MAHATHIR'S ASLI SAID 30% BUMIPUTERA EQUITY ACHIEVED!

MAHATHIR'S ASLI SAID 30% BUMIPUTERA EQUITY ACHIEVED!

BUT HOW ABOUT THE INDIGENOUS/NATIVE/ORANG ASLI BUMIPUTERAs?

By

Allan Dumbong

Following is a posting from Tun Dr Mahathir's related website, quoting a study from ASLI regarding the 30% Bumiputera equity ownership as required under the DEB. It was argued by ASLI that the 30% is already well-achieved by BUMIPUTERA. Meaning to say the Bumiputeras are well involved in corporate world, owning more than 30% of shares in companies. But then, who are the Bumiputera concern? Are they just the Malays? How about the real indigenous/natives/orang asli/orang asal of Tanah Melayu, Sarawak and Sabah? The real fact of the matter is that the equity ownership among the indigenous/native/orang asli/orang asal Bumiputeras are shockingly below one percent (1%)!!. The question is how would these group of Bumiputera fare in 2020, when Malaysia attained the status of industrialised Nation?

But then, is there anyone who cares about this?

Study: 30% bumi equity target exceeded

The New Economic Policy (NEP) target of 30 percent bumiputera corporate equity ownership has been well exceeded but it is an inefficient barometer of Malay wealth, suggested a new study. The study, by the Asian Strategy and Leadership Institute (Asli), estimated that the rightful figure should be around 45 percent, when based on September 2005 Bursa Malaysia figures. In making that estimation, the study - titled 'Corporate Equity Distribution: Past Trends and Future Policy' - estimated that 70 percent ownership of government-linked companies (GLCs) was attributable to bumiputeras. Based on a 2005 report by UBS Equity Research Malaysia, the study said GLCs made up about one-third of total market value at the time. Asli’s Centre for Public Policy Studies director Dr Lim Teck Gee said from the UBS report, the top-10 GLCs alone - which include Tenaga Nasional, Telekom Malaysia, Maybank Bhd - roughly made up around one-third of the market value in 2005. “Our study was established based on the best available information and informed opinion. The government does not make data available easily (to the public),” he said when met recently. Wrong priorities According to Lim, Asli’s study was aimed at providing updated facts to support the argument that the NEP’s 30-percent target had been achieved. “I and many other experts believe that the 30 percent bumiputera corporate equity requirement should either be removed or reformed,” he said. “Firstly, it was part of the larger NEP programme which was supposed to end in 1990. It is now more than 15 years. “The NEP programme has already long achieved its objective of nurturing a dynamic Malay business community and strong Malay wealthy and middle class,” he added. Lim warned that if such ‘crutches’ continued, it would only encourage rent-seeking and induce other distortions and inefficiencies that would hurt our national interests. Instead of encouraging race-based corporate equity ownership, he said it would be better if the government encouraged efficiency, competition and productivity of our economy. More gov't transparency neededIn view of the study’s findings, Lim hoped the government would exercise more transparency and publicise the methodology used by the government in providing its own figures. Asli’s proposal was published in February this year meant for various government agencies, but it was also distributed to various groups including a number of members of parliament. The NEP was born after the 1969 racial riots and was aimed at bridging socio-economic disparities between the races. The Ninth Malaysia Plan had revised yet again the 30 percent target until the year 2020, and stated that between 2000 and 2004, bumiputera equity ownership remained stagnant at 18.9 percent.
From : (http://www.malaysiakini.com/news/57219) Andrew Ong -Sep 23, 06 3:50pm