KUALA LUMPUR (Oct 18): The government will continue to emphasise Bumiputera participation in strategic investments towards achieving the target of at least 30% corporate equity ownership, according to the Mid-term Review of the 11th Malaysia Plan 2016-2020 report.

“In this regard, Bumiputera institutions will continue to invest in high growth companies and companies listed on Bursa Malaysia, as well as venture into potential companies as a minority shareholder,” said the report.

“Bumiputera institutions will continue to play a vital role in increasing effective control and sustainable corporate equity ownership,” it added.

Meanwhile, state-owned enterprises (SOEs) will also acquire controlling stakes in potential Bumiputera companies, particularly in high value-added and emerging industries.

This, said the report, is with the view of driving up performance, as well as increasing the value of the companies, and ultimately divesting the companies to potential Bumiputera investors.

“This measure will enable SOEs to implement effective initiatives and programmes that will benefit the Bumiputera.

“Furthermore, selected SOEs will intensify management buy-out activities to increase Bumiputera equity ownership,” it added.                 
The 30% equity ownership target is part of the government’s steps to enhance the Bumiputera economic community.

“The government is committed to continuing the Bumiputera agenda at the national level, through implementation of inclusive policies and initiatives, including emphasis on changing the mindset,” said the report, which also underlined a necessary reform in the Bumiputera empowerment agenda.

Meanwhile, Bumiputera trust agencies such as Permodalan Nasional Bhd (PNB) and Pelaburan Mara Bhd will identify more innovative financial products to offer attractive and higher returns to Bumiputera shareholders.

“PNB, through Amanah Saham Nasional Bhd, will also diversify the investment portfolio to include property,” the report added.