Ease bumiputra shareholding rules: Bursa

This is a sensitive and emotional issue. However, if this gets done, we are one step forward. This will ease some tensions of allegations many well connected politicians garner wealth rather than benefiting grass-root Malays. I am glad that we begin to see through NEP and looking at other ways of equitable wealth distribution.

(Business Times Online) 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 main point of contention is that should a company top-up its capital base - say, through a rights issue - regulators can demand that bumiputra 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 bumiputra equity requirement is met, it should no longer be subject to any top-up conditions.

Securities industry officials say Bursa Malaysia's proposals to ease bumiputra 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.