The recent order by Putrajaya for government-linked corporations (GLCs) to spend more advertising ringgit in Umno-linked Utusan Malaysia and Berita Harian (BH) runs against the spirit and provision of the Competition Act, MCA Vice President Gan Ping Siew says.

Gan issued this statement after Deputy Finance Minister Datuk Ahmad Malan was reported saying that more money is needed to support the two Malay newspapers.

He believes that this move amounts to anti-competition practice and that Ahmad should retract his statement.

He explains that the nature of a GLC is a ‘company’ and it must be run as a commercial entity on commercial principles to be able to compete in the market.

It is also against the GLCs shareholders’ interest, if it is a listed company, by spending advertisement and promotion expenditure without justifiable returns, Gan stresses.

“If Sinar Harian, Metro, Kosmo, Star, Sinchew, Oriental, Malay Mail and many other media houses can compete, as they should , in the marketplace, in attracting more readers and advertisers on their own merit, I see no reasons why Utusan should enjoy privilege at public fund. It is an affront to Utusan's competence and professionalism too.” he says

Ahmad gives the example that the top 35 GLCs only spend 3.7 per cent of their combined advertising budget on Utusan.

“Advertise according to proportion, be fair. I have written letters to ensure the appropriate action is taken to increase advertising in Malay newspapers,” he was quoted as saying by news portal Malaysiakini.

“We are not asking for a majority of the budget, but this is too little... do not overspend on English and Chinese newspapers,” Ahmad Maslan added.

Gan believes that it is not the place of the government to ‘subsidize’ a media company as it is a gross abuse of ministerial power to give such an instruction to GLCs to advertise in any favoured media.

” We are a ruling party of this government and should love to have such privilege treatment in favour of the Star media from GLCs as we are the majority shareholders of the Star . But we don’t for a simple reason. We know such privilege treatment is, in principle, flawed and indefensible.” he said in a statement.