ASEAN ENTITIES CAN TAKE UP TO 70 PCT EQUITY IN LOCALLY INCORPORATED STOCKBROKING FIRMS

KUALA LUMPUR, May 4 (Bernama)-- Asean Finance Ministers have agreed to allow
Asean entities to take up to 70 per cent equity in locally incorporated
stockbroking firms from 30 per cent previously.

This is a major move that will further liberalise financial services in the
region.

"It will give our players new business opportunities and capture a wider
market base outside Malaysia," Second Finance Minister Minister Datuk Seri Ahmad
Husni Hanadzlah said in a statement today.

"The entry of new players into our domestic market, on the other hand, will
also be the catalyst for a more competitive environment and provide for a robust
stockbroking industry," he added.

Malaysia has previously taken steps to liberalise the economy by allowing
stock brokers and unit trust management companies to have a 70 per cent foreign
ownership, up from 49 per cent.

Ahmad Husni, on behalf of Malaysia, signed today the Protocol to Implement
the Fifth Package of Financial Services Commitment under the Asean Framework
Agreement on Services (AFAS).

"The Fifth protocol provides an avenue for our players to participate in the
respective Asean equity markets.

"The signing of the Protocol marks a new milestone in Asean’s efforts in
integrating further the respective capital markets and the insurance
sub-sector," he said.

Ahmad Husni led the Malaysian delegation to the Asean + 3 Finance
Ministers' Meeting in Hanoi, Vietnam today.