CABARAN BESAR MERENCANA NEGARA KE ARAH MODEL EKONOMI BARU

Ucaptama Perdana Menteri Malaysia, Datuk Seri Najib Tun Abdul Razak pada
Persidangan Invest Malaysia 2009 Anjuran Bursa Malaysia Berhad dan Kumpulan
CIMB pada 30 Jun 2009

Konsep 1Malaysia bertujuan supaya rakyat Malaysia bekerja sebagai satu pasukan
mencapai negara maju menjelang 2020

TERLEBIH dulu, saya ingin mengucap terima kasih kepada pihak penganjur Invest Malaysia
2009, kerana menjemput saya menyampaikan ucaptama pada Sidang Invest Malaysia ke-5.
Saya gembira melihat begitu ramai pelabur yang hadir dan mengalu-alukan kehadiran
kepada tetamu antarabangsa kita.

Invest Malaysia sudah menjadi forum tahunan paling penting bagi kita bertemu dengan
pelbagai pelabur antarabangsa dan mempersembahkan apa yang kita lakukan. Ia juga
menyediakan peluang untuk syarikat pelaburan swasta tempatan berurusan dengan
komuniti pelaburan.

Pada pendapat saya, 'road show' yang membawa pelabur ke negara kita akan
membolehkan pelabur menyaksikan sendiri apa yang kita ada dan menilai secara peribadi
iklim pelaburan di Malaysia, mengkaji cara untuk saling melengkapi dan mempromosi usaha
bersama di pasaran antarabangsa.

Seperti yang anda ketahui, acara ini selalunya diadakan pada Mac, seiring dengan
perlumbaan Grand Prix Malaysia. Bagaimanapun, menyedari akan berlaku perubahan pada
pucuk pimpinan negara, penganjur sengaja melewatkan program ini selama dua bulan bagi
membolehkan saya berucap sebagai Perdana Menteri.

Bagi saya, ini adalah majlis penting yang akan membolehkan saya berkongsi pendapat
bersama anda semua dan memberi aspirasi kepada Malaysia dan pasaran modalnya. Bagi
yang menjadi peminat Formula Satu di kalangan anda, saya memberi jaminan saya sendiri
akan meminta penganjur mengadakan sidang ini mengikut jadual asal pada tahun depan.

Hari ini kita bertemu dalam persekitaran yang amat mencabar. Dunia mengalami suasana
luar biasa dalam aspek peraturan kewangan global. Krisis kewangan global telah
menggugat teruk institusi kewangan yang amat mantap. Akibatnya, ia memusnahkan
kekayaan dunia dan mencetus persoalan membabitkan kebijaksanaan corak pengurusan
yang konvensional. Apa yang lebih buruk ialah krisis kewangan kali ini sudah melampaui
pelbagai krisis kewangan yang pernah berlaku.
Apa yang nyata banyak pelajaran yang kita peroleh dan proses pemulihan perlu dilakukan
untuk membetulkan keadaan. Semua pasaran kewangan mesti diberi perhatian lebih serius
dan kita tidak boleh teragak-agak dalam membuat keputusan dasar yang sukar sebaik saja
kita melihat tanda-tanda awal yang di luar kawalan mula berlaku.

Piawaian urus tadbir dan pengurusan risiko pada peringkat perbankan dan syarikat
kewangan mesti diperkukuhkan.

Peraturan dagangan atas kaunter (OTC) dan beberapa firma yang peraturannya agak
longgar mesti dikaji kesan dan peranan yang dimainkan mereka dalam pasaran kewangan
hari ini. Amalan jualan dan pengambilan berisiko yang tidak dilindungi mesti diberi perhatian
serius.

Kita semua tahu dan sudah merasai sendiri bagaimana krisis kewangan yang boleh
diterjemah kepada padah amat buruk kepada ekonomi sebenar – syarikat, pekerjaan,
sumber manusia dan keluarga – di seluruh dunia. Malaysia tidak terkecuali.
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Justeru, keutamaan saya sekarang ialah untuk menyediakan respons tegas bagi
mengekang impak kemurungan ekonomi global. Kami sudah menyediakan dua pakej
rangsangan bernilai RM67 bilion atau kira-kira sembilan peratus daripada Keluaran Dalam
Negara Kasar (KDNK) untuk dibelanja dalam tempoh dua tahun akan datang.

Pakej fiskal ini mengandungi langkah komprehensif bertujuan mengurangkan kesan ke atas
individu dan perniagaan, merangsang permintaan agregat untuk jangka pendek dan
membina kapasiti ekonomi jangka panjang.

Kami telah memberi jaminan bahawa perniagaan akan mempunyai akses yang cukup baik
ke atas kewangan dan sudah melaksanakan pelbagai inisiatif untuk menyediakan bantuan
kewangan kepada kumpulan perusahaan kecil dan sederhana (PKS), memperkenalkan
mekanisme jaminan untuk menyokong pembiayaan sektor swasta selain mekanisme
penyelesaian hutang.

Sehingga 19 Jun, projek bernilai RM9 bilion telah ditawarkan di bawah pakej rangsangan 1
dan 2, dan RM3 bilion daripadanya sudah dibayar. Dengan meningkatkan pembayaran
kemajuan projek kerana projek ini sedang dilaksanakan, saya yakin suntikan perbelanjaan
ke dalam ekonomi domestik ini dan kesan pelbagai kemuraman luaran, akan membantu
mengurangkan impak dan menetapkan peringkat pemulihan ekonomi menjelang separuh
kedua tahun ini.

Perubahan kepada model ekonomi baru

Cabaran lebih besar yang akan kita hadapi bukan menangani keadaan kerapuhan jangka
pendek, tetapi membabitkan persaingan nasional dalam jangka panjang. Dalam tempoh tiga
dekad lalu, kita sudah mengambil langkah cemerlang dalam membasmi kemiskinan,
meningkatkan taraf hidup rakyat Malaysia, membangunkan infrastruktur kelas dunia dan
menyediakan pertumbuhan ekonomi yang memberangsangkan.

Tetapi kita tidak boleh dan tidak akan sebagai negara berpendapatan sederhana. Kita perlu
berubah kepada ekonomi berpendapatan tinggi atau menghadapi risiko kehilangan
momentum perkembangan dalam ekonomi dan pasaran kita.

Cabaran dalam menguruskan perubahan begitu besar seperti itu bukanlah mudah dan ia
perlu digaris lebih berhati-hati dengan mengambil kira kelemahan dalam kerangka
kewangan global dan tekanan saingan yang semakin meningkat berikutan perubahan
dramatik dalam ekonomi global.

Tetapi saya ingin memberi jaminan bahawa keutamaan saya hari ini ialah mengubah masa
depan kita kepada kedudukan ekonomi berpendapatan tinggi. Dasar kerajaan saya dan
keutamaan akan dilaksanakan berasaskan kepada matlamat ini.

Konsep 1Malaysia yang saya cetuskan bertujuan untuk seluruh rakyat Malaysia bekerja
sebagai satu pasukan dalam usaha mencapai satu matlamat – iaitu ke arah negara maju
menjelang 2020. Saya telah menggerakkan usaha, melakukan pelbagai usaha yang
menggaris formula sebuah model ekonomi baru, yang berasaskan inovasi, kreativiti dan nilai
tinggi, bagi mengangkat kita kepada kedudukan sebagai negara berpendapatan tinggi
dalam tempoh sedekad ini.

