KUALA LUMPUR, Nov 15 — The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will not affect Bumiputera privileges, Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said.
He said Bumiputera privileges, as enshrined in the Federal Constitution, would continue to be preserved even if the government ratifies the CPTPP.
The minister said there are various exemptions and flexibility related to Bumiputera rights under the CPTPP, including for government procurement, subsidy and issuance of special licences or permits.
“Bumiputera policies and privileges are one of the pillars of the Federal Constitution and the government will not compromise in upholding those policies in any international agreement.
“This provision is contained in Annex II Non-Conforming Measures under the CPTPP,” he said during the winding-up session of the Supply Bill 2022 at the policy level in Parliament today.
He said for government procurement, the CPTPP has provided leeway and flexibility that allowed the government to continue to help develop local and Bumiputera companies.
Mohamed Azmin said the flexibilities given include allowing up to 30 per cent of the value of procurement contracts to be allocated to Bumiputera contractors by the government.
Besides that, he said the threshold set for government procurement for the construction sector is high compared to other member states whereby G1 to G6 Grade contractors are not subject to commitments under the Government Procurement Chapter.
“Such flexibilities will ensure the local companies remain protected and can continue to be involved in government procurement even if the CPTPP is enforced by Malaysia,” he said.
He said state-owned companies could also continue to implement their socio-economic development agenda even after the CPTPP comes into force.
“Priority for the purchase of goods and services can continue to be given to Bumiputera suppliers including small and medium enterprises as well as entities from Sabah and Sarawak to cover 40 per cent of the annual budget of state-owned companies.
“Majlis Amanah Rakyat (MARA), Bumiputera Agenda Steering Unit (Teraju) and Ekuiti Nasional Bhd can purchase goods and services from Bumiputera suppliers up to 100 per cent,” he added.
