Calculation of Bumi equity - ‘non-ethnic’ companies left out
Dewan Rakyat: Calculation of Bumi equity - ‘non-ethnic’ companies left out
NST, 08 Nov 2006V. Vasudevan, Eileen Ng and June Ramli
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.