Model ekonomi baru kita adalah untuk mengubah kedudukan kita daripada bergantung
kepada asas pengeluaran yang menggunakan pekerja separuh mahir dan buruh murah
kepada industri teknologi tinggi dan sektor perkhidmatan moden, yang bergantung kepada
pekerja mahir dan berpendapatan tinggi.

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Pelaksanaan model ekonomi baru akan memerlukan rombakan dasar secara besar-besaran
dan komprehensif dalam pelbagai aspek, tetapi amat penting kepada masa depan Malaysia.
Kita perlu membuat perubahan asas dalam strategi, di samping perubahan minda. Kita akan
menerima pakai pendekatan holistik yang akan mencetus persaingan dalam semua sektor
ekonomi. Kita akan secara sistematik merangsang proses inovasi sebagai kunci utama
kepada nilai tambah dan mempromosi sumber tambah nilai tinggi seperti pendidikan swasta,
pelancongan kesihatan, ICT, industri kreatif dan bioteknologi.

Dalam konteks ini, adalah kritikal untuk mengekalkan momentum melalui dasar-dasar yang
mesra pasaran dan yang boleh mencipta sumber pertumbuhan baru dalam sektor
perkhidmatan. Justeru, kita akan terus mengubahsuai atau menghapuskan polisi yang
mengekang pertumbuhan. Kerja-kerja sudah bermula. Kami sudah pun mengumumkan
liberalisasi dalam 27 sub-sektor perkhidmatan, disusuli langkah liberalisasi untuk
meningkatkan peranan sektor kewangan sebagai pemangkin pertumbuhan ekonomi.

Pasaran Modal melakukan perubahan strategik ke arah agenda pertumbuhan

Begitu juga, kami sudah melalui perjalanan yang jauh dalam pasaran modal. Dibantu
dengan agenda pembangunan teratur melalui pelan induk Pasaran Modal, kami telah
membangunkan satu pasaran modal yang pelbagai dan luas di rantau ini. Kami mempunyai
pasaran bon yang kukuh dan besar, iaitu ketiga terbesar mengikut tanda aras Asia jika
diukur melalui KDNK. Kami memiliki antara bursa terbesar di Asean dan jumlah terbanyak
bagi syarikat disenaraikan.

Industri pengurusan dana juga tumbuh begitu pesat dan kami memiliki industri saham
amanah terbesar di Asean. Pasaran Modal Islami kami juga adalah yang terbesar di dunia,
dengan lebih 50 peratus terbitan sukuk global diterbitkan dari Malaysia; jumlah tertinggi
dana berasaskan Islam di seluruh dunia dan nilai besar dalam ekuiti berasaskan syariah.

Kerangka kawal selia kami mematuhi keperluan antarabangsa dan telah dinilai oleh penilai
pakar luar. Kami telah menarik begitu banyak firma utama antarabangsa dalam industri
pengurusan dana dan kewangan Islam untuk beroperasi di Malaysia.

Mengantarabangsakan pasaran modal

Bergerak kepada fasa selanjutnya dalam membangunkan pasaran modal, kami memerlukan
pembabitan antarabangsa yang lebih luas. Ini tidak boleh dielakkan dan ia satu daripada
aspek penting dalam strategi mencapai pendapatan tinggi. Mengantarabangsakan sektor
perkhidmatan kewangan dan pasaran modal akan membantu meningkatkan skop peluang
untuk negara kami – seperti terbukti dalam sektor sumber dan perusahaan. Meliberalisasi
peraturan pemilikan akan membolehkan pelabur asing yang ingin melabur di negara ini dan
menggunakan Malaysia sebagai pangkalan operasi mereka pada peringkat serantau dan
antarabangsa.

Justeru, proses liberalisasi memang tidak boleh dielakkan dan kita hanya boleh memilih
untuk menguruskan tahap kepantasannya. Ia akan memberi kelebihan kepada Malaysia
untuk mencapai liberalisasi dengan lebih pantas kerana ia akan membenarkan kita
mengetuk peluang yang ada di gelanggang antarabangsa lebih awal.

Kami juga menjangka penyertaan lebih luas daripada pelabur untuk meningkatkan tahap
persaingan dan mempromosi inovasi yang akan memacu pertumbuhan dengan lebih
pantas. Ini akan membolehkan pasaran modal Malaysia mencapai persaingan lebih tinggi
dengan kepelbagaian pilihan dan tawaran lebih berkualiti untuk pelanggan. Pertumbuhan
akan dipacu oleh pelaburan dalam teknologi, bakat, infrastruktur, penyelidikan dan
pembangunan (R&D), dan pemasaran untuk memaksimumkan peningkatan keuntungan
jangka panjang serta merangsang pasaran kita.
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Pelabur tempatan pula telah membina operasi tempatan yang kukuh. Ramai telah
mewujudkan operasi pada peringkat serantau. Sekarang, mereka patut mengambil
kesempatan daripada fleksibiliti yang ada untuk mencari peluang baru dan model
perniagaan dengan membentuk perkongsian strategik serta rakan kongsi bagi
mengembangkan operasi mereka pada peringkat global.

Saya sungguh yakin atas kemampuan mereka untuk meningkatkan tahap kemampuan
mereka dan bersaing secara berkesan. Kek ekonomi yang ada mesti dikembangkan. Tidak
ada gunanya mempunyai bahagian lebih besar ke atas kek yang semakin mengecil. Kita
mesti mengembangkan kek yang ada walaupun ia bermakna terpaksa mengagihkan
sebahagiannya kepada firma persendirian.

Semua ini telah membentuk beberapa asas kepada pengumuman saya mengenai
liberalisasi ke atas sektor perkhidmatan termasuk beberapa langkah yang diumum baru-
baru ini bagi sektor perbankan. Dengan itu, saya dengan senang hati hari ini untuk
mengumumkan beberapa langkah lagi yang akan memberi kesan yang sama ke atas
pasaran modal Malaysia.

Pengurusan Pelaburan Pengurusan Dana dan Unit Amanah

Bagi mengukuhkan kedudukan Malaysia dalam segmen pengurusan dana dan saham
amanah daripada rantaian nilai pasaran modal, juga untuk membenarkan pengurus dana
pilihan tambahan untuk beroperasi di rantau ini, saya ingin mengumumkan perkara berikut:

Pertama, pemilikan di dalam industri pengurusan dana dibuka sepenuhnya bagi

membolehkan 100 peratus pemilikan asing bagi syarikat pengurusan dana menubuhkan
operasi di Malaysia. Kedua, bagi segmen peruncitan, had pegangan saham asing bagi
syarikat segmen runcit pengurusan dana saham amanah kepada 70 peratus daripada 49
peratus ketika ini.

Segmen Broker Saham

Perubahan besar-besaran dalam industri bursa saham telahpun mengukuhkan pelabur

tempatan dan meluaskan skop aktiviti pasaran modal mereka. Kami juga telah menyaksikan
lebih banyak penyertaan asing melalui lesen skim khas yang memperbaiki persaingan
dalam industri bursa saham, di samping hubungan global membabitkan pasaran modal
Malaysia. Beberapa syarikat broker saham telah mengembangkan operasi mereka ke
negara lain. Tetapi masih ada peluang lain bagi syarikat broker saham ini untuk membentuk
perkongsian baru, terbabit dalam usaha meluaskan perniagaan di peringkat tempatan dan
antarabangsa, di samping mempromosi lebih banyak produk inovasi dan meluaskan
kemahiran serta kemampuan.

Bagi membolehkan semua ini berlaku, saya ingin mengumumkan bahawa had pemilikan
pegangan saham asing dalam syarikat broker saham meningkat kepada 70 peratus
daripada paras sekarang, 49 peratus.

