Govt clarifies proposal on sale of Bumiputera shares

PETALING JAYA: The government’s proposal to introduce an equity safety net framework only refers to the sale of shares or companies by Bumiputera-mandated agencies, says economic affairs minister Mustapa Mohamed.

While tabling the 12th Malaysia Plan (12MP) at the Dewan Rakyat on Monday, Prime Minister Ismail Sabri Yaakob said an equity safety net would be introduced to guarantee that Bumiputera-owned shares or firms would only be sold to Bumiputera companies, consortiums or individuals.

Ismail said this after revealing that the government’s target to raise Bumiputera equity ownership to 30% had yet to be achieved.

“This announcement has been interpreted in several different ways.

“This matter has also been raised by some parties to create the perception as if Bumiputeras will take the rights of other races,” said Mustapa.

“I would like to clarify that the proposal to introduce this equity safety net framework only refers to the sale of shares and/or companies by Bumiputera-mandated agencies only.

“The proposed sale does not involve shares and/or companies to be sold by Bumiputera individuals, non-Bumiputeras or foreign companies,” he said.

Among the Bumiputera-mandated institutions Mustapa was referring to include Permodalan Nasional Bhd (PNB), Tabung Haji, and Majlis Amanah Rakyat (Mara).

Mustapa said that Bumiputera-mandated agencies were divided into institutions of Bumiputera interest and Bumiputera trust agencies.

Apart from PNB and Tabung Haji, other institutions of Bumiputera interest include the Armed Forces Fund Board (LTAT) and the Royal Malaysian Police Cooperative (KPDRM).

Apart from Mara, other Bumiputera trust agencies include state economic development bodies, the Malaysian Islamic Economic Development Foundation (Yapeim), Ekuiti Nasional Berhad (Ekuinas) and Pelaburan Hartanah Berhad (PHB).

Mustapa said that under the equity safety net framework, sales in these agencies will only be offered to qualified Bumiputera consortiums, companies or individuals.

Noting that Bumiputera ownership in terms of market value-based corporate equity was only 17.2% in 2019, Mustapa said that the equity safety net framework was created to ensure that Bumiputera interests in existing companies are not eroded.

He also added that disposal of shares or private companies is subject to the approval of sector regulators of the relevant ministries and agencies.

He stressed that apart from the equity safety net framework, there are already several laws and regulations to regulate Bumiputera equity ownership that are in force — and which will continue to remain in effect.

“For example, the acquisition of properties involving the ownership of properties of Bumiputera interest and/or government agencies worth RM20 million require the approval of the Economic Planning Unit under the Prime Minister’s Department.

“This proposal (equity safety net framework) will not take away the interests of other races.” — Free Malaysia Today