Irzani,

Why??

Every single tax paying non-bumi is contributing tax to help bumi. Majority of the tax money is used for the benefit of BUMI ONLY.

Dreamer

No really sure if this is any carrot for foreign investors.. but it certainly sounds like more liberalisation towards locals who are non-bumi. But, for those non-bumi who have funds, they already have Alibaba agreement and they're pretty happy with the arrangement.

But the problem here is the new 50% public share spread offer requirement to bumi, which it is still a wrench/spanner in archaic 'racial' based system that we know doesn't work for the past 40 years - just wondering how does the govt intend to regulate this.

For those who hasn't setup shop yet, yeah, big deal, no min 30% equity race-based distribution needed but without more change in bidding/procurement process or doing business with the govt itself, not really sure if it means anything.

AFAIC, Malaysia can continue its 30%/50% equity for all she wants.. because it doesn't matter to the foreign investors or MNCs anymore.

There are other neighboring countries that already have offered better incentives without any kind of restriction.
I am not sure Malaysia still compete with the lower costs (and better technology) already offered by neighboring countries.

The non bumi are minority, they will feel safer living in malaysia and their wealth protected,
if they help the majority to be more competitive. Otherwise the government cannot gurantee all the privileges the minority is enjoying now.

50% offer is for the IPO only.

After the IPO, there is no condition other than the 25% shares must be public spread. So it is good for a lot of companies now like DIGI who I believe still does not meet the requirements.

Family owned companies who wanna get listed will have less restrictions, meaning they do not need to give a certain percentage to non- family members to meet the requirements.

As far as I know, these are just for public listed companies. MNCs as before should not be affected at all unless they decide to list their local operations like Shell and Esso. This is good for them because they can keep most of the directorships under their own appointed management team.

Edit: I'm more interested in current companies which have met the 30% quota. Does it mean they can reduce it from now on?

Edit: Ahh got my answer here already. Current companies now has no requirements to keep the 30% quota.

The Star highlights

This post has been edited by skiddtrader: Jul 1 2009, 08:34 AM

Some good managed bumi cos may attract some non bumi ( major stake ) equity participation.

Virtually they ( non bumi ) could take over the companies if they want.

Cos such as YTL may be looking for something that is relevant to their businesses.

The Question is whether local non bumi could buy up a major stake in GLC co such as TM, Tenaga and Axiata.

They would not rush , but rather waiting for opportunity to buy.

Just my personal opinion only.

This post has been edited by SKY 1809: Jul 1 2009, 08:59 AM

SKY 1809,

Why would people want to buy money losing business?? Or, 90+% environment??

Dreamer

Dreamer,

Well, if you are in charge of the management team, then the chance of making money is most likely.

The trouble is to how do without political interference calling for protection of the " weak" ones ?

This post has been edited by SKY 1809: Jul 1 2009, 11:20 AM

So now Genting, PBB , YTL other non-bumi company can take over PNB ..

Since this is a finance section, please be more focus on finance and equity related to the issue, as this measure is related to IPO and listed company only.

Any specific racial issue can be discussed in RWI, as don't want this topic become a purely racial talk.

Thanks for the cooperation.

Well I think its a good move to liberalise the market a bit. Investors who are turned-off earlier by the prospect of giving away as much 30% of their major shareholding have now no more worries.

The quota was also rumoured to be the obstacle to US FTA with Malaysia. Maybe after this, the deal can be closed.

probably the conclusion is the jerung will get more shares to buy and bilis just can see them rattle all fat fish
The rich get richer, poor get ..?

This post has been edited by mmusang: Jul 1 2009, 02:41 PM

for i perspective, it is not about bumi and non-bumi...... we need to attract more n more foreigners to invest in our country lar come on...... everything is getting globalize...... we need lot and lot of capital to prosper our country... more job opportunity... more money flow in ....

i have to agree with koht04, perhaps this change is more focussed on attracting foreigners to invest in our country, especially the middle easterners!

i also don't foresee any changes in the non-bumi companies of trying to divest their wealth outside the country...especially in current political climate.

why would u compare with someone who is so way behind malaysia back in 196x ?

malaysia which is once on par with singapore, hongkong is now behind. korea once behind malaysia is wayy ahead of malaysia now.