- Stop the racist politics of suspicion and hate in the country
- The 2013 election results: back to the drawing board for both coalitions
- Spewing a poisonous brew on the Chinese ‘Lack of Multiracial Spirit'
- Vote for a revolutionary kind of development
- Perlunya lebih ramai calon-calon wanita dalam PRU
- BN’s triple cocktail of Race, Hudud and Fear is not working
- Fiscal risks to Malaysia's polls
- Opposition will clinch popular vote in GE13
Revisiting the Bumiputera corporate equity issue
Written by Dr. Lim Teck Ghee Saturday, 04 September 2010 08:14
CPI Writings
More than five years have passed since the Asli corporate study report revealed that Bumiputera ownership of corporate equity in the Kuala Lumpur Stock Exchange had exceeded the 30 percent target.
The study's findings of a 45 percent Bumiputera share were based on a different method of measurement compared with the official one. Using market value as opposed to the par value valuation official method, and allocating the equity of GLCs according to racial share, the study noted that it was time to do away with the policy which had been implemented since the 1970s.
The study's findings raised a hue and cry not only because it challenged the official data on the share equity attained by the Malay community but more importantly because it challenged the official orthodoxy.
Strong reactions from various Umno leaders at that time indicated their fury -- and perhaps fear -- that the Asli study negated a long-held belief on how the Bumiputera corporate equity strategy was necessary for Bumiputera economic advancement and synonymous with the interests of the Malays.
Lost in the firestorm were the study's recommendations that encompassed a wide spectrum of issues. Those recommendations are reproduced below.
I hope they will be read more carefully by the present crop of policymakers and politicians that are trying to find their way out of what has correctly been referred to as the "bastardization of the NEP" - an assessment made by one of the nation's foremost bankers, Nazir Razak.
Corporate equity findings (from Centre for Public Policy Studies' Report)
* GLCs are leading shareholders of corporate equity. The GLCs' pattern of operation reflects little entrepreneurial and manufacturing capacity.
* Regulatory agencies ensure that 30% of the equity of quoted firms are owned by Bumiputera. These agencies do not, however, ensure that individual Bumputera allocated large volumes of publicly-listed equity, especially during IPOs, retain their ownership of this equity.
* Publicly-listed shares distributed to Bumiputera minority shareholders during IPOs should be done in a more equitable and transparent manner. Currently, an elite benefits from such IPOs, and these shares are quickly divested for huge profits.
* The continuous divestment by Bumiputera shareholders (partly as a means of asset diversification) has been mainly responsible for the so-called "under achievement" by Bumiputera in relation to the NEP corporate equity targets based on the official definition.
* Even if this divestment is not taken into account, Bumiputera share of corporate equity presently is well in excess of the target of 30 percent, if more objective methodologies of measurement are used.
* There is little intra-ethnic business cooperation among leading Chinese businessmen. There is growing evidence of inter-ethnic partnerships forged on a basis where the partners contribute equally to the development of an enterprise.
* Government regulation and policies, principally in the form of NEP measures, are stymieing entrepreneurial development and hindering domestic and foreign investment.
Corporate equity recommendations
* Enterprises owned by the GLCs must be managed by competent professionals with expertise in the business of the company under their charge. Senior management positions should not be determined on the basis of ethnic background but on merit and professional achievement.
* The government should cease allocating equity to individual Bumiputera during IPOs. The allocation of shares to Bumiputera before IPOs tend to promote Ali-Baba relationships that only serve to undermine investor confidence and foster ill-will.
* Bumiputera trust agencies, such as the ASN and ASB, should be the primary beneficiaries of IPOs allocated to this community. At the same time, there should be equal determination by the government to increase the share participation of the Indian and East Malaysian Bumiputera communities through similar community-based trust agencies.
* Government initiatives to promote enterprise development on the basis of affirmative action will undermine entrepreneurial endeavours, which have emerged primarily among SMEs, without state support.
* The government should focus its attention on promoting key economic sectors and SMEs as a means to develop Malaysia's economic potential. The government should particularly tap into the potential of the new middle class to create thriving enterprises and find means to support such endeavours.
* Racially oriented affirmative action and the promotion of Malay-owned businesses have created serious intra-ethnic Malay cleavages while also hindering the creation of a competitive economic environment. The government should not continue with the continued promotion of such policies.
