Gulam questions KPM over 30% Bumiputera equity policy
KUALA LUMPUR: Batu Umno division chief Datuk Gulam Muszaffar Gulam Mustakim has questioned the Education Ministry’s decision to drop the 30% Bumiputera equity requirement for certain private education institutions, after the Investment, Trade and Industry Ministry (MITI) denied involvement in the policy.
Gulam said the conflicting statements had raised questions over why KPM had referred to discussions with MITI when the latter subsequently said it had no information on the matter.
KPM announced on Monday that the minimum 30% Bumiputera equity requirement would no longer be imposed on private limited companies operating private educational institutions under the ministry.
It said the decision followed discussions with MITI and was intended to align ownership requirements with the current needs of the education sector.
However, MITI said on Tuesday that it had no information regarding the alignment of ownership requirements, stressing that matters concerning Bumiputera equity ownership fell under the purview of the Economy Ministry’s Economic Planning Unit (EPU).
Gulam questioned why KPM had linked MITI to the decision if the policy was actually under the jurisdiction of the Economy Ministry.
“What is KPM trying to convey by mentioning MITI, when MITI itself has clarified that it was not involved in determining this policy?” he said in a statement.
He claimed the wording of KPM’s statement could create the impression that Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani, who is also an Umno leader, had been involved in a decision to remove Bumiputera equity protections.
Gulam said such an impression would be serious, particularly when the two ministries had subsequently issued seemingly conflicting accounts of their respective roles.
“This is not a trivial matter. One ministry should not associate another ministry with a policy decision when that ministry says it has no involvement,” he said.
Gulam also described the development as part of a pattern that he claimed could undermine Umno ministers serving in the unity government, referring to an earlier disagreement involving the Finance Ministry and Rural and Regional Development Ministry.
He questioned whether the latest episode involving KPM and MITI was another instance of such political tensions within the government.
Gulam urged KPM to provide a clear explanation of its reference to MITI and clarify the actual decision-making process behind the removal of the 30% equity requirement.
“KPM should not throw stones and hide its hand. It must correct and explain the matter honestly and transparently,” he said.
The controversy follows MITI’s clarification that Bumiputera equity ownership policy falls under the Economy Ministry, while KPM maintains that its decision followed discussions with MITI on the ownership requirement for private educational institutions.
MITI clarification on the 30% Bumiputera equity requirement.