AIA allowed to be locally incorporated without local shareholder

Question submitted to Minister of Finance on 02 June 2008.

YB TUAN WEE CHOO KEONG [WANGSA MAJU] meminta Menteri Kewangan menyatakan kenapakah AMERICAN INTERNATIONAL ASSURANCE CO LTD [AIA], satu-satunya syarikat insuran 100% milik asing, boleh beroperasi selama bertahun-tahun di Malaysia tanpa “locally incorporated”, dan baru-baru ini telah menukar namanya kepada American International Assurance Bhd, dan siapakah rakan kongsi tempatannya dan samada ia telah membayar kos saham sepenuhnya.

Note:

The answer to this question should have been replied earlier because the question was submitted on 02-06-08. At about 4:15 pm I had to invoke Point of Order and ask Tan Sri Speaker of the House to direct the Ministry concerned to reply to my question as today is the last day of Parliament. Tan Sri Speaker did direct the Ministry to submit their reply by today. As for the answer to the above question, I have just received it at about 6:55 pm.

Jawapan:

Tuan Yang di-Pertua,

Untuk makluman Yang Berhormat, semua syarikat insurans asing yang beroperasi di Malaysia tertakluk kepada keperluan pemerbadanan tempatan (local incorporation). Bank Negara Malaysia tidak mengecualikan American International Assurance Berhad (AIA) daripada keperluan tersebut dan mereka telah pun melaksanakan pemerbadanan tempatan pada 1 Jun 2008. Kini, semua syarikat insurans di Malaysia, termasuk AIA telah Berjaya melaksanakan pemerbadanan tempatan dan mempunyai moedal berbayar tersendiri bagi operasi perniagaan insurans di Malaysia.

2. Pada masa ini, AIA belum mempunyai rakan kongsi tempatan. Kerajaan secara berterusan menggalakkan Pembabitan dan pemilikan ekuiti tempatan yang lebih dalam sector insurans di Malaysia, selaras dengan usaha membangunkan industri insurans tempatan di Malaysia.

Note:

1. The Minister did not properly answer my question.

2. The Minister did not answer why AIA was allowed to operate in Malaysia all these years (until 01-06-2008) with 100% foreign equity. From the answer, you will note the obvious omission of this aspect of my question. The Ministry knew that they have no answer because AIA’s presence here contravened Government policy and regulations for the insurance industry. I shall pursue this matter during the next Parliamentary session until I get the answer.

3. How can AIA be allowed to be locally incorporated without local equity or local shareholder. This is very strange. This point has to be pursued to the hilt.

4. From the the answer given, I smell a rat!

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32 thoughts on “AIA allowed to be locally incorporated without local shareholder

  1. anonymous

    Yes, it smells a rat! What a big joke!

    Local insurance company with no Bumiputra or not enough Bumiputra equity will not be allowed to operate but AIA, a Jewish controled company, is allowed to operate for so many years as a foreign company.

    Reply
  2. Malaysia 64

    DULU,KINI DAN UMNOPUTRA SAJA! Rats in WM, first we kill all the rats in putara jaya. Especially budak tingkat 4!

    Reply
  3. ~anok kelate~

    “Bank Negara Malaysia TIDAK MENGECUALIKAN American International Assurance Berhad (AIA) daripada keperluan tersebut dan mereka TELAH PUN MELAKSANAKAN PEMERBADANAN TEMPATAN PADA 1 JUN 2008. ”
    ……what a BIG BIG JOKE for the replied!!!!………..maksudnya sebelum 1 JUN 2008 BANK NEGARA MALAYSIA MENGECUALIKAN AIA!!!……double standard!!!….maksudnya BNM tidur macam BODOHWI dan sengaja mengecualikannya!!!

    nampaknya perkara begini rupa pun boleh berlaku di BOLEH LAND!!!…..ini mengimbaskan “KECEKAPAN” KERAJAAN dalam mengendalikan dasar-dasar kerajaan………..WHAT A SHAME!!!!

    Reply
  4. MAT SIRAT

    ~ ANOK KELATE ~ YANG BUDIMAN,

    TERDAPAT KESALAHAN EJAAN – ‘BODOHWI’ SEPATUTNYA DIEJA SEBAGAI ‘BADAWI’.

    BUKANNYA APA, TAKUT-TAKUT ADA PULA PUHAK YANG MEMBACANYA SEBAGAI ‘BODOHWEE’.

