KUALA LUMPUR – The equity safety net framework proposed in the 12th Malaysia Plan (12MP) refers only to the sale of shares or companies by Bumiputera-mandated agencies and will not take away the interests of other races, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.
In a statement today, he said these Bumiputera-mandated agencies only consist of institutions of Bumiputera interest and Bumiputera trust agencies.
“The sale proposal does not involve shares and/or companies that are to be sold by Bumiputera individuals, non-Bumiputeras or foreign companies.
“On the contrary, the announcement (of the equity safety net) only involves the sale of shares and/or Bumiputera companies by Bumiputera-mandated agencies,” Mustapa said.
He said under the framework of the equity safety net, the offer of sale will be made to qualified Bumiputera consortiums, companies or individuals.
Institutions of Bumiputera interest include Permodalan Nasional Bhd, Lembaga Tabung Haji, Armed Forces Fund Board, and the Royal Malaysian Police Cooperative.
Meanwhile, Bumiputera trust agencies consist of the state economic development corporations, Majlis Amanah Rakyat, Ekuiti Nasional Bhd, Pelaburan Hartanah Bhd, Perbadanan Nasional Bhd, VentureTECH Sdn Bhd, Malaysian Islamic Economic Development Foundation, and Perbadanan Usahawan Nasional Bhd.
Bumiputera corporate equity holdings, based on market value, stood at a mere 17.2% as of 2019, he pointed out.
“The announcement (on the proposal by Prime Minister Datuk Seri Ismail Sabri Yaakob when tabling the 12MP last Monday) is aimed at ensuring the existing Bumiputera equity ownership will be maintained and not eroded,” the minister said.
He added that the proposal would not take away the interests of other races.
Apart from the equity safety net framework, Mustapa said, there are laws and regulations on Bumiputera equity ownership that are in force, and these will remain in effect.
Disposal of private companies and/or their shares is subject to the approvals of sector regulators from the relevant ministries and agencies, he said.
“For example, for the acquisition of properties owned by Bumiputeras and/or government agencies that are worth RM20 million and above, the approval of the Economic Planning Unit of the Prime Minister’s Department is required.
“This is to ensure that existing Bumiputera interests in companies are not eroded,” Mustapa said. – Bernama, October 3, 2021
