Ekuiti Nasional Bhd (Ekuinas) is on track in achieving its objective to increase the bumiputera equity value in the first year in operations by RM483.2 million or 1.28 times of the RM380.6 million total capital it had invested in, Najib Abdul Razak said today.

The prime minister said the increase was realised from the total equity investment made by Ekuinas and its share value appreciation and that of bumiputera shareholders under the ekuinas portfolio companies.

"This initial achievement proved that the government's decision to adopt a more innovative and creative approach to implement affirmative policies to increase bumiputera participation in a fair and just manner has now yielded the expected results," he said when announcing Ekuinas' first year performsnce.

NONE In terms of finncial performance, Najib, who is also finance minister, said Ekuinas had posted gross portfolio returns of RM55.3 million under Ekuinas Direct (Tranche 1) Fund via direct investment activities.

This represents 53.1 per cent annual internal rate of return (IRR) and 24.3 per cent annual IRR, higher than the minimum financial target  and the vompany's long-term aspirations by 12 per cent and 20 per cent, he said.

The government had channelled RM500 million initial capital to Ekuinas from the RM5 billion allocated under the 9th and 10th Malaysia Plans, said Najib.

With the allocation, he said, Ekuinas made four direct investments in highly potential bumiputera-run and Malaysian companies engaged in manufacturing consumer products, oil and gas, services and education, with a cumulative investment of RM482.6 million.

Together with the capital injected by Ekuinas' investment partners, total investment swelled to RM602.4 million which was directly invested in the national economy last year which yielded positive impact to the nation, he said.

Ekuinas had also executed the first phase of the external outsourcing programme under which it managed to raise RM513 million additional capital and from its own financial resources, he said.

The money would be invested in highly potential small-and medium-sized Malaysian companies, he added.

- Bernama