Tuesday, June 30, 2009

No need to have 30% quota for companies seeking listing

The new policy will make Malaysia economy more vibrant and dynamic and Malaysia will be high up in the radar screen of investors.

The 30% bumiputra quota requirement for companies seeking to list on the Bursa Malaysia has been done away with under an overhaul of the Government’s economic policies to turn Malaysia into a more competitive economy.

Prime Minister Datuk Seri Najib Tun Razak said the policy changes had to be made because of the drastic changes in the global economic scenario since the inception of the New Economic Policy (NEP) and the failure of the Foreign Investment Committee (FIC) to produce the desired results of increasing the bumiputra equity.

He said, the overall macro target of the 30% bumiputra equity remains. We will move along the line of achieving a balanced society. We have to be fair to all communities.

It will be based on two important premises – that no one is marginalised or disincentivised. It’s a tricky balancing act but it’s do-able.

“In short, the FIC will no longer exist. We will replace it with an investment instrument called Ekuiti Nasional Bhd (Ekuinas), which is a private venture capital focusing on helping bumiputra entrepreneurs who have the potential and capability to develop into huge players domestically, regionally and globally.”

He said, Ekuinas would have an initial capital of RM500mil and which would be enlarged to RM10bil depending on the needs of identified entrepreneurs.

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