* In calculating the respective ethnic shares of the corporate equity, there is need to apportion the share of GLCs as well as nominee companies according to the ethnic composition of the country. This will provide a fairer and more objective computation of the respective ethnic shares as compared with the current methodology.
* Government policies to enhance Malay Bumiputera and other ethnic minority participation in commerce and industry are better achieved through capacity building efforts such as investment in human resource development and skills training rather than through forced equity restructuring.
Continuing wayang on Malay corporate equity
It is understandable why Perkasa and similar parasitic groups are raging away at the corporate equity issue. The ultra nationalist movement badly needs issues that can burnish its credentials as the protector of Malay interests and derail the structural reforms the country needs to flourish.
What is incomprehensible is why Umno continues to harp on the attainment of the racial corporate equity share target as a key goal to be pursued for the Malays and country as a whole.
It is absolutely the wrong target to focus on because it has been conclusively shown to benefit only a small minority of well-connected and already wealthy business and political leaders - numbering perhaps no more than a few tens of thousands of individuals and their families at most.
One would have thought that the $52 billion out of $54 billion of equity value sold off by Bumiputera preferred investors between 1985 and 2005 would be sufficient proof that these individuals do not need more perks and special treatment.
More important, the Bumiputra corporate equity target is the wrong one as it will only distract from the more important challenges that the nation and especially the Malays and other Bumiputra communities need to face up to.
Note: This article first appeared in Chinese in the weekly paper, 'Red Tomato'.
-
09-03-2011 | andrea
Reasoning with thieves and pirates are like administering medicine to dead bodies.
With a mindset of stone and devoid of any logic, mere reasoning cannot be pratical.
They that had have stolen fron the nation coffers are the same people that are against the true statistics given five years ago.
You'd played your part Dr Lim and the history of Malaysia had marked your contribution in one way or the other.
As for those pirates and parasites, we just leave them alone to be swallowed by their greeds and their own eventual vomits.
-
03-02-2011 | Anonymous - whatever
Chinese is like a parasite in my own opinion
sorry but that is the truth
the likes of you which is in this case Chinese are lurking all over the world like a cockroach...keep dreaming
the malay will always ownz you forever and ever
don't blame us, blame your ancestor and yourself for still staying in Malaysia....last and not least
you tak suka, you keluar...hihihi
-
12-09-2010 | pastor carey
however much we continue to flog this horse,nothing will happen;that's a fact Malaysians have to accept under an UMNO gomen
UMNO was founded on Malay Nationalism and hijacked by ultras/extremists who used the Nazi ideology to 'rule' Malaysia after 1969 when they used May 13 as an excuse and catalyst to pursue Ketuanan Melayu under the guise of NEP and 'special privileges' for Malays and natives(converted to special rights when there were NONE!!)
what is the point of continuing to argue against people who 'see you no eye' and continue to press ahead with what they want for themselves to the detriment of other minority races....there are just too many documented cases for UMNO to defend or refute;and they don't give a f--k!!
they will continue to use other component parties to gain a majority in Parliament and hope to continue ruling the country and 'steal' from the Treasury...how else does one explain the non-action against corrupted politicians in the Barisan nasional fold,eg Taib Mahmud of Sarawak and Cahaya Mata fame(CMS - chief minister stock);even former opposition in Sabah PBS and Joseph Pairin had been 'bought' over.
And if Anwar and PAS do somehow manage to take over ,maybe nothing will change unless they drop the bumiputraism tag and rule the country as a civil society with equal rights for citizens regardless of race and religion;amen,there's not even a proper Malay race in the first place, for God's sake!
full stop!
-
09-09-2010 | vaithies - re: Learn the constituition and history of PersekuAbdul Rahman wrote:Read it, learn it and analyse it. It is something our forefathers agreed upon. If you don't agree, you can always leave. Significant numbers have left Malaysia for Australia, New Zealand, Britain, United States, Canada and others. Maybe you will be better treated there.
touch you heart and make a decision on this : if your kid were to be hospitalized due to brain tumor, will you meet a doctor who prescribes "panadol" or a doctor who perscribes a surgery. basically it depends on the competency level of the doctor wheater he qualified by MERIT or otherwise. This doctor who prescribes panadol, could be someone who is a product of NEP. one can only move if they want to move, its not right to jump que.
