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©Bernama (Used by permission)
by M. Saraswathi

BOSTON, May 9 (Bernama) -- People must not misinterpret the government's policy of encouraging government-linked companies to give business to both Bumiputera and non-Bumiputera companies, Deputy PrimeMinister Datuk Seri Mohd Najib Tun Razak said Tuesday.

"There should not be any hard and fast rules but there should be efforts to help both," he said when asked to comment on Malayan Banking Bhd's new ruling requiring law firms to have at least three partners, one of whom must be a Bumi with a 50 percent stake, before they can do any business with the bank.

The deadline for firms already doing business with Maybank -- a government linked company -- is a year after implementation of the new ruling on July 1, 2007.

The move has sparked a controversy among chambers of commerce and legal firms, with the latter saying they should be given jobs based on merit and not on such racial quotas.

Besides Maybank, another unnamed bank is believed to have made a similar decision.

"The government's policy is that we want to encourage GLCs to give work to both Bumiputera and non-Bumiputera (companies), Najib told reporters at the ongoing BIO 2007, the world's largest biotechnology convention.

"We don't want this to be an issue. What they (Maybank) should have done is just (follow the government policy), which is to help both (Bumiputera and non-Bumiputera companies)," Najib said.

"It is unfortunate that sometimes people interpret it in their own way," he said.

Najib, who is also Defence Minister, is leading a Malaysian delegation of 350 participants for BIO 2007 which started on May 6 at the Boston Convention and Exhibition Centre.

Asked if Maybank would be asked to pull back such a ruling, Najib said: "Well, I think they know what the government policy is."

"They should understand that. At times you need to give work to Bumiputera companies. In some cases, you will require non-Bumiputera companies. So, they can help out. I think that is OK," he said.

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