Kuala lumpur, March 24, 2005 (IslamOnline.net & News Agencies) - All foreign-owned restaurants in Malaysia will reportedly be required to have a Malay business partner under new guidelines ostensibly aimed at protecting local eateries.

The New Straits Times reported Thursday, March 24, that the new guidelines by the Domestic Trade and Consumer Affairs Ministry will apply to existing restaurants as well as new projects.

Foreign-owned restaurants will also be required to have at least 1 million ringgit ($A340,000) paid-up capital, it said.

The paper, however, said ministry officials were not immediately available to confirm the report.

The new guidelines would affect expatriate proprietors and operators of hundreds of restaurants in the country, and severely hurt Malaysia’s attempt to appear more cosmopolitan to better serve foreign investors and tourists, The Age newspaper said.

At present, all listed companies in Malaysia are required to have a minimum 30 percent ownership by ethnic Malays, also known as Bumiputras, or sons of the soil.

The policy is part of a long-standing affirmative action program for Malays, who form 60 percent of the country’s 25 million people but for decades have lagged behind the minority Chinese in education and business, according to New Straits Times.

This policy has meant that ethnic Chinese or Indians who want to set up listed companies must seek out Malay “sleeping partners”, who get easy bank loans to buy the 30 percent equity and are paid a salary to be on the company’s board besides sharing the profits.

The restaurant guidelines would apparently be the first time a non-listed business sector would come under the “Bumiputra” restriction.

The New Straits Times said there is fear that many foreign owned restaurants could even be forced to shut down if they fail to find Malays -- who are mostly Muslims -- willing to partner them in businesses that typically serve liquor and non-halal food, or food not prepared according to Islamic rules.

Islam forbids association with alcohol and non-halal food.

The restaurant owners’ only option then would be to seek non-Muslim Bumiputras -- Christians and animist tribes who are a very small minority in Sabah and Sarawak states in the Borneo island.

The Times said failure to comply with the guidelines will result in non-renewal of operating licences and work permits for expatriate staff including foreign proprietors.

At present, these outlets only require approval from a foreign investment committee in the Prime Minister's Department.

The new guidelines will not come into affect immediately, and restaurants will be given a grace period, probably until the end of the year, to comply, the paper said.

Malaysia offers the image of a very successful Muslim country, 60% of the population are Muslims, heading towards the status of developed nation with huge buildings, beautiful cities and a fast track economy that is doing well.

In his Chinese New Year message Wednesday, February 9, Malaysian Premier Abdullah Ahmad Badawi said that Malaysia belongs to citizens of all races, asserting it is everyone’s collective responsibility to take the country to greater heights of glory, distinction and excellence.

As inter-racial goodwill and co-operation is the Malaysian way of life, everyone should use the festive occasion to further strengthen racial integration, he was quoted as saying then.

On Tuesday, January 11, Badawi had also launched a five-year campaign to instil good values among Malaysians, making it a national agenda and warning that becoming materially rich with eroding values had led to the collapse of various civilizations.