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THE search for a suitable bumiputera investor for the hypermarket trade has not got easier over the years. If anything, it appears to be even tougher now, given the changing business and consumer trends.
It was difficult for a foreign hypermarket owner to find a bumiputera investor to take up a 30% stake in the enterprise given the huge sum needed. It is probably more challenging now, especially if the retailer’s growth has been pedestrian. In addition, investors currently have a wider selection of businesses that offer better returns.
Under Malaysia’s domestic rules, all foreign hypermarket retailers are required to sell 30% of their business to a bumiputera investor within three years of entry.