Malaysia

Malaysia, Tuesday announced meliberalisasi economy toward the middle of a recession with such dicampakanlah policy menomorsatukan the indigenous Malay berdekade a decade-long dipraktikan Malaysia.

Prime Minister Najib Razak negate a rule requiring 30 percent of shares of companies that is released to the public (initial public offerings or IPO) must be purchased the Malay, as well as to remove provisions that restrict the purchase of domestic properties by foreigners.

"This new policy will make our economy more terpacu. I think this provision will put us on the radar so attractive direct investment flows and capital from abroad," said Najib.

Our economists welcome the steps that the market liberalization introduced after the government that the national economy akan berkontraksi 5 percent this year.

"Due to the sharp decrease of (volume) foreign direct investment, this step will place Malaysia in the interesting position in the FDI and domestic investment maintain become slow since the Asian financial crisis in 1998," said Yeah Kim Leng, chief economist at RAM Holdings.

Malayasia throw the government has provided minimal approval from Foreign Investment Committee (FIC) on foreign capital transactions, except the interest of a Malay indigenous groups.

The foreign capitalist will no longer require government approval through the acquisition and merger.

"In the framework of FIC, we can mention that provision no longer exists," said Najib menandaskan to reporters saying that this provision is no longer an effective policy instrument in the bolster economic growth.

FIC is part of the Malaysian affirmative action plan, known as the New Economic Policy (NEP), a controversial scheme to improve the status of the ethnic Malay
which is the largest part of the composition of the population in this multicultural country.

Policy is introduced after racial unrest in 1969 and is intended to overcome the domination ethnic Chinese community dominates the Malaysian business sector, giving way to ease problems in the Malay housing, education and employment.

Some criticize the policies that have been pressing for economic growth and more profitable companies that managed indigenous Malaysia, but not successfully overcome the poverty in the community down.

NEP When first introduced, the Bumiputera only 2.4 percent of the companies in Malaysia, but the number has now grown to be 19.4 percent. According to Najib, the launch of the new provisions will not now raise political shock.

"We want justice to all the community. No one should feel marginalized or no benefit. This is the rule penyeimbang (business) spoofery. This is (for) that is capable of working," said Najib.

Source : http://www.antaranews.com/view/?i=1246346550&c=EKB&s=MAK