Dr Mahathir: Plan to open up economy won’t help

(The Malaysian Insider) – Former premier Tun Dr Mahathir Mohamad has dismissed the efforts of Prime Minister Datuk Seri Najib Razak to liberalise the economy, saying they were “not going to help anybody”.

The plan seemed designed to make Najib popular, said Dr Mahathir, adding: “It will not help the Chinese, Malays or Indians.”

Dr Mahathir was asked to comment on Najib's steps to open up the economy to make it more attractive for foreign investors.

The steps included relaxing a host of restrictions on foreign investment, including a rule requiring businesses to be partly owned by Malays.

Listed companies will no longer be required to allocate 30 per cent of their stake to Malays as part of an affirmative action programme for the country's Malays.

Among other measures were allowing stock brokers and unit trust management companies 70 per cent foreign ownership, up from the current level of 49 per cent.

Najib also announced a government private equity fund to invest in high-growth industries and promote Bumiputera ownership of Malaysian businesses.

Najib said the Bumiputera rule for companies was neither benefiting poor Malays nor sustainable amid the global economic slowdown, which would force Malaysia into its first recession in a decade.

But Dr Mahathir was not impressed.

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