Wednesday, October 29, 2008

What is 30% Bumiputra Equity?

What is 30% Bumiputra Equity?

All it requires is that in, for example a public listed company, one Abdullah Najib Khairy (a Bumiputra) owns 30% of the shares - the we have 30% Bumiputra Equity requirement.

The same one Abdullah Najib Khairy (a Bumiputra) can own 30% of the shares in all them companies - and we have achieved 30% Bumiputra Equity requirement.

(Note: the same applies if and when there is talk about Chinese or Indian or Non-Bumiputra equity...)

This is the flaw that has been exploited by a small number of Bumiputras (and non-Bumiputras)... today results in that big GAP between the rich and the poor - an indication that the wealth and riches is not being equitably distributed between the people of Malaysia.

Remember - the Constitution talks about 'Malays and natives of any of the States of Sabah and Sarawak' - so where do we get this term Bumiputra from?

It is not the right time to adjust the 30% bumiputra equity in public-listed companies because the objectives of the New Eco­no­mic Policy have not been achieved, Tun Dr Mahathir Mohamad said.
Perfect host: Dr Mahathir greeting guests to the Perkim Hari Raya open house at Bangunan Perkim yesterday.

“If we adjust the equity to 20% and the economy expands, the share of bumiputras will still be below 30%,” he said at the Muslim Welfare Organisa­tion (Per­kim) Hari Raya open house yesterday.

He said there were still many objectives in the NEP which must be achieved before the 30% equity rule could be dropped.

“If you lower the 30% to 20%, non-bumiputras will have 40% equity. In that case, they should have a lower equity too,” he said.

However, Dr Mahathir said that in protecting the rights of bumiputras, economic policies must also consider the rights of non-bumiputras.

“We have to look at both sides. Be rational about it. At the moment, I don’t agree we should change the (equity rule). It’s not the right time for adjustment because the world economy is in turmoil,” he said.

MCA vice-president Datuk Liow Tiong Lai had suggested on Monday that the mandatory 30% bumiputra equity in local main board companies be abolished to ensure competitiveness in the current world economic meltdown. - Star, 29/10/2008 - Dr M: Not the right time to adjust 30% bumi equity

So, why do the majority of them 'Malays and natives of any of the States of Sabah and Sarawak' getting worked up - about this 30% or 40% nonsense - after all they do benefit almost nothing - it is them 'chosen ones' and some leaders who are the biggest beneficiaries. Where did Najib's wealth come from? Where did Abdullah's, his son's, his son-in-law (Khairy J)'s wealth come from? Where did Mat Taib's wealth come from? Where did Anwar Ibrahim get his wealth from? Were they rich all the while coming from already rich family backgrounds?

In 2004, it was said that the top 10% was about 22 times richer than the bottom 10%. In a country of about 27million, the bottom 10% is about 2.7million persons. Go read this posting on unequal wealth distribution in Malaysia - note also how the government now talks about percentages(%) and really actual numbers of persons that control these 'equity' and wealth of the nation.

Remember also the NEP - and its 2 primary goals :-

The launching of the New Economic Policy (NEP) in 1971 was a watershed in the Malaysian economic policy history. The NEP underscored the importance of achieving socio-economic goals alongside pursuing economic growth objectives as a way of creating harmony and unity in a nation with many ethnic and religious groups. The overriding goal was national unity. To achieve this goal, two major strategies were adopted:
  • To reduce absolute poverty irrespective of race through raising income levels and increasing employment opportunities for all Malaysians; and

Now, I also wonder whether this '30% bumiputra equity in public-listed companies' or this '30 Bumi-40 Non-Bumi - 30 Foreigners quotas' is something that is constitutional. Is it done in reliance of Art. 153 of the Federal Constitution? I think not .....

Next, the "New Economic Policy (NEP)" is merely a Barisan Nasional government policy - and there are many such policies that have come and gone. In fact, I believe that even the BN government have moved on - and there have been new policies that have superceded the NEP of 1971.

