Govt to tackle laws concerning beneficial ownership declaration - PM

PARLIAMENT | The government intends to tackle the issue of undisclosed nominee holdings in bumiputera companies by reviewing the Companies Act 2016 and the Limited Liability Partnerships Act 2012, said Prime Minister Anwar Ibrahim.

In his speech in the Dewan Rakyat today on the mid-term review of the 12th Malaysia Plan (12MP), he said this move is to enhance transparency in share ownership in line with the emphasis on good governance.

“Undisclosed nominee holdings continue to show a noticeable increasing trend. In this regard, I would like to inform you that the Companies Act 2016 and the Limited Liability Partnerships Act 2012 concerning the declaration of beneficial ownership are currently under review,” he said.

The review is to ensure shares are not secretly transferred to certain quarters, he added.

Anwar also said that policies focusing on empowering the bumiputera before this prioritised the participation of bumiputera in the economy using equity ownership as a yardstick.

However, this has not proven to be effective and as such, the Madani government will review its approach to measure the participation of bumiputera in the economy in a more meaningful manner.

Economic congress

To this end, a bumiputera economic congress will be held in January 2024 to set the new direction and approach for the bumiputera agenda that is more fair, just, and inclusive, he said.

“Efforts to empower the bumiputera community will shift from a focus on selected companies to empowerment programmes involving more entrepreneurs and a greater number of small and medium-sized bumiputera companies,” Anwar said.

This is aimed at creating a bumiputera middle-class that can transition from relying solely on salaries to building businesses that increase income and add value to the economy, he explained.

Meanwhile, existing bumiputera companies stand to continue to benefit with the government allocating funds to 16 bumiputera agencies including Mara, Amanah Ikhtiar Malaysia, Tekun Nasional and so on, he said.

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