Major Bumiputera business houses laud FIC measures

MAJOR Bumiputera-controlled business houses welcomed the government's move to deregulate rules on investing by foreign investors, saying new investments should flow into Malaysia and enlarge the economic pie for everybody.

Prime Minister Datuk Seri Najib Razak yesterday announced major scaling back of the Foreign Investment Committee (FIC) guidelines, effectively removing much bureaucracy that has discouraged investors from coming to Malaysia.

"The FIC guidelines deregulation is a big move. The FIC is literally the gatekeeper of foreign investments. The deregulation will remove a lot of toll houses for investors looking to invest here," said Perodua managing director Datuk Syed Abdull Hafiz Syed Abu Bakar.

"There are already MIDA (Malaysian Industrial Development Authority) and MIDF (Malaysian Industrial Development Finance) licensing, among others, that foreign investors have to contend with," Hafiz added.

The Malay Traders and Industrialists Association of Malaysia (Perdasama) said yesterday's move by the government was long overdue."Generally, the measures will open the floodgates of foreign investments," Perdasama president Datuk Moehamad Izat Emir said.

He did not think the measures will undermine Bumiputera entrepreneurs' strength and competitiveness. Perdasama, he said, is hoping for more liberalisation that will benefit the local economy.

One of them is to loosen the immigration rules to allow honest, successful foreign traders operating in the country after 10 years to receive PR (permanent resident) status.Meanwhile, state-owned fund manager Permodalan Nasional Bhd (PNB) does not see the relaxation of foreign ownership in fund and unit trust management companies as a threat.

PNB is already competitive as it is able to deal with various investment risks, its president and chief executive officer Tan Sri Hamad Kama Piah Che Othman said.Hamad Kama Piah said PNB business activities are also different from other fund management companies.

PNB is unique and able to handle risks all these years by accepting unit trust investment as low as RM10 and allowing unit trust holders to withdraw their investment at anytime, he explained.

"This already shows that PNB is very competitive," Hamad Kama Piah told reporters after the announcement of income distribution for the Amanah Saham Nasional 2 in Kuala Lumpur yesterday.

He said PNB also provides opportunities for the non-Bumiputeras to invest in some of its unit trust funds.The setting up of private equity fund Ekuiti Nasional Bhd, he said, would help spur economic growth.

"The liberalisation measures are aimed at creating growth for Malaysia and making the country more competitive," he added.On whether the measures would affect opportunities for Bumiputera companies, Hamad Kama Piah said people must see it from a holistic point of view because the government is serious in making Malaysia an attractive investment destination."Competition cannot be avoided but to ensure that we are competitive, we have to open up some areas," he said.