Salient. Official Newspaper of the Victoria University Students' Association. Vol 42 No. 21. September 3 1979
3. Commerce and Industry
3. Commerce and Industry
The NEP seeks to increase the Malay ownership of all share capital from 2.4% in 1970 to at least 30% by 1990; non- Bumiputra from 34.3% to 40% and to reduce foreign interests from 63.3% in 1970 to 30% by 1990.
According to the Third Malaysia Plan (1976-1980), the average annual growth rate of Bumiputra ownership during 1971-75 was 43.6%, Chinese merely 13.7% and Indians, 16.3%. This sufficiently illustrates the intensity of the government's effort to help the Malays.
In 1975, the Industrial Co-ordination Act was introduced by the government. This Act stipulates that every manufacturing company having a share-holder's fund of more than $250,000 (later amended to $500,000) or employing more than 25 fulltime workers shall apply for a manufacturing license, and that 30% for its equity share should be offered to Malays.
Under this Act, the medium-size businesses especially those owned by the Chinese have borne the brunt of restrictions over issue and terms of licenses.