AIA allowed to be locally incorporated without local shareholder

July 17, 2008

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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3 Responses to “AIA allowed to be locally incorporated without local shareholder”

  1. Morgan Says:

    Dear YB,

    This is the first time I am writing to you as a resident of Wangs Maju. I am a close political observer though I do not get involved in politics. The 2008 electoral victories scored by Pakatan Rakyat were something to remember but I am afraid that will all become history if you guys do not pull up your socks. Mr. YB I hardly see you in Wangsa Maju. I am sorry if I have missed you. However, I see Yew (the former MP) quite often. I understood from some residents during the last dialog with the police that you have frequently refused to attend functions organised by the residents. I’m not sure if this is true but one thing for sure is that the former MP is gaining grounds in Wangsa Maju and you are not. I also understand that you have said that you are not a full time politician and that you have your law practice to take care of. Then why run for political office? If you do then you cannot shirk your responsibilities to your constituency.

    Last but not least, I would like to believe all that I’ve heard is not true but I do hope that you will find more time for the people of Wangsa Maju and let the constituency slip into the hands of the ruthless BN.

    Truly

    Morgan
    kalaimagan@yahoo.com)

    • weechookeong Says:

      Dear Morgan

      Thank you for your comments.

      Through out the last 5 years I have never refused to attend any function when I am informed. If it was a matter of public interest I will still attend even if I am not invited. I have never said that I need to spend more time in my law office. In fact my law practice was much affected because I have put too much time on the work of MP.

      MP had to get his priority right in looking after matter involving public interest. My policy has always been if there is a problem and I have knowledge about it I will attend without invitation. I can assure you and the Wangsa Maju constituents that I have never been invited by a RA recently which have had a dialogue with the police had dialogue with the police. I know there is a concerted effort to run me down when I was the MP but I have done my best on most, if not all. I hvev solved many problems in Wnagsa Maju. I must also admit that there were some matters which I could not solved at the material time because it was beyond my control.

      I really am tired after a fool trial in court. I am exhausted now.

      Anyway thank you so much for your comments and encouragement. I am most appreciative of your kind thoughts.

      Thank you

      With kindest regards

      wee choo keong
      With kindest regards

  2. Morgan Says:

    Apology.

    I was not making any comments to the AIA issue but merely making some comments about the developments in wangsa maju. perhaps i posted it on the wrong site.

    my sincere apologies once again.


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