By MALAYA CORPORATE
The Advantages of Bumiputera Status
What is bumiputera status ?
Under SC : A Bumiputera-controlled company is here defined as a company in which more than 50 per cent of its equity is owned by Bumiputera shareholders/institutions;
Some consumers and clients may prefer doing business with Bumiputera companies due to their Bumiputera status, which can create a competitive advantage in certain market segments
Access to Government Contracts
- Bumiputera status companies have preferential access to government contracts, tenders, and procurement opportunities. Government agencies often allocate a certain percentage of contracts specifically for Bumiputera companies, which can help them secure business and revenue.
- To Register with Mof (Minister of Finance : Bumi must own 51%)
- Sample project : https://www.mof.gov.my/portal/ms/berita/tender
Financial or Program Assistance
- The government provides various financial incentives and assistance programs to support Bumiputera entrepreneurs and businesses. These can include grants, low-interest loans, and equity investments to facilitate business growth and development. Link : https://www.matrade.gov.my/en/announcements/25-malaysian-exporters/services-for-exporters/223-bumiputera-exporters-development-programme-bedp
Education and Training
- Bumiputera individuals and companies may receive special training and education programs to enhance their skills and capabilities, making them more competitive in the business world.
Access to Licenses and Permits
- Bumiputera status companies may find it easier to obtain licenses and permits for specific business activities, reducing bureaucratic hurdles.
- Companies listed on the KL Stock Exchange (Bursa Saham Kuala Lumpur) used to adhere to a 30% bumiputra ownership of equity to satisfy listing requirements.
- Foreign companies that operate in Malaysia also must adhere to this requirement. This policy was canceled in 2009
- Some sectors and industries in Malaysia have ownership requirements that mandate a certain percentage of a company’s shares to be held by Bumiputera shareholders. This encourages Bumiputera participation in various economic activities.
- Example : The 51% Bumiputra ownership states that a 51% stake in all freight forwarding and logistics companies