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The Star, Wednesday November 8, 2006

Government reveals equities share data

The Government has revealed the various sources used in gathering information to back the methodology it has been using to determine bumiputra equity ownership. 

Deputy Minister in the Prime Minister’s Department Datuk Dr Abdul Rahman Suliman said the Government took into account the equity ownership of the corporate sector, unit trusts, Bumiputra/Malay interest institutions, share capital of nominee companies, government-owned shares and share capital ownership based on ethnic groups. 

He said among the important details used to calculate equity ownership in the corporate sector were annual reports of companies registered with the Companies Commission of Malaysia (CCM), companies listed on Bursa Malaysia and from institutions with bumiputra interests such as the Pilgrims Management Board, the Armed Forces Fund Board and the Cooperatives Development Department. 

The calculation also includes equity ownership by trustee agencies such as Permodalan Nasional Bhd (PNB), Mara and State Economic Development Corporations, unit trusts from Securities Commission (SC) and trust fund management companies and the Economic Planning Unit’s (EPU) study on ownership through nominee companies. 

Dr Abdul Rahman, who was responding to Opposition Leader Lim Kit Siang’s claim that the equity methodology used by the EPU was “flawed and had a certain agenda,” said a special committee had been set up to study the best methodology to estimate share capital ownership for the corporate sector. 

“The special committee involves the EPU, CCM, SC, Bursa and PNB,” Dr Abdul Rahman said while winding up the debate on the Budget at the committee stage. 

When met at the lobby later, he said the Cabinet would discuss and finalise the details before releasing a detailed report on the methodology used.  

Statistics on share capital in companies registered with the CCM was the main and most important information in estimating share capital ownership based on ethnic groups, he said. 

Dr Abdul Rahman also explained that the par value calculation method was used to prepare corporate equity ownership data, as it gave a general picture of the company’s basic share capital.  

Market value, he said, could also be used but it would only be applicable for listed companies. 

“This is because the market value constantly changes and is always influenced by factors such as window dressing and market manipulation. 

“Therefore measurements based on par value is regarded as the most suitable methodology,” said Dr Abdul Rahman. 

He said a big portion of the Government’s share capital ownership was in public listed companies, while shares owned by the Employees Provident Fund, Khazanah Holding and the Finance Minister Inc were also considered important. 

The Star, Tuesday November 7, 2006

MP: Don’t ask how bumi equity calculated

A BACKBENCHER has told the opposition to stop harping on the methodology used by the Government to calculate bumiputra equity ownership. 

Datuk Mohd Said Yusof (BN – Jasin) said the Economic Planning Unit of the Prime Minister’s Department did not mislead anyone with its calculations. 

“We are all working together for the betterment of all races. We never questioned Chinese wealth but how many among the top 100 richest Malaysians are Malays or Ibans? 

“Do not say Melayu bolot semua (Malays take all),” he said. 

He said this after Opposition Leader Lim Kit Siang touched on the matter while debating the budget at the committee stage. 

Mohd Said said the opposition should look at the overall picture and not continue to question methodology used to calculate bumiputra equity ownership and distribution just to hit out at the Government. 

Earlier, Lim highlighted flaws and examples on why the EPU had lost its credibility and the public’s confidence. 

He said the Government could no longer continue hiding the methodology used by the EPU. 

“No one knows whether the methodology is fair, outdated or flawed as it is shrouded in secrecy.  

“It is only with the publication of the Asli study that the public became aware of some basic calculations,” he said. 

He was referring to the Asian Strategic and Leadership Institute study which said bumiputra equity ownership could be as high as 45%. Asli later withdrew the study. 

Lim said the Prime Minister should establish an independent panel to review the current methodologies used.  

Dewan Rakyat: Calculation of Bumi equity - ‘non-ethnic’ companies left out

NST, 08 Nov 2006
V. Vasudevan, Eileen Ng and June Ramli

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SOME companies owned by the government were not factored into the calculation of Bumiputera equity ownership as they did not fall under any ethnic group.

They are considered government-owned, Deputy Minister in the Prime Minister’s Department Senator Datuk Abdul Rahman Suliman told the Dewan Rakyat yesterday.

