'Bumis won't hit equity wealth target at current growth pace'

BUMIPUTERAS will not be able to own up to 25 per cent of the nation's equity wealth in 2010 based on the current pace, government economists said.

They also said a loftier target of capturing a 30 per cent cake by 2020 requires Bumiputeras to grow their equity ownership about 15.3 per cent annually.

"At the current growth pace, Bumiputera equity wealth will remain at 18-19 per cent of the total equity wealth in 2020.

"In value terms, the shortage of the targeted 30 per cent portion has soared to RM375 billion," Economic Planning Unit (EPU) adviser Tan Sri Dr Kamal Salih told the Bumiputera Economic Convention in Kuala Lumpur yesterday.

Kamal noted that Bumiputera equity in the local bourse had grown 11.8 per cent annually from 1990 till 2004 compared with 12 per cent a year registered by the overall market during the period.

In value terms, Bumiputera equity was worth RM100 billion against the overall market of RM539 billion in 2004.

More recent EPU data provided by EPU director Mat Noor Nawi shows that Bumiputera's equity had risen to 19.4 per cent worth RM120.39 billion in 2006, from 18.9 per cent in 2004.

Of this, 15.1 per cent or RM93.98 billion, was directly held by individuals.

Another 2.6 per cent, or RM16.04 billion, was held by institutions, while the remaining 1.7 per, or RM10.36 billion, by trust agencies.

Kamal also recommended that Gagasan Badan Ekonomi Melayu be given the role to coordinate and oversee the implementation of the Bumi Inc and the industrial cluster approach.

The two initiatives were approved by the National Implementation Task Force under the Ninth Malaysia Plan.