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Wednesday 9 February 2011

Perkasa wants bumi share margin maintained

Malay rights group Perkasa today urged the government to explore fully the role Ekuiti Nasional Bhd (Ekuinas) can play in maintaining bumiputera share ownership.

Its president Ibrahim Ali said while it is up to individual shareholders to dispose of their shares as they chose, Ekuinas could act as a middleman in managing such shares until the time another bumiputera decides to buy them.

"I can understand if small-time (bumiputera) shareholders want to sell their shares, because if you buy a share at RM1 and it shoots up to RM1.30, even I will sell," Ibrahim (left) told a press conference at the Perkasa office in Kuala Lumpur.

"What Ekuinas can do is to set up a subsidiary to manage the shares sold off by these small-time shareholders, instead of letting the shares go to others in the open market."

Ibrahim, who is also Pasir Mas MP, suggested that Ekuinas serves as a buyer for shares set aside under the bumiputera allotment as a means of maintaining the community's percentage of share ownership in the market.

This way, he said, the government could make sure that the shares remained in bumiputera hands.

Ekuinas is a private equity fund set up by the government, with an initial capital of RM500 million.

The fund, set up in September 2009, is part of the government's efforts to liberalise the economy by cutting the 30 percent bumiputera equity quotas and trimming the role of the Foreign Investments Committee.

Ekuinas' role is to acquire controlling stakes in unlisted local companies and raise the level of bumiputera participation in commercial activities, and is expected to grow its fund size to some RM10 billion.

'Don't forget GLCs, statutory bodies'

Ibrahim meanwhile said Perkasa is “very happy” with Prime Minister Najib Abdul Razak's launch of the Unit Peneraju Agenda Bumiputera (Teraju), but stressed that it should look beyond simply helping successful bumiputera companies.

Ibrahim said that apart from also helping mid-level and troubled companies that can be saved, Teraju should also monitor the performance of government-linked companies and statutory bodies that are supposed to help spur bumiputera commercial activities.

He said the government spends millions every year giving funds to the many entities under its purview, but noted that there are those that do not appear to be performing as expected.

“What of Risda, LKIM, LPP, Mardi, Lembaga Koko, and many others? What are they doing now? A lot of money is given to these bodies but there are some that have trouble even finishing their funds.

“How far is the money given to them used to help push bumiputera participation in business? Teraju needs to look into this,” he said.

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