Why The Government Plan To Increase Bumiputera Equity Ownership At The Expense Of Other Malaysians When 45.5% Of Equity Is Foreign-Owned ?

A lawmaker has questioned why the government’s plan to increase bumiputera equity ownership is at the expense of other Malaysians.

Citing figures where 45.5 percent of equity is foreign-owned, Syed Saddiq Syed Abdul Rahman (Independent-Muar) said it was unjust to take away equity from non-bumiputeras.

This is as foreign-owned companies are also given bumiputera equity exemptions, he said.

“The government’s solution (to increase bumiputera equity) is to take equity from non-bumiputera Malaysians and to give it to bumiputeras.

“Where is the fairness? We prioritise foreigners more than our very own Malaysians because they (non-bumiputeras) were not born Malay and Muslim,” he said in the Dewan Rakyat today.

he 45.5 percent foreign-owned equity as of 2019 was cited by Prime Minister Ismail Sabri Yaakob while tabling the 12th Malaysia Plan yesterday.

Bumiputera equity is at 17.2 percent, non-bumiputera 25 percent, and nominee ownership is 12.3 percent.

The issue of bumiputera equity ownership had become a hot issue since last week amid plans to require local freight-forwarders to have 51 percent bumiputera ownership if they want to be involved in international services.

They also said this would put local companies at a disadvantage, as foreign-owned freight forwarders are exempt from bumiputera equity rules.

Implementation of the rule for freight forwarders has been postponed to the end of 2022, pending a review.

Meanwhile, the government also outlined yesterday a plan where bumiputera shares can only be sold to other bumiputeras.

yed Saddiq said the plan would only benefit “cronies” and the rich, and not actually help poor bumiputeras.

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