Malaysia slaps ban on British firms

MALAYSIA yesterday banned British firms from government contracts potentially worth billions of dollars, saying it was sick of ''patronising'' British media stories alleging corrupt business dealings.

The government reintroduced the ''Buy British Last'' policy of a decade ago.

Prime Minister Datuk Seri Dr Mahathir Mohamad said Malaysia had no quarrel with the British Government, but added: ''Some in the British media have colonial brains. People who are not like them are [considered] all corrupt or can be corrupted. If they keep on writing like this, they [Britain] will not get any more of our contracts.'' Dr Mahathir said British Prime Minister John Major had contacted him and expressed regret, but Malaysia had no intention of reviewing its decision.

Britain said it hoped to restore friendly ties, but refused to take up complaints about press reporting.

British firms, including the conglomerate Trafalgar House, which is 28.25 per cent owned by Hongkong Land, said they faced serious future losses as a result of the decision.

Former High Commissioner to Malaysia and now head of the diplomatic service, Sir David Gillmore, was flying to Kuala Lumpur.