30% Bumiputra Equity No Longer Required

The Star reported today that Prime Minister, Datuk Seri Najib Tun Razak, said 30% bumiputra equity required for local companies seeking public listing is repealed, Tuesday. However, these companies need to offer 50% of the public shareholding spread to bumiputra investors.

Other details as follows:

The other announcements, which are to take effect immediately, were:

* All property transactions, except for those involving a dilution of government or bumiputra interests for property valued at RM20mil and above, would no longer require FIC approval;

* All Malaysian companies seeking listing would have to offer 50% of their public offering to bumiputra investors, which would work out to 12.5% of the total stake;

* A 100% ownership would be allowed for qualified and leading fund management companies to set up operations in Malaysia;

* Foreign equity in existing stockbroking companies would be increased to 70% from 49%;

* All transactions on mergers and takeovers by local or foreign companies will no longer need FIC approval; and

* All listed companies need not maintain 30% bumiputra equity as required previously.





Source: The Star