More bumiputra companies should be listed on Bursa
KUALA LUMPUR: The participation of bumiputra companies in Bursa Malaysia Securities Bhd should be stepped up to ensure their competitive edge internationally.
“We hope bumiputra companies will actively take part in the stock market not only to increase their capitalisation but also grab opportunities to expand abroad,” Deputy Finance Minister Datuk Ahmad Maslan told reporters after visiting the local bourse yesterday.
“If we bring local companies which are not listed on the stock exchange overseas, foreign investors may think they are small companies.
“If they are listed companies, they would be viewed as competent, transparent and capable companies, factors which are necessary for a listed company,” he said.
Ahmad said the majority of the 914 companies listed on the stock exchange were non-bumiputra companies.
The deputy minister also said there were many bumiputras who lacked sufficient knowledge on Bursa Malaysia’s activities.
“As such, more exposure and knowledge, in simple layman language, should be disseminated on the workings of the stock exchange among public and private institutions of higher learning,” he added.
He said bumiputra equity participation was still around 20% and had yet to reach the government’s target of 30%.
As such, bumiputra involvement must be stepped up and efforts must be doubled to reach the set target as soon as possible.
“Thirty per cent is not much but if that level is achieved, it is a major achievement for us,” he added.
Meanwhile, Bursa Malaysia Bhd chief executive officer Datuk Tajuddin Atan said the bull run on the FTSE Bursa Malaysia KLCI Index since last year showed the strength of the local capital market, which offers investment opportunities for local and foreign institutions.
Tajuddin said the rally of the Bursa Malaysia main index had been helped by the active involvement of foreign investors who have become net buyers in the last 13 months.
“Their involvement is confirmation that government programmes like the Economic Transformation Programme and Government Transformation Programme are bearing fruit,” he said, adding he expected the positive momentum to continue until year-end. – Bernama
Source : The Star
Date : 7 June 2013
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