Malaysia

51% Bumi ownership of freight forwarders: govt unable to devise long-term solution, Dewan told

Teraju tasked with further looking into community’s participation in logistics industry, finance minister says

Updated 4 years ago · Published on 28 Sep 2021 11:23AM

51% Bumi ownership of freight forwarders: govt unable to devise long-term solution, Dewan told
The issue of enforcement of 51% Bumiputera ownership of freight forwarding companies has grabbed headlines in recent days. – Pixabay pic, September 28, 2021

by Isabelle Leong

KUALA LUMPUR – Putrajaya is unable to come up with a long-term solution to resolve the issue of enforcement of 51% Bumiputera ownership of freight forwarding companies, said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.

During Ministers’ Question Time in the Dewan Rakyat today, he revealed that the ministry could take immediate measures, such as deferring the duration for companies, which are local customs agents, to comply with the Bumi participation rule only twice – first until December 2021, and then to December next year.

“In looking for a long-term solution to this issue, the government has given the responsibility to Teraju (Bumiputera Agenda Steering Unit) to further look into the participation of Bumiputeras in the logistics industry.

“The findings of the study will be presented to the cabinet, and we will try to chart the direction of the involvement of Bumiputeras in this sector and ensure that it continues to grow. This is especially in terms of improving the industry’s efficiency and increasing productivity.”

He was responding to a supplementary question by Datuk Mohd Salim Sharif (Jempol-BN), who wanted to know the steps taken by the government since 2018 until now to enforce the 51% Bumiputera rule.

Tengku Zafrul said the issue, including any decisions made by his ministry, must be taken into consideration by all stakeholders.

“This matter must be studied thoroughly, and it requires the cooperation of various parties and ministries.

“As presented by the prime minister in the 12th Malaysia Plan (12MP) yesterday, after over 30 years since the New Economic Policy was introduced, Bumiputera equity ownership stands at only 17.2%.

“Therefore, the proposal to introduce an equity safety net framework, and the establishment of the Bumiputera Prosperity Council, which will standardise all the initiatives regarding this matter, are welcomed.”

Yesterday, Prime Minister Datuk Seri Ismail Sabri Yaakob (Bera-BN) said the country has failed to achieve its target of Bumiputeras owning 30% of corporate equities.

He said equity ownership among this group makes up only 17.2%, with non-Bumis owning 25%, foreign investors (45.5%) and nominal ownership (12.3%).

He also revealed that soon, Bumi-owned companies and shares can be sold only to fellow Bumiputera consortiums, firms and individuals, as the government attempts to further empower the community under 12MP. – The Vibes, September 28, 2021

Related News

Malaysia / 9h

2006 policy may force tuition centres to possess 30% Bumi equity

Education / 2mth

Racism and bigotry in Malaysian higher education are spilling over to social media

Malaysia / 7mth

Malaysia's population hits 34.3 million in fourth quarter of 2025 as growth slows

Business / 11mth

Matrix Concepts, Golog Holdings set to elevate MVV TechValley into nation's next logistics powerhouse

Malaysia / 1y

Malaysia will not bow to external pressure that undermines national policy - Anwar

Malaysia / 1y

Respect our religious and cultural rights - say Sabah, Sarawak groups

Spotlight

Malaysia

Bersatu-PAS cooperation ends, Muhyiddin says, as PN rift deepens

Malaysia

Calls grow for arrest of Nadzaruddin, Exco, for treason

Malaysia

Loke offers to resign as Transport Minister following Pardons Board decision

Malaysia

UMNO’s fundraiser for Najib draws sharp criticism on social media

Malaysia

Home Ministry yet to receive formal order on Najib house arrest

By Alfian Z.M. Tahir

Malaysia

PH Melaka, Bersatu in talks for wider election pact

You may be interested

Malaysia

Two bodies found in car in Alor Gajah, police classify case as sudden death

Malaysia

Rukun Negara, Royal Institution video triggers call for broad legal probe

Malaysia

Misleading online health ads to be referred to MCMC for action

Malaysia

No discussions yet on PH-Bersatu cooperation for Melaka polls - Fahmi

Malaysia

PM Anwar informed of Loke’s intention to resign, yet to meet him

Malaysia

House arrest is still prison, with residence subject to prison rules

Malaysia

UMNO’s fundraiser for Najib draws sharp criticism on social media

Malaysia

Home Minister: Malaysia has no home detention law yet