KUALA LUMPUR: The equity safety net framework proposed in the 12th Malaysia Plan (12MP) refers only to the sale of shares or companies by bumiputra-mandated agencies and will not take away the interests of other races, says Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

       In a statement yesterday, he said these bumiputra-mandated agencies only consist of institutions of bumiputra interest and bumiputra trust agencies.

       “The sale proposal does not involve shares and/or companies that are to be sold by bumiputra individuals, non-bumiputras or foreign companies.

       “On the contrary, the announcement (of the equity safety net) only involves the sale of shares and/or bumiputra companies by bumiputra-mandated agencies,” Mustapa said.

       He said that under the framework of the equity safety net, the offer of sale will be made to qualified bumiputra consortiums, companies or individuals.

       Institutions of bumiputra interest include Permodalan Nasional Bhd, Lembaga Tabung Haji, Armed Forces Fund Board and the Royal Malaysian Police Cooperative.

       Bumiputra trust agencies consist of the state economic development corporations, Majlis Amanah Rakyat, Ekuiti Nasional Bhd, Pelaburan Hartanah Bhd, Perbadanan Nasional Bhd, VentureTECH Sdn Bhd, Malaysian Islamic Economic Development Foundation and Perbadanan Usahawan Nasional Bhd.

       Bumiputra corporate equity holding, based on market value, stood at a mere 17.2% as of 2019, he pointed out.

       “The announcement (on the proposal by Prime Minister Datuk Seri Ismail Sabri Yaakob when tabling the 12th Malaysia Plan on Monday) is aimed at ensuring the existing bumiputra equity ownership will be maintained and not be eroded,” the minister said.

       He added that the proposal would not take away the interests of other races.

       Apart from the equity safety net framework, Mustapa said, there are laws and regulations on bumiputra equity ownership that are in force, and these will remain in effect.

       Disposal of private companies and/or their shares is subject to the approvals of sector regulators from the relevant ministries and agencies, he said. — Bernama