MIC's Sivaraj seeks clarity on 30 pct Bumiputera equity rule for tuition centres

KUALA LUMPUR: MIC National Strategic Director Datuk C. Sivaraj has called on the Education Ministry to clarify the proposed 30 per cent Bumiputera equity requirement for tuition centres.

"We need to distinguish between helping Bumiputera obtain ownership and taking ownership that has been legally acquired by others," he said in a statement.

The rule would require tuition centres to have at least 30 per cent Bumiputera equity, with implications for existing operators from 2027.

Sivaraj said efforts to increase Bumiputera participation in the economy should not come at the expense of the rights and equity of non-Bumiputera communities through licensing conditions, rulings or administrative regulations.

Existing business owners who have invested their own capital, taken risks and complied with regulations should not be required to give up part of their equity to obtain or renew a licence, he said.

Sivaraj said if failure to secure a Bumiputera partner could result in a licence not being renewed, it raised the question of whether the partnership was truly voluntary or whether the operator had no choice.

He said the Government's power to formulate policies should be exercised carefully, particularly when they involve businesses that have operated legally for many years.

"We cannot empower one race by sacrificing the rights of another," he said.

Sivaraj said if the aim was to increase Bumiputera ownership, more opportunities should be created through financing, training, contracts, market access and new ventures, rather than relying on existing owners to achieve that objective.

He said the policy also affected many Indian operators who had built their education businesses over many years, invested their own money, taken risks, employed workers, paid taxes and served the community.

"The economic rights of the Indian and non-Bumiputera communities cannot be treated as something that can be reduced with every policy change. If we want to build a united Malaysia, the rights and contributions of every community must be respected.

"I support efforts to increase Bumiputera economic participation, but at the same time, I will defend the rights of the Indian and non-Bumiputera communities when their economic interests are affected," Sivaraj said, adding that Bumiputera participation could be increased without confiscating equity from other communities.

Sivaraj urged the Education Ministry to clarify whether the 30 per cent requirement would apply to existing tuition centres, the transition period and what would happen to operators unable to meet it.

"Helping Bumiputera does not necessarily mean taking from non-Bumiputera," he said.

"We can increase Bumiputera participation without taking away the equity of other communities, and build the success of one community without making another community a victim," he said.

The New Straits Times has reached out to the Education Ministry for comment.