Menggalakkan lebih banyak penyenaraian dan menangani kecairan

Mesti ada lebih banyak usaha dilakukan untuk menarik lebih banyak syarikat besar
disenaraikan di bursa saham kita. Kerajaan komited untuk membuat lebih banyak
sumbangan dengan menyenaraikan lebih banyak entiti dan asetnya bagi memastikan
penyenaraian lebih mantap serta menyediakan pelabur tempatan dan antarabangsa lebih
banyak peluang untuk melabur dalam ekonomi Malaysia.

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Kami telah merombak kerangka bagi mengumpul dana dengan peraturan lebih berkesan
dan meluaskan kemudahan kewangan melalui gabungan papan utama dan kedua di bursa
saham, serta mengubahsuai kedudukan Mesdaq untuk menarik lebih banyak syarikat di
pasaran. Kami juga membenarkan penyenaraian asing dan saya dimaklumkan terdapat
beberapa syarikat sedang dalam penilaian. Saya berharap pelabur pasaran saham supaya
merebut peluang daripada semua perubahan ini dengan menggandakan usaha anda untuk
mengenalpasti syarikat tempatan dan asing yang berkualiti untuk disenaraikan di Malaysia.

Saya juga meminta supaya terbitan tahap pengapungan bebas dan kecairan di pasaran
ditangani segera dengan penilaian holistik dan komprehensif. Bagi kerajaan dan entiti
sekutunya akan melihat cara di mana mereka boleh menyumbang ke arah mengurangkan
pegangan saham masing-masing, bagi membolehkan pelabur memiliki lebih banyak saham.

Mengawal selia urus tadbir melalui penguatkuasaan berkesan

Walaupun kita bergerak ke arah persekitaran pasaran modal yang lebih luas di gelanggang
antarabangsa, kita mesti memastikan matlamat kawal selia kita adalah adil, pasaran lebih
teratur, telus, kewangan yang mantap dan perlindungan pelaburan yang kukuh, dipenuhi.
Dalam aspek ini, adalah penting untuk memiliki kod etika yang tinggi dan amalan urus tadbir
korporat yang mantap. Semua ini memerlukan kita mengukuhkan rejim bagi pelaksanaan
berkesan terhadap jenayah korporat dan kesalahan sekuriti.

Kami akan membentangkan satu pindaan Akta Perkhidmatan Pasaran Modal (CMSA) di
Parlimen dalam usaha memantapkan lagi penguatkuasaan Suruhanjaya Sekuriti (SC) ke
atas pelanggaran tadbir urus korporat.

Pindaan ini akan memberi kuasa kepada SC untuk mengambil tindakan terhadap pengarah
atau pegawai yang menyebabkan kerugian secara salah kepada syarikat senaraian awam
(PLC) atau anak syarikatnya sehingga menjejaskan pemegang sahamnya.

Ia juga akan membenarkan SC menghalang pelupusan aset PLC secara salah oleh mereka
yang menguruskannya. Sebagai tambahan, peraturan baru diwujudkan bagi menghalang
sesiapa saja daripada mempengaruhi, memaksa atau menipu mana-mana pihak yang
terbabit dalam penyediaan atau audit penyata kewangan PLC. Kerajaan juga akan
menubuhkan Lembaga Pemantauan Juruaudit bebas menerusi pembentangan pindaan Akta
Suruhanjaya Sekuriti 1993 pada sesi persidangan Parlimen yang berlangsung ketika ini.

Menarik Modal Manusia

Pasaran modal adalah industri berasaskan pengetahuan intensif. Menarik dan mengekalkan
bakat adalah aspek kritikal dalam proses untuk memperoleh kemahiran diperlukan dan
hubungan sosial kepada penyertaan antarabangsa yang semakin meningkat dalam pasaran
modal Malaysia. Kita mesti mengiktiraf wujud persaingan antarabangsa yang sengit untuk
pasaran manusia dan kita mesti berada dalam proses pengambilan pantas untuk
mendapatkan kemahiran antarabangsa. Bagi tujuan ini, saya mengumumkan bahawa Bank
Negara Malaysia dan SC akan mengkaji semua permohonan visa bagi industri
perkhidmatan kewangan dan pasaran modal.

Pemansuhan Garis Panduan Jawatankuasa Pelaburan Asing (FIC)

Tidak syak lagi Malaysia memang mencatat banyak cerita kejayaan sejak kami mencapai
kemerdekaan. Suatu masa dulu, Malaysia adalah sebuah negara miskin yang bergantung
kepada pengeluaran getah dan bijih timah. Dengan memilih jalan untuk kepelbagaian dan
perindustrian, ekonomi Malaysia telah mengalami perubahan, mencatat pertumbuhan tinggi
jika dibandingkan sekiranya kami terus bergantung kepada komoditi asal. Dalam tempoh ini,
Malaysia mengekalkan pertumbuhan pesat, dengan purata tahunan 6.4 peratus.
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Digandingkan dengan beberapa polisi lain, pertumbuhan ekonomi pantas ini memberi
faedah besar kepada semua segmen penduduk Malaysia. Tahap kemiskinan hari ini berada
di bawah empat peratus, berbanding 49 peratus pada 1970.

Ini adalah pendekatan kami berkembang bersama ekuiti - cara Malaysia. Tidak ada isu
pembahagian tidak adil. Ekuiti dicapai melalui agihan adil. Tanpa pertumbuhan yang kukuh,
kami tidak akan mencapai matlamat untuk membuat agihan yang adil. Pengenalan
pertumbuhan melalui ekuiti pada 1971 juga mencerminkan kemampuan Malaysia untuk
membuat keputusan pragmatik dan berani, terutama untuk mendahulukan kepentingan
nasional pada masa krisis.

Tidak seperti krisis sebelum ini, saya percaya kami sekali lagi berada di persimpangan
perjalanan. Saya yakin bahawa kegagalan atau tindakan teragak-agak akan memberi kesan
jangka panjang kepada negara ini. Di satu sudut, apabila berdepan dengan krisis sebelum
ini, kami mempunyai matlamat yang jelas untuk mencapai pertumbuhan dengan ekuiti
dalam usaha kami mencapai wawasan sebagai negara maju. Bagi meneruskan kejayaan
itu, kami sekali lagi perlu menstranformasi ekonomi ke tahap pertumbuhan lebih tinggi.

Tetapi di sudut lain, kami menghadapi cabaran besar untuk merealisasikan semua wawasan
ini disebabkan faktor luaran dan domestik, yang boleh mengekang kepada pertumbuhan
ekonomi yang kukuh.

Dalam mencapai wawasan kami untuk mencatat pertumbuhan dan ekuiti lebih kukuh, kami
menghadapi empat cabaran besar, iaitu:

Satu, apa yang pernah berfungsi untuk kami, dalam menggerakkan Malaysia ke hadapan
sehingga menjadi negara berpendapatan sederhana, kelihatan tidak lagi berkesan untuk
menggerakkan kami ke arah status negara maju. Pengalaman lalu kami telah memberi
pengajaran bernilai mengenai apa yang berfungsi dengan baik dan apa yang tidak, tapi ia
tidak semestinya memberi kami laluan yang jelas untuk mara ke hadapan.

Dua, lanskap persaingan sudah berubah. Tidak seperti sebelum ini, kami sekarang
berdepan dengan persaingan sengit, terutama dalam aspek modal, bakat, pengetahuan dan
sumber secara global.

