Miti clarifies role in private education equity policy

On September 21, the Education Ministry (MoE) announced a change to the private education sector's Bumiputera equity requirement, removing the mandatory 30 per cent for certain private education institutions (IPS). The Malaysian Investment, Trade and Industry Ministry (Miti) has clarified that it was not informed about this decision. According to Miti, "the ministry has no information regarding this matter," stating that it was only made aware of the change through the MoE's statement.

The MoE justified the adjustment as a response to discussions with Miti, aiming to align ownership structures with the current needs of the education sector, ensuring participation is open to all parties. However, Miti insists that Bumiputera equity ownership policy falls under its jurisdiction, citing its PuTERA35 (Bumiputera Economic Transformation Plan 2035) as the driving force behind prioritizing increasing Bumiputera equity ownership.

Previously, the 30 per cent Bumiputera requirement for private limited companies operating IPS was outlined in the MoE's 2006 Private Education Institutions Policy Statement. Private education institutions are governed by the Education Act 1996, requiring establishment approval and registration with relevant authorities. Miti's clarification aims to ensure clarity on the ministry's role in this policy matter and to maintain precise public information.