Introduction
On 18 November 2025, the Ministry of Economy (“MOE”) introduced an increased 50% Bumiputera equity requirement in respect of qualifying disposals of non-residential properties valued at RM20 million and above by Government-Linked Companies (“GLCs”) and Government-Linked Investment Companies (“GLICs”). The 50% requirement was subsequently applied to applications received by the MOE from 17 December 2025 onwards, regardless of the date of the relevant Sale and Purchase Agreement.
At the time, the Guidelines on the Acquisition of Properties dated 13 July 2022 (“2022 Guidelines”), which provide for the 30% Bumiputera equity requirement, remained the published Guidelines. There was no formally published amendment setting out the 50% requirement. Based on our engagement with the MOE at the time, the Guidelines were understood to be undergoing revision and the proposed amendments were at the Cabinet stage.
Latest Position
Following our latest engagement with an officer of the MOE on 13 August 2026, we understand that the MOE has reverted to the 30% Bumiputera equity requirement, with the reversion taking effect from early August 2026.
Accordingly, applicants whose applications were previously rejected on the basis of the 50% Bumiputera equity requirement may now reapply for MOE approval, subject to the MOE’s consideration and assessment of the relevant application.
The 2022 Guidelines remain in force and provide for the 30% Bumiputera equity requirement.
Practical Implications
The latest development demonstrates the fluidity of the MOE’s policy position in relation to qualifying GLC and GLIC property disposals. In particular, the 50% requirement was implemented in practice notwithstanding the absence of a formally published amendment to the 2022 Guidelines, and the position has now reverted to 30% following the latest communication from the MOE.
Accordingly, parties involved in transactions which require MOE approval should engage with the MOE at an early stage to confirm the prevailing requirements applicable to the particular transaction, particularly before finalising the transaction structure or incurring substantial transaction costs.
While the current position is understood to be 30%, parties should continue to monitor developments and obtain appropriate confirmation from the MOE given the absence of a formally published amendment reflecting the recent change.
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For further information, please contact:
Ainal Marlinda Md Said, Partner, ZUL RAFIQUE & partners
ainal.marlinda@zulrafique.com.my