    BETUL TAK, YB WEE?

    MAT SIRAT

    ANTARA SIRATAN DAN SURATAN
    MEDIA / PLATFORM KOMUNIKASI ALTERNATIF ANDA

    http://www.siratansuratan.blogspot.com/

    Reply
  5. Sweet Child

    What about other foreign companies (fully owned by their foreign parent companies) ? What about the new Islamic banks in Malaysia – they are fully owned by their parent companies in the Middle east.

    Reply
  6. Favid

    YB, is AIA Bhd makes you pain? You should concentrate on your constituent as you said in your ceramah b4. Dont mess up people life. Your type of action is worst than BN la.

    Reply
  7. temenggong

    Give this a rest Wee.

    They want to corporatise foreign companies here because they can screw with it, just like they did the other multinationals.

    If it ain’t broke, don’t fix it! AIA is run well!

    Ask them to buy the AIA shares in Hong Kong! They can buy all the equity they want.

    Reply
  8. anonymous

    Good. Expose the inconsistencies of BN. Please do not bother by those earlier comments they have vested interests otherwise they would want you to speak up on the inconsistencies. We want uniform guideline and rules that applies to all.

    YB Wee speak up and fear not.

    Reply
  9. orange

    so if AIA can be exempted, what about the others? if only they can relax this, more foreign investment would pour in. more robust economy and more jobs. at least this MP cares about the big picture and has the ability to attempt for betterment. if you guys want an MP that is only good for managing traffic, drains, petty traders and trees – go for one of those ill qualified ones that would grin and nod all the time, make promises with no idea on how to honor them while robbing you blind. there are plenty for your picking – unfortunately!

    Reply
  10. kiddokit

    Here we go again! This time the boo-boo comes from Favid.

    It wasn’t too long ago that YB Wee brought to our attention the sorry state of Petaling Street and what the DBKL and Saravanan intended to do to resolve the issue of illegals operating there.

    And YB Wee got slammed by some brainless commentators that YB Wee as a parliamentarian should just concentrate on his Wangsa Maju constituency and leave the rest of the country alone. But we know those brainless commentators were wrong then and are still wrong now. Favid probably knows nought about Malaysia and the role of an elected parliamentarian. To him, YB Wee should be clearing out the rubbish clogging up the drain in Favid’s main street.

    Favid, do us a favour. Go menyembah Chew Mei Fun and her BN cohorts for that’s exactly what they do best. To them, a parliamentarian gets voted in if they clean Favid’s longkang the cleanest.

    Reply
  11. anonymous

    Other companies like Standard Chartered Bank, HSBC, Prudential Assurance and many others have to be localised with local shareholders. Why must AIA be exempted for so many years until 1st of June 2008 it is localised but with no local equity. This is contrary to the government policy.

    Do you want to see this BN government practice double standard all the times.

    I am sick when I read comments from idiots, who want their MP to look at clogged drain and uncollected rubbish. quite frankly, BN want all opposition mps to look at clogged drains and sampah sarap etc. In year 2008 we still get such idiot with such pariah mentality. God save Malaysia!

    No wonder BN loves such idiots, who have their brain in between their legs!

    Reply
  12. anonymous

    These blind AIA supporters must accept that AIA wants to do business here the it must be localised with local shareholders and not locally incorporated in name only. We cannot allow AIA to be given special treatments and others had to comply to the governmetn policy and etc.

    I just cannot imagine that these idiots can still talk about: MP should confine himself within his constituency and not talk about government policy and matter of national interest. If that is the case then abolish Parliament and just appoint social workers to look after the clogged drain, rubbish and etc!

    I just cannot believe that in 2008 we still have such idiots around to put in print that MPs should be social workers. Idiots: We have enough of those NGOs already.

    YB Wee just ignore those idiots and carry on doing what you are doing now. You have my support. Don’t ever try to be a social worker like some of the MPs.

    Reply
  13. DD

    Whatever AIA does, at least they have created jobs for Malaysians. Stable jobs. It is already pure BS that companies coming in to Malaysia has to have certain equities owned by Malaysians (who basically sit back and collects something for nothing done).

    Time for Malaysia to WAKE UP and face the real world. If we want to make money, we have got to do it with REAL effort, instead of relying on a FREE ride.

    Reply
  14. HellBoy

    I fully agree with DD.

