LPKP Sarawak waives equity requirement for all existing Licence ‘A’ holders, says chairman

KUCHING (Sept 24): The Commercial Vehicles Licensing Board (LPKP) Sarawak has unanimously agreed to waive the equity requirement for all existing Licence ‘A’ (container) holders, said Michael Kong yesterday.

The LPKP Sarawak chairman said this means that businesses whose licences were approved before Sept 12 this year can continue to operate and renew their licences without needing to meet the 51 per cent Bumiputera shareholding requirement.

He said this would ensure stability and continuity in the industry.

“It was also agreed that all new or additional Licence ‘A’ (non-container) applications from these companies can be processed and approved,” he said in a statement.

The statement was issued after he received a courtesy call from the Sarawak Forwarding Agencies Association (SFAA) at the LPKP Sarawak office here.

During the meeting, Kong said they had a productive discussion on various issues affecting the forwarding industry, with a particular focus on the equity requirements for freight forwarders operating under Licence ‘A’ (container).

At present, he said Licence ‘A’ (container) holders are subjected to an equity requirement where 51 per cent of the company’s shares must be held by Bumiputera.

He said this policy was established many years ago to encourage Bumiputera participation in the forwarding industry.

“However, over time, many existing companies have grown, diversified and expanded their operations, which has naturally led to changes in their shareholding structure. Some businesses, in the course of their growth, no longer meet the 51 per cent Bumiputera equity requirement,” he explained.

Kong said strict enforcement of this requirement would mean that many of these well-established businesses would face closure, which could have a significant negative impact on the forwarding industry in the state.

He added that a sudden closure of such businesses would create a glut in the industry, leaving the market under-serviced and potentially driving up costs for consumers and businesses alike.

He pledged that LPKP Sarawak is committed to being proactive in finding practical solutions that help sustain and grow the industry while fostering a more open and competitive business landscape.

“Our approach will ultimately benefit Sarawak’s economy, ensuring smoother logistics and more competitive costs for businesses and consumers alike.

“We are confident that these measures will not only protect the interests of existing players but also encourage new players to enter the market under fair and sustainable conditions,” added Kong.