Tiga, krisis ekonomi global mengukuhkan keperluan untuk menjadi destinasi pelaburan,
berikutan syarikat kini bergabung tenaga dan memindahkan operasi mereka ke destinasi
yang paling kompetitif; dan

Empat, tahap persaingan untuk kumpulan pelaburan lebih kecil, memerlukan usaha
menghapuskan kekangan ke atas pelaburan, sama ada yang nampak atau diandaikan,
serta menguruskan dasar agihan dengan lebih berkesan serta dalam suasana yang lebih
mesra pasaran.

Dalam konteks cabaran yang negara hadapi, garis panduan Jawatankuasa Pelaburan Asing
(FIC) dilihat semakin kurang keberkesanannya. Bila FIC ditubuhkan pada 1974, ia
merangkumi komponen utama strategi bagi pertumbuhan dengan ekuiti.

Kini ia tidak lagi menjadi alat yang berkesan bagi membantu pertumbuhan dengan ekuiti.
Pada 1970, ekuiti Bumiputera hanya 2.4 peratus. Berdasarkan jumlah kecil itu, maka adalah
sesuai melaksanakan dasar sedemikian bagi menangani ketidakseimbangan. Ketika itu
juga, adalah praktikal dilaksanakan susulan kekurangan persaingan bagi mendapatkan
pelaburan.

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Bagaimanapun, kini dasar pelaburan itu telah mewujudkan ketidaktentuan dalam
pembentukan peraturan dan tidak sejajar dengan amalan antarabangsa, justeru
menjejaskan potensi pertumbuhan.

Hari ini kita berdepan dengan senario yang berbeza. Polisi pelaburan menghasilkan
peraturan yang tidak menentu dan tidak selari dengan amalan antarabangsa boleh
menyekat pertumbuhan ekonomi kita. Hanya pertumbuhan yang memberangsangkan
membolehkan objektif pengagihan yang disasarkan tercapai. Lebih daripada itu, ekonomi
yang rencam dan kompleks kini tidak selari dengan pendekatan FIC.

Bagi mencapai dan membantu Bumiputera, ia memerlukan fokus kepada penyertaan yang
berkesan dan bermakna bukan setakat pemilikan saja. Penguasaan minoriti 30 peratus tidak
memberi ruang yang cukup bagi penyertaan berkesan. Malah kekangan modal dihadapi
Bumiputera menyebabkan hak milik 30 peratus tidak mampu bertahan. Dengan itu,
penilaian objektif memutuskan bahawa FIC dalam keadaan sekarang, tidak membantu
pertumbuhan atau mengekalkan ekuiti milik Bumiputera.

Dunia cepat berubah dan kita perlu bersedia menghadapinya jika tidak kita akan
ketinggalan. Jika kita terus bertahan dan menjadikan kejayaan lampau sebagai panduan,
kita akan kalah dalam persaingan. Kita tidak boleh lagi mengenang kejayaan lalu,
sebaliknya berusaha keras bagi memanfaatkan rakyat untuk jangka panjang. Pragmatik
memerlukan fokus terhadap inti pati bukan pada bentuk. Kerajaan cukup komited bagi
meningkatkan usaha untuk membangunkan negara ini.

Bagi menarik lebih ramai pelabur ke Malaysia, kerajaan mengumumkan untuk

mengurangkan peraturan termasuk garis panduan pelaburan yang diguna pakai FIC
sekarang. Skop dan fungsi FIC akan dipermudahkan termasuk pengurangan transaksi dan
peraturan. Ia selaras dengan usaha kerajaan untuk menyediakan suasana yang lebih
kondusif bagi sektor swasta untuk maju dengan kemudahan kegiatan pelaburan dan
pasaran modal yang menarik.

Kajian semula garis panduan FIC membabitkan:

• Pertama - pembelian kepentingan, penggabungan dan pengambilalihan;

• Kedua - kegiatan meraih dana oleh syarikat senarai awam, dan
• Ketiga - pembelian hartanah.

Berkuat kuasa serta merta, garis panduan FIC meliputi pembelian hak ekuiti, penggabungan
dan pengambilalihan akan dilaksanakan. FIC tidak lagi memproses urus niaga saham atau
mengenakan sebarang syarat ekuiti ke atas urus niaga. Mulai hari ini, fungsi FIC ini berakhir.

Walaupun fungsi FIC berakhir, bagi memastikan kepentingan negara dalam sektor strategik
terus terpelihara, syarikat dalam sektor berkenaan masih lagi tertakluk kepada syarat ekuiti
oleh badan kawal selia sektor masing-masing seperti Suruhanjaya Tenaga, Lembaga
Pelesenan Kenderaan Perdagangan, Suruhanjaya Perkhidmatan Air Negara dan
Suruhanjaya Komunikasi dan Multimedia.

Kemudahan bagi pengumpulan dana oleh syarikat tersenarai adalah langkah terbaik bagi
menjadi Malaysia sebagai destinasi menarik bagi penyenaraian. Sekarang, syarikat yang
ingin diapungkan dikehendaki memenuhi syarat 25 peratus saham tebaran awam ditetapkan
Peraturan Penyenaraian Bursa Malaysia selain kedudukan ekuiti Bumiputera berdasarkan
garis panduan FIC.

Suruhanjaya Sekuriti akan mengeluarkan garis panduan baru bagi syarikat senaraian awam,
untuk menawar 50 peratus saham tebaran awam kepada pelabur Bumiputera. Dengan itu,
syarikat senaraian awam tidak lagi tertakluk kepada syarat pegangan ekuiti Bumiputera
7
seperti yang ditetapkan FIC sebelum ini. Dengan kelonggaran peraturan ini, akan
memperkukuhkan lagi kedudukan Malaysia sebagai destinasi utama bagi tujuan pelaburan
dan menjalankan perniagaan.

Sebagai tambahan, untuk meringankan pengumpulan dana daripada pasaran ekuiti,

kegiatan mengumpul dana selepas penyenaraian tidak lagi tertakluk kepada sebarang
syarat ekuiti. Kelonggaran ini akan dengan segera menyokong syarikat senarai awam sedia
ada untuk mengumpul dana bagi mengendalikan perniagaan dan mengurangkan kos
pematuhan. Peraturan baru untuk menawarkan 50 peratus saham tebaran awam kepada
Bumiputera hanya untuk syarikat Malaysia yang ingin disenaraikan Bursa Malaysia.

Garis panduan sedia ada untuk syarikat asing yang mahu disenaraikan tanpa sebarang
keperluan untuk pematuhan dengan mana-mana syarikat ekuiti, kekal dan hasilnya kita
melihat beberapa syarikat asing berjaya disenaraikan di Malaysia.

Skop FIC berkaitan urus niaga hartanah akan juga dipermudahkan dengan segera.
Kelulusan FIC bagi urus niaga hartanah kini hanya diperlukan sekiranya ia membabitkan
penghapusan kepentingan Bumiputera atau kerajaan bagi hartanah bernilai RM20 juta dan
ke atas. Bagi lain-lain transaksi hartanah termasuk antara orang asing dan bukan
Bumiputera tidak memerlukan kelulusan FIC lagi. Pemansuhan peraturan ini dijangka
memudahkan transaksi hartanah dan pelaburan termasuk pemilikan hartanah komersial
oleh kepentingan asing.

Kerajaan percaya melalui kelonggaran peraturan ini ia akan meletakkan Malaysia sebagai
destinasi selesa untuk pelaburan dan perniagaan. Dengan melonggarkan garis panduan FIC
ini pada tahap yang diperlukan, Unit Perancang Ekonomi akan memfokus semula langkah
menyelaras dan pemantauan polisi pengagihan pada peringkat makro. Dalam hal ini,
kerajaan masih komited dalam meningkatkan penyertaan Bumiputera dalam ekonomi.
Pendekatan baru akan diambil dengan memfokuskan penyertaan mapan melalui
perkongsian bijak dan meritokrasi.

