Business Times reported that BURSA Malaysia Bhd is "concerned" over how more companies are considering anoverseas listing. This is the same concern expressed by CIMB CEO Nazir Razak when interviewed by the Edge weekly. Nazir spoke on the negative expect of the affirmative action which requires companies seeking for listing to allocate 30 percent of their shares to Bumiputera.
Its chief executive officer Datuk Yusli Mohamed Yusoff said."Typically, it'd be the larger-sized companies that would have more options to look elsewhere. In cases like that, we'd then work with the broker or merchant bank to convince that company to list in our market," said Yusli.
This is, however, less of an issue with small and medium enterprises. "There are a few that will go to markets like London because they can get a better valuation, because obviously investors there are more sophisticated and willing to take more risk.
Yusli should submit a comprehensive report to the government on the pros and cons of reintroducing the 'old' NEP as a socio-economic framework in the 9MP and IMP3. Otherwise, Bursa Malaysia can expect more local and foreign companies to bypass its bourses.