There will be no ethnic ownership quotas under the NEM, if National Economic Advisory Council (NEAC) chairman Amirsham A. Aziz has his way.

Speaking to the press today, he said that the NEM report, produced by the NEAC, proposed that all ethnic quotas be phased out, and replaced with capacity building measures for all.

"(The current practice) is about targets in equity, employment etc. We are saying that in the future, this should not happen. It should be about targeting the bottom 40 percent low income group," he said, on the sidelines of the Investor Malaysia conference in Kuala Lumpur.

NONE Amirsham (right) was clarifying the confusion over an excerpt in the report which reads:

"The NEM recommends the shifting of affirmative action programmes to emphasise opportunities rather than outcomes. The remaining quotas should be progressively phased out... (and) in the interim (these quotas) should be targeted at the bottom 40 percent low income group."

"What we mean is that there is no quota set in terms of ownership. But what we want to see is that the capacity for bumiputera businesses to be supported," he said.

He added, however, that such support will be extended to all, and not just bumiputera.

NEM report only a proposal

That said, Amirsham noted that the report is only a proposal and may not be taken up fully by the government.

"Our recommendations may not necessarily be in line with the government's view," he said.

One such discrepancy appears on the question of the minimum wage, which the NEM report opposes.

NONE Human Resources Minister S. Subramaniam (left) said that the ministry is currently studying its implementation and that minimum wage for several industries will be announced soon.

Amirsham also made clear that the delay on the NEM announcement had "nothing to do with policy flip flops" but because the council underestimated the time required to conduct the necessary research and consultations.

"This country has reached a mature level of democratisation and public opinion. You wouldn't like something to be done without consultation," he said.

Perkasa engaged in NEM consultation

According to NEAC head secretary Norma Mansor, Malay rights NGO Perkasa was also consulted.

Perkasa has been strongly against the removal of ethnic quotas which it sees as the right of the bumiputera.

NONE At the group's first annual general meeting last week, Perkasa chief Ibrahim Ali (right) resisted the idea of removal of quotas saying that bumiputera economic equity should reach 30 percent before the year 2020.

By right, Ibrahim said as the majority group in Malaysia, bumiputeras should own 67 of the nation's wealth.

"We engaged Perkasa, and other groups like the Indian Chamber of Commerce, and most of their proposals are in the report.

"We will sit down again with these stakeholders to work out further details (of the NEM)," Norma said.

Earlier, Amirsham told the conference plenary that a detailed NEM roadmap will be presented in the next six to eight months.

Asked if there is political will to drive out rent seeking behaviour, perpetuated also by those within the ruling party, Norma said: "The prime minister is committed and he leads the party."

She added rent seeking can be cut down through increased transparency.

"Rent seeking behaviour happens when procedures are not clear...so if these are made transparent, people won't need to resort to intermediaries and rentiers," she said.