An interesting article below:
BUY Hock Ju Edar brands, Thai King, Dragon and go
against the RICE MONOPOLY
Briefly, this article sets out to describe how BN Govt., using the legislation and economic powers, to erode and eventually take over the rice milling and distribution businesses of the Chinese held
companies.In the eighties, the rice market was mainly controlled by the Chinese carrying such brand names, e.g. Dragon and Pearl,Jasmine, etc. Robert Kuok was then one of the biggest dealers of rice. Mahathir, in pursuit of the NEP policy, instituted the requirement of obtaining APs for the
import of the most commodities. The import of Chinese oranges during the CNY festive period was included in this exercise.Shortly after, the rice market was also targeted by the setting up of Bernas National Bhd. to oversee this policy. Import permits held by the Chinese were rescinded with Bernas being replaced as the sole importer instead. The price of rice was then dictated by Bernas
henceforth. All production of padi must only be delivered and sold to Bernas.Bernas was originally a Government entity. Later, it was divested to Rosmah’s family connections. Having taken over this monopoly, Bernas began to wrest control of wholesale distribution market of this important commodity. Robert Kuok saw through the evil intents of the Government policies and sold off to venture elsewhere.
Not all other rice dealers had his type of potentials and thus had to soldier on despite the mounting harassment and exploitations by Bernas.
In the 90s, Bernas started to absorb the other Chinese rice merchants who had managed to sustain such encroachments thus far. Supplies can be obtained only through Bernas.
After a lapse of another decade, most of the Chinese rice dealers had had to sell off. The remaining one of note is Hock Ju Co.Ltd. the owner of which, Mr. Khoo, stood steadfastly his ground.
The reasons why Bernas could so easily take over the Chinese companies
are twofold, viz.
(1) the lifeline of supply is solely in their hands and
(2) the lack of trading capital of the Chinese merchants.
Bernas would extend credit line to the rice merchants and allowed the credits to accumulate to the tune of million of ringgits which amount eventually had to be settled in the form of shares exchange to Bernas. The one who refused to surrender to Bernas was Hock Ju Edar. It had prepared itself well for this eventuality and its boss is the leader of the Malaysian Rice Merchant Association.
In 2006, Bernas applied pressure on this company by letting it be known that Bernas was interested in acquiring 51 per cent shares of the company. It assured Hock Ju that it will not face rice supplies shortages for its milling operations resulting from this deal.
The other condition was that the company, upon it becoming a part of Bernas, would have to contribute in the million of ringgits to the coffer of BN once every 5 years during national election time. The boss of Hock Ju forthwith rejected the offer because he did not relish the thought of losing his company which he had toiled and built up through decades so easily and undeservedly.
The matter concerning the political contributions was particularly meaningless to him since he had been running his business scrupulously with no political affiliation whatever.
Not willing to let the matter rest, Bernas officials purposely curtailed his orders for supply of rice by giving lame reasons for such shortages.
During the periods of rice shortages, price fluctuations always favoured the Bernas connected companies.
Hock Ju had to deposit with Bernas a banker’s Letter of Guarantee of Ringgit 5 million in lieu of the rice supplies. Suddenly, Bernas informed Hock Ju that the LC had to be redeemed in the form of cash within a fortnight. With the support of the bank and its own resources, Hock Ju managed to overcome this problem temporarily.
However, will Bernas cease to harass Hock Ju further with their sinister intentions? The boss of Hock Ju personally feels that he might not be able to hold on much longer against the might of the evil forces and thus become the last vestige of his kind…!!!
Copyright © 2005 Hock Ju Edar Sdn Bhd.