Cabaran Besar Merencana Negara Ke Arah Model Ekonomi Baru

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. 1

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. 3

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 barubaru 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. 4

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. 5

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.

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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.

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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

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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 privatesector 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.

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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;

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

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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;

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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

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

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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, nonBumiputera 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 competitiveness of Malaysia Inc.

and

performance

by

such

GLCs

supports

the

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. 18

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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