He said these included shares owned by the Employees’ Provident Fund, Khazanah Holdings and Minister of Finance Incorporated.

Explaining the economic indicators used in the methodology to calculate Bumiputera equity ownership, he said six factors were used in tabulating the equity.

They were:

• Last submitted annual statement of the companies registered with Companies Commission of Malaysia (CCM);

• Information of equity ownership from public-listed companies;

• Information from bodies with Bumiputera-interest like Tabung Haji, Armed Forces Fund Board and Co-operative Development Department;

• Information of equity ownership from fund agencies such as Permodalan Nasional Bhd, Mara and State Economic Development bodies;

• Information on trust fund shares from Securities Commission and trust fund management companies; and

• Studies by EPU on ownership interest in nominee companies.

He said to determine the equity ownership according to ethnicity, information from CCM-registered companies were used.

He conceded that equity in Government-linked companies (GLCs) were also factored into the calculations while equity held by private companies and individuals in GLCs were taken into consideration according to ethnic interest.

He said this included shares in Petronas, Telekom, Tenaga Nasional and Malaysia Airlines.

Abdul Rahman said the EPU also used information from companies’ annual reports which contained information on its activities, racial composition, citizenship and shares held.

"Additionally, information from the company’s annual statement that contained lists of owners and number of shares owned by non-individuals such as limited companies, public listed companies and government agencies, were used," he said when replying to points raised by members during the Budget 2007 debate at the committee stage.

"From time to time, market values can be used but only for listed companies. Market value cannot be used for unlisted companies because market values are always changing and they are always influenced by factors that do not always portray the true value of the shares and companies’ performance," he said.

At the Dewan Rakyat: Bumiputera ownership of shares in companies on Bursa Malaysia not representative of complete picture

NST, 07 Nov 2006

KUALA LUMPUR, TUE.:

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Bumiputeras own 36.64 per cent of the shares in public-listed companies at Bursa Malaysia, Deputy Finance Minister Datuk Dr Awang Adek Hussin said today.

He said they held RM78.4 billion of the RM214 billion in shares on the main and second boards as of Dec 31 last year.

Non-Bumiputeras held RM100.4 billion or 46.91 per cent of shares while foreigners owned the balance of RM35.2 billion (16.45 per cent).

There were 646 companies on the main board and 268 companies on the second board. Of the total number of companies listed on both boards, only 186 were Bumiputera-owned.

Dr Awang cautioned that the figure constituted just a small amount of the nation’s economic pie.

"Although the listing of Bumiputera equity at Bursa Malaysia has exceeded 30 per cent, we do not know of subsequent transactions after that. At the end of the day, we do not know the ultimate ownership.

"This is why the Government’s methodology on Bumiputera equity is based on the total number of companies registered in Malaysia and their paid-up capital," he told reporters.

He said listed companies did not represent the entire picture of the nation’s economy as some private companies opted not to be public-listed while some listed companies had gone private due to various business considerations.

The issue of Bumiputera equity arose last month when the Asian Strategy and Leadership Institute (Asli) stated that Bumiputera equity ownership may be as high as 45 per cent. The findings were questioned by the Government, which said its more exhaustive study showed that Bumiputera corporate ownership stood at 18.9 per cent.

Earlier, Dr Awang told Tengku Razaleigh Hamzah (BN-Gua Musang) that according to records from the Companies Commission, 717,935 companies were registered in Malaysia as of Dec 31, last year.

Of these, 172,568 or 24 per cent were Bumiputera-owned. Over the same period, the paid-up capital of Bumiputera equity ownership stood at 18.9 per cent.

‘Rejection of concept affects integration efforts’

NST, 07 Nov 2006

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KUALA LUMPUR: It is a step backwards to reject the concept of Bangsa Malaysia, according to two ministers whose portfolios are relevant to the issue.

Culture, Arts and Heritage Minister Datuk Seri Rais Yatim described it as back-pedalling, while Minister in the Prime Minister’s Department in charge of national unity Datuk Dr Maximus Ongkili said it would amount to a backtrack of national integration efforts.

"We would be back-pedalling to say Bangsa Malaysia is unacceptable," said Rais. "It has worked well for years.

