PM: Ekuinas activities will benefit all Malaysians, economy

Written by Joseph Chin
Friday, 04 September 2009 14:06

KUALA LUMPUR: The Prime Minister said Ekuiti Nasional Berhad (Ekuinas), which unveiled its operational details and investment framework on Sept 4, would undertake activities which will benefit all Malaysians and the Malaysian economy.

Datuk Seri Najib Razak said through its investments, Ekuinas would play a major role in strengthening Bumiputera participation and at the same time, will forge genuine partnerships with non-Bumiputeras.

"Thus, as a result, Ekuinas activities will benefit all Malaysians and the Malaysian economy,” he said in a statement after Ekuinas's board of directors announced the operational details and investment framework.

At a press briefing, Ekuinas chairman Raja Tan Sri Arshad Raja Tun Uda said the organisation would be a Government-linked private equity fund management company that aims to create Malaysia’s next generation of leading companies, while promoting equitable and sustainable Bumiputera economic participation.

Ekuinas has been established as a wholly owned subsidiary of Yayasan Ekuiti Nasional, a Bumiputera trust.

Najib also announced Yayasan Ekuiti Nasional’s members of the board of trustees, of which he is the chairman.

The other members are Deputy Prime Minister Tan Sri Muhyiddin Mohd. Yassin; Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop; Minister of International Trade and Industry Datuk Mustapa Mohamed; Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah; Secretary General of the Treasury Tan Sri Dr. Wan Abdul Aziz Wan Abdullah and Director General of the Economic Planning Unit Datuk Noriyah Ahmad.

At the press briefing, it was highlighted that Ekuinas would be commercially driven, utilising both public as well as private capital to invest in meaningful stakes in entities with strong potential for growth.

Ekuinas would invest in medium to large sized companies and would take an active investment role in growing its investee companies as well as enhance the quality of management. The investment decisions and selection of management by Ekuinas will be based on merit. It would build on success, supporting entrepreneurs with a proven track record.

Ekuinas would also build up companies through putting in place professional management with performance based compensation, including equity based incentives.

“We have a good number of highly talented Bumiputera professionals and we will enlarge the entrepreneur pool by making some of them professional-owner-managers,” said Najib.

The Prime Minister added Ekuinas would manage its own portfolio of investments as well as outsource some of its funds to capable private equity investment firms.

Najib also said a high level committee for Bumiputera Entrepreneurial Development will be formed to specifically focus on strengthening Bumiputera entrepreneurship within the start up and development phase.

This committee will report to him and will be chaired by Nor Mohamed. The committee will be based on the successful model of the Putrajaya Committee for GLC High Performance and is aimed at enhancing the effectiveness of entrepreneur development programmes undertaken by relevant Government-linked institutions.

Najib said the establishment of Ekuinas and the Putrajaya Committee reflects the Government’s approach of using multiple instruments to comprehensively address the challenges in developing Bumiputera and Malaysian entrepreneurs.