Tuan-tuan dan puan-puan,

Selaras dengan pendekatan baru ini, institusi pelaburan baru, Ekuiti Nasional Berhad
(Ekuinas) akan ditubuhkan. Ekuinas adalah dana ekuiti swasta dengan modal awal
sebanyak RM500 juta yang akan boleh dikembangkan menjadi RM10 bilion. Ekuinas akan
memberi tumpuan kepada pelaburan dalam sektor yang mempunyai potensi pertumbuhan
tinggi bagi menyokong model ekonomi baru. Pada masa sama, Ekuinas akan membuat
perkongsian pelaburan dengan dana sektor swasta, dalam usaha untuk mempromosikan
perkongsian tulen dan pendekatan komersial sepenuhnya. Dengan cara ini, penyertaan
Bumiputera melalui Ekuinas adalah berdasarkan premis merit.

Sejak 1970-an, keupayaan profesional Bumiputera meningkat. Mereka banyak

menyumbang dan bersaing dengan aktif dalam pengurusan dan pekerjaan selain sebagai
vendor. Adalah diharapkan melalui dana pelaburan seperti Ekuinas, Bumiputera yang
cemerlang akan dibantu untuk mencapai cita-cita mereka.

Syarikat Berkaitan Kerajaan (GLC) dan Koridor Pembangunan: Perubahan dan

Kelangsungan berteraskan Persaingan.

Bagi membolehkan Malaysia merealisasikan impian status negara maju, perubahan besar
perlu dilakukan dan pada masa sama usaha pengukuhan perlu dilakukan bagi bidang yang
kini kita berada pada landasan betul. Bagi memenuhi hasrat itu, polisi kerajaan dalam GLC
dan koridor pembangunan akan diteruskan dengan gabungan perubahan dan kelangsungan
yang mantap.

8
GLC akan terus menjadi tulang belakang struktur ekonomi negara. Bagi memastikan
kepentingan kerajaan di dalam GLC terpelihara dan berjaya sebagai Perbadanan Malaysia,
kerajaan akan memastikan program transformasi GLC akan diperkenalkan. Ia dapat
memastikan potensi pertumbuhan negara terus dijana.

Kejayaan GLC perlu ditingkatkan dalam kelas tersendiri atau muncul terbaik di kalangan
negara serantau jika bukan juara global, seperti yang dipamerkan Petronas, MISC, Sime
Darby, Mas, Axiata, CIMB, Maybank, sekadar beberapa contoh. Syarikat ini perlu
meningkatkan kehadirannya di peringkat antarabangsa bagi menembusi persaingan
pasaran antarabangsa. Kejayaan yang ditunjukkan syarikat berkenaan mampu menjayakan
Perbadanan Malaysia pada masa akan datang.

Pada masa sama, GLC cukup signifikan dalam konteks Malaysia, bukan saja saiz tetapi
tanggungjawab kritikal kepada sektor perniagaan dan perdagangan di Malaysia terutama
penyediaan perkhidmatan elektrik, komunikasi, penerbangan dan lapangan terbang, air dan
perkhidmatan kewangan. Pencapaian tinggi yang diperoleh CLC akan membantu daya
saing Perbadanan Malaysia.

Dalam pada itu, GLC berperanan saling melengkapi dalam pembangunan sektor swasta di
Malaysia. Tiga kunci utama perlu dilaksanakan bagi membolehkan GLC maju ke depan iaitu:

 Pertama: GLC perlu memberi fokus kepada aktiviti teras dan mengurangkan atau
menghapuskan aktiviti bukan teras.

 Kedua: GLC perlu beroperasi dalam sektor yang mereka boleh bersaing, memangkin
dan membangun ekosistem domestik termasuk vendornya. GLC juga perlu
melupuskan anak syarikat yang beroperasi atau mengurangkan kegiatan yang boleh
dilakukan syarikat usahawan.

 Ketiga: Dalam sektor teras, GLC juga perlu bersaing secara sihat dengan sektor
swasta lain. Tiada lagi isu kerajaan memberi bantuan kepada GLC atas dasar
pegangan saham yang boleh menjejaskan saingan sektor swasta.

Kerajaan yakin GLC akan memainkan peranan saling melengkap dengan sektor swasta
bagi menjayakan dinamisme Perbadanan Malaysia dan meningkatkan daya saing dalam
negara.

Dalam pada itu, kerajaan akan terus membantu dan menggerakkan koridor pembangunan
supaya mencapai matlamat yang ditetapkan bagi setiap koridor pembangunan yang
dirancang. Sebagai contoh pembangunan Iskandar Malaysia akan terus menjadi peneraju
untuk meningkatkan integrasi serantau yang lebih besar dalam rangkaian ekonomi.

Ini termasuk membangunkan kawasan baru dengan sektor perkhidmatan nilai tambah
termasuk perkhidmatan pelancongan dan riadah, logistik, pendidikan, penjagaan kesihatan.

Kesimpulannya, apa yang saya ingin sampaikan ialah komuniti pelabur tidak perlu ragu
dengan hasrat Malaysia menjemput pelabur tempatan dan asing ke negara ini. Kita hanya
mampu mencapai pendapatan yang tinggi dengan mencipta lebih banyak peluang
pertumbuhan berbanding melindungi ruang yang sempit. Kita hanya boleh mencapai
matlamat ekuiti sosial dengan mengembangkan.

Berita Harian, Rabu 1 Julai 2009

9
 ESCAPING FROM THE MIDDLE-INCOME TRAP

Minister Datuk Seri Najib Razak at Invest Malaysia 2009 in Kuala Lumpur on June 30

FIRST of all, let me thank the organisers of Invest Malaysia 2009 for their kind invitation for
me to speak at the Fifth Invest Malaysia conference. I am delighted to see such a large
turnout of investors and would like to extend a warm welcome to our international visitors.

Invest Malaysia has become the most important annual forum for us to meet with
international portfolio investors and showcase what we are doing. It also provides an
opportunity for Malaysian public limited companies (PLCs) to engage with the investment
community. We feel that this reverse road-show of bringing investors to our shores allows
investors to see firsthand what we are doing and gauge for themselves the investment
climate in Malaysia and complements our promotional and marketing efforts internationally.

As you are aware, this event is typically held in March to coincide with the Grand Prix.
However, recognising the imminent transition of leadership then, the organisers delayed the
event by a couple of months to allow me to speak to you as prime minister.
For me, this is an important occasion to share with you my views and aspirations for
Malaysia and its capital market. To the Formula One fans among you, rest assured that I
have asked the organisers to revert to the original schedule for next year!

We meet today in a very challenging environment. The world has experienced

unprecedented displacements and distortions to the global financial order. The global
financial crisis has had severe ramifications on once revered financial institutions, led to
tremendous wealth destruction and questioned the wisdom that has driven conventional
thinking in finance.

But what's more damaging has been the economic cost that this financial crisis has had
across the world beyond the epicentre of the financial crisis.

There are clearly many lessons to be learnt and reforms that will need to be put in place.
Markets must be subject to stronger oversight and there must be no hesitation in making
difficult policy decisions when we see early signs of excesses and irrationality start
appearing on the horizon.

Governance arrangements and risk management standards at the level of banks and
financial firms must be strengthened.

Regulation of Over The Counter (OTC) markets and some loosely regulated firms must be
commensurate with the impact and role they have in today's financial markets. Sales
practices and unfettered risk-taking must be subject to adequate oversight.

