THE government has extended the 51% Bumiputera equity requirement for freight forwarding companies until December 31 next year, Senator Tengku Zafrul Tengku Abdul Aziz said.

“The Finance Ministry has decided to extend the exemption for a second time until December 2022 so that Teraju (Unit Peneraju Agenda Bumiputera) can study Bumiputera involvement in the logistics industry,” the finance minister said in the Dewan Rakyat today.

“This study will be presented to the cabinet to decide the direction of Bumiputera involvement in the logistics sector and ensure this industry will continue to develop,” said Tengku Zafrul during the Minister Question Time in Parliament today.

The government was responding to Loke Siew Fook (Seremban-PH) on whether the government will review the equity policy for the operating freight forwarding companies.

Logistics and freight forwarding companies holding Customs Department brokerage licences had voiced their concerns over the approaching deadline for the companies to implement the 51% Bumiputera policy before they can renew their annual licences.

Airfreight Forwarders Association of Malaysia chairman Walter Culas said it will be a mammoth task to find Bumiputra businessmen who are willing to take up 51% equity in freight forwarding companies.

“Most logistics companies have a foreign base and branches globally.

“Take, for instance, companies like DHL. Will there be anyone with money to buy 51% equity in that company here?’’ asked Culas.

Responding to Loke’s question, Tengku Zafrul said that the issue was not new as the policy had been decided in 2015.

He said the government had already extended the December 2020 deadline once after requests from the Federation of Malaysian Freight Forwarders.

“The government has asked for feedback from the freight forwarders again. But there has been no long-term solution yet; hence the second extension.

“As such, Teraju has been asked to study the involvement of Bumiputera in this sector,” said Tengku Zafrul, pointing out that Bumiputera equity is only 17.2%.

On Monday, Prime Minister Ismail Sabri Yaakob (Bera-BN) said that the sale of Bumiputera shares or companies will only be offered and sold to fellow Bumiputera consortiums, firms and individuals under a soon-to-be-introduced government measure.

Announcing this in Parliament during the tabling of the 12th Malaysia Plan, Ismail said the equity safety net framework is aimed at ensuring sustainable Bumiputera equity ownership. 

According to the government, non-Bumiputeras controlled 25% of the corporate equity and foreign investors owned 45.5%, while the remaining 12.3% was held by nominees. – September 28, 2021. – September 28, 2021.