A STUDY is being carried out by the Bumiputra Agenda Steering Unit (Teraju) with regard to the 51% bumiputra equity holdings in local freight forwarding companies, says Tengku Datuk Seri Zafrul Abdul Aziz.
“The Finance Ministry has given a further extension of the exemption for the second time until December 2022. This is to allow Teraju to scrutinise bumiputra participation in the logistics sector in a more in-depth manner.
“The findings of this study will be tabled to the Cabinet so that a roadmap is drawn up with regard to bumiputra participation in the logistics sector to ensure the industry continues to grow,” he told Anthony Loke (PH-Seremban).
Loke urged the government to review the policy as it could lead to the “Alibaba” system.
Tengku Zafrul noted that the issue of bumiputra equity share was raised by Prime Minister Datuk Seri Ismail Sabri Yaakob in the 12th Malaysia Plan.
He said figures revealed that bumiputra participation stood at only 17.2% despite after 30 over years of the New Economic Policy to ensure 30% bumiputra participation in the economy.
He gave the assurance that the study by Teraju would take into account views of all stakeholders before a decision is made.
Tengku Zafrul noted that the issue of 51% bumiputra equity in local freight forwarding companies is not new.
He said the Federation of Malaysian Freight Forwarders had appealed to the government for an exemption in 2016 when the policy was decided in 2015.
He said the Finance Ministry had agreed to exempt local companies holding the status of international integrated logistic service provider (ILLS) until December 2020.
“A second extension of the exemption was given until Dec 31, 2021. The exemption covered ILLS companies that are fully foreign-owned or those listed on Bursa Malaysia,” he said.