"Furthermore, it makes more sense to address Malaysians with a simple Bangsa Malaysia instead of saying ‘orang’ Melayu, Cina, India, Kadazan, and others," he said when commenting on Johor Menteri Besar Datuk Abdul Ghani Othman’s caution of the dire consequences of advocating Bangsa Malaysia since it could cause political instability.

Rais said: "I fail to see why the word was raised politically. It is not a political or constitutional issue. It is more to unite Malaysians under one umbrella".

Rais also disagreed with Ghani who said advocating Bangsa Malaysia was going beyond the legal powers of the Constitution.

"Firstly, the word Bangsa Malaysia is not found in the Constitution. It is a way to address Malaysians as one. It is to bring us together," he said.

He said Prime Minister Datuk Seri Abdullah Ahmad Badawi and former prime minister Tun Dr Mahathir Mohamad had used the word to address Malaysians irrespective of race and religion.

"It has helped to unite and encourage openness within different races in Malaysia," he added.

Rais also disagreed with Ghani’s contention that the term should only be applied in the context of all peoples of Malaysia with Malays being the pivotal race.

"Bangsa Malaysia represents the spirit of Malaysians of different races and culture. It has nothing to do with one race given a pivotal role over others," he said.

Rais said he would continue advocating Bangsa Malaysia as it had helped his ministry to unite different cultures.

"There is nothing wrong with being rojak. It has helped my ministry to organise various cultural activities under the banner of a Malaysian race," he added.

Maximus, meanwhile, said Bangsa Malaysia was a good and dynamic concept in the pursuit of national unity.

"This national unity is guided by the Federal Constitution, the Rukun Negara and other public policies on social development," he said.

"It does not impinge on the rights of Bumiputeras or other communities. It is a natural evolution of being in a multi-cultural and multi-religious nation.

"Each community has unique characteristics and aspirations but we want to be bonded in unity with a common destinity to pursue developed nation status and achieve enhanced prosperity for all."

Maximus said the view expressed by Ghani could be a private one.

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The Bangsa Malaysia debate continues…

- Ghani just wanted to make it clear. He was just saying that there was no such thing (Bangsa Malaysia) in the Constitution. But we can accept Bangsa Malaysia in terms of all the people who are citizens of Malaysia. However, as a racial concept, it still lacks definition and this can be very confusing because there is nothing like it in the Constitution. - Entrepreneur and Co-operative Development Minister Datuk Seri Mohamed Khaled Nordin

- Anyone who challenges Bangsa Malaysia is fighting with his own shadow. The concept has been incorporated in Vision 2020 and this is one of the pathways to turn Malaysia into a developed nation. This is one of the main challenges of Vision 2020. - MCA vice-president and Human Resources Minister Datuk Seri Dr Fong Chan Onn

- We should not be talking about Bangsa Malaysia… we should be talking that we are Rakyat Malaysia. There is a distinct difference between race and being citizens of Malaysia. The fact that I am Chinese and I practise my own culture and speak my own mother tongue does not make me less Malaysian or less patriotic. Just because I speak English doesn’t mean I am less Malaysian, too. - MCA vice-president and Health Minister Datuk Seri Dr Chua Soi Lek

- His (Ghani’s) statement is a step backwards. Of course, Malays generally lag behind in development and in getting good education. We have to help them by having programmes that are affirmative in action and not at the expense of the country’s development. We are all Malaysians. - Permatang Pauh MP and Keadilan president Datin Seri Dr Wan Azizah Wan Ismail

- I accept that Malaysians have to follow the Constitution and respect the rights of the Bumiputera community. However, we must work towards the Bangsa Malaysia concept and to do it, we should fall back on the principles of Rukun Negara. For the future of the country, we must know how to create a Bangsa Malaysia and a Malaysian nation. - Cameron Highlands MP S.K. Devamany

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What other Malaysians think

- All Malaysians should be known as Bangsa Malaysia and not have separate identities. If we have separate identities, then there is a possibility of us fighting each other in the future as each race would be fighting for its own rights. - Hariraam Tingyuan Lam, 15, of Chinese-Indian parentage