-
09-09-2010 | soon - re: the right action to takePoliticokat wrote:Quote:Abdul Rahman - Learn the constituition and history of Persekutuan
Read it, learn it and analyse it. It is something our forefathers agreed upon. If you don't agree, you can always leave. Significant numbers have left Malaysia for Australia, New Zealand, Britain, United States, Canada and others. Maybe you will be better treated there.
That is the problem! None of our forefathers agreed that it would be the best interest of our people to cripple our nation. Nobody agreed that Malaysia and her citizens would be best served, by robbing the national coffers. And nobody agreed to the creation of the ultra elite, where 2 million USD is petty cash to them. No body agreed that the Malays are the master race, superior to all other races.
And yes, you do get better treatment elsewhere. Simply because all anybody else care about is your skill and how you can be used to make them rich. If you are a golden goose, you get feed with a golden spoon.
In Malaysia racism has reach ridiculous levels... to the point that people will cut off their nose to spite you. How else can explain a nation that is willing to break its own legs and destroy its own economy just to continue with a racist agenda.
Vietnam is now a competitor! Seriously, any right minded person would get rid of the the entire NEP. I am a malaysian. You are a malaysia. The NEP is making both of us poor. Do you want to be poor? I don't. Can we forget this racist drama and focus on importing things like the economy.
Well dont worry about the pass , what we need is the right action to take. The world now is global and there is no border and we can survive anywhere.Dont compare and worry about the future. If you need help to migrate do contact me in Adelaide and I will be glad to help out. My email address is : fairpricefurniture@bigpond.com
As long as we got skills and healthy and meets the government requirements for migration then have a go at it and we will help any Malaysian who wish to live and work in another country like South Australia.
-
09-09-2010 | soon - be happy in another country of resident
Dear Malaysian,
Which country you choose to live and work, is ok as long as you are happy. Anyone can migrate and work overseas to earn a living and gives their children a better future, then do it and dont worry about those that want to stay back. Some countries are better than others and as long as you dont compare and do your fair share then you and your family will have a better future. I have migrated to Australia 21 years ago and we are having a wonderful and happy life. All my childrens are now working and doing well and we are enjoying what we got and very happy with our place of resident and living well too. If you all want help in migrating to Adelaide do contact me and will be glad to help anyone or family . The world now is global and we dont have to put our family or ourself in Malaysia if you or your family dont want to. As the saying goes who put you mind in the bottle? We can be free the minute you put your mind as ease and freedom to go any country in this world.Australia is a fair country to live and the weather is mild and our 4 seasons is beautiful and doing your own business is easy and getting a job is not that hard if you are got the right skills. The best is to start your own business if you have the capital or work for others if you cant. Do contact me if you need help and you can reach me at the following email: fairpricefurniture@bigpond.comTake care and be happy.
-
08-09-2010 | PoliticokatQuote:Abdul Rahman - Learn the constituition and history of Persekutuan
Read it, learn it and analyse it. It is something our forefathers agreed upon. If you don't agree, you can always leave. Significant numbers have left Malaysia for Australia, New Zealand, Britain, United States, Canada and others. Maybe you will be better treated there.
That is the problem! None of our forefathers agreed that it would be the best interest of our people to cripple our nation. Nobody agreed that Malaysia and her citizens would be best served, by robbing the national coffers. And nobody agreed to the creation of the ultra elite, where 2 million USD is petty cash to them. No body agreed that the Malays are the master race, superior to all other races.
And yes, you do get better treatment elsewhere. Simply because all anybody else care about is your skill and how you can be used to make them rich. If you are a golden goose, you get feed with a golden spoon.
In Malaysia racism has reach ridiculous levels... to the point that people will cut off their nose to spite you. How else can explain a nation that is willing to break its own legs and destroy its own economy just to continue with a racist agenda.
Vietnam is now a competitor! Seriously, any right minded person would get rid of the the entire NEP. I am a malaysian. You are a malaysia. The NEP is making both of us poor. Do you want to be poor? I don't. Can we forget this racist drama and focus on importing things like the economy.
