Thursday, September 13, 2007

Lulu's Reading The Budget (6)

Note the contrasts between #29 and #31

29. To encourage the development of the fund management industry, the following measures will be implemented:
First: Foreign ownership on fund management companies and REITs management companies will be allowed up to 70%. The minimum Bumiputera ownership requirement will remain at 30%; and
Second: The SC will facilitate the licensing process as well as all dealings with other Government agencies to expedite the approval process for the establishment of fund management businesses in Malaysia.

31. In line with the objective of Malaysia International Islamic Financial Centre (MIFC), the Government will introduce several measures, as follows:
First: Islamic fund management companies will be allowed to be wholly owned by foreigners;
Second: A sum of RM7 billion fund will be channelled by EPF to be managed by Islamic fund management companies;
Third: Islamic fund management companies will be allowed to invest all their assets
abroad; and
Fourth: Fund management companies will be given income tax
exemption on all fees received in respect of Islamic fund management activities,
until year of assessment 2016.

In #31, you can see that the government recognises that if you want to attract foreign investors, you have to give up forcing them to "share" their returns with people who add no value to their investment other than the race category on their MyKad.
Sad to say, it's apparent that the government wants to attract only a certain kind of investors. The rest, as far the government's attitude as shown in the budget, can invest their money elsewhere.

Lulu dunno about you but it doesn't look like the government's agenda is to add to the Bumi content in Malaysia. Looking at this #31, the government is switching to adding to the Islamic content, regardless whether you're local or foreign, in Malaysia.

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