Scrap Bumiputera equity ownership for land acquisitions, govt told

Doing so will expand the country’s investment quality, Muhyiddin says

by ANIS HAZIM/ pic by BERNAMA

NATIONAL Recovery Council (NRC) is asking the government to consider waiving the Bumiputera equity ownership requirement for land acquisitions exceeding RM20 million for foreign investment in the service sector.

NRC chairman Tan Sri Muhyiddin Yassin said scrapping the requirement could expand the quality of investment for the country.

“Malaysian Investment Development Authority reported that RM58 billion in foreign investment could not be realised due to investors’ limitation to meet Bumiputera requirements,” Muhyiddin told a press conference after the NRC meeting today.

However, he said this requirement can be imposed back once the post-pandemic economy has fully recovered.

Previously, he noted that the Bumiputera equity ownership had been implemented by the previous government during the economic crisis.

Meanwhile, Malaysia has successfully attracted RM306.5 billion in investments in 2021 including Intel Corp from the US, SK Nexilis Co Ltd (South Korea), Porsche and Mercedes Benz from Germany.

“The council is of the view that the proposed strategy should be supported, yet should place emphasis on reviewing existing investment incentives and improving the investment ecosystem.

“This includes considering some leeway that is appropriate to optimise the impact and improve the country’s competitiveness in support of national recovery efforts,” he added.