New Guidelines To Boost International Investment To Malaysia
Some new guidelines had been make to boost foreign investor to invest into Malaysia share market, the new guidelines is a below:-
- Dropped the 30 per cent Bumiputera equity requirement for Malaysian firms seeking public listing.
- Offer 50 per cent of the public shareholding spread to Bumiputera investors. The public shareholding spread is currently 25 per cent which effectively sets the minimum allocation for bumiputeras at 12.5 per cent.
- Powers of the Foreign Investments Committee (FIC), immediately repealing its guidelines covering the acquisition of equity stakes, mergers and takeovers.The FIC will no longer process any share transactions nor impose equity conditions on such transactions — which has been its mainstay up to yesterday.
- Foreigners are allowed 100 per cent ownership of companies in the wholesale segment of the fund management industry. The foreign shareholding limit for unit trust management and stockbroking companies is raised to 70 per cent from 49 per cent.
- Ekuiti Nasional Bhd (Ekuinas), a private equity fund focusing on high-growth sector, will be established with an initial capital of RM500mil. It will eventually become a RM10bil fund.
The changes will have help market sentiment and attract new listings to Malaysia but does not see any immediate impact. Open up more per cent to foreign investor also I think not good due to they invest into share market is to make more money without doing the hard work so at the end they will be the winning side and we will at the losing side.
Anyway all this new guide line impact the market positive or negetive will be not immediate, so to invest into share market better do more study and don't rush.
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3 comments:
Actually this is bad news for PNB. No longer special treatment to them. Well, then again capitalists are not coming and setting up their manufacturing here anymore. Why choice Malaysia when they can set up factories in Vietnam at half the price and half the labor cost? Talking about half more profit! This is the very reason why Malaysia fail because of uncontrolable corruption and too many VVIP wanna get hands on things. Dr. M talked about first class facilities(more like inferior facilities)when these facilities are crumbling here and there. Average Malaysians are victims of socialites people, process have actually stag for decade now. I didnt realise this before, now stupid am i.
Still not too late to realize now, haha.
Now foreign investor can come to make money by speculative Malaysia share market and made big money from retail investor like us.
Game is getting hard to play.
Yup, we are like fishing using our fishing rod. Foreigners use big net to catch fish. We must know WHEN these foreigners catch fish with their big net so we can 'tangkap' some of the fishes....hehehe. Anyway, you notice volume getting smaller in the market? If volume getting thin, dont buy....
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