We all now know and have felt how this financial meltdown translated into devastating
consequences for the real economy, companies, jobs, people and families all around
the world. Malaysia has not been spared. Therefore, my immediate priority has been
to provide a decisive response to blunt the impact of the global economic downturn.

We have put together two stimulus packages amounting to RM67 billion or roughly nine per
cent of gross domestic product to be spent over two years. The financial package comprised
comprehensive measures aimed at easing the hardship of affected individuals and
businesses, stimulating aggregate demand in the short term and building the long-term
capacity of the economy. We have ensured that businesses have sufficient access to
financing, implemented various initiatives to provide financing to small- and medium-sized

10
enterprises (SMEs), established mechanisms to provide guarantees to support private-
sector financing and reactivated debt resolution mechanisms.

As of June 19, projects worth RM9 billion have been awarded under the Stimulus Package 1
and 2, of which RM3 billion has been paid. Given the step-up progressive payments to be
made as these projects are rolled out, I am confident that this spending injection into the
domestic economy and the related multiplier effects will help cushion the impact of the sharp
external downturn and set the stage for economic recovery some time in the second half of
this year.

The larger challenge before us lies not in addressing the short-term vulnerabilities and
dislocations but over the long-term national competitiveness. In the last three decades, we
have made great strides in poverty eradication, enhancing the living standards of
Malaysians, developing world-class infrastructure and providing respectable economic
growth. We have become a successful middle-income economy.

But we cannot and will not be caught in the middle-income country trap. We need to make
the shift to a high-income economy or we risk losing growth momentum in our economies
and vibrancy in our markets. The challenge of managing such a major transition is not easy
and has been made more considerable by the weakness in the global financial architecture
and intensifying competitive pressures arising from dramatic changes in the global economy.

But let me assure you that making this transition to a high-income economy for the future of
our country has become my key priority. My government's policies and priorities will be
driven by this overall objective.

The concept of 1Malaysia that I have propagated is meant to get all Malaysians to work as
one team in order to achieve one goal, and that is towards a developed nation by 2020.

I have set in motion efforts to formulate a new economic model, which will be based on
innovation, creativity and high value, to lift us into the ranks of a high-income nation within
the decade. Our new economic model is intended to shift our reliance from a manufacturing
base dependent on semi-skilled and low-cost labour to one that hinges on a high technology
and modern services sector dependent upon skilled and highly paid workers.

The implementation of the new economic model will require a major and comprehensive
policy overhaul in many areas, but it is pivotal for Malaysia's future. We need to make
fundamental changes in strategies as well as mindset.

We will adopt a holistic approach to bring about competition in all sectors of the economy.
We will systemically foster innovation as a key driver of value-add, and promote higher value
add sources of growth, such as private education, health tourism, Islamic finance, ICT,
information and communications technology, creative industries and biotechnology.

In this context, it is critical to sustain the momentum through policies that are market-friendly
and that create new sources of growth in the services sector. Therefore, we will continue to
modify or eliminate policies that inhibit growth.

The work has already begun. We have already announced the liberalisation of 27 services
sub-sectors and followed through with liberalisation measures to enhance the role of the
financial sector as a key enabler and catalyst of economic growth.

Similarly, in the capital market, we have come a long way. Assisted by a structured
development agenda through the Capital Market master plan, we have developed one of the
most diversified and broad-based capital markets in the region.

11
We have a deep and sizeable bond market that is the third largest in Asia benchmarked by
GDP. We have one of the largest exchanges in Asean and with the highest number of listed
companies.

The fund management industry is growing rapidly and we have the largest unit trust industry
in Asean. The Islamic capital market is the largest in the world, with more then 60 per cent of
global sukuk issuance out of Malaysia; the largest number of Islamic funds globally and a
large number of syariah-compliant equities.

Our regulatory framework is internationally benchmarked and has been assessed to be of

international standards by expert external assessors. We have attracted leading international
firms in broking, fund management and Islamic finance to establish operations in Malaysia.

Moving to the next phase of developing our capital markets will necessitate greater
internationalisation. This is inevitable and is an integral aspect of a high-income strategy.
Internationalisation of the financial services sector and the capital market will serve to
expand the scope of opportunities for our country -- as was evident with the resources and
manufacturing sector.

Liberalising ownership rules will serve to allow foreign players who wish to invest in
our country and to use Malaysia as a base for their regional and international
operations.

Liberalisation is, therefore, inevitable, and we can only choose to manage its pace. It
would be to Malaysia's advantage to liberalise at a faster pace, as this would also allow us
the flexibility to tap international opportunities earlier.

We also expect the wider participation of foreign players to raise the level of competition and
to promote innovation to drive growth at a faster pace. This would facilitate the Malaysian
capital market industry to attain higher competitiveness by rapidly expanding the range of
choice and quality of offerings that is available to customers.

Growth will be driven by investment in technology, talent, infrastructure, R & D research and
development (R&D) and marketing to maximise long-term revenue growth and enhance
market vibrancy.

Our domestic players have built strong local operations. Some have even established
regional presence. They should now leverage on the flexibilities granted to explore new
opportunities and business models by establishing strategic partnerships and alliances to
expand their global reach.

I have every confidence in their ability to raise the bar and compete effectively. The pie must
expand. There is no point in having a larger share of a shrinking pie.

This has formed the basis of some of my recent announcements on the liberalisation of the
services sector, including recent measures announced for the banking sector. I am pleased,
therefore, to announce a set of measures today that will have the same impact on the
Malaysian capital market.

To further strengthen Malaysia's position in the fund management and unit trust segment of
the capital market value chain and to allow fund managers an additional option to establish
their operations in the region, I am pleased to announce the following:

First, ownership in the wholesale segment of the fund management industry will be fully
liberalised to allow 100 per cent ownership for qualified and leading fund management
companies to establish operations in Malaysia.
12
Second, for the retail segment, the foreign shareholding limits for the unit trust management
companies will be raised to 70 per cent from its current level of 49 per cent.

Major reforms in the stockbroking industry have already strengthened domestic players and
widened the scope of their capital market activities. We have also seen greater foreign
participation through the special scheme licences improve competition in the stockbroking
industry, as well the global connectivity of Malaysia's capital market.

Some of our domestic stockbroking companies have expanded their operations into other
countries. But there are still opportunities for domestic stockbroking companies to form new
partnerships and facilitate the expansion of business domestically and internationally, as well
as to promote more product innovation and expand the range of skill sets and capabilities.

To allow this to occur, I wish to announce that the foreign ownership shareholding limits in
existing stock broking companies will be increased to 70 per cent from its current level of 49
per cent.

There must be a lot more effort made to attract leading companies to list on the exchange.
The government is committed to contributing its part through listing more of its entities and
assets to ensure more significant listings, and to provide domestic and international
investors more opportunities to invest in the Malaysian economy.

We have revamped the fund-raising framework with more efficient rules, and broadened the
ease of financing through the merger of the main and second boards of the exchange and
re-positioning Mesdaq as a sponsor-driven market for a wide range of companies.
We have also allowed for foreign listings, and I note that there are several already in the
pipeline. I urge market players to take advantage of these changes by redoubling your
efforts to identify quality local and foreign companies to list in Malaysia.

I have also asked that the issue of free-float levels and liquidity in the market be addressed
immediately with a holistic review and comprehensive measures. On its part, the
government and its associated entities will look for ways to contribute towards reducing
some of their shareholdings and having more shares available for investors.

