Wrong to direct GLCs to advertise in UMNO-owned papers

Harakahdaily - TS,

11 November 2013

Nov 11: Deputy Finance Minister Ahmad Maslan’s directive to government-linked companies (GLCs) to spend more in advertising in UMNO-owned newspapers like Utusan Malaysia and Berita Harian continues to draw fire from opposition leaders.

PAS Research Centre director Dzulkefly Ahmad described the government’s directive as legally and morally wrong as it violated the Competition Act 2010 that was enforced in January 2012.

The law is aimed to promote a competitive market environment and provide a level playing field for all players in the market.

In the process, the law will squash anti-competitive practices such as cartels and collusions.

“But with the directive to GLCs to advertise with Utusan and Berita Harian, it means that the government has shut down the desire to create healthy competition,” said the former Kuala Selangor MP.

Ahmad’s statement, said Dzulkefly, echoed a similar request made earlier by Prime Minister Najib Razak in September calling for companies to advertise with Utusan, which he described as the “symbol of the Malay struggle and is also a representation of the achievement of the Malay community.”

Newspaper companies, he said, must rely on advertising to keep them afloat, as they could hardly survive solely based on circulation.

“This just shows that the prime minister is not statesman-minded but still trapped in narrow-partisan mindset. When such directive is issued, how other publication companies feel? It’s a mockery to the Competition Act,” stressed Dzulkefly.

The PAS central committee member also did not dismiss that the directive was actually meant to bail out Utusan from financial difficulties. Utusan had lost several consecutive defamation lawsuits to Pakatan Rakyat leaders over the span of the last 18 months.

Earlier, PKR communication director Fahmi Fadzil said both Utusan and Berita Harian’s circulation had dropped significantly, from 2005 to 2012.

Berita Harian’s circulation dropped 36 percent from 203, 704 in 2005 to 130, 463 in 2012, while Utusan dropped 16.5 percent from 213,445 in 2005 to 178, 211 in 2012.