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No. 4792 PP 2644/12/2009 (023092)

July 1, 2009

» Ex-enforcement chief jailed 11 years pg6 » Gas train explodes, 16 die pg8 News without
falls short pg17
investments in sectors with high
growth potential, in line with
supporting the New Economic
Model,” he said.
PKA defers “The new philosophy is not
to help just any bumiputra com-

RM660m pany but only those which are really
capable and with calibre.”
In explaining the new measures,
payment Najib said although the 30% bumi-
putra equity requirement for Ma-
by Karen Arukesamy laysian companies seeking public listing is now repealed, companies
will be required to offer half of
PORT KLANG: At the risk of legal the public shareholding spread to
action, the Port Klang Authority (PKA) bumiputra investors.
will not pay RM660 million to turnkey Currently, companies going for
contractor Kuala Dimensi Sdn Bhd for an Initial Public Offering (IPO) will
the RM4.6 billion Port Klang Free Zone need to meet both the Securities
(PKFZ) project, pending a review of the Commission’s public spread require-
findings of a special task force probing ment of 25% and FIC’s bumiputra
the controversial project. equity requirement of 30%.
“The Finance Ministry has made the “The bumiputra equity condition,
money available but we have decided The new therefore, becomes subsumed within
to defer payment until the completion
of the full review of the task force,” PKA
philosophy is the public spread requirement,” said
chairman Datuk Lee Hwa Beng said after not to help just any He also said the FIC’s guidelines
a board meeting yesterday. covering the acquisition of eq-
He said the decision was taken based bumiputra company uity stakes, mergers and takeovers is
on the preliminary and provisional views
submitted by the task force headed by
but only those which repealed, and the FIC will no longer
process any transaction or impose
senior lawyer Vinayak Pradhan from are really capable equity conditions on such trans–
Skrine and Co. He refused to disclose actions.
what has been found so far, saying the and with calibre.” FIC will also no longer process
task force is still gathering information. property transactions, except where
On June 10, two weeks after an inde- it involves dilution of bumiputra or

Freer economy
pendent audit report on the PKFZ fiasco government interests.
disclosed shocking management and Najib later told a press conference
governance issues, Transport Minister the new measures are partly due to
Datuk Seri Ong Tee Keat commissioned the fact that there has been a large
the setting up of the task force to rectify number of sell-down of bumiputra
wrongs and to pursue legal remedies. shares in the capital markets.
The body was given two months to “The sell-down has been enor-
submit its recommendations. mous (based) on the old model. Out
The RM660 million involves four of RM54 billion (of equity) allocated,
payments to be made to KDSB in June only RM2 billion remains,” he said.
and July. They are: “The new policy guidelines will
» RM130 million due on June 30 under FIC RULE ON 30% BUMI EQUITY FOR LISTING REMOVED ensure a win-win situation for all,”
a 2002 sale and purchase agreement; he said. “We want to be fair to all
» RM230 million due on June 30 under by Tim Leonard as restrictive to growth. For instance, almost immediately to realise quick communities … no one must feel
a 2004 development agreement; one of the main requirements for gains. marginalised or disincentivised.
» RM150 million due in July under a listing on the stock exchange is the He said although repealing “It is a tricky balancing act but it
2005 supplemental agreement for new UALA LUMPUR: Prime Min- is do-able.”

30% bumiputra equity. the FIC requirement is to ensure
additional development works; and ister Datuk Seri Najib Abdul Najib, who is finance minister, the capital markets become more The role of the FIC has come
» RM150 million due in July under a Razak yesterday unveiled bold told participants of InvestMalaysia investor-friendly, the macro under criticism from various
2006 supplemental agreement for new measures to further liberalise Conference 2009: “After 19 years, objective to achieve 30% bumiputra parties, especially as it failed to
additional development works. the economy, including repealing the FIC has failed to achieve its equity remains. address the issue of poverty while
“PKA recognises that its decision Foreign Investment Committee (FIC) objective of increasing bumiputra Towards this end, he announced enriching only a select few.
could result in litigation against it. If this guidelines that have long hampered equity to 30%. We need a new the setting up of a new investment
happens, PKA will defend these actions
and will await the outcome of litigation,
efforts to attract foreign investors.
The FIC is the product of economic
instrument which is more robust
and investor-friendly.”
institution called Ekuiti Nasional
Berhad (Ekuinas) that will act as a
» Other measures,
see Business Pages 14&15
which will determine PKA’s true liability,” policies that have been maintained, The bumiputra equity of listed private equity fund with an initial
Lee said. He said the PKA has to be “very
careful with the government money as it
almost traditionally, since the 1970s
to lift the bumiputra share of the
shares currently stands at only
19.4% largely because those who got
capital outlay of RM500 million.
“Ekuinas will be enlarged to
» theSun says: Freer economy
will benefit all Page 11
is the people’s money”. economy, but is increasingly seen shares allocated to them sold them RM10 billion and it will focus its