Malaysian economy has some strict norms for financial trading and listings of Companies. The economy is known for its Islamic capital and being the world’s largest Islamic finance hub many Muslim countries look up to it for financial strategies.
The country dropped 33 out of 87 Bumiputera furniture producers from the list of suppliers to the government in the past few days. This move of delisting some major names in the industry baffled the industrial as well as the financial aspects concerned. The Finance Ministry of Malaysia explained yesterday that those companies were dropped as they missed their deadline of one year to obtain the required specific certification. The Finance Ministry also stated that it will now be extending the deadline by six months, awarding time to the furniture firms that had shown an interest in being a certified supplier but hasn’t done the certification process due to some issues. This response from the ministry came to the Malay Economic Action Council (MTEM)’s allegation of unfair treatment towards the 33 Bumiputera firms. Deputy Finance Minister Datuk Amiruddin Hamzah, shed light on the topic by stating the ministry had on June 22, 2018 listed 87 Bumiputera furniture companies on the panel of suppliers under the KPB for a three-year period from July 1, 2018 to June 30, 2021. This listing was with a condition to be certified from Forest Research Institute Malaysia’s (FRIM) Product Certification Services (PCS) within one year of the contract being in force until June 30, 2019, failure to fulfil that condition would cause the company to be automatically dropped from the KPB list.
Based on information available on FRIM’s PCS website, 67 companies have as of September 5 passed the required tests and successfully received certification for products such as tables and chairs for school students, racks, kitchen cabinets, file cabinets.
Originally published on https://www.marketexpert24.com
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