    It is easier to talk and slam people – try to do the work yourselves and then only will you feel the pain. It is not easy to satisfy so many parties.

    Whether we like it or not, we need foreign investors (given the fact that our own businessmen are going out to invest rather than invest in our own country). This means more job creation, higher salary scale, which further translate to more consumer spending that can generate the economy.

    If we want our MP to concentrate on bigger issues then this is definitely one BIG issue.

    Reply
  15. anonymous

    We, Malaysians, want to know why AIA has been exempted from our national policy pertaining to foreign company operating in Malaysia. I have no qualm about foreign company investing in Malaysia. I fully support them to trade here.

    But at the same time, I want to know why AIA has been given such special treatment to the extent that it does not need to follow government policies.

    Something is wrong somewhere. We must demand for answers.

    We do not need fools to keep on saying that breach of policy or regulations are ok. If this is the attitude that we should not bother about the way we are treated then I feel sorry for the nation because we have idiots as our voters.

    MP Wee just probe on until we get the answer. Forgetting the mercenaries, they are idiots. Just do your Parliamentary works without taking any shit from those idiots.

    Reply
  16. lee wee tak

    Sorry to digress a little

    read this from a tax update this morning.

    “The Windfall Profit Levy (Crude Palm Oil and Crude Palm Krnel Oil) Order 2008, which imposed a windfall profit levy on the production of crude palm oil (CPO) and crude palm kernel oil (CPKO) with effect from 1 July 2008 has been revoked with effect from 15 July 2008. It has been decided to impose the levy on the production of oil palm fruit instead. This means the levy is now shifted from the millers to estate owners.”

    I remember 2 things being said.

    – during GE, many people question that PR do not have the experience to govern.

    – last year, PM Lee Hsien Loong (who once was derided as taking over father’s business) revealed that Singapore has started learning to construct dikes from the Dutch because in 25 to 50 years time the tiny dot will face raising sea levels.

    Form your own conclusions

    Reply
  17. KEW

    Why should we force foreign companies who want to do business here find local partners? Because our government policy says so? Then we should scrape that policy. If they don’t want to get local partners why should we force them?

    I thought you are a liberal chap. Tell me YB if you were in AIA,s shoes what would you feel?

    Reply
  18. MAT SIRAT

    LEE WEE TAK,

    THE REST OF WANGSA MAJUIANS AND I ARE STILL WAITING FOR YOUR PUBLIC APOLOGY DUE TO YOUR RACIAL STATEMENT THE OTHER DAY…

    BUAT-BUAT TAK INGAT MAAA…

    Reply
  19. HellBoy

    19 Kew,
    Nicely put.

    17 Anonymous,
    If we have idiots as voters, are you part of the group or are you implying that you are a non-voter? The way I see it, a non-voter is the bigger idiot as they only talk/criticize and never take any action to do something about the situation (No Action Talk Only).

    18 Lee
    Yeah, where’s the open apology? There is a quote from Maxwell that says that “a man must be big enough to admit his mistake, and strong enough to correct them”.

    Reply
  20. lee wee tak

    The reason I ask you to copy and paste is because I don’t think I have made a racial statement.

    If you think I have erred, show me and I will have a look. If I did err I will apologise. Please show me. I shall wait.

    Reply
  21. lee wee tak

    Mat,

    is it this one?

    “jika di Malaysia, rakyat diberi peluang meluahkan perasaan secara matang dan bertanggungjawab, lama kelamaan ini akan menjadi suatu kebiasaan, umpamanya di Hyde Park, England. Ini jua menbentuk ketajaman fikiran orang ramai khususnya orang Melayu.

    Bila saya baca Utusan Malaysia dan Berita Harian, kritikan dan analisisnya kurang tajam berbanding akhbar Bahasa Cina. Mujurlah kini ada akhbar Bahasa Malaysia lain seperti Sinar, rasanya lebih objektif dan memberi pandangan dar sudut lain.

