The New Economy

1) Focus change
1a) From manufacturing base to high technology and modern services
1b) From semi skilled to skilled labor
1c) From low labor cost to highly paid workers

2) Previous announcement on liberalization of 27 services sub sector and financial sector

3) Fund Management
3a) Ownership of wholesale segment liberalized to 100% for foreigners
3b) For retail segment foreign ownership limit increase from 49% to 70%

4) Existing Stock broking companies
4a) Foreign ownership increase from 49% to 70%

5) Bumiputra equity only 2.4% in 1970's

6) Review of Foreign Investment Committee (FIC)
6a) Malaysian companies seeking listing at Bursa Malaysia must allocate 50% of the public shareholding spread to Bumiputra BUT there is NO post listing condition.

7) Ekuiti Nasional Berhad (Ekuinas)
7a) Set up as private equity fund to help Bumiputra invest in companies with no public listing.

8) Enhancement of Government-linked Companies (GLCs)

Those were backbone of the New Economic Model announced by Datuk Sri Najib,Minister of Finance and Prime Minister of Malaysia recently. To me Najib has really kept his word. To him the 30% Bumiputra allotment is out of date. In addition, PM Najib has answered the call for meritocracy.

For instance for any IPO, Bumiputra allotment of 50% only applies for pre listing. Thus after listing the Bumiputra equity may dilute to zero. BUT I have nothing to worry. The New Economy justifies the the wisdom of those voters who voted against Pak Lah and Najib during the last General Election.

Bumiputra in Malaysia are now in the middle income range. Since they were smart enough during elections thus they may also show their intelligence in equities and the economic pie.

Remembering Bukit Kepong

I was at Bukit Kepong Johor yesterday. Although I arrived late in the evening, I could still see the remnants of the Police Station attacked by the communist in February 1950. Seeing the surroundings, I could not figure out the place called Bukit Kepong in 1950. Even in 2009 Bukit Kepong is still a remote area.

Al Fatehah!

Chin Peng Has No Place in Malaysia