JOHOR BARU – The proposed Bumiputera equity policy in the 12th Malaysia Plan (12MP) may prove detrimental to the community, said youth-led organisation Muda.
Information chief Zaidel Baharuddin in a statement said the policy, which requires equity from Bumi-owned companies to be sold to Bumiputeras only, may limit the price of such shares.
“Given that the shares can’t be sold based on market demand, it is bound to limit or lower the price of such equities.
“This policy is also bound to limit the number of investors who can purchase these shares.”
He said Bumiputera start-up companies that may require additional investments will have a tough time offering shares on the open market.
This will result in these firms being unable to compete with industry giants in the Asean region, he said.
“Isn’t the government encouraging these companies to move to Singapore to access the international market?”
Given the lack of access to global markets, he said, Bumi companies will be prevented from entering into partnerships with foreign firms.
Zaidel added that with such a policy, the fate of Bumiputera firms will depend on the whims of a small group of wealthy Bumis, who will end up controlling the market.
The term ‘Bumiputera’ is always used as an excuse to implement policies that benefit a small group of wealthy individuals by enriching them further while exploiting other Bumiputeras.
“If we really want to help Bumiputeras, and not cronies, this policy must be reviewed again.”
Prime Minister Datuk Seri Ismail Sabri Yaakob, tabling 12MP yesterday, said Bumi-owned companies and shares will soon be allowed to be sold only to fellow Bumiputera consortiums, firms and individuals, as the government bids to further empower the community.
He said a safety net will be introduced to ensure sustainable equity ownership.
The ownership and disposal of Bumiputera companies will soon be regulated by the relevant ministries and agencies, he added. – The Vibes, September 28, 2021
