Teraju claims Bumi ownership of share capital 21.9%, far below 30%

KUALA LUMPUR -- There has been relative stagnation of gain in Bumiputera share of corporate equity between 1990 and 2008 when Bumiputeras owned 19.3 per cent of corporate equity, according to Peneraju Agenda Bumiputera (TERAJU).
"Bumiputera ownership of share capital at par value is 21.9 per cent in 2008 and is still short of the 30 per cent target," it said in the 'Bumiputera Economic Transformation: A Roadmap' document, launched by Prime Minister Datuk Seri Najib Tun Razak today.
TERAJU said Bumiputera corporate equity ownership tends to be higher in sectors that have smaller gross domestic product (GDP) contribution.

"For example, Bumiputera corporate equity ownership is highest in construction sector (of about 36.4 per cent) but this sector's contribution to GDP is only 3.3 per cent.
"Bumiputera ownership of manufacturing sector is only 11.3 per cent but this sector's contribution to GDP is 26.6 per cent," it said.
TERAJU, the secretariat of Majlis Tindakan Agenda Bumiputera, said the majority of Bumiputera firms was small with 65 per cent of them generating revenue of less than RM250,000 per year.
"Bumiputera businesses tend to be small-scale and micro enterprises," it said, adding that 42 per cent of businesses owned by Bumiputeras have less than five employees while 21 per cent have five to 50 employees.
Companies where Bumiputera shareholders owned 51 per cent or more of the equity make up 25 per cent of the total number of companies registered in Malaysia of about 800,000, the secretariat said.
Looking at the current state, TERAJU said, Bumiputera equity ownership will continue to be a major thrust in the Bumiputera Economic Transformation.
"Bumiputera control over companies is also important in ensuring that they move up to management positions to attain higher-paying jobs," it said.
Citing 2006 data from a study on Permodalan Nasional Bhd and Foreign Investment Committee companies, TERAJU said, Bumiputera-controlled companies are more likely to have strong Bumiputera representation in management positions, compared to foreign and non-Bumiputera-controlled firms.

-- BERNAMA