KUALA LUMPUR (Oct 3): The proposal by the government to introduce an equity safety net framework refers only to the sale of shares or companies by Bumiputera-mandated agencies, says Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.
Among these-mandated agencies he referred to include Bumiputera-interest institutions such as Permodalan Nasional Bhd (PNB) and Lembaga Tabung Haji (TH), as well as Bumiputera-trust agencies like Majlis Amanah Rakyat (MARA), Perbadanan Kemajuan Ekonomi Negeri dan Ekuiti Nasional Bhd (EKUINAS).
Apart from PNB and Tabung Haji, other Bumiputera-interest institutions were the Armed Forces Fund Board (LTAT) and the Royal Malaysian Police Cooperative (KPDRM).
Meanwhile, other Bumiputera-trust agencies were Pelaburan Hartanah Berhad (PHB), Perbadanan Nasional Berhad (PNS), VentureTECH Sdn Bhd, Malaysian Islamic Economic Development Foundation (YaPEIM), and Perbadanan Usahawan Nasional Bhd (PUNB).
“The proposed sale does not involve shares and/or companies to be sold by Bumiputera individuals, non-Bumiputeras or foreign companies. Under the equity safety net framework, this sale will be offered to consortiums, companies or qualified Bumiputera individuals,” he said in a statement on Sunday.
The clarifications were made by Mustapha after Prime Minister Datuk Seri Ismail Sabri had announced to propose a Bumiputera equity safety net framework when tabling the 12th Malaysian Plan 2021-2025 (12MP) on Monday (Sept 27), which has led to several different interpretations.
He said the matter has also been raised by some parties to create the perception as if the Bumiputera will take the rights of other races.
“The announcement stated that to ensure [a] sustainable Bumiputera equity ownership, an equity safety net framework would be introduced so that the sale of Bumiputera shares or companies would only be offered and sold to other Bumiputera consortiums, companies or individuals,” said Mustapa.
According to the Jeli member of parliament (MP) further, Bumiputera ownership in corporate equity based on market value was only 17.2% in 2019. As such, he said the announcement is made to ensure that existing ownership will remain with the Bumiputera and will not be eroded.
“This proposal will [also] not take away the interests of other races,” said Mustapa.
He also noted that apart from the equity safety net framework, there are also several laws and regulations that are in force to regulate Bumiputera equity ownership, and added that these laws and regulations will remain in effect.
This, as Mustapa said, is the disposal of shares or private companies being subject to the approval of sector regulators of the relevant ministries and agencies.
“For example, the acquisition of properties involving the ownership of properties of Bumiputera interest and/or government agencies worth RM20 million and above, will need to obtain the approval of the Economic Planning Unit (EPU), [under the] Prime Minister's Department.
“This is to ensure that Bumiputera’s interests in existing companies are not eroded,” he said.