Bumiputera Equity Rules in Malaysia: A Guide for Investors
Malaysia’s Bumiputera equity policy, introduced under the New Economic Policy (NEP) in 1971, aims to increase ownership and participation in business among Malays and other indigenous groups. For foreign investors, it defines how much control can be held, eligibility for incentives, and access to certain regulated sectors.
In practice, the policy is implemented through project approvals and licensing rather than through company law. The Malaysian Investment Development Authority (MIDA) and the Ministry of Investment, Trade and Industry (MITI) lead this process, working alongside agencies such as Petronas, the Securities Commission Malaysia (SC), Bank Negara Malaysia…
