Govt reverses 50pct bumi equity rule for companies that want to buy GLC property

The government has reversed a policy decision requiring 50 percent bumiputera ownership for any company that wants to buy GLC- or GLIC-owned properties worth over RM20 million.

Economy Minister Akmal Nasrullah Nasir told Parliament via a written reply yesterday that the threshold was reverted to 30 percent after a review that included consultation with stakeholders.

He told Bagan MP Lim Guan Eng that the reversion is also in line with the ministry's property acquisition guidelines which have been in force since July 2022.

The threshold was previously raised from 30 percent to 50 percent in November last year ostensibly to ensure that the disposal of strategic assets by GLCs and GLICs was aligned with national socioeconomic objectives and the bumiputera agenda.

The policy shift was carried out when the Economy Ministry was helmed by Finance Minister II Amir Hamzah Azizan.

It came under scrutiny in May this year, with Lim - who is a former finance minister - saying it not only upset Pakatan Harapan supporters but also raised concerns about the Madani government making race-based policies.

"No Chinese Malaysian opposed the RM2 billion acquisition of a substantial stake in Eco World Development Group Bhd and its sister company by the richest bumiputera entrepreneur, Syed Mokhtar Albukhary.

"Clearly, Chinese Malaysians accepted this transaction because they see this not through a racial lens but as a market-based commercial decision by private parties.

"The problem is that there are still extremists in Malaysia who continue to look at the racial angle in every commercial decision," he said then.

In his reply to Lim yesterday, Akmal (above) did not specify when the policy was reversed.

However, law firm Zul Rafique and Partners had, in an article on their website on Aug 20, indicated that they had an engagement session with a Economy Ministry official in which it was revealed that the 30 percent equity threshold was restored sometime in early August.

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