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Edu Ministry to propose cabinet review of 2006 tuition centre bumiputera equity rule
The Education Ministry has confirmed it will submit a proposal for the cabinet to review provisions related to the ownership structure of tuition centres.
This follows concerns regarding a 30 percent bumiputera equity ownership requirement for tuition centres and other private education institutions operating under company structures.
PKR's Petaling Jaya MP Lee Chean Chung on Sept 15 urged the...
The Education Ministry has confirmed it will submit a proposal for the cabinet to review provisions related to the ownership structure of tuition centres.
This follows concerns regarding a 30 percent bumiputera equity ownership requirement for tuition centres and other private education institutions operating under company structures.
PKR's Petaling Jaya MP Lee Chean Chung on Sept 15 urged the Education Ministry to clarify the matter, following a China Press report which referenced a social media posting that criticised the requirement.
While Lee's statement implied that operators are concerned they might be unable to renew their registration as the equity threshold will be implemented beginning next year, the ministry explained today that the provision was not new.
“Provisions regarding the ownership structure of tuition centres were detailed in the Private Educational Institutions Policy Book published in 2006.
“The ministry appreciates the contributions of tuition centre operators all this while and will continue to cooperate with all parties in the interest of the children's education,” it added in a statement.
No longer on ministry's website
According to a copy of the Private Educational Institutions Policy Statement sighted by Malaysiakini, the 2006 document stipulates the 30 percent bumiputera equity condition.
Malaysiakini also secured a separate document from the Education Ministry’s online archive, with the guidelines for the establishment, registration, and operation of tuition centres similarly stating that tuition centres structured as private limited companies must have at least 30 percent bumiputera equity ownership.
/file/publisher-c1a3f893382d2b2f8a9aa22a654d9c97/2020/01/485bcef23365db96d6cc24d50d2c017e.jpg "Ministry of Education MOE building generic hq 020120 Education Ministry Kementerian Pendidikan Malaysia generic")
The guidelines, which do not include a publication date, appear to no longer be available on the Education Ministry's website, with a Malaysiakini check establishing that it was archived on May 14.
It is unclear when the document was originally uploaded or removed from the ministry’s website, or why it was taken down.
Unfair requirements
Yesterday, Entrepreneur Development and Cooperatives Minister Steven Sim said the cabinet had instructed the Education Ministry to review the equity requirement, after he raised the matter at the Sept 18 cabinet meeting.
MIC strategic director Sivaraj Chandran had also questioned the fairness of the equity requirement, arguing that efforts to increase bumiputera participation in the economy should not come at the expense of the rights and equity of non-bumiputera communities.
/file/1138/3832fef0652c913dc66fe34c1764d914.jpeg "Sivarajjh Chandran MIC Youth Chief 020817 + Sivarraajh Chandran MIC Youth Chief 020817 sivaraj")
“If someone started a business years ago using their own capital and taking their own risks, building a reputation, providing jobs and complying with all regulations, why should they now have to give up part of their ownership to a bumiputera just to obtain or renew a licence?” he said in a statement yesterday.
Sivaraj (above) proposed that the government instead expand bumiputera ownership through financing, training, government contracts, market access, and new business opportunities.
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Anwar must go. He is more racist than Maha Firaun and Ah Jib Gor. The Chinese and Indians were fooled by his speeches during the GE and now only DAP still hanging on to this Maha Rasis!
When NEP was implemented in 1971 following the tragic events of may 1969 it was defined as a 20 years policy to aid the economically disadvantaged rural malays , never as a permanent incentive . Nazir Razak and Musa Hitam highlighted it at a recent forum . We have now promoted it as a permanent right , 54 years on . Individual enterprise, risk and rewards , are the bread and butter of any economy . When you force hard working entrepreneurs to distribute equity of 30% of cost price , or free , at the risk of loosing their license you are essentially ringing the "death bell " for them . Think of the food courts, vegetable sellers, car workshops, I can go on . This is not rent seeking anymore , it rightfully should be called robbery based on licensing laws. I am mighty, so I can , appears to be the guiding principle here . It is time to call NEP what it is , and call out the political elites who aggressively promote it for their own benefits . In the long run it is going to bring economic grief to all and Malaysia . Entrepreneurs will disappear .
Government should encourage bumis to start their own centres instead of taking 30% from existing non-bumi tuition centres.
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