The Hindu Business Line : Malaysia raises FDI limit in stock broking firms to 70%

KUALA LUMPUR: Malaysia on Tuesday announced wide ranging measures to liberalise its economy increasing foreign shareholding limits in existing stock broking companies to 70 per cent from the current 49 per cent.

Announcing the measures, Prime Minister Mr Najib Tun Razak said ownership in the wholesale segment of the fund management industry would also be fully liberalised to allow 100 per cent foreign ownership for qualified and leading fund management companies to establish operations in Malaysia.

Listed companies will not be required to allocate 30 per cent of their stake to Malays, or Bumiputras, as part of an affirmative programme for the Malay majority. The removal of the 30 per cent Malay ownership requirement for listed companies does not ap ply to “strategic industries'' such as telecommunications, water, ports and energy.

He said the current guidelines of the country's Foreign Investment Committee (FIC) covering acquisition of equity stakes, mergers and takeovers stood repealed without any new guideline in place.

Mr Najib, who is also Finance Minister, said that for the retail segment, foreign shareholding limits for the unit trust management companies would be raised to 70 per cent from its current level of 49 per cent. The premier, who took office in April thi s year, made the announcements at the “Invest Malaysia 2009'' conference. – PTI

Prev: Three top honchos of Hartmarx to quit
Next: ‘Banking sector highest-job generator in Q1’

Business Line | NUS Index |

Related Topics
Books
Browser's Corner
Cinema
Domestic Travel
Entertainment & Leisure
Fitness First
Food & Cuisine
Gender
Health
International Travel
Lifestyle
People
Radio/TV
Showbiz
Social Welfare

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line