Even as we move towards a more internationalised capital market environment, we must

ensure that our regulatory objectives of fair and orderly markets, transparency, financial
soundness and investor protection are met.

In this regard, it is even more necessary to ensure that there are high standards of ethical
conduct and practice of good corporate governance. This requires that we strengthen our
regime for effective enforcement against corporate crime and securities offences.

We will be tabling in Parliament a set of far-reaching amendments to the Capital Market

Services Act (CMSA) to further strengthen the enforcement powers of the Securities
Commission (SC) on corporate governance transgressions.

It will empower the SC to take action against a director or officer who causes a wrongful loss
to a PLC or its subsidiary to the detriment of shareholders of the PLC. It will also allow the
SC to prevent the wrongful dissipation of assets of a PLC by those managing the PLC.

In addition, a new offence is created to prohibit any person from influencing, coercing or
misleading any person engaged in the preparation or audit of financial statements of a PLC.

In addition, an independent Auditor Oversight Board will be established through the tabling of
amendments to the Securities Commission Act 1993.
13
The capital market is a knowledge-intensive industry. Attracting and retaining talent is a
critical aspect of the process to capture the necessary skills and social relationships to
increase international participation in the Malaysian capital market. We must recognise that
there is strong international competition for human capital and we must be in a position to
fast-track the recruitment process for international talent. For this purpose, I am pleased to
announce that Bank Negara Malaysia BNM and SC will review all visa applications for the
financial services industry and capital market industries.

Malaysia has undoubtedly been a success story in what we have achieved since
independence. Then, Malaysia was but a poor nation reliant on rubber and tin.

By choosing a path of diversification and industrialisation, the Malaysian economy was

transformed, resulting in a higher growth trajectory than what would have been possible if we
remained reliant on those commodities.

Over this period, Malaysia sustained rapid economic growth, averaging 6.4 per cent
annually. Coupled with distributive policies, this rapid economic growth benefited all
segments of the population. Poverty has now fallen to below 4 four per cent from 49 per cent
in 1970. This is our approach of growth with equity, the Malaysian way. There is no issue of
expropriation. Equity is achieved through a more equitable distribution of an expanding
economic pie. Without strong economic growth, we cannot achieve our objective of a more
balanced distribution.

The introduction of growth with equity in 1971 also reflected Malaysia's ability to take
pragmatic and courageous decisions, particularly to advance the national interest at times of
crisis.

Not unlike previous crises, I believe we are yet again at a critical juncture in our nation's
journey. I am convinced that failure or hesitation to act now will have long-term ramifications
for the nation. The crux of the problem is that on one hand, we have clear ambitions to
pursue growth with equity as we strive to achieve developed nation status.

To succeed, we would need to again transform the economy onto a higher growth trajectory.
Yet, on the other hand, we face major challenges to realising these ambitions, given external
factors and domestic constraints to strong economic growth.

Against our ambitions for high growth and greater equity, we are faced with four major
challenges:

 First, what has worked before, in advancing Malaysia into a high-middle-income

country, appear to be no longer effective in moving us towards developed-nation
status.

 Our past experience has given us valuable lessons in what has worked well and what
has not, but they don't necessarily provide us with a clear way forward;

 Second, the competitive landscape has changed. Unlike before, we now face intense
competition, particularly globally for capital, talent, knowledge and resources;

 Third, the global economic crisis is amplifying the need to be a preferred investment
destination, given that corporations are consolidating and moving operations to
where it is most competitive;

14
  Fourth, the intensity of competition for a smaller pool of investment necessitates
removing impediments to investment, whether real or perceived, and to administer
distributional policies more effectively but in a more market-friendly manner.

In the context of the challenges the nation faces, the guidelines of the Foreign Investment
Committee (FIC) appear to have outlived their usefulness. When the FIC was first introduced
in 1974, it represented a major component of the strategy for growth with equity. Today, it is
no longer an effective instrument to support growth with equity.

Back in the 1970s, Bumiputera equity was only 2.4 per cent. Given the very low base, it was
perhaps relevant to adopt allocation-type policies to quickly redress the imbalance. Back
then, it was still practicable to use such policies, given the relative lack of competition for
investments.

Today, we face a completely different scenario. Investment policies creating regulatory

uncertainty and that are not in line with international practice will only constrain our growth
potential; growth that will allow our distributional objectives to be achieved.

Further, the dynamism and complexity of today's economy does not sit well with the blunt
"one size fits all" approach of the FIC. With the progress achieved and enhanced capabilities
of Bumiputeras today, the pursuit of sustainable equity requires a focus on effective and
meaningful economic participation, not just ownership.

A 30 per cent minority stake in a given company in fact does not provide an avenue for
representative participation. Further, it has been shown that the lack of capital results in the
30 per cent stakes held at company level not being sustainable. Thus, an objective
assessment would conclude that the FIC in its current form does not facilitate growth, nor
does it effectively promote sustainable equity for the "capital-disadvantaged" Bumiputera.

The world is changing quickly and we must be ready to change with it or risk being
left behind. If we stand still and attempt to cling on to past glories during these
dynamic times, we will be swiftly overtaken by our competition, as we have overtaken
others in the past.

It is not a time for sentiment or half-measures, but to renew our courage and pragmatism to
take the necessary bold measures to advance the national interest for the long-term benefit
of all Malaysians.

Pragmatism requires a focus on substance, not form. The government continues to be

committed to pursue the spirit and substance of growth with equity. We are not hostage to
forms or instruments, which, though they have been long associated with growth with equity,
are no longer effective in substance.

As a major initiative to ease doing business in Malaysia and make Malaysia more attractive
as an in vestment destination, I am pleased to announce a comprehensive deregulation of
investment guidelines administered by the FIC.

The scope and functions of the FIC have been substantially rationalised. FIC's scope now
involves far fewer transactions, far fewer rules and far fewer conditions. This is in line with
the government's focus on establishing a more conducive regulatory environment for the
private sector to prosper, by facilitating robust investment activity and a more vibrant capital
market.

The review of FIC guidelines encompasses:

 First, acquisition of equity stakes, mergers and takeovers;

15
  Second, treatment of fund-raising by listed companies; and

 Third, acquisition of properties.

With immediate effect, the FIC guideline covering the acquisition of equity stakes, mergers
and takeovers is repealed, without any new guideline in its place. FIC will no longer process
any share transactions, nor impose equity conditions on such transactions.

This represents a major rationalisation of FIC regulation. Up till yesterday, processing such
transactions were the mainstay of FIC. From today, this function of FIC ends.

Notwithstanding this deregulation, the national interest in terms of strategic sectors will
continue to be safeguarded through sector regulators. Companies in such sectors will
continue to be subject to equity conditions as imposed by their respective sector regulator,
such as the Energy Commission, Commercial Vehicles Licensing Board, National Water
Services Commission, and Malaysian Communications and Multimedia Commission.

Even for such regulated companies, the repeal of the FIC guideline enhances the regulatory
environment, given that the oversight will only be by the sector regulators, who are best
placed to tailor regulation according to the needs of their respective sectors.

The treatment of fund-raising by listed companies has also been significantly enhanced
towards raising Malaysia's attractiveness as a listing destination. Currently, companies
seeking listing are required to satisfy the public shareholding spread requirement of 25 per
cent based on Bursa Malaysia's Listing Rules and also the Bumiputera equity condition
based on FIC guidelines.

Going forward, the public spread requirement remains and in addition, the SC will introduce
a new guideline which requires companies seeking listing to offer 50 per cent of the public
shareholding spread to Bumiputera investors.