Either way, I hope to look at the objects of this NEP Policy and see whether we have achieved the 2 OBJECTIVES of the NEP - Of course the EPU site now calls this as being the 2 'major strategies'. [Well, we may need to look at the original document to see whether the wordings have been changed...]


Anonymous said...

Once there are 4 POLs (Prince Of the Land), namely Petani, Nelayan, Korporat and Gomen. Gomen runs the country that has a afirmative discrimination (AD) policy against Non-POL citizens. As a "public servant" in the country, Gomen must not involve in business, but he has to make sure that the AD policy's objective of achieving 30% equity in the business enterprise is ahcieved. When a Non-POL builds up an enterprise for public listing, Gomen will make sure that Korporat gets 30% of the equity in this enterprise. So the objective is met. But then Korporat sells all the shares later and make a huge profit. He is now richer than the Non-POL who builds up the enterprise. And now Gomen ask the 3 POLs, that is, Petani, Nelayan and Korporat to make noise that the 30% equity holding by POL is not met and they should demand that POL must get back the 30% according to the AD policy. So Gomen will then enforce the AD policy and again 30% of the share in the enterpirse be pass on to Korporat again while Petani and Nelayan, after having made the noise, will happily go back to struggle for their living. Later, because of the good profit, Korporat sells the shares again and become even richer, but then the objective of the AD policy failed again. So the cycle repeats itself until Korporat is filthy rich while Petani and Nelayan remain in their struggle for a living, but they will be called upon to help to shout on the defence of Supremacy of their race.

Anonymous said...

To me this 30% Bumiputra Equity policy is only making a few Bumiputras and non Bumiputras richer. Its a joke to say there is fair distribution of wealth among the Bumiputras with this policy. Why after so long since its implementation fair distribution of wealth is not happening in the Bumiputra community ? This should have been achieved during Dr.M's time. Well, to continue with this policy is not a problem but the reasons for the wealth not reaching the majority of the Bumiputras should be examined.

Anonymous said...

The NEP today is COMPLETELY deviated from it's original objectives all together! It was supposed to help ALL MALAYSIANs. Not just some POL or otherwise. Today, the NEP has been so abused that the mere mention of NEP, people thought bumiputra. Doesn't anyone think something is wrong there?

Anonymous said...

Now we know, Bumiputra is a term used by UNMO to enrich themselves in the name of the "Malays and the natives of Sabah and Sarawak(MNSS). But the MNSS remain poor and helpless. The Mamaks, half Pakis, Indons, Arabs, India celup etc call themselves Bumis are enjoying all the rights and the 30% equity. The original Malays, kadazans, ibans, dayaks remain in their poor kampungs n longhouses without proper infrastucture like those in Pitas Sabah.
Just imagine even the natives of the land have to beg for citizenship. Ya..What is 30% Bumiputra Equity...tell that to the Malays, Orang asli, dayaks, kadazans......Yes Come to Sabah and Sarawak and tell them that they have the rights to the 30% equity.

Anonymous said...

Will you plunder and loot from your "home"?

Only if you only know that "home" is not your own home.

And home is somewhere else.

BN leaders don't think of Malaysia, as their home.

They obviously don't love and don't really care what happens to this home.

That's why its easy for them to plunder and loot this home because it's not their home. And they would silence anyone who stands in their way.

Bangsa Cina Malaysia said...

enough of all these nonsense about equity.
when are all the state govt Pakatan or BN
going to take action against all those incompetent
president, timbalan president and whatever majlis perbandaran joker
who are obviously not doing their job but are highly paid
for doing nothing.
look at the state of this country, not a place that is clean, neat and tidy.
the city drains are filled with rubbish the sidewalk overgrown with lalang
the list goes on and on.
it is time to declare war on all this joker
who are not doing their job. in fact they should be sacked immediately.
to all readers get the ball rolling.

Samuel Goh Kim Eng said...

When politicians play the number game
They simply go all out to ensure their own gain
Regardless of who finally gets the crumb or grain
Knowing too well with fluctuations the numbers won't be the same

(C)Samuel Goh Kim Eng - 301008
Thur. 30th Oct.2008.