Bursa Malaysia must open up .....otherwise it may become a history soon.......
KUALA LUMPUR, Oct 1 - Bursa Malaysia, the former Kuala Lumpur Stock Exchange, has asked the government to relax shareholding requirements that mar the market's attractiveness, industry officials say.
The requirements - which stipulate minimum bumiputera shareholdings - are said to be making local companies with overseas assets reluctant to list locally, and driving a growing number of them to go private or list overseas.
Thirty per cent of a listed company's equity must be set aside for bumiputeras, but this is not really being contested.
The main point of contention is that should a company top-up its capital base - say, through a rights issue - regulators can demand that bumiputera equity be restored to 30 per cent if it has been sold down. This has always been a concern because shareholders rightfully complain about earnings dilution.
The bourse wants the rules changed so that once a company is listed and the 30 per cent bumiputera equity requirement is met, it should no longer be subject to any top-up conditions.
Industry officials say Bursa Malaysia also wants all sale moratoriums to be abolished. At present, bumiputeras cannot sell their shares inside a set time. This disadvantages them in bear market conditions, whereas non-bumiputeras face no such limitation.
The officials also say Bursa has suggested that if there is no or insufficient take-up of bumiputera shares, these shares should be offered to the public instead of being placed in escrow, as they are now.
They point out that the current bear market has made it extremely difficult to find investors, as few shares trade above their initial public offer price.
According to them, only two of the past 12 listings have traded above their IPO price.
The 30 per cent condition originated with Malaysia's New Economic Policy, implemented many years ago after race riots.
The policy was originally slated to expire in 1990 but has been extended to 2020. It seeks to bridge economic disparity between bumiputeras and richer non-Malays by discriminating in favour of bumiputeras.
The original aims of the NEP were to eliminate poverty irrespective of race and to restructure society so no race would be identified with a specific economic function.
This was to be achieved through targets - specifically, 30 per cent bumiputera ownership in every sphere of society, from employment and occupation to house ownership and corporate equity.
Securities industry officials say Bursa Malaysia's proposals to ease bumiputera shareholding requirements will be considered by the country's Economic Planning Unit. It isn't clear if any of them will be approved, as similar suggestions have been made many times in the past. But this time the suggestions come from an arm of the government, which will carry more weight.
Also, the proposals are backed by powerful ethnic Malay businessmen including Nazir Razak, chief executive of investment bank CIMB and younger brother of Finance Minister and soon-to-be prime minister Najib Razak. - Business Times Singapore
10 comments:
The Government must not be afraid to defend its domestic policies against all parties who see wrong in everything Malaysia did and will do.It does not matter if calls from Malaysian domiciled malaysias.At least they theit moths in the right locales,unlike some Malaysians hiding behind foreign countries giving comments and so called advice from a safe distance.At least soem people are willing to go to jail(rightly or wtrongly) for speaking up in their own country.Ecery country is unique and problem will have to be handled in the local molds without parroting other countries approaches to diferent problems arising from different sets of equations>it is about timing and about leadrship.MM LKY said make haste slowly.Being a Hongkie is not necessarily aan Economics Emeritus.Malthus
Ha ha I really love you no matter you are Arjun or Malthus. I think you are the same person. Please go to the ground and listen to rakyat. I love to to do that when I go back to Malaysia. Speaking to the taxi drivers no matter they are Malay,Chinese, or India. For the last few trips, they told me that they are having tough time with the current political and economy situation couple with the high oil price now, People are really suffering.
Malthus(or Arjun) ,you must be one of the very lucky that really enjoy life in KL while others has seen their wealth shrinking.
Malaysian is a blessed country with rich natural resources. People in this country must wake up and gather together no matter they are Malay Chinese or Indian. We should fight with country like Hong Kong, Singapore,USA or China in terms of economic,sport and intelligent. Show them that we are better than them. This is what we call Malaysia boleh. Lee Chong Wei and Misbun Sidek has proved that qabd I havevproved my worth against Sinaporean and Hong Kee.
So,when is your turn?
Malthus,
You are right that Malaysian government must continue to defend it domestic policies or continue to help Malay in very area. No one can deny that. But one must be flexible enough when the situation has changed. Go and ask your friends who are remisers or stock brokers. They are suffering now due to thin volume. Less people buying stocks that translated
into low commission for them. Nazir Razak knows that because he travels around the world and understand that something need to be done.
