KUALA LUMPUR: Prime Minister says with immediate effect, Foreign Investment Committee (FIC) rule covering acquisition of equity stakes, mergers and takeovers is repealed, without any new guideline in its place.

"The FIC will no longer process any share transactions, nor impose equity conditions on such transactions. This represents a major rationalisation of FIC," said Datuk Seri Najib Razak on June 30.

"Up till yesterday, procession such transactions were the mainstay of FIC. From today, this function of FIC ends," he said in his keynote speech at the Invest Malaysia conference.

Najib said the review of the FIC guidelines encompassed acquisition of equity stakes, mergers and takeovers; treatment of fund raising by listed companies; and acquisition of properties.

He said FIC nod for property transactions would be substantially rationalised with immediate effect.

"The FIC approval for property transactions will now only be required where it involves a dilution of bumiputera or government intrest for properties valued at RM20 million and above.
"All property transactions,including those betweem foreigners and non-bumiputeras, will no longer require FIC approval," he  said.

Najib also said to further ease raising funds from the capital markets, post-listing fund-riasing exercises wqill no longer be subject to any equity condition.

"This deregulation will immediatley support existing listed companies seeking to raise funds to undertake investments and reduce the friction cost of compliance," he said.

This new ruling to offer 50% spread to bumiputera applies only to foreign compannies to seek listing without any need for compliance with any equity conditions remain.