FIC..is it still relevant as new policy for economic development of Malaysia?

Here, i would like to respond on FIC..recently, our prime minister,DS Najib Razak announced for a new policy to boost up the growth of economy in order to make it relevant and accessible to a new economic environment worldwide..how can the liberalization of foreign investment committee(FIC) give benefits to Malaysians and last but certainly not least is foreign investors..

The liberalization primarily to eliminate some of the regulations that seems irrelevant with nowadays economic situation. It is mainly to boost the corporate sector as well as to ensure the foreign country keep injecting their investment towards Malaysia.One of the main regulation that has been eliminated is there is no more regulation to have 30% of Bumiputera equity for a company to be listed..

First we should look why this regulation removed. Foreign investor and non-bumi view this regulation as a barrier because the participation of Bumiputera is limited and low. They did not have enough capital and most of cases happen which the Bumiputera more rather to sell the equity as a fast-track for them to get rich..

To replace this, the government comes out with a new regulation that 50% from 25% of 'public distribution' should be given to Bumiputera's investors and more than that, the government has launched Ekuinas to increase the Bumiputera's equity in potential sector such as tourism,biotechnology, medical etc. This new company will ensure the effectiveness of Bumiputera participation in economy growth..

Perhaps some will argue by say that liberalization will lead our country to capitalism and as we know capitalism is something like 'rich become more richer, poor become more poorer'. But should we apply the communism style?It will our people become more suffer as we closed the door for foreign to invest and boost out our economy. Our country as been taught in syllabus is practicing mixed system which the government will intervene to stabilize the national economy..

We believed that China still adopted the socialism system but how can they keep maintain their economy growth in the midst of recent economy crisis?Why their economy did not turmoil like what has been experienced by other countries? China is opening their door for foreign investment and their economy environment keep attract the foreign to come and invest.Now the investors have more choice to invest as Vietnam also now opening their country for more foreign investment..

If Malaysia want to compete with these countries, we cannot stand with the old instrument. We must to ensure our country become more friendly investor and the economy environment is attracting the foreign to keep injecting our economy. This, however been viewed as loss of more sovereignty on our own economy since the termination of real estate transaction of FIC in the new regulation but there is exception for transaction that involves Bumiputera's real estate. The government instead will monitor any real estate transaction that involves Bumi or govt agency to foreign and for this such transaction, the foreign company need to have 30% of Bumiputera's equity..

It is obvious that the 30% of Bumiputera's equity is not full vanish.It is not use anymore for the foreign companies to be listed and start their business here only. The more they come and start their business here, the revenue and tax payment will be more generate and this will benefit the government to use the tax payment for social facilities and development..

I think it is time for us to focus on local investors so that they also will benefit from the economy policy and survive in current economy environment.Local company especially the bumiputera or Malay will also contribute in payment of zakat harta which help the government to close the gap between rich and poor beside the zakat payment can be used to help the poor people start to work and participate in economy activities such as business etc. This will keep our country to maintain the business activities especially in middle-small industry sector..

We cannot afford to recover from economy crisis by having foreign investment but we must encourage our investor to invest in the local too as well as to other countries. We need to generate our export and I believed that our export orientated based on electronic should be reorientated back as I know that we as the Islamic country may establish the halal food hub.Perhaps we can export our halal food to Arab and Islam country because I did not heard any Arab country affected by this current economy situation.More than that this kind of export can enter Europe countries as there are also a lot of Muslims communities there and I sure the demands of halal food is critical for this such communities..

I'm not support capitalism or communism because I don't think either these two systems are benefit people. Even though communism embrace social justice but I don't think the justice affected the administration people or their leader. Yet the people who will affected by any sanctions,shortage and other economy policy but the leader or admin people will stay healthy and alive. That's why I prefer more on mixed system with the combination of Islamic economy(zakat, baitulmal etc) it will help to maintain the economy.But how effective it is, it depends to those who implement and execute it..

Globalization and recent economy situation has changed us but we too, should change the shape of the globalization by participating with recent instrument and tactics in order to keep develop and become the 'player' of globalization, not become the predator and loser!

At last,i need to have your comments on my posting. thank you..