Plantations’ merger good business, says PM
Malaysiakini.com
Dec 1, 2006

he proposed merger of plantation giants Sime Darby Bhd, Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd was today described as "good business" by Prime Minister Abdullah Ahmad Badawi and consistent with the government’s policies.

“I have no objection. I think it has been very carefully thought-out and is certainly good. I am happy that they are the world’s number one plantation company,” he told a press conference after chairing a three-hour Umno Supreme Council meeting in Kuala Lumpur this evening.

The premier said increasing and expanding capacity had always been a government policy and towards this, the proposed merger was in line with government aims.

The merger, announced last week, creates the world's largest  palm oil firm and is aimed at boosting Malaysia's status as a top palm oil producer amid growing regional competition.

However, uncertainty arose when Perbadanan Nasional Bhd (PNB), a government investment vehicle with substantial shareholdings in all three of the companies, said it was in the dark over the proposed merger.

When asked whether PNB would accept the deal, Abdullah said: “I don’t think they have any problem.”

Keep papers’ features

On yet another merger hogging the headlines, the union of media giants Utusan Group and the New Straits Times Press (NSTP) the prime minister said he could not comment as the parties involved were in the midst of negotiations.

When pressed, Abdullah said that he was of the opinion that the public would like to see the identities of the newspapers involved being maintained.

“Newspapers have their own different history and identities which the people would like to see maintained. Their strength depends on their financial position. But we hope they can maintain their own features."

News of the merger surfaced earlier this week when it was reported that the two public-listed organisations will be grouped under a yet-to-be named entity.

The merger will also see the new entity coming under the total control of ruling party Umno.

NSTP publishes the English dailies The New Straits Times and The Malay Mail as well as Malay newspapers Berita Harian and Harian Metro while Utusan publishes Utusan Malaysia and Kosmo!

Media watchdogs have condemned the proposed merger, saying that it is a bad move for press freedom.

Anwar factor

On Anwar Ibrahim’s statement that he would stand in the coming general elections, Abdullah said the former deputy prime minister could say what he wished. 

Anwar, 59, told reporters in Washington yesterday that he would run for parliament if general elections were held in 2008.

His platform would be to push for greater democracy and press freedom and an easing of affirmative action laws that have enriched cronies of the government.

“He can say anything he likes. We will decide what the time it (the elections) is going to be and we will face anybody as we have faced anybody against us before,” said Abdullah. 

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