Ex-Peneraju Chief Questions 30% Bumiputera Equity Rule: “Where Is the Impact Study?”

Former Yayasan Peneraju chief executive Ibrahim Sani has questioned the effectiveness of the 30% Bumiputera equity requirement, saying no impact study has been published to show it actually improves Bumiputera economic standing. 

He warned that the rule risks encouraging proxy ownership, where Bumiputera names are used only to meet the condition without real economic participation.

30% Equity Condition Is Policy, Not Law, Says Ibrahim Sani

Speaking at a forum titled “Equity by Decree? Rethinking Bumiputera Empowerment” in Kuala Lumpur last night, he asked how holding 30% of a private tuition centre helps Bumiputera. 

He noted that the condition is not a law passed by Parliament but an administrative policy and guideline introduced in 2006, so it can be changed or withdrawn at the regulator’s discretion. 

He also questioned uneven enforcement, as it applies to tuition centres seeking to operate as Sdn Bhd companies but not to sole proprietorships or partnerships.

Universiti Malaya visiting professor Woo Wing Thye called the requirement “anti-growth,” saying it can stop successful businesses from expanding. He urged a focus on high-quality skills, high-wage jobs, stronger small and medium enterprises (84% Bumiputera-owned, he said) and education reform.

KLSCAH secretary-general Yeo An Thai said empowerment should not come at the expense of other communities and should widen economic opportunities for all Malaysians.