hinges on ethnicity concerns, it is perhaps best to read this post in a broader perspective.

    Whilst comments are welcomed, I fervently believe a considerable amount of self-restrained and politeness will go a long way.

    Idealistic as it is – in my eyes – we are all Malaysians. We should consider instead, that perhaps the current division between us are not caused entirely by religion or race, but fuelled by decades of political propaganda by the government.

  7. To all traitors said


    Yes, i think you all should go back to where you come from.

    I would rather be backwards…then let you all Chinese traitors keep the wealth and be ungrateful to this country.

    You always ‘mudah lupa’ once you have all the money. Remember..once upon a time you all dying to stay here..and we the Malays comprimise to let you live with us.

    Again, I would rather be backwards…then let you all Chinese traitors keep the wealth and be ungrateful to this country.

  8. Ju said

    The following write up by Matthias Chang (albeit a strong supporter of Tun M) makes the most sense to me:

    For those who still harp on the 30% equity issue have a good read.

  9. miya said

    Bodoh punya melayu babi……….

    Baik balik ke tanah melayu la. We are natives of Sabah and Sarawak land – buat apa kamu punya orang datang sini menjajah kita oh?

    Kita tak suka kamu orang datang sini mengorek sumber petroleum tanah kita – this Sabah and Sarawak land not belongs to your malays.

    Get out from Sabah and Sarawak la!

    Bodoh melayu babi!

  10. vesewe said

    This country was all along a land for Orang Asli. The Chinese originated from China, Indians originated from India, malays originated from Indonesia etc. China get to give priority to the Chinese, India get to give priority to the Indians, and the malays are just freeloading from the Orang Asli land by claming it is bumi land.

    This is because they are doing what Allah said……….Allah told malays to come from Indonesia and steal the land from Orang Asli and use Orang Asli as slaves. So when is Malaysia giving priority to Orang Asli?

    The only time Malaysia is not a racist country is when an Orang Asli becomes the prime minister of Malaysia – which is never – it is a genocide in the name of Allah!

  11. good man said

    It is undeniable that malays are stupid, incapable and lazy. Why don’t they just humbly admit the facts and repent and learn from other races especially Chinese?

    What is the point to argue here and wasting time again?

    From the first onwards we were merely telling the truths. It wasn’t us who think that way but their own Badawi as well.

    All malays should go and read the newspaper, even Badawi is ashamed of maintaining the NEP after 34 years of implementing it and these malay baboons are still asking for it.

    Even Badawi wanted them to compete on a level playing field.

    So what does all these tell the world? It sends a very clear message that it is malays themselves who are incapable and lazy and they don’t even want to admit it and make a change!

    That is the biggest shame of all.

    Can’t you see, it is all back to square one. Year in, year out, some talk for half an hour, some one, some two. Some sing, many belt out their most recent released ‘pantun’.

    After all. Malays are good at that. Suggestions after suggestions, some good, some impossible to realize.

    But, do you see any of these materialised? Hardly. Why, why and why???

    Because the malays can never change. Never! Why?

    The leaders forgot it or were they simply didn’t want to address and admit that the actual disease is the malays and the remedy itself is also, the malays. They can never change. What is it about the malays?

    Firstly as you all know, they are a lazy species. Since the beginning of time they have been like that. Even the encyclopedia called them as lazy people. I think those British with their accent tried to call them ‘malas’, and if you put ‘y’ in, it becomes ‘malays’.

    Embracing Islam make them a worse lot. Now they have a license to kill anything that gets into their way.

    Malays are ungrateful lot. In reality, they just can’t live or open their minds for others. When Mahathir said that they are complacent, they put him in jail. When Mahathir encouraged them to learn English language, they got angry with him, saying it is a ‘bahasa penjajah’.

    When other races ‘maju’, they got angry with them too. That was why at the end of Mahathir his regime, he said this, “I have achieved greatness as a prime minister, but I only fail in one thing, changing the malays.”

    Well, nothing to be surprised about anyway since Mahathir is not really a malay, and I guess that was why the malays were angry with him.

    Drug abuse, hate, incest, liberal extremism (culture of miniskirts and gay marriages), murder, parochialism, racism, rape, religious fanaticism, snatch theft, spoilt bratty behavior, tribalism, wife abuse, child abuse, all that is associated with the malay race.

    To them, malay is the biggest impediment towards building a truly Malaysian nation, and should be chucked into the dustbins of history.

    A genetically flawed race cannot be fixed by politically. Nature will take its course and globalization will put them out to pasture.

    What have we got now?

    Brain drain, economic disparity getting wider, poor education system, racial segregation, widespread corruption, inefficiency and uncompetitive on the government departments and others.

    Sad. Sad. Sad. The question asked by many of my fellow Chinese is this – Why can’t you just tell the malay peoples to adopt Chinese culture which is superior?

    From research, this peninsular was part of the Siamese empire way before these malays from Indonesia invaded it.

