Bumiputera equity to stay at 30%
(The Star) – THE target of attaining at least 30% bumiputra corporate equity ownership at macro level remains but genuine economic participation will be promoted.
The participation will be promoted by strengthening bumiputra entrepreneurship in high-impact sectors, increasing wealth ownership beyond corporate equity to other properties and business assets and promoting bumiputra representation in high paying jobs.
The overall bumiputra development agenda will continue to be a major thrust in the national economic policy with improved strategies to establish broad-based and sustainable economic participation from the community.
Under the 10th Malaysia Plan (10MP), the target of attaining at least 30% bumiputra corporate equity ownership at macro level will be maintained.
However, the focus will be on promoting genuine economic participation, consistent with the objective of sustainable high growth rather than corporate equity allocation.
And genuine economic participation would be achieved via transparent and merit-based instruments which will focus on three fronts – strengthening bumiputra entrepreneurship in high-impact sectors, increasing wealth ownership beyond corporate equity to other properties and business assets, and promoting bumiputra representation in high paying jobs.
Currently, the bumiputra median household income of RM2,531 in 2009 is lower than the national median income of RM2,830 and bumiputra ownership of share capital (at par value) of limited companies had increased marginally from 18.9% in 2004 to 21.9% in 2008.
In order to strengthen bumiputra entrepreneurship, the Government will provide assistance through funding, support services and implementation agencies according to their categories.
To create stronger and more competitive industry champions, Ekuiti Nasional Bhd (Ekuinas) will receive an RM4.5bil allocation and raise additional funding from the private sector to undertake investments in growth stage companies.
Such investments will be the buy-outs of non-core assets of government-linked companies, multi-national companies and public listed companies, buy-outs of suitable Malaysian companies where existing shareholders are exiting and investments in existing strong bumiputra companies to accelerate growth.
The 10MP will also adopt a demand-driven approach to catalyse businesses in high value-added activities, whereby high potential areas such as animal fat substitutes (halal industry) and oil recovery technologies will be identified.
The Government will allocate funding and invite the private sector to bid for the rights to the ventures, and divest its equity to the management team and bumiputra institutions over time.
