30% bumi target put back to 2020
- From: fairplay <fairplay@xxxxxxxxxx>
- Date: Fri, 31 Mar 2006 09:35:54 -0600
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.
“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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