THE Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will not affect Bumiputera privileges, said the international trade and industry minister.

Mohamed Azmin Ali said these privileges will be preserved as enshrined in the Federal Constitution, even if the government ratifies CPTPP.

There are exemptions and flexibilities related to Bumiputera rights under the agreement, including for government procurement, subsidy, and the issuance of special licences or permits, he added.

“Bumiputera policies are one of the pillars of the Federal Constitution, and the government will not compromise in upholding them in any international agreement.

“This provision is contained in Annex II Non-Conforming Measures under the CPTPP,” he said, during the winding-up session of the Supply Bill 2022 at the policy level in Parliament today.

Azmin said CPTPP has provided leeway that allows the government to continue to develop local and Bumiputera companies. This includes allowing up to 30% of the value of procurement contracts to be allocated to Bumiputera contractors.

The threshold set for government procurement for the construction sector is also high compared with other member states, whereby G1 to G6 Grade contractors are not subject to commitments under the government procurement chapter, he added.

“Such flexibilities will ensure local companies remain protected and can continue to be involved in government procurement even if CPTPP is enforced.”

He said state-owned companies can continue to implement their socio-economic development agenda, even if the government ratifies CPTPP.

“Priority for the purchase of goods and services can continue to be given to Bumiputera suppliers, including small and medium enterprises, and Sabah and Sarawak entities to cover 40% of the annual budget of state-owned companies.

“Majlis Amanah Rakyat, Bumiputera Agenda Steering Unit and Ekuiti Nasional Bhd can purchase goods and services from Bumiputera suppliers up to 100%.” – Bernama, November 15, 2021.