[mkini] 30% bumi target put back to 2020

30% bumi target put back to 2020

Mar 31, 06 5:16pm





The 9th Malaysia Plan has set the target date to achieve the 30 percent
bumiputera equity ownership target for 2020 instead of 2010.
http://images.malaysiakini.com/39/38/9598.gif

?While the government remains committed to ensure the attainment of at
least 30 percent bumiputera equity ownership, this will only be achievable
within a longer time frame,? said the report.

It added that the three percent target of Indian ownership in the corporate
sector has also been set back by 10 years to 2020.

In addition to the equity ownership of share capitals, the next five years
will focus on other aspects of wealth ownership, in particular bumiputera
ownership of productive assets, both physical and non-physical.

?In line with this, policies and programmes that expand bumiputera
ownership of residential and commercial urban property, intellectual
property rights, as well as commercial enterprises, particularly SMEs
(small and medium enterprises), will be undertaken.?

According to the report, the bumiputera ownership of share capital at par
value increased from RM63 billion in 2000 to RM100 billion in 2004. (see
chart below)

Despite this, the proportion of bumiputera equity ownership remained
unchanged at 18.9 percent during this period.

However, the share of equity ownership held by Indians declined from 1.5
percent to 1.2 percent although their share increased by RM1.3 billion.

Meanwhile, foreign equity ownership increased from 31.3 percent to 32.5
percent.

According to the 9MP, a number of new measures will be put in place to
increase bumiputera share capital.

State-owned investment arm Permodalan Nasional Berhad (PNB) will spearhead
the campaign to encourage more bumiputera to actively participate in unit
trust schemes. PNB will also provide a wider choice of unit trusts to
attract more bumiputera investors.

New concept

With the concept of wealth ownership now expanded to include ownership of
property, bumiputera trust agencies and government-linked companies will
play a more active role in increasing bumiputera commercial properties in
urban areas.

The Yayasan Amanah Hartanah Bumiputera, which will be allocated an initial
capital of RM2 billion, will be set up to enhance bumiputera property
ownership in strategic locations, especially in urban areas.

?Perbadanan UDA will be reestablished to complement the efforts of the
Yayasan in identifying and purchasing commercial properties, especially in
major towns, and in providing greater opportunities in prime business
location for bumiputera entrepreneurs.?

Meanwhile, wakaf, baitulmal and zakat resources will be mobilised to
enhance development of bumiputera and other Muslims in the next five years.
The existing Bumiputera Commercial and Industrial Community programme, such
as franchise and vendor development, will be further strengthened to
increase self-reliant, sustainable and competitive bumiputera entrepreneurs
and strong SMEs.

A special programme will be implemented with emphasis on transforming
selected bumputera SMEs with annual sales value between RM1 million and
RM25 million into bigger enterprises.

However, there are few specific measures to help the Indians achieve its
2020 equity ownership target of 3 percent despite that their share
proportion went down instead of up over the past five years.

The Plan said that there will be opportunities for poorer Indians to
participate in selected unit trust schemes; financial assistance for
business ventures; and skills training courses at Pusat Giat Mara and Pusat
Putra, a new institute to assist youth to acquire relevant skills
especially in ICT and auto-mechanics.





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-pluto
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