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

KUALA LUMPUR: MIC National Strategic Director Datuk C. Sivaraj has urged the Education Ministry to provide clarity on the proposed 30 per cent Bumiputera equity rule for tuition centres. He emphasized the need to differentiate between aiding Bumiputera ownership acquisition and seizing legally owned properties. The rule would impact tuition centres starting in 2027, requiring a minimum Bumiputera equity of 30 percent.

Sivaraj cautioned against imposing such conditions that could infringe upon the rights and equity of non-Bumiputera communities. He argued that existing business owners, who have invested their own capital and complied with regulations, should not be compelled to relinquish part of their equity to secure or renew licenses. Sivaraj questioned whether the lack of a Bumiputera partner would result in license non-renewal, implying that such operators had no choice but to comply.

He cautioned the government against wielding its policy-making power carelessly, especially when it involves businesses that have operated legally for years. Sivaraj proposed alternative strategies to boost Bumiputera ownership, such as financing, training, contracts, market access, and new ventures. He expressed concern over the impact on Indian operators who had built their education businesses over many years, citing their investments, risks taken, employment, taxes paid, and community service.

Sivaraj stressed that the economic rights of Indian and non-Bumiputera communities should not be undervalued in the name of policy changes. He reiterated his support for increasing Bumiputera economic participation while defending the rights of other communities. Sivaraj called for the Education Ministry to clarify the application of the 30 percent rule to existing centers, the transition period, and the fate of operators who cannot meet the requirement.