The Education Ministry has scrapped the 30% Bumiputera equity requirement for private limited companies operating private educational institutions.
PETALING JAYA: The 30% Bumiputera equity requirement will no longer be imposed on private limited companies operating private educational institutions under the Education Ministry.
The ministry said the decision followed discussions with the Investment, Trade and Industry Ministry (MITI).
“Following discussions between the Education Ministry and MITI, the ministry has agreed that the requirement for at least 30% Bumiputera equity ownership will no longer be imposed as a condition on private limited companies operating private educational institutions under the ministry,” it said in a statement yesterday.
The ministry said the adjustment was made to meet the current needs of the education sector and ensure participation in education remained open to all parties wishing to contribute to the country’s educational development.
“The Education Ministry appreciates the contributions of all private education operators and will continue to work with all parties in the interests of the education of Malaysian children,” it said.
The issue was highlighted last week by Petaling Jaya MP Lee Chean Chung, who called on the ministry to clarify whether existing tuition centres would be required to meet the 30% threshold when renewing their registrations from 2027.
Lee also called for consultation with affected tuition centre operators and clear guidance on the implementation of the requirement.
The ministry subsequently said the ownership requirements were contained in its Private Educational Institutions (IPS) Policy Book published in 2006 and that it would propose a review of the provisions to the Cabinet.
Entrepreneur Development and Cooperatives Minister Steven Sim said the Cabinet had directed the Education Ministry to review the equity requirement after he raised the matter at the Cabinet meeting on Sept 18.
