Friday, March 31, 2023

PM: Only Bumiputeras will be able to buy Bumi firms and shares under the 12th Malaysia Plan

NewsPM: Only Bumiputeras will be able to buy Bumi firms and shares...

Under the 12th Malaysia Plan, the government aims to further empower a certain community by restricting that Bumi-owned companies and shares can only be sold to fellow Bumiputera consortiums, firms and individuals.

Yesterday (27 September), the Prime Minister, Datuk Seri Ismail Sabri Yaakob said this is a safety net framework that will be introduced to ensure sustainable equity ownership in Malaysia.

He added that the ownership and disposal of Bumiputera companies will soon be regulated by the relevant ministries and agencies.

“In an effort to coordinate all these initiatives, a Bumiputra Prosperity Division will be set up with a clearer mandate and function by reassigning officers from all government ministries and agencies.”

“A Bumiputera development action framework will be announced by the end of this year, and will detail several key initiatives in realising our aspiration to improve the socio-economic status of this group.” he said.

Meanwhile, Ismail also pointed out the country has failed to achieve its target of 30% Bumiputeras ownership of corporate equities as of to date.

Ismail said as of 2019, the equity ownership among Bumiputeras only make up 17.2%, while non-Bumiputeras owning 25%, foreign investors with 45.5% and the remaining 12.3% are nominal ownership. 

Source: FMT

Back in 13 May 1969, the Malaysian government has set a 30% target as part of the New Economic Policy (NEP), due to the economic disparity between the races.

Currently, Bumiputeras account for some 64% of the population.

Meanwhile, Ismail also cited Article 153 of the Federal Constitution, which guarantees the position of, and special quotas for, the Malays and natives of Sabah and Sarawak, and Ismail Sabri gave his assurance the Bumiputera agenda will will not be sidelined by the government.

He added that the Bumiputera agenda will be incorporated in the implementation of all federal policies to ensure the group is given priority at all levels and aspects of development.

Apart from the policy on the sale of Bumiputera shares, Ismail said the government will also strengthen the resilience and sustainability of Bumiputera micro, small and medium enterprises (MSMEs) to achieve the target of 15% contribution to gross domestic product by 2025.

“The government will also expand the concept of ‘wakaf’ (Islamic endowment) to diversify financial resources to finance businesses and increase Bumiputera equity.”

It will be supported by the provision of the Bumiputera Prosperity Fund (Dana Kemakmuran Bumiputera) and the Express Contract Financing Scheme (Skim Pembiayaan Kontrak Ekspres) under Majlis Amanah Rakyat (Mara) to assist companies and contractors.

Lastly, Ismail also encourage the participation of more Bumiputera entrepreneurs in the digital economy, as well as industries with high-growth potential.

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