Is there Bumi equity under NEM?

Is there such a thing as 30% Bumiputera corporate equity under the New Economic Model (NEM)?

There seems to be confusion among Malay traders when the Malay Chamber of Commerce president Syed Amin Aljefrri said today he does not believe there is such a policy under the NEM.

"We have never heard about the 30% Bumiputera equity mentioned by Prime Minister Najib Tun Razak under the NEM," he told FMT when asked what he felt about its Chinese counterpart's demand that the quota be gradually removed.

At the unveiling of the first part of the NEM in March this year, Najib said that various key sectors will be opened up, which will see the gradual removal of the Bumiputera corporate equity as part of the government's effort to lure back foreign direct investments (FDIs).

The NEM was his blueprint to transform Malaysia into a high-income economy amid scepticism that the nation's developed country status by 2020 is achievable.

But Najib faced tremendous pressure when an economic congress hosted by Malay right-wing Perkasa-led Malay Consultative Council warned Umno that it risks alienating Malay voters and demanded the special commercial position of the Malays be maintained under the NEM.

Conflicting policies

While Najib showed courage and defiance at the congress where he accepted the memorandum submitted by the council, the unveiling of the 10th Malaysia Plan showed otherwise: he told Parliament that the government would strive to achieve the 30% Bumiputera equity target.

This has created confusion among political leaders and businesses alike as reflected in the statement given by Syed Amin today.

Pakatan Rakyat leaders blame the drop in FDIs on Najib's conflicting and flip-flopping policies although the government has denied the allegation.

Opposition leaders also predict a backtracking in the Bumiputera policies given the amount of pressure Najib has received from groups like Perkasa, which holds significant influence over the Malay electorate.

The Malay votes have given Umno and Barisan Nasional the much-needed ammunition to survive without non-Malay support and remain in power.

Dismantling the Bumiputera equity system may prove to be fatal for Umno and the Najib administration.

courtesy of FMT