    Still so thick skin, don’t want to go back to Indonesia!

  12. Ju said

    Some of the comments above are very racists. Can we address the issue of the poor implementation of the NEP etc instead of race bashing the Malays?

  13. Ju said

    BTW – I meant the comments in the Responses, not the article itself.

  14. barbie said

    Guys, stick to the topic. This is not bashing Malays post. Read, if you don’t understand the content of the post, butt off. Idiots like you are part of the problem Malaysia is facing now. Instead of finding a solution, you resort to bashing other races? Come on, you guys can do better than that.

    It’s the corrupt, twisted policy of the government we are against. It’s just a small group of individuals with power, hiding behind their racialistic make up to continue plundering the nation. We are not against Malays. Or Chinese. Or Indians. Or any Malaysian.

    Grow up. It’s the implementation of the NEP, the flaws and weakness of the methods employed by the government we should be debating about.

    What’s good bashing Malays? What’s good bashing Chinese?

    I see any out of topic comments, I will delete it. Idiots are not welcomed here, you can go create your on blog and bash anyone you like. There’s a limit to freedom of speech and expression in this blog.

  15. the superior chinese said

    Yeah…i think the malays in Tanah Melayu are so stupid and worse of all let and compromise the ‘clever’ and ‘superior’ Chinese live among them 50 yrs ago.

    For the Chinese, the rich means clever and superior. This is not the case for malays culture.

    I think the Indonesians are cleverer in this case. They assimilate the Chinese into their Bangsa Indonesia.

    Even then in 1998, the Indonesians killed and raped without mercy thousands of the Bangsa Indonesian Chinese in the famous bloodbath riot.

    In our case, the stupid Malaysian Malays, they quarrel among themselves, for the sake of this ‘superior’ Chinese.

    Bangsa Malaysia is just rhetoric.

    Nowdays, the Malays race is so stupid with their ‘compromise’ attitude’ when their races are killed thousands in Thailand and thousands in Southern Filipina. Remember, these Malays merely killed to defend their rightful Pattani land and Mindonao. This is their soveriegn motherland for hundreds years, until it was colonised by the west.

    The Malaysian Malays so stupid, they even dont care thousands of their brothers killed here and there. They keep quareling each other.

    The clever Chinese (communist) try to take over the Tanah Melayu by force during the emergency. Not fighting directly to the British Army, they killed Malay soldiers.

    Till this day, most Chinese are clever enough not to wasting their life joining the army.

    This is such a bad country, why dying for this country right?

    Again…the indonesian are much clever by killing hundreds of the Indnesian Chinese in the 1998 riots …

  16. the superior chinese said


    When the ‘tuan’ British colonised the Tanah Melayu, they called the malays is a lazy species.

    As you know, the white man races is so diligent and ‘hard working’ guy. They were surprised when they cant force the malays to work for them in the bijih timah mines and plantation.

    “ lazy malays, we have rob your land and now work in our plantation and tin mines , you lazy species. ”

    The British said, ” You malays are lazy, not like the African that we caught as slaves. They are hard working”.

    The British so angry and they wrote in their encyclopedia that the malays is the laziest races known to man.

    “We come very far and brought our Benggali soldiers to kill you for this Tanah Melayu land….and now you dont want to work for us? You are so lazy…”

    “OK…we will let our Benggali soldiers killed you in war”

    Then the British who is hard working , have a clever idea. They cant brought African slaves, they have alternatives, why not we bring the ‘hard working’ and clever Chinese and Indian to work for us.

    We dont called they slaves, we called them ‘coolies’.

    “Hey chinese and indian guys..its ‘cool’ to work for the white man, you know. From nowdays we call you ‘kuli’.”

    “Its not slaves like the African, its a cool job to work for British. Dont be like the lazy malays. All they know is to revolt to us not working for us.”

    “Remmeber…you are cool..and hard working..We will write in our book how lazy the Malays races.”


  17. mauryaII said

    Hi Barbie,
    I wish your comment had come very much earlier! Bashing one another along racial lines will never help if our goal is to see a Malaysian nation without the racial caveat.

    The Americans with all their diverse races, religions and political dogmas are proud to call themselves as Americans. There is of course a great disparity among the Americans in terms of wealth, position or status. But it is not the American government’s policy to marginalize any of its citizens under any skewered economic policy such as the NEP to uplift only one race.

    The proponents of the NEP might have had a sincere desire to bridge the chasm between the haves and the have-nots. But it is the way the NEP was implemented that has created an apartheid type of racial marginalization.Even if the government had implemented the NEP according to the population ratio: 60:30:8:2, the situation in the country would have been palatable.

    What the implementors did was to hijack the NEP exclusively for one particular race. It is that racist and hagemonic mentality that has created inequality, suspicion, animosity and a feeling of being unwanted and deprived of their rights and privileges as citizens of this beautiful country.

