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

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