What this new framework will do is, in effect, further narrow the pool of potential buyers. And with fewer eligible bidders, the most probable outcome is lower prices for the property disposals. History has proven this.
A recently implemented, relatively low-profile guideline for property disposals by government-linked companies (GLCs) and government-linked investment companies (GLICs) could, we think, have a broad and likely negative impact on not only the GLCs and GLICs but also for the Bursa Malaysia equity market and Malaysians. We are concerned that the new framework could further widen inequality, including among bumiputeras, contrary to its stated objective of more inclusive wealth distribution for the bumiputera community.
The updated framework to the Ministry of Economy’s Properties Acquisition Guidelines, which came into effect on Nov 18, 2025, applies to the disposals of properties valued above RM20 million by GLCs and GLICs, whereby the acquiring companies must have at least 50% bumiputera equity ownership, up from the previous 30%. According to the Ministry of Economy, the objectives for the additional conditions on GLCs and GLICs is to strengthen bumiputera participation in strategic asset ownership and to ensure that the economic benefits are more inclusively distributed and contribute to the sustainable wealth creation of the bumiputera community.
