KUALA LUMPUR – The government plans to clarify its recently announced proposal to only allow the sale of Bumiputera shares or companies to Bumiputera consortiums, companies, or individuals, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.
“I acknowledge there has been confusion and we will have to clarify that. We will do this in due course,” he said on TV3’s Money Matters programme today.
He explained that Bumiputera share ownership comprises shares owned by Bumiputera individuals as well as Bumiputera-mandated institutions, and together they made up about 17.2% of shares owned in 2019.
“What we mean in our proposal is that Bumiputera-mandated institutions, which include Permodalan Nasional Bhd, Tabung Haji, and Ekuiti Nasional Bhd, can only sell their shares to other Bumiputera institutions, consortiums, or individuals,” the minister said.
When asked why Bumiputeras were still lagging behind in equity ownership even after 50 years of the National Economic Policy (NEP), Mustapa said the NEP had been successful, firstly, in transforming Bumiputeras in the area of education, but its success has been not as big in the economic sector.
He cited several reasons that Bumiputera equity ownership has stagnated at about 16%-17% in the last few years, including low incomes, low-paying jobs, and low levels of technical skill.
“That’s why it is our policy to increase Bumiputera share ownership to a higher percentage and that’s why we’d like to make sure, as much as we can, that shares in Bumiputera hands – which have been held by Bumiputera-mandated institutions – remain as much as possible in Bumiputera hands; they can only be sold to other Bumiputera institutions, consortiums, or individuals,” he added.
On Monday, Prime Minister Datuk Seri Ismail Sabri Yaakob, when tabling the 12th Malaysia Plan in Parliament, said the equity safety net framework was aimed at ensuring sustainable Bumiputera equity ownership.
He said the ownership and disposal of Bumiputera companies would soon be regulated by the relevant ministries and agencies. – Bernama, October 2, 2021