    Tengoklah malam ini perbahasan DSAI dengan Menteri Penerangan dan cuba lihat sama ada perbahasan ini bermutu atau tidak.”

    is it the “khususnya orang Melayu”?

    ok, izinkan saya terang dulu.
    ————————————————————————-
    Saya pernah membaca satu artikel di Malaysia Today apabila tercetusnya insiden Chua Soi Lok di mana seorang penganalisa Melayu menulis bahawa akhbar media Cina banyak membuat kritikan kepada pengakuan beliau. Menurut karangan itu, mula-mula Chua ingat dengan berani mengakui salah, dia akan dimaafkan tetapi tanggapannya salah. Kritikan menerusi akhbar telah menyebabkannya meletak jawatan

    Penulis itu selanjutnya membuat perbandingan dengan BH serta Utusan Malaysia di mana penulis itu (maaf, terlupa namanya) menyatakan bahawa akhbar-akhbar lebih berperanan melaungkan mesej-mesej kerajaan BN tanpa meliputi pandangan lain dan ini telah menpengaruhi pembaca-pembacanya.

    Oleh itu, maksud saya dalam ayat saya adalah kerana pengaruh media kawalan kerajaan selama berpuluh tahun, firkiran pembacanya akan memihak kepada kerajaan dan oleh itu semasa kempen pilihanraya ada dakwaan bahawa media masa tradisional berat sebelah dan ini menjadi sebab utama kemenangan BN selama ini.

    Berbanding dengan akhbar Cina yang saya baca, terdapat laporan daripada semua pihak secara adil. Malahan kritikan pembaca kepada kerajaan pun banyak disiar.

    Oleh itu, saya rasa pembaca akhbar yang lebih adil mempunyai pandangan yang lebih meluas. Pembaca suratkhabar yang berat sebelah besar kemungkinannya akan mempunyai pandangan yag simpit sedikit berbanding dengan pembaca akhbar yang membuat liputan yang lebih menyeluruh
    ——————————————————————–

    Jika saya ada salah, saya bersalah sini
    1) membuat rumusan terburu-buru mengenai semau orang Melayu
    2) lalai dalam penggunaan ayat saya sehingga mengkritik orang yang tidak “deserve” dikritik kerana orang seperti Bakri Musa, Anwar Ibrahim dsb mempunyai ketajaman fikiran

    Oleh itu, saya pohon maaf atas kelalaian saya tersebut.

    Reply
  22. lee wee tak

    I hope my mistake can be avoided by all reading and commenting here and everywhere.

    I hope my apology can be accepted and taken as an example for all Malaysians to

    – read criticism constructively
    – do some soul searching when being criticised
    – becareful with your words
    – apologise if you are in the wrong

    Previously I have made my stand on the things I have commented because I believe I was right. In the above, MAT is right and I was in the wrong.

    I leave the judgement of my apology to all, not only to people of wangsa maju but all.

    Reply
  23. HellBoy

    Lee,

    Hey man, don’t take it personally….

    As long as we do not offend anybody with our comments, then okay – in this case, we should all be sensitive towards one another.

    Ciao…

    Reply
  24. lee wee tak

    Hellboy,

    of course I take it personally. I put my real name here and I hold myself responsible for the things I write down here.

    I would beat myself up for my mistake. I apologise and move on. I dare say some of the powers to be should emmulate me!

    Reply
  25. Favid

    kiddokit,
    You also another brainless bird. If you cannot take criticism, go hit the drain. I also did not mention a single word about the longkang. It was YOU the one that says it.
    AIA have given over 6600 agents good living. Provide scholarship to further studies without prejudice. Scholarshp holder does not have to be contracted or repaid. They can go and work anywhere they like.
    I welcome YB to highlight this issue why AIA is privilege to be exempted. But the moral of it Ada Udang Disebalik Batu.
    Lastly, YB, if you were to form the new government in coming Sept, what will you do about this issue? Lets wait and see.

    Reply
  26. kiddokit

    Oh, Favid, now you can talk….and talk much more you did! Compared to your earlier post where you posted a simple three-liner condemning YB Wee without just cause.

    You still hadn’t answered the basic problem with your first posting — that is, YB Wee is a parliamentarian and as such, it is his prerogative to look into Malaysia’s issues and bring forth to Parliament’s attention. Not merely to clean your longkang, Favid. Do you get this point? Or does this still miss you completely?

    You want to show your love and admiration to AIA? Hell, go ahead! Who gives a frigging c*nt! And now you added “…I welcome YB to highlight why AIA is privileged to be exempted…”. That I gotta say is a big U-turn! At least now you know YB Wee is doing his job, and not “worst than BN”. Bah!

    But in X-Files fashion, I must admit your other point missed me completely. “The moral is Ada udang di sebalik batu”? Care to elaborate? Don’t shoot from the hips anymore and only to make another U-turn later on in your next posting.

    Reply

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