UEM-EcoWorld merger must not marginalize Bumiputeras



THE proposed merger between UEM Sunrise and Ecoworld Berhad must not compromise on the rights of the Malays.

Property analysts said UEM Sunrise owns huge tracts of Bumiputera reserve land which should not be “surrendered”easily to EcoWorld.

“After the merger, UEM and Ecoworld must work together and find ways how their cooperation can benefit the Bumiputera.

The rights of the Bumiputeras cannot be swiped aside,” a property analyst from Maybank Investment told Bebasnews.com.

The analyst said UEM is owned by Khazanah Nasional Berhad and it will most likely protect the interests of the Bumiputeras.

“Ecoworld is not doing well thus Khazanah must not merge at the expense of the Bumiputeras,” said the source.

UEM Sunrise, a 66 percent subsidiary of UEM Group announced on Bursa Malaysia yesterday that merger talks with EcoWorld have started.

Meanwhile, a former chief executive at a Government linked company said the merger must be done for the right reasons.

“If the merger is done because it wants to emerge leaner, stronger and become more efficient, then go for it.

But if the merger is carried out to bail EcoWorld which is not doing well right now, then it is wrong and shareholders should vote against it at the company’s annual general meeting.”

Meanwhile, former Permodalan Nasional Berhad chief executive officer Jaleel Rashid was also against the merger.

Jaleel sais companies in Malaysia like to have big institutions to back it up especially when they have discussions with banks.

Jaleel said on his Twitter account that it is better for companies to become more efficient rather than merge because big does not necessarily mean better.

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