1. The Golf Life The Observer by V. Ravindran
How we got government
backing and screwed it up
The proposal to issue AP’s for buggies by the
Malaysian Golf Association to abolish import duties
on buggies had the government’s seal of approval.
The funds collected would have been used for
future golf development. Somehow, certain parties
in the business threw a spanner in the works
V. Ravindran is the CEO of Samarahan
Country Club in Kuching and has served
two national golf associations in 28 years.
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Once a game played only by kings, the game
today is very much accessible to the masses.
It has evolved due to affordable
memberships, reasonably priced
equipment, an army of teaching
professionals and sprouting training
facilities.
In 2009, the then Deputy Prime
Minister, Dato’ Seri Najib Tun Razak made
a pledge of RM1 million towards junior
development based on a request for funds
by the Malaysian Golf Association (MGA).
It was during the cheque presentation
ceremony that Najib engaged in a
conversation with then president, Datuk
Robin Loh that would have lowered the
high cost of buggies.
As accurately and as much as I can
remember, this was what was discussed:
Najib: “When will the MGA be making a
request for more funds?”
Robin: “No sir, we are not coming
back for more funds but will instead be
generating more funds!”
Najib: “How will you do it Datuk?”
Robin: “Well sir, as you may be aware
the cost of purchasing a buggy costs
around RM24,000, which is equivalent to
buying a Kancil car.”
Najib: “What has that got to do with it?”
Robin: “The cost is high due to the import
duty imposed by the government (Ministry
of Finance) and the AP issuance by MITI
(Ministry of International Trade And
Industry).”
Najib: “How will that help MGA in
generating more funds?”
Robin: “Well sir, if only you could
abolish the import duty and give MGA the
AP facilities, we would not need any more
government funding. With the right to
issue the AP, MGA will levy small fees for
each buggy purchased by the golf clubs
and this will benefit MGA long-term.
That’s a reasonable request and good for
the MGA to stand alone.”
Najib: “Datuk please go ahead and submit
the proposal papers to the Finance Ministry
and from there it will be taken to the Cabinet
for approval for the benefit of the sport”.
After that conversation, they both
shook hands and MGA received its first
million Ringgit mock cheque in its 80-
year history from the government.
As the association’s general manager
then, I prepared the working paper on
the cost of buggy, tax duties based on
brands, buggy fee rates at clubs and even
a maintenance expenditure report.
It took me almost nine months to
complete the report.
Meetings at the Malaysian Industry
Development Authority (MIDA) with
buggy manufacturers and at the finance
ministry revealed that the officials
were unaware, or knew little about the
buggy sector. These were obstacles that
I had to face to explain the finer details
on buggies, i.e., applications for two-,
four- and six-seat units, and how it was
applied in clubs or at factories, airports
supermarkets and etc.
I liaised with three MIDA officers until
the fourth entered the picture, fresh from
his overseas assignment in the USA.
He had good knowledge on golf and
my job was finally completed. The final
proposal was submitted to the Finance
Ministry who would then recommend it
to the Finance Minister.
By then, the DPM was already the
Prime Minister of Malaysia.
The waiting game was finally over
when a crucial and quick discussion
during the 2010 Maybank Malaysian
Open transpired between Loh and Najib,
who made an announcement that the
“duty on buggies” will be abolished.
The day after the announcement, calls
came via the office and my personal cell
phone from then Ministry of Finance and
MITI calling for an urgent meeting to sort
out the finer details.
The next two weeks saw me making
trips to Putrajaya, sitting in meetings and
giving more presentations to the relevant
authorities from the Finance Ministry,
MIDA, MITI, and the Customs.
All explanations were thoroughly done
and recorded that the “Duty” will be
abolished by the Finance Ministry but the
“AP” had to be sorted out by MITI.
The solution was to amend the MGA
constitution with the Commissioner of
Sports to be able to collect a levy for the
buggies purchased by golf clubs. Every
club that purchased buggies for their use
must get a supporting letter from MGA
to be eligible for the exemption of the
import duty.
In return, MGA was to receive a small
fee for each buggy and the funds will be
used for the future development of the
sport in the country.
The COS gave the clearance and
everything was in place for MITI to
announce the final carrot for MGA.
Alas, it was not meant to be.
Unscrupulous buggy dealers, a
few selfish clubs and individuals had
protested to MITI that the association
should not be collecting any fees. It
developed into a big headache for MITI.
To resolve the matter, the abolishment
of tax was made for the whole industry
and the eventual loser was the MGA.
Many clubs believed that they had a
good deal and the cost of buggies will be
cheaper but since then, it is back to the
old price structure.
So, where do we stand now? Who is the
beneficiary after the nine-month long
project? MGA as the governing body are
supposed to be looking after the benefits
of its members, in this case the clubs, but
looking at it, the buggy dealers are having
a glorious time. It’s time for check and
balance.
I also initiated the request for a subsidy
on greens keeping machinery and fuel
subsidies for clubs under the MGA’s
purview.
Perhaps, the files are still there and
hopefully not forgotten, hidden away in
storage or trashed.
If we can stage big scale events and give
away lucrative cash prizes which are tax
exempted, I don’t see why we can’t do the
same for buggies and turf machinery?
“WELL SIR, IF ONLY YOU
COULD ABOLISH THE IMPORT
DUTY AND GIVE MGA THE
AP FACILITIES, WE WOULD
NOT NEED ANY MORE
GOVERNMENT FUNDING. WITH
THE RIGHT TO ISSUE THE AP,
MGA WILL LEVY SMALL FEES
FOR EACH BUGGY PURCHASED
BY THE GOLF CLUBS AND THIS
WILL BENEFIT MGA LONG-
TERM. THAT’S A REASONABLE
REQUEST AND GOOD FOR THE
MGA TO STAND ALONE.”
Perhaps, the files are still there and hopefully not
forgotten, hidden away in storage or trashed.