Bumiputera equity requirement for private education should be referred to Cabinet, says Economy Minister


GEORGE TOWN: Any decision to remove the 30% Bumiputera equity ownership requirement for private educational institutions (IPS) must first go through the Cabinet as it involves a collective government decision dating back to 2009, says Datuk Seri Akmal Nasrullah Mohd Nasir.

The Economy Minister said the matter needed careful handling because it was linked to the government’s ongoing commitment to the Bumiputera empowerment agenda.

"As stated, the decision was based on a Cabinet decision made in 2009.

“So, any decision on this matter is a collective government position, and the Education Ministry must obtain confirmation through the Cabinet,” he said on Thursday (Sept 24).

On Sept 21, the Education Ministry said it would no longer impose the minimum 30% Bumiputera equity ownership requirement on private limited companies operating IPS.

It said the adjustment followed discussions with the Investment, Trade and Industry Ministry (Miti) and aimed to meet the education sector's current needs while keeping participation open to all parties contributing to education development.

However, Miti subsequently said it had no information on the adjustment, adding that matters relating to Bumiputera equity ownership policy fell under the purview of the Economy Ministry.

Meanwhile, Akmal said the government remained committed to the Bumiputera agenda through the Bumiputera Economic Transformation Plan 2035 (Putera35), particularly in strengthening the capabilities of the Bumiputera segment.

He said the agenda should not be viewed solely from the perspective of Bumiputera interests but also in terms of strengthening the country’s overall economic strength, as Bumiputera empowerment should take into account its impact on the wider ecosystem.

“As stated in Putera35, Bumiputera empowerment should be seen as something that can drive shared economic strength, rather than being viewed from a narrow context.

“At the same time, it cannot become a burden or have unintended consequences on development and overall economic activity,” he added.

 

 

 

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