    The NEP which was agreed upon by all the coalition partners in the Alliance and the Barisan Nasional was for a period of 15 years. Even after a number of decades, the government claims that the Malays have not achieved parity with the other races and has even been arrogant in declaring that the NEP will be implemented indefinitely.

    What the divide and rule policy of the government (inherited from the colonialists) fails to show is the almost dominant role of the Malays in the Armed forces, the Police force and all the other government controlled bodies.

    They failed miserably to give equal opportunities to all the races. Even among the Malays, the ones who are very well off are the UMNOputras in the urban and suburban areas. These Malays hijacked everything the government offered to the citizens. Even the ordinary Malays did not benefit from the NEP.

    The older generation of rural (kampung) Malays were left out of the development process. The government has always considered them as uneducated peasants only fit to cast their votes for the BN in all the general elections. They were considered as just vote banks.

    The FIC was a sham. It was not a legislated body empowered to do what it had done illegally all along. It is the same as the stipulation that all SDN BHD companies must have Bumiputra shareholders with at least 50% shares in the company to do business with the government and related companies. Even now the GLCs do not award tenders to companies without 50% bumiputra shareholders.

    What is striking is the attitude of the government servants. They behave as if they are doing us a favour everytime we have to approach them for their services which is paid for by the taxpayers. They don’t realize the reason they are called civil/government SERVANTS. They are not the bosses. It is the people who pay them (through taxes) with their hard earned money.

    Nothing will change until and unless the government realizes that they are voted in for all the people (races). The government is a mult-racial one which is mandated to rule impartially and fairly for all the citizens of the country. The wealth of the country is for all, not for any one particular race.

    The day we call ourselves Malaysians and treat each other as equals in every sphere of life, then we can congratulate ourselves as civilized, educated and caring human beings.

    Name calling and uncivilized snide remarks and gestures just go on to show the shallowness and boorishness of our upbringing.

  18. The WHite Man said


    fargowin said
    July 2, 2009 at 6:42 pm

    I have suggested in the past that Chinese Malaysians should just gather their wealth and leave Malaysia and let malays them become backwards. ”

    Thats true…thats what Chinese Malaysians should do. Get out from here..and let the malays run Tanah Melayu without foreign races intervention!

    You think Malaysia system by Malacca Sultan feudal Islamic system will make Tanah Melayu traditional and backwards?

    Ironically, that what the malays think is the best should happen uninterruptly 500 yrs ago, b4 the Portugese colonised Malacca!

    Remember, it was through the Malacca Islamic feudal system administration that Malacca become famous and achieve its glory!

    Its the Islamic Sultanate Malay system make the Malacca unique and peace harmonusly before the west intervention!

    The unique system mainly originated by Islamic values from the Arabs made all the non-muslim and muslim live and trade happy at that time.

    It is not the Chinese people or Chinese system that make Malacca harmonius and progressed.

    Its the administration and attitude of the high tolenrancy and compromise of the malays make all the people from all races from all over the world can trade peacefully during that time.

    For this first time in history of the world, 500 yrs ago, all people around the world (west and East) meet each other and learn to understand each other peacefully, not war.

    At that time only the grateful Chinese foreigner will make their own decision to be true Malacca citizen, just like happened to Chinese Peranakan, and make the Bangsa Malaysia happen easily.

    If any foreigner dont like it to stay, they can always make your decision to return to the mainland.

    Not the Arabs , not the white man, not the Chinese land, its the Malay land that Islam adminsitration come to thru global peaceful life for the first time in the world !

    The malay race make Islam and malays blend naturally. The gentleness of malay attitude is perfect blended with Islam values.

    For the first time the world all the people all over the world learned and trade and know each other cultarally peacefully from each other in the land called Malacca (Tanah Melayu)!

    Perhaps bahasa melayu thats was a lingua franca at that time surely will become world language.

    Only God knows what good things can happen if this thing continue uninterruply!

    Sadly…then the west (Portugese, Dutch, English) came and colonised the peaceful land and turn all the things upside down……

    Funny the ‘clever’ white man west cant administer the peaceful land like the ‘stupid’ malay…..

  19. anon said

    The FIC rules may be mere guidelines but in in effect, they are like a code written in stone as no government agency will issue any licences or approval or anything if those guidelines are not complied with or a written exemption obtained. That’s how they get in the backdoor what they can’t get in the front.

  20. Dan dengan menggunakan hujah individu-individu paling kaya di Malaysia adalah terdiri daripada mereka yang bukan Melayu, Tun beranggapan adalah patut untuk meneruskan DEB dengan memberikan keutamaan kepada orang Melayu dan menghukum orang bukan Melayu yang miskin dan ketinggalan? Bukankan intipati asal DEB adalah untuk membantu semua yang miskin dan memerlukan pertolongan ekonomi tanpa mengira kaum? Sejak bila DEB itu khusus untuk orang Melayu sahaja?

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