Focus on pro-business policies, not the bumiputra capital requirement, the finance ministry urged
KUCHING: The finance ministry should focus on pro-business policies to help the country’s economy recover instead of imposing bumiputra’s 51% equity requirement on transport companies, the said. Sarawak United People’s Party (SUPP).
Its female wing leader, Kho Teck Wan, asked if the requirement of the new economic policy, which was introduced in 1971, is still relevant today.
“I urge Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz to consider the impact on Malaysia’s international trade and entrepreneurship if such a requirement is imposed in December 2022,” she said. in a press release.
She was commenting on reports that the finance ministry had postponed the application of the 51% bumiputra ownership requirement for freight companies until next December.
Kho said that since the start of last year, logistics companies have been facing a very difficult time in the global supply chain crisis due to the Covid-19 pandemic.
She said they were facing container shortages, rising sea freight prices, an air freight crisis due to reduced global flights and a shortage of frontline operational staff.
“And now they face a December 2022 deadline to ensure their companies own 51% ownership of bumiputra.
“No entrepreneur in the world, bumiputra or not, wants to start a business just to sell 51% of the capital and become a minority shareholder, especially if the business is a family business built over a few generations,” she said.
Kho added that the country’s economy is as strong as the purchasing power of the majority, not the privileged few.
She said that although former finance minister Lim Guan Eng claimed to have rejected bumiputra’s 51% equity requirement for freight forwarding companies, nothing has been done to rectify the problem during his time. mandate and the requirement was never withdrawn.
“With over two decades of solid financial and investment experience, I am confident that the current Minister of Finance understands and is well aware of what needs to be done to reform our economy for the benefit of all.
“As the country moves forward with a new government, we must focus on favorable economic policies that can help economic recovery while increasing median household income,” Kho said.