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;,per%20cent%20of%20its%20Board

Market Preference

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 :

Financial or Program Assistance

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. 

Listing Requirement

  • 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 

Ownership Requirements

  • 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