01 July 2009

The New Economic Model.

Our Prime Minister yesterday made a very important announcement. In perhaps his most important announcement since taking office on April 3, Najib said there was a need for a new economic model. The 30% bumiputra quota requirement for companies seeking to list on the Bursa Malaysia has been done away with under an overhaul of the Government’s economic policies.

He's also doing away with the Foreign Investment Committee (FIC) and also setting up the Ekutinas (Ekuiti Nasional Bhd), a private equity fund to make strategic investments for bumiputras, especially in companies with high-growth potential.

I think that this latest change in policy will be very good to drive up the economy. It would be allowing and attracting more foreign investments and funds to come into the country. It would also attract more IPOs, especially foreign ones. I believe that this change in policy is very much welcomed for the corporate players in the Malaysia market.

I hope that the Government will continue to introduce these type of measures and actions in the time to come. Good move so far.


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