The Bumiputera equity condition, therefore, becomes subsumed within the public spread
requirement. This reinforces the competitiveness of Bursa Malaysia as a listing destination,
as promoters of companies seeking listing will no longer need to divest equity beyond that
required to satisfy the public spread requirement.

In addition, to further ease raising funds from the capital markets, post-listing fund-raising
exercises will no longer be subject to any equity condition. This deregulation will immediately
support existing listed companies seeking to raise funds to undertake investments and
reduce the friction cost of compliance.

This new requirement to offer 50 per cent of public shareholding spread to Bumiputera
applies only to Malaysian companies seeking listing on Bursa Malaysia.

The current guidelines for foreign companies to seek listing without any need for compliance
with any equity conditions remain, and we have seen several foreign companies successfully
applying for listing in Malaysia as a result.

The scope of FIC with respect to property transactions will also be substantially rationalised
with immediate effect. FIC approval for property transactions will now only be required where
it involves a dilution of Bumiputera or government interests for properties valued at RM20
million and above. All other property transactions, including those between foreigners and
non-Bumiputeras, will no longer require FIC approval.

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For example, a dilution of Bumiputera interests refers specifically to the instance where a
property is currently majority-held by Bumiputera and as a result of a transaction ceases to
be owned by a majority Bumiputera entity.

Transactions no longer requiring FIC approval fall into two categories; First, any transactions
involving sale by non-Bumiputera or foreign majority interests (e.g. for example, non-
Bumiputera selling to foreign) and second, any transactions involving purchase by a
Bumiputera-controlled entity, and this would include a Bumiputera-owned company acquiring
property from another Bumiputera-owned company.

This deregulation is expected to facilitate greater property transactions and investments,

including acquisitions of commercial properties by foreign interests.

The government believes that the above easing of regulations will significantly enhance
Malaysia's value proposition as a place to do business and invest.

With the comprehensive easing of FIC guidelines at the firm level, the Economic Planning
Unit will re-focus its efforts towards coordinating and monitoring distributional policies at a
macro level. In this respect, the government remains committed to enhancing economic
participation by Bumiputeras.

A new approach shall be undertaken, focused on promoting sustainable, meaningful and

effective participation through genuine partnerships and meritocracy.

Let me emphasise here that while the government remains fully committed to the goals of
equitable growth, our approach will be to implement these goals in a market-friendly manner,
given that robust and sustainable growth is a precondition for equitable distribution.

In line with this new approach, a new investment institution called Ekuiti Nasional Berhad
(Ekuinas) will be established. Ekuinas will be set up as a private equity fund, with an initial
capital of RM500 million. It is targeted that Ekuinas will subsequently be enlarged to become
a RM10 billion fund.

Ekuinas will focus its investments in sectors with high growth potential, in line with
supporting the New Economic Model. At the same time, Ekuinas will invest jointly with
private-sector funds, in order to promote genuine partnerships and a fully commercial
approach. In this way, participation of Bumiputeras through Ekuinas will be premised on
merit.

Since the 1970s, the capabilities of Bumiputera professionals have been substantially raised.
The Bumiputeras of today are keen to contribute and compete to play an active role in
employment, management and as vendors. It is hoped that through investment funds such
as Ekuinas, the ambitions of the best and brightest Bumiputeras can be supported and
nurtured.

The comprehensive deregulation of FIC guidelines has been formulated to strengthen

Malaysia's attractiveness as a place to do business and invest, for Malaysians and
foreigners alike. A facilitative business and regulatory environment that unleashes the full
potential of the private sector is required, together with a new economic model to transform
the nation towards a sustainable trajectory of higher growth.
Combined with a more effective distributional policy, the government is convinced the
measures announced benefit all stakeholders. We are committed to drive strong economic
growth, which is equitably enjoyed by all Malaysians, in line with the spirit and substance of
promoting growth with equity.

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In order for Malaysia to successfully realise its ambition for developed-nation status, there
will clearly be key areas in need of major change and at the same time, other areas where
we are already in the right direction, which therefore will be reinforced.

In this regard, our policies on government-linked companies (GLCs) and corridor

development going forward will involve a judicious combination of continuity and change.

GLCs continue to constitute a major part of the nation's economic structure. Thus, it is in the
national interest that GLCs play their role, both in supporting the success of other companies
that make up Malaysia Inc and at the same time, leading the way as successful corporations
in their own right.

Both roles require a continued focus on performance and competitiveness, which needs to
be benchmarked not only locally but at global standards. In this context, the government is
committed to ensure that the GLC Transformation Programme continues to be implemented.
If anything, with greater urgency and focus.

The continued drive for high performance is critical to ensure that Malaysia is able to unlock
its full growth potential.

There are clearly key examples of GLCs that must aspire to greater heights, whether in
terms of being best-in-class or emerging as future regional if not global champions. These
include the likes of Petronas, MISC, Sime Darby, MAS, Axiata, CIMB, and Maybank, to
name but a few.

These companies must continue to pursue an increasingly international outlook in terms of

market penetration and international competitiveness. The success of such Malaysian
champions will help define the boundaries and reach of Malaysia Inc in the years to come.

At the same time, GLCs are significant in the Malaysian context, not only in terms of their
size but also with respect to the business-critical functions they provide to businesses in
Malaysia, particularly services such as electricity, telecommunications, postal, airlines,
airports, water and financial services.

Hence, greater competitiveness and performance by such GLCs supports the

competitiveness of Malaysia Inc.

GLCs must also play a complementary role in the development of the Malaysian private
sector, in terms of the space in which it competes. In terms of defining the role of GLCs
going forward, three key principles will be applied:

First, GLCs should be focused on core activities, and therefore should proceed to dispose of
non-core activities;

Second, GLCs should only operate in sectors in which GLCs as institutionally-owned entities
can be competitive, and even in these sectors, GLCs should catalyse and develop the
domestic ecosystem, including vendors. GLCs should divest companies operating in sectors
or scale of activities best undertaken by entrepreneurs.

Third, in their respective core sectors, GLCs must compete on a level playing field with the
private sector. There will be no issue of government providing assistance to GLCs by virtue
of its shareholding, to the detriment of private-sector competition.

Through these principles, the government is confident that GLCs will play a complementary
role with the private sector towards fully unleashing the dynamism of Malaysia Inc and
enhancing the competitiveness of the country.
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Similarly, the government's support and drive for corridor development will continue to be
anchored on the competitiveness intrinsic to each corridor and in terms of its activity to help
drive immediate-term fiscal stimulus imperatives as well as medium- and longer-term
structural change to the economy.

In this regard, the development of Iskandar Malaysia, for example, will continue to be
anchored on its push towards greater regional integration in a networked economy and its
propensity to develop a new template for newer higher value-added service-based sectors,
including in healthcare, wellness, education, leisure and tourism and logistics services.

In conclusion, if there was one message I wanted to leave with the investment
community, it is that there should be no doubt that Malaysia welcomes foreign and
local investors and participants.

We can only achieve high income by creating more opportunities for growth, rather
than protecting our narrow turf. We can only achieve our social equity goals by
expanding the pie.

A high-income society must be socially inclusive. It must provide incentives for those who
"have a lot" and yet be fair to those who "have a little".

It must lead to high returns for companies and entrepreneurs who invest, better and higher
incomes for those who are employed, and greater capability for those who require
assistance to help themselves or to get help from government.

Above all, a high-income society must be one where every Malaysian feels he/ orshethey
has have a place and a promising future under the Malaysian sun. It is towards this ultimate
goal that I dedicate the energies and efforts of this government.

I hope, as investors, you too will continue to play your part, and walk along with us in this
great Malaysian journey.

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