Fair distribution of wealth

KUALA LUMPUR: Inequitable distribution of the country’s wealth among Bumiputeras could lead to political instability in the long term, the prime minister said.

Datuk Seri Najib Razak said the government held to the principle that the country’s wealth must be distributed fairly and equitably because if a large section of the population, who were Bumiputeras, could not share in the wealth, it would mean that they were being denied of their right.

“This will also not contribute to political stability in the long run. We do not want to deny the right of the Bumiputeras to continue investing in the economy and succeed in their businesses.” Najib was speaking at the launch of Amanah Hartanah Bumiputera (AHB), a RM1 billion property trust announced during the 2011 Budget, here, yesterday.

Also present were Deputy Prime Minister Tan Sri Muhyiddin Yassin, Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop and secretary-general of the Treasury Tan Sri Dr Wan Abdul Aziz Wan Abdullah.

The AHB fund was meant to enable Bumiputera investors to participate in the beneficial ownership of real estate assets.

"Surely, if Bumiputeras passing through the city look up and see that the skyscrapers and commercial buildings of high value are not owned by them, they will feel dissatisfied and uneasy." AHB, he said, is part of the government's aspirations to bring about change in the country's economy to ensure that wealth is not focused in the upper class.

"We do not wish to see the gap widening between those with high incomes and the low-income earners. Therefore, with efforts like this (AHB), we can reduce that gap.

"It (AHB) also allows the country's wealth to be be earned by many Malaysians." The first of its kind in Malaysia, AHB is a syariah-compliant real estate-backed unit trust fund. The fund has a minimum entry investment of RM500.

The units of AHB are transacted at a fixed price of RM1 per unit, with an approved fund size of one billion units.

Pelaburan Hartanah Bhd (PHB), a subsidiary of Yayasan Amanah Hartanah Bumiputera, will accord beneficial ownership of five of its properties to AHB for a start.

Currently, PHB has seven completed properties in its portfolio.

PHB managing director and chief executive officer Kamalul Arifin Othman said he was positive that half of the fund size would be fully subscribed within a year.

By then, AHB plans to increase its fund size by another RM500 million.