In late August 2008, Ahmad Ismail was highlighted over racist remarks uttered during campaigning in a by-election in Permatang Pauh that primarily pitted Barisan Nasional candidate Arif Shah Omar Shah (UMNO) against Pakatan Rakyat candidate Anwar Ibrahim (PKR) for the Permatang Pauh parliamentary seat.
In a further outburst during a press conference on 8 September, Ahmad seditiously warned the Chinese community not to seek political power:[4][5][6] "The patience of the Malays and Muslims has a limit.
[4][5] Former Law Minister Mohamed Nazri Abdul Aziz voiced similar views that Ahmad Ismail should be held accountable for his remarks and issue an apology.
[12] However stronger action than had been expected in a bid to soothe growing anger from the Chinese community and among parties in Barisan Nasional ruling coalition.
[14][15] The MCA, a component party of the Barisan National, has expressed shock that Ahmad Ismail, who made racist remarks has not been taken to task but reporter Tan Hoon Cheng, who wrote about the incident, has been arrested instead.
[16] "The perpetrator who vowed to conduct a nationwide roadshow on his remarks without any remorse is still at large," MCA vice-president Datuk Ong Tee Keat said.
The company was a special purpose vehicle, intended to receive concession to develop the Penang Outer Ring Road (PORR), a project which was subsequently delayed by the federal government in 2008 following the 2008 general election.