I am not an economic emeritus. You might want to hide as Arjun or Malthus to continue to attack me. You might want to say that this country is a paradise to Indo,Bangla and Chinese Dragon Girl. I never deny that Malaysia is a paradise and I love this country very much. However, Something must be done to address current econoimc downturn and peoples suffering. Don't you think that politicians should do something now instead of fighting for politics everyday?
Becareful Truly Malaysian. Now some people tried to create havoc in your blog by implying that jail is waiting for you if you continue to write something that the person might no like it and only a coward that only dare to speak in Hong Kong.....ha ha
Malaysia is a democratic country and everyone should be given the chance to speak up their mind.
Your ardent reader.
Truly Malaysian,
I am a silent reader of your blog and never leave message in your blog. Certainly sometime I do agree with your opinion but some time I never agree.
I have two small restaurants. One in Seremban one in Klang. The business has been dropping by 50% since this year. Feed back from my customers is that they rather eat at home istead of eating outside. I might need to close my restaurant in Seremban as it has been making loss and it is very difficult to even break even at this tough operating environment.
You are right that government must do something now. Politicians should concentrate on economy now instead of political fighting.
Great comment from malaysians staying comfortably from a safe distance>this person is definitly richer than ther whole bunch of taxi drivers,perhaps as rich or richer than the his friends the remisers and brokers who made 250k last year.yeap he is richer than us and rubbing shoulders with silver medalists and coaches who travel a lot like CEO CIMB (personal friend lor).He hu has lotsa and lotsa more money usually talk down,from a safe distance lor.People in HK make lotsa of money (sori cannt give a number but definitly safe bank account in hk is necesaary for his likes.No no, not referring to u mate. Malthus alias who ?
Well said Malthus Alias aka Arjun and thanks a lot for your praise.
I told you already not to spread around and announce publicly that I am richer than Warrent Buffet or Bill Gates, later I kena kidnapped you want to pay kah? you knowlah my blog have big followers and I dam scare poor guy like you will come and kidnap me wor..... ha ha ha ......
Truly is truly malaysian a malaysia yan ( who like to be provocative) one answer not enough, must be two answers to other peoples comments.(insecure and need to be provocative).Not need to provoke mar, since you are not as rich t as bill gates(you will never b).But you feel smug and superior when you regularly leave kaitak and landed in kl and talk down to taxi i drivers ( u know their race one ,so very perperctive of you)
Good massage for the ego meh.After go to pudu or klang for snack and kwai chee.Good for the world economy since you dim sum in kaitak, snek on kwai chee, gobble dragon fruit from Chinawomen.)How come you think there got people attack you in your own blog.I thought thats wat you are asking since very safe far away in wancai aprtment.Stay in HK, go eat stinking taufu,,, dont say HK is great ,my county is a failed nation wannabe.Cannot stand the fire ,dont make a kitchen lor.Actually who(the people you met---remisers ah? )is suffering ur flights from kaitak to KL fulloadl and return flight oso full.Arjun aka maltsugar ma ngah tong.
Ai yo Arjun, can't you understand English? So far I only attack the Malaysian politician who did nothing that cause the malaysian people to suffer....You just come in and talk cock, in my blog i Put Malaysia a failed nation? but big question mark behind the words? You decide and you intetpret. Why you so worried? Are the you the failed politicians in recent election?
Great comments from blog owner.Dunno who attack you.Must be feeling the hot kitchen>Let say you are attacking the politicians who you and others think have been leading Malsysia down the drain, attack them on their grounds and in the same country they are leaders.Wuffo attack from comforts of richer abodes of wanchai than KLIA taxi drivers and a few people suffering(its a relative word).At least sum pple wen to jail to dare to really speak against politicians not necessarily malaysian ones,other counutries odo got one.Make a stand and speak up and be counted.I am not ur standard to pick a fight, since there is a presumption that I am rich.Ur standard is to use ur HKNG earned moneys, i think ur ar yau chin yan lor,fight from a platform.Why are u so sensitive in ur blog.Cannot take the char kwy teo heat, dont fry lor.Like dat how criticise politicians (whcish side by the way) Right ,left, middle of the road,secular or religions .know ur enemy sun tzu said.like ur attacking politicians... like dat call a critic,sum mor use Nazir name.Arjun
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