Who will be eligible to purchase shares under the new framework?

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Eligibility for Purchasing Shares Under the New Framework

Under the proposed equity safety net framework, the sale of shares and/or companies by specific Bumiputera mandated agencies will be offered to qualified Bumiputera consortiums, companies, or individuals. This initiative is specifically designed to ensure that existing Bumiputera share ownership remains within Bumiputera holdings and does not diminish.
Scope of the Proposal

The new framework for Bumiputera-held shares or Bumiputera companies to be sold exclusively to Bumiputera entities or individuals is limited in its application. It pertains solely to the selling activities conducted by a select group of Bumiputera mandated agencies. This clarification aims to address various interpretations and concerns that the proposal might impact the rights of other ethnic groups.
Involved Bumiputera Mandated Agencies

The Bumiputera mandated agencies involved in this proposal are categorised into two groups: four agencies representing Bumiputera interests and eight Bumiputera trust agencies. The agencies representing Bumiputera interests include Permodalan Nasional Berhad, Lembaga Tabung Haji (TH), Lembaga Tabung Angkatan Tentera (LTAT), and Koperasi Polis DiRaja Malaysia (KPDRM). The eight Bumiputera trust agencies are Perbadanan Kemajuan Ekonomi Negeri (PKEN), Majlis Amanah Rakyat (MARA), Ekuiti Nasional Berhad (EKUINAS), Pelaburan Hartanah Berhad (PHB), Perbadanan Nasional Berhad (PNS), VentureTECH Sdn. Bhd, Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM), and Perbadanan Usahawan Nasional Berhad (PUNB).
Objective of the Equity Safety Net

The primary objective of this proposal is to prevent the erosion of Bumiputera share ownership. In 2019, Bumiputera ownership of corporate equity, based on market value, stood at only 17.2 per cent. The equity safety net is intended to ensure that shares and companies sold by these mandated agencies remain under Bumiputera control, thereby safeguarding and potentially increasing this ownership percentage.
Exclusions from the Framework

It is important to note that this sales proposal explicitly excludes shares and/or companies being sold by individual Bumiputera shareholders, non-Bumiputera entities, or foreign companies. The focus is strictly on transactions initiated by the aforementioned Bumiputera mandated agencies, ensuring that the framework does not infringe upon the rights and interests of other races. Existing laws and regulatory rules governing Bumiputera equity ownership remain in force.

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Who will be eligible to purchase shares under the new framework?

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