-
07-09-2010 | Abdul Rahman - Learn the constituition and history of Persekutuan
Read it, learn it and analyse it. It is something our forefathers agreed upon. If you don't agree, you can always leave. Significant numbers have left Malaysia for Australia, New Zealand, Britain, United States, Canada and others. Maybe you will be better treated there.
-
04-09-2010 | Vincent Ibrahim - Bastardization of a nation
For goodness sake, I want to ask those well-connected rich men malay club...how much $$$$ is enough before you let go the power and give up exclusive rights to milk the nation dry? So many of are already multimillionaires,yet you are the group of people who are always saying malays are behind all that.Do you care a damn about those poor kampung folks who remain as poor for generations till today? Can't you please let the money flow direct to the poor simple malay folks instaed of going through your hands first?Real hypocrites you !
-
04-09-2010 | ZhangHo - The Economics & Politics of Truth & Reality
No amount of intellectual discussions, statistics, universally-accepted methodical systems of calculations & evaluations on the status of Bumiputra Equities/Shares in Malaysia can break the stubborn & thick-skulls of these UMNO Malay/BN "pretenders" who claim to protect & fight for the Malays & Bumi Rights,Interests & Wealth, when they are the very corrupted "criminals" who betrayed the trusts & broken all promises made to the Malay Race & Bumis since Merdeka, more particularly since 1969!
The target to uplift and achieve Malay/Bumi social & economic status & goals should have been achieved a long time ago, had we had continued national Malay Political Leadership in the likes of Datuk Onn Jafar, Tunku, DR Tun Ismail, & Ghazalie Shafie "Gus". These gentlemen were true Malay Nationalists & Patriots who loved their country, and who realized that ONLY by co-existing with their Non-Malay & Non-Bumi fellow Malaysians, can the immense wealth & prosperity be created through years of toil & sweat and hard work, which when realised can be happily & fairly shared shared by all, irrespective of racial origins!
Malaysia's Failure today, as a United Multi-Ethnic Nation can be traced back to the "Malay Dilemma" influence & the prematured political "awakening" in 1969, which camouflaged & provided the evil "veil" for the enemies of state(who were working against Tunku & the founding leaders,)to completely derailed, sabotaged & destroyed the Vision & Dream of Tunku & his loyal Merdeka comrades!
After 53 years, and as it is , only a CHANGE of Federal Government in the 13GE, and the REPLACEMENT of the national Malay Political leadership FROM UMNO Malay/BN TO PKR & PAS, DAP/PR Coalition, will this country be led back to the proper path of positive TOTAL NATIONAL DEVELOPMENT & NATION-BUILDING! This can be achieved in accordance to the equality, protection & rights(especially the special position & rights of the Malays & Bumis)of all ethnic groups in Malaysia, under Article 153 & Article 8, as enshrined in the Federal Constitution.
Under such an inevitable reality & environment, invaluable & supportive intellectual input & services from reputable professionals like your goodself Dr Lim, are greatly & urgently needed,to critically steer our country out of the present nose-diving & impending economic disaster!
One of many simple vehicles, like the down-to-earth fundamental Unit-Trust vehicle would have been an ideal vehicle to help the Malay & Bumi poor! Yet, due to vested individual interest of UMNO Malay/BN politicians & lawmakers, almost every state who had such a vehicle, had gone "bust!"
A Unit-Trust Vehicle is virtually fool-proof, as proven by the success of commercially & privately administered Unit Trust Companies set up by Banks & Financial institutions!
Such a viable vehicle can corporately & professionally acquire & manage all Bumi-alloted, Government-allotted, GLC-alloted & SExchange Shares/Equities. Through the Unit-Trust vehicle, all monetary transactions, including Equity/Shares ownership & profits, can be fully acualised & realised,.. all accounted for,.. with transparency & clarity! Individual Malay & Bumi can subscribe & purchase the Unit-Trust shares,.. with their investments & dividend returns appropriately protected & guaranteed!
As long as there are no political(meaning, no-UMNO Malay/BN Govt.) intervention & interference, there can't be any abuse & corruption by any individuals or political cronies!
