10-08-2021, 11:49 AM
![[Image: 29092020-KUL-_HOUSES_HOME_PROPERTY_ECONO...rien_4.jpg]](https://media.thevibes.com/images/uploads/covers/_large/29092020-KUL-_HOUSES_HOME_PROPERTY_ECONOMY_-_sairien_4.jpg)
THE uproar over Bumiputera equity policies featured in the prime minister’s speech on the 12th Malaysia Plan (12MP) simmered down this week, but three issues have been overlooked.
The plan’s Priority Area D, “Achieving an Equitable Outcome for Bumiputera”, in Chapter 5, “Addressing poverty and building an inclusive society”, outlines the “Bumiputera Agenda”. The section provides a commendably frank assessment of shortcomings, most saliently the community’s high concentration in low-skilled occupational categories and involvement in micro low-valued-added business.
The plan extends 11MP’s focus on effective control rather than passive ownership; both resolve to divest government-owned equity to “genuine” (11MP) and “qualified” (12MP) Bumiputera entrepreneurs. The latter criticises the continual dependency of Bumiputera micro, small and medium enterprises (MSMEs) on government grants and loans, and commits to formulating “a clear exit policy… to encourage successful Bumiputera MSMEs to be more independent and resilient”.
I have no doubt that the intent is real and earnest. Indeed, the focus on skills, productivity and competitiveness leads us to the first question.
1. Why does the agenda still hinge on 30% Bumi equity?
By 12MP’s valuation of Bumiputera agenda items, human capital and entrepreneurship outrank equity ownership in importance:
- “Human capital development will be the main focus in uplifting Bumiputera socioeconomic position”; and,
- “Increasing the resilience and sustainability of Bumiputera businesses will be the main focus in strengthening entrepreneurship culture.”
Bumiputera socioeconomic development covers vast ground, from higher education to employment, entrepreneurship and ownership. Of these, human capital development – which operates primarily through higher education, high-skilled occupations, and enterprise development – is declared “the main focus”. All objectives are intertwined, and all Malaysia Plans mention everything under the sun, but policy statement, and especially the political will expressed in the PM’s 12MP speech, determine which policies will lead, and which ones follow. Clearly, equity ownership is the driving objective.
In light of the plan’s own declared priorities, though, shouldn’t education and MSME development have pride of place, with equity ownership in a supplementary role?
Instead of fixating on 30% Bumiputera equity, Malaysia will do better to galvanise the community towards the fundamental goals of cultivating skills, developing capability and talent, and energising enterprise.
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