CAPITAL MARKET LIBERALISATION

With regard to global economy turmoil which started during end of 2007, we had observed and experienced volatile business environment, negative market performance and many other disastrous occasions taking place in financial market eg madoff scheme, workers layoff by the employers of which substantially affect the overall household income dramatically feeling like the economy is about to burst and explode at anytime; either we realize or we don’t!!

When the going gets tough, the tough gets going. Nevertheless we can’t predict for how long the tough gets going since financial market is very sensitive with respect to uncertainty, trust and confidence issues going ahead

Anyhow for local and foreign investors here are deemed fortunate with the latest rules and regulations upon the introduction and reformation of business practice by the government along with 2 Stimulus Packages implemented earlier, liberalization moves announced (April 22 2009) in 27 services sub-sectors and followed through with liberalization measures (June 30-July1 2009 ) to enhance the role of the financial sector as a key enabler and catalyst of economic growth .Listed below are the strategies lauded

1.foreign shareholding levels in the existing brokerage firm is capped to 70% from 49% initially.

2.Central Bank (BNM) and Securities Commission (SC) consider granting out visa application for those in capital market industries and financial markets to attract and retained specialist in this field to remain here.

3.Investment institute namely EKUINAS (Ekuiti Nasional Berhad) with an initial capital of RM500million focusing largely on high growth potential nature of business that are aligned to New Economic Model.

4.stimulating fund management retail business like mutual fund/unit trust business by allowing foreign operation ownership of 100%..

5.as for retailing segment is concern, foreign shareholding level in unit trust management company shall rise to 70% from 49% at present.

6.compliance of FIC (Foreign Investment Committee) will be completely abolished; so foreigners have liberty to buy and or sell properties here without any extra compliance required.

7.allowance for foreigners acquiring bumiputra/government real-estate easily here comes with FIC exemption for the purchase of below RM20 million.

8.50% of public shareholding spread for bumiputra investors, so forth the aim to achieved 30% bumiputra equity ownership level look more sustainable and equitable in the long run.

Just for sharing..