LIBERALISATION MEASURES MAKE INVESTORS FEEL MORE SECURE, SAYS AMBASSADOR

By Nor Faridah Abd Rashid

KUALA LUMPUR, July 9 (Bernama) -- Economic liberalisation measures announced
by Prime Minister Najib Razak will enhance investor confidence and make them
feel more secure, said Senegal's ambassador to Malaysia, Abdel Kader Pierre
Fall.

Describing the measures as "a step in the right direction", he said he was
confident that Malaysia would reap some benefits out of it.

Najib, barely three weeks after taking office as Malaysia's sixth Prime
Minister in April, has revised several policies and announced the liberalisation
of some sectors of the economy to level the playing field of opportunities.

Since taking office on April 3, Najib has announced a series of major policy
changes, including the lifting of some regulations designed to benefit
Bumiputeras but had deterred entrepreneurship and foreign investments.


This included scrapping a 30 percent Bumiputera ownership requirement for
investment in some services sector to help boost the country's flagging economy,
with immediate effect.

End of last month, Najib announced the scrapping of a rule requiring public
offers to reserve 30 percent for Bumiputeras, and removed regulatory approval
for foreign property purchase.

Speaking to Bernama, the ambassador said when he came to Malaysia some five
years ago he was aware of the "Bumiputera preferences" and Malaysia's historical
background.

"I knew about the Bumiputera preference and Malaysia's historical background
that is very specific with different communities so we need to let Malaysia deal
with that," he said.

"If now, Malaysia realises that it is time to move on and maybe remove
those preferences, I think it is a good move because it will enhance confidence
in investors abroad and will also make those investors feel more secure."

Abdel Kader, who is also the vice-dean of the African diplomatic group here,
said with the liberalisation, African businessmen would have more "breathing
room".

"They will have more room to take (business) initiatives and most likely add
more to the Malaysian economy," he said.

Asked whether the "Bumiputera preferences" had hindered African businessmen
from coming to Malaysia prior to this, Abdel Kader said from feedback, some
businessmen found it a bit difficult to understand the system that was in place,
especially if they come from countries which are "liberalised".

"For instance, some businessmen from Senegal and other African countries who
come from countries that are liberalised and they see some restrictions here,
sometimes they have difficulty in understanding it," he said.

"But it was not that very difficult so as to make them turn back (from
investing). When the historical background is explained to them they would
understand it. However, it is evident that without those preferences, they are
more comfortable doing business with Malaysia."

Under the New Economic Policy (NEP) introduced in the 1970s to provide for
equitable distribution of the economic wealth, businesses are required to have
certain percentage of Bumiputera ownership or quota on the hiring of
Bumiputeras.

Foreign investors found this policy to be restrictive, in terms of their
businesses.

The ambassador also said that from discussions held with some of his
colleagues from other African countries, there had been a warm response from
them towards Najib's "approach of doing things and conducting business".

Asked whether the relationship between Malaysia and Africa will expand
further under Najib's leadership, Abdel Kadir said: "Yes I hope so."

"Najib, as I see him, is very pro-business and by taking the bold steps to
abolish the (Bumiputera) preferences, it looks like he is moving in a way to
sell Malaysia abroad aggressively," he said.

Abdel Kader also said he was certain that the Malaysian government was aware
of the need to develop non-traditional markets and as such he was sure that the
government would take some steps to beef up the relationship between Malaysia
and Africa.
-- BERNAMA