12MP: Bumiputeras Will Be Prohibited From Selling Their Shares And Businesses To Non-bumiputeras

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Under a soon-to-be-enacted government law, the sale of Bumiputera shares or enterprises will be limited to fellow Bumiputera consortiums, firms, and individuals.

Prime Minister Datuk Seri Ismail Sabri Yaakob announced this in Parliament on Monday, saying the equity safety net framework is aimed at maintaining sustained Bumiputera equity ownership.

He stated that the ownership and disposition of Bumiputera businesses will be regulated in the near future by the relevant ministries and authorities.

To coordinate all of these measures, Ismail Sabri announced the establishment of a Bumiputera Prosperity Division with a more defined mandate and function by reassigning officers from all government ministries and agencies.

“This phase aims to enhance the Bumiputera agenda’s execution through excellent governance. A framework for Bumiputera development will be announced at the conclusion of this year. This section will discuss several major activities aimed at improving this group’s socioeconomic status,” he explained.

The prime minister emphasised that the government’s aim of increasing Bumiputera business stock ownership to 30% has yet to be reached, noting that it stood at only 17.2 percent as of 2019.

Non-Bumiputeras owned 25% of company equity, foreign investors held 45.5 percent, and nominees held the remaining 12.3 percent.

“The government is aware that a sizable proportion of Bumiputeras remain impoverished and low-income in comparison to other ethnic groups. The median income disparity between Bumiputeras and Chinese has increased further, to four times its 1989 level in 2019.

“I can tell you that the Bumiputera agenda will be bolstered and will not be overlooked. As stated in Article 153 of the Federal Constitution, which protects the Malays and indigenous peoples, including the indigenous peoples of Sabah and Sarawak, as well as the legitimate interests of other races. The government’s objective is to promote a more just and equitable socioeconomic growth that is consistent with the Malaysian Family spirit,” he explained.

This agenda would be integrated into the implementation of all federal policies to ensure that Bumiputeras receive priority at all levels and sectors of development, he stressed.

Ismail Sabri stated that access to and chances for education and human capital development, particularly huffaz, will be strengthened in order to increase Bumiputera participation in economic pursuits.

Additionally, the government will increase the resilience and sustainability of Bumiputera micro, small, and medium-sized firms (MSMEs) in order to meet the 15% contribution to gross domestic product target by 2025.

This would be facilitated through the establishment of the Bumiputera Prosperity Fund and the Express Contract Financing Scheme under Majlis Amanah Rakyat (MARA).

The government would also encourage more Bumiputera entrepreneurs to enter the digital economy and high-growth industries, according to Ismail Sabri.

He noted that stronger collaboration between the federal, state, and municipal governments will bolster the execution of home-ownership mandates.

Additionally, financial institutions’ assistance, coaching, and mentorship of Bumiputera enterprises would be enhanced.

“As part of an initiative to advance the Islamic economy, the notion of wakaf will be broadened as a method for diversifying financial resources in order to finance enterprise and boost Bumiputera equity.

“In this regard, further endowment tools will be introduced, including the establishment of a national waqf fund to mobilise additional resources for entrepreneurship and socioeconomic development programming. To ensure more efficient wakaf management, a National Wakaf Master Plan will be established,” Ismail Sabri stated.

Published by Zack Baharum

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