BUMIPUTERA OWNERSHIP OF

WEALTH

INTRODUCTION There were 6.1 million Bumiputras in 1970, or 56

percent of the populace. The Malays comprised nine main ethnic groups, Orang Asli were divided into 18 categories, Sabah Bumiputras had 40 ethnic groups while Sarawak had 60 ethnic groups.

During the 2010 Umno General Assembly, Datuk Seri Najib Tun Abdul Razak mentioned that Jawa is Malay, Bugis is Malay, Banjar is also mentioned as Malay, Minangkabau is definitely Malay, those of Acheh origin are Malays, in fact, a convert is defined as Malay, even Mamak and Malbari have been absorbed as Malays.

The 2010 Population and Housing Census, showed Malays and Muslim Bumiputras made up 59.7 percent. While, non-Muslim Bumiputras were 7.6% of the overall populace. Current projections, as of 2012, estimated the population of Malaysia as 27.4 million people of whom Bumiputra numbered 18.6 million or 67.9%

socio-economic situation of Malaysia in the 1960s

National Economic Policy (NEP) was introduced in 1970 to address this issue and through it several social and economic restructuring instruments were introduced. These instruments were aimed to simultaneously increase the Bumiputera’s participation in the modern sectors of the economy. The NEP targeted a 30% share of the economy for the Bumiputera.

The policies following the NEP, the National Development Plan was between 1991 and 2000 (NDP) and National Vision Policy traversing 2001 to 2010 (NVP) are more committed to growth, eradicating hard-core poverty, raising incomes and deregulation. All these policies are based on development by “amanah” or trusteeship to achieve the two principal objectives of poverty eradication and socio-economic restructuring

NVP is axial reinforcement and a catalyst for achieving Vision 2020.

The NEP and NDP objectives of reducing the incidence of poverty have been very successful and there has been a marked reduction in the incidence of poverty among the Bumiputera and an increase in overall Bumiputera participation in commerce and industry, and ownership of corporate wealth.

THE IMPORTANCE OF CORPORATE EQUITY

To encourage the participation of Bumiputera in the economy. Corporate equity ownership was important to compensate for discrimination and disadvantages that the Bumiputera was facing; and to provide:

Employment opportunities Business opportunities Wealth creation mechanisms

THE ACHIEVEMENT EQUITY OWNERSHIP OF BUMIPUTERA

1970 to 1990Bumiputera share of corporate ownership increased from 2.4% to 19.3%. In comparison, the non-Bumiputera share had increased from 32.2 percent to 41.1 per cent.

2000Bumiputera ownership was only 18.9% and the target remains the focus of restructuring efforts under the Third Outline Perspective Plan (2001-2010).

2004Following implementation of the NEP, the wealth attributable to Bumiputera, government trust agencies and government-linked company (GLC) increased appreciably, from 2.4% in 1970 to about 18.7%

2008Total equity ownership is as follows:

o 21.9% for Bumiputera.o Non-Bumiputera is 36.7%.o The foreigners stood at 37.9%.o Nominee of is 3.5%.

As of 2008, the data show Bumiputera equity target not reached the set target of 30% (NEP). Efforts should continue to be made to ensure that this position is reached (Bumiputera population is 67%).

However, the Bumiputera equity condition may be considered better than in 1970 in which only holds 2.4% Bumiputera only. Total increase from the year 1970-2008 stood at 19.5%

2010 Bumiputera corporate equity

ownership has increased from 21.9% worth RM127.08 billion in 2008 to 23.09% worth RM167.7 billion in 2010.

2011The Bumiputera corporate company equity rate had also gone up from only 2.4% in the 1970s to 23.5%.

CHALLENGE

In the context of corporate company equity ownership, we have yet to achieve a target of at least 30%. Our effective control on corporate companies currently is only around 10%. The government also understands that the involvement of the Bumiputera communities in entrepreneurship activities is still insignificant and the majority is at the small and micro levels.

The NEP had achieved its goals. But, like taking medication, it has unintended effects. One, Bumiputeras have become complacent and dependent. The NEP has created a new culture of patronage and rent-seeking, and has pushed talents to leave the country.

GOVERNMENT'S EFFORTS TO TRANSFORM THE BUMIPUTERA ECONOMY.

New Bumiputera Economic Empowerment Council (BEEC) :

Empowering Bumiputera human capital Strengthening the Bumiputera equity

ownership in the corporate sector. Enhancing Bumiputera entrepreneurship

and business. Strengthening the service delivery

ecosystem Strengthening Bumiputera ownership of

non-financial assets.

(The thrusts are strategic, focused and quantitative)

ACHIEVEMENT

After currency crisis (1997) has undermined, the emergence of such inter-ethnic partnerships, most of which started as small and medium-scale enterprises (SMEs).

Malaysia is the only one of the dynamic economies of East Asia that is substantially multi-ethnic in social composition.

Academic institution: UiTM (1956) Since independence, the government had created

numerous instruments and institutions for the Malays and Bumiputeras, among which were Bank Bumiputera, Tabung Haji, MARA, FELDA, RISDA, FELCRA, UDA, PERNAS, DARA, JENGKA, KETENGAH and KESEDAR.

The Bumiputera poverty rate had gone down from 64.8 percent in the 1970s to 2.2 percent in 2012.

REFERENCE

Bumiputera equity ownership rose to 23.09pc in 2010 - Top News - New Straits Times http://www.nst.com.my/top-news/bumiputera-equity-ownership-rose-to-23-09pc-in-2010-1.76890#ixzz2gxgTEVT6

http://www.undp.org.my/files/editor_files/files/UNDP%20prodocs/Project_Document_Poverty_Sabah_Sarawak_00047703.pdf

http://www.pekema.org.my/ http://wajabangsa.blogspot.com/201

3/07/patriotisme-ekonomi-melayu.html

http://johorinfo.blogspot.com/2013/03/peratusan-pemilikan-ekuiti-mengikut-kaum.html

http://www.rajamenangis.com/2010/06/2010-2015-pemilikan-ekuiti-bumiputera_3940.html