The perpectual economic woes & "Malays/Bumis-will-never-reach-30%-&-more-Equi ty" status will remain because of UMNO Malay/BN's political influence & 'obey-thy-political master" mindsets in both the public & private sectors!The Political landscape must undergo a complete transformation with the removal & change of the national Malay Political Leadership! Only then, can there be sanity & hope for Malaysia!
-
04-09-2010 | Chan
They didn't listen to you five years ago and look at the country now. You are worried for the fate of the nation. But it looks like RM52 billion is not enough to satiate their greed. They can only see the wealth that they think is owed to them not the harm that they are doing to the country.
-
04-09-2010 | FenceSitter
There are ethnic malays all over the world. Those in S. Africa, Maldives, India, Sri Lanka and other parts of the world don't need special rights to survive. Neither do those in countries closer to home like Singapore, Indonesia, Philipines, southern Thailand, Brunei, Cambodia. Besides that there are those that migrated from this land and surviving very well. They dont need NEP. So, are local malays weaker and less competitive? Or is it just the umnoputras that are weak and uncompetitive and they are just using NEP as a political tool?
-
04-09-2010 | Cina Kedah
This article should be translated into Bahasa Melayu so that many more Malays could have better understanding about the nation wealth.
-
04-09-2010 | Cina Kedah
The Malays in general are still ignorant about the bastardization of NEP by UMNO elites.
Not only does UMNO bastardised the NEP, the also distort the history about the sacrifices of Non-Malays in building the important of economic pie.
While their own leaders continuing plundering the nation wealth, we could still see many go rushing kissing the hands of plunderers hoping for crumps.
The 45% bumiputra wealth should be correctly reclassified as UMNO wealth.
-
04-09-2010 | tan, tanjong bungah
Hi everyone,
That "It is absolutely the wrong target to focus on because it has been conclusively shown to benefit only a small minority of well-connected and already wealthy business and political leaders - numbering perhaps no more than a few tens of thousands of individuals and their families at most." is precisely the reason why parasitic UMNO-connected individuals and organisations like Perkasa are so against your 'revisiting Bumiputra corporate equity Issue' or other issues on NEP and NEM, which would do away or minimise the rent-seeking culture of UMNOputras and their cronies!!
Announcement
History series
Connect
Latest Articles
- Stop the racist politics of suspicion and hate in the country
- The 2013 election results: back to the drawing board for both coalitions
- Spewing a poisonous brew on the Chinese ‘Lack of Multiracial Spirit'
- Vote for a revolutionary kind of development
- Perlunya lebih ramai calon-calon wanita dalam PRU
- BN’s triple cocktail of Race, Hudud and Fear is not working
- Fiscal risks to Malaysia's polls
- Opposition will clinch popular vote in GE13
- Kenyataan akhbar oleh kumpulan warga prihatin tentang pilihan raya umum
- Vote to ensure a better Malaysia
- On Malaysia's debts and 'growth at all cost'
- Why Malays should no longer vote for UMNO/BN
- Lantai senget di medan pilihanraya
- PSM decision: Hopeful prelude to opposition avoiding three corner fights
- Hanya 10 peratus kerusi parlimen Malaysia dipegang oleh wanita
- Stealing the elections: Act One
- BN dan PR: Nyatakan langkah-langkah untuk memperbaiki kewangan dan hutang negara
- Hindraf blueprint – the micro view that masks the bigger problem
- Academics call upon Barisan and Pakatan to declare policy positions on national finance and debt
- Sampai bilakah bantuan jenama 1Malaysia akan diberi?
- Sin City – “the jurisdiction of choice by people like us”
- Keeping faith with Hindraf and Waytha Moorthy
- Malaysia's debt: the misleading debt-to-GDP ratio
- Strategic abstention as purposeful option in the coming GE
- Our meeting with the Prime Minister
- Malaysia has an evil side that bears watching
- Govt role in managing social system of multi-ethnic, multicultural society
- Is Malaysia’s electoral system ready for GE13
- Will other communities also start making similar demands?
- Hindraf critics are demonizing the victims
I as a 'non-bumi' is totally disappointed with these equity issue. I believe in 45% figure, and there are tons of Malays who are richer than me, which can afford to sit in Merc, BMW & Audi, and still need 'help'. If this is Islam hadhari, I have no comments to say. Worse, some of these UMNOputras has betrayed their conscience for 50 cent.