- We should celebrate our differences and not perpetuate racial divide. Eurasians in Malaysia share a history with the other races as they had been part of this country since the 16th century. - Selangor and Federal Territory Eurasian Association president Datuk Richard Robless

- There is confusion between nationality and race which stems from the Bahasa Melayu word ‘bangsa’. This word may have caused confusion as the narrow interpretation is race, but if we use the word in the context of nationality, and to me the context of nationality and citizenship is the same, then everyone is a citizen. - Malaysian Association of Private Colleges and Universities (Mapcu) president Professor Emeritus Datuk Tengku Shamsul Bahrin

The Bangsa Malaysia debate:
No Bangsa Malaysia in Constitution, says Najib

NST, 07 Nov 2006
Ravi Nambiar and Siti Nurbaiyah Nadzmi

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JOHOR BARU: Bangsa Malaysia only refers to the "state of mind" of being a Malaysian and is not a policy spelled out in the Constitution.

Deputy Prime Minister Datuk Seri Najib Razak said all quarters should cease trying to define the term.

"It cannot be defined because there is no such thing as Bangsa Malaysia in the Constitution," he said when closing the two-day Johor Umno Convention here.

Johor party chief Datuk Abdul Ghani Othman had sparked a political debate on Monday when he said people who advocated Bangsa Malaysia were going against the Constitution.

Ghani said the concept was unacceptable and could unsettle political stability in the country if pushed by groups with vested interests.

This drew a response from Gerakan party chief Datuk Seri Dr Lim Keng Yaik, who said Johor Umno was going against government policy.

"Johor Umno can say what they want. It is their right to do so. (But) Bangsa Malaysia is a policy of the government. We (Gerakan) are supporting the policy of the government," said Dr Lim.

At its national delegates’ conference in Kuala Lumpur on Sept 4, Gerakan had adopted a resolution urging Malaysians to promote the creation of a Bangsa Malaysia under Vision 2020.

Najib, who picked up the issue in his speech here yesterday, insisted that Bangsa Malaysia was only a general concept.

"There is no need to define it in detail, amend the Constitution or review government policy.

"I am more inclined to view Bangsa Malaysia as a state of mind to eradicate social prejudices and differences among the races.

"If we accept this and avoid polemics on definition, we can avoid arousing controversies," he said.

Ghani also spoke again yesterday on Bangsa Malaysia, reaffirming Johor Umno’s position that it referred to a "rojak" (a mishmash) of races in the country and was "ultra vires" (beyond the power) of the Constitution.

The concept is seen as a threat to Malays and their special position as provided for in the Constitution.

Ghani said there was no need to reinvent a national identity when the Constitution had defined the races that make up the citizens of this country.

"Johor Umno is not going against government policy by harping on this. Bangsa Malaysia has been misinterpreted and is being manipulated by some quarters for their own political motives.

"They are, in fact, echoing the concept of ‘Malaysia for Malaysians’ that was advocated by Lee Kuan Yew before Singapore’s separation from Malaysia. This was the same concept that was later championed by the DAP.

"But the government has rejected it from the start. It was never accepted. It is not in the Constitution," he said.

Besides Bangsa Malaysia, another talking point among the delegates was the government’s meritocracy system, the use of English for the teaching of Science and Mathematics in schools, the declining role of Bahasa Melayu as the language of knowledge, and economic opportunities for Bumiputeras under the recently-launched Iskandar Development Region.

Johor Umno, with nearly 500,000 members in 2,032 branches, is the biggest state Umno in the country.

The state, which is also the birthplace of Umno, has traditionally been the bastion of political strength in the country.

Meanwhile, Najib, speaking to the delegates yesterday, said the proposed Inter-Faith Commission (IFC) would never be established because it was an affront to Islam.

"When the Prime Minister said the setting up of the IFC had been postponed, he was being diplomatic. IFC will never be allowed as it goes against the status of Islam as the official religion of the country," he said.

Referring to education, he said the minister concerned, Datuk Seri Hishammuddin Hussein, was compiling a study on the effectiveness of English as the medium of language for the teaching of Mathematics and Science.

He said the study would be completed by 2008. "We will then decide if we should continue or abort the programme," he said.