A government policy introduced last November, which requires 50 percent bumiputera ownership for any company that wants to buy GLC or GLIC-owned properties worth over RM20 million, is under the spotlight.
Former finance minister Lim Guan Eng, in a statement on Sunday, questioned why the Economy Ministry had raised the equity threshold from 30 percent to 50 percent.
Lim (above) claimed that the shift in the property acquisition guidelines (PAG) had not only upset Pakatan Harapan supporters but also raised concerns that the Madani government may adjust other policies in a like manner.
As such, he called on Prime Minister Anwar Ibrahim to revert the policy to a 30 percent threshold.
Lim also denied that this was a race issue.
"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.
According to The Edge, the policy shift was carried out on Nov 18 last year, while the Economy Ministry was helmed by Finance Minister II Amir Hamzah Azizan.
When contacted for clarification in March, the ministry told the business portal that the policy was to ensure that the disposal of strategic assets by GLCs and GLICs was aligned with national socioeconomic objectives and the bumiputera agenda.
This includes ensuring economic benefits from asset disposals "are more inclusively distributed and contribute to sustainable wealth creation of the bumiputera community”.
Balanced development
PAS secretary-general Takiyuddin Hassan, in a statement yesterday, said the goals of the revised equity requirements are in line with national aspirations for balanced development.
However, he said such policies should not be carried out in an opaque manner that exposes itself to contradictory interpretations.
"The government must explain the implementation mechanism, exemptions and valuations used, whether a thorough impact assessment was carried out in regard to investor confidence, market liquidity, and value of national assets.
"PAS believes efforts to strengthen bumiputera equity must be carried out through credible, stable and competitive policies, not policies that are obfuscated, rushed, and have the potential to weaken the market, besides devaluing strategic assets," the PAS leader said. - Mkini
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