Malaysia

12MP: Only Bumiputeras will be able to buy Bumi firms, shares, says PM

Safety net framework to be introduced soon to ensure sustainable equity ownership, explains Datuk Seri Ismail Sabri Yaakob

Updated 5 years ago · Published on 27 Sep 2021 1:07PM

12MP: Only Bumiputeras will be able to buy Bumi firms, shares, says PM
Prime Minister Datuk Seri Ismail Sabri Yaakob says a Bumiputra Prosperity Division will be set up with a clearer mandate and function by reassigning officers from all government ministries and agencies. – Prime Minister’s Office pic, September 27, 2021

by Amar Shah Mohsen

KUALA LUMPUR – Soon, Bumi-owned companies and shares can only be sold to fellow Bumiputera consortiums, firms and individuals, as the government bids to further empower the community under the 12th Malaysia Plan (12MP).

Prime Minister Datuk Seri Ismail Sabri Yaakob said a safety net framework will be introduced to ensure sustainable equity ownership.

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,” he said in tabling the 12MP in the Dewan Rakyat today.

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

Ismail Sabri said the country has to date failed to achieve its target of Bumiputeras owning 30% of corporate equities. 

As of 2019, he added that equity ownership among this group only makes up 17.2%, with non-Bumiputeras owning 25%, foreign investors with 45.5% and the remaining 12.3% are nominal ownership. 

Citing Article 153 of the federal constitution – which guarantees the position of, and special quotas for, the Malays and natives of Sabah and Sarawak – Ismail Sabri gave his assurance the Bumiputera agenda will not be sidelined by the government. 

He said this 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. 

Other than the policy on the sale of Bumiputera shares, Ismail Sabri said the implementation of home-ownership quotas will be strengthened through closer cooperation between federal, state and local governments. 

“Additionally, financial aid, guidance and mentoring by financial institutions will be further expanded to assist Bumiputera entrepreneurs.” 

Ismail Sabri 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.

This 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.

The government will also encourage the participation of more Bumiputera entrepreneurs in the digital economy, as well as industries with high-growth potential, he added. – The Vibes, September 27, 2021

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