MCA: Cutting 30% Bumi quota restores confidence in Malaysian economy

MCA applauds the bold reforms of the Prime Minister YAB Dato’ Sri Najib bin Tun Abdul Razak to slash the much debated 30% Bumiputera equity requirement for companies intending to list on Bursa Malaysia. MCA further welcomes the move to cut the powers of the Foreign Investment Committee (FIC), by removing its guidelines related to acquiring equity stakes, mergers and takeovers. These are positive steps towards overhauling the Government’s economic policies.

Through easing the conditions for foreign shareholding from 49% to 70% in existing stockbroking companies will encourage further foreign direct investment in Malaysia, thus restoring confidence of our economy.

Disbanding quotas in the private sector should be accepted as a means of encouraging economic competitiveness while ensuring the economic freedoms of the country. In line with 1-Malaysia, MCA desires to see all ethnic communities prospering jointly through expanding the economic pie. These measures will assist in achieving a balanced society where no race is denied an opportunity to progress.

Meanwhile, MCA also hopes that the slicing of the 30% Bumiputera quota will be properly implemented in accordance with the spirit of the new measures, i.e. to encourage a level playing field and thence increasing performance and productivity and will raise income levels of all communities. We urge government officials implementing these policies not to resort to Little Napoleanism or micro-restructuring these measures with government-issued guidelines that sniff of racial protectionism to substitute the lifting of quotas.  

Meanwhile, Bumiputeras should not fret too much over the lifting of the 30% quota as the government has established Ekuiti Nasional Bhd (Equinas), a private venture capital targeted to aid and tap potential Bumiputera entrepreneurs who have the talents to develop into key business stakeholders locally and abroad.  

Moreover, MCA hopes that Equinas will not be abused to benefit chronies. Hence, a thorough evaluation mechanism must be put in place and practised to ensure that only genuine Bumiputera candidates who have been approved by the vetting system will qualify for Equinas’ assistance.

The Prime Minister’s transformation plan is part of MCA’s and Barisan Nasional’s overall transformation thrust which must be carried out smoothly to ensure that transparency be maintained at all times.

Senator Dato’ Wong Foon Meng
MCA Secretary General

-MCA online-