My Miscellaneous Page

Monday November 13, 2006

Press statement by YB Dato Sri Effendi Norwawi, Minister in the Prime Minister’s Department

The Government wishes to state that the equity ownership of Bumiputera in the corporate sector, as at 31 December 2004, was 18.9%, as mentioned in the Ninth Malaysia Plan. This is based on data produced by the technical committee of the Economic Planning Unit (EPU), as attached herewith. 

The committee comprises experts from the EPU, Companies Commission of Malaysia (CCM), Securities Commission, Bursa Malaysia and Permodalan Nasional Berhad. The committee also consists of external expertise in the field of Information Technology to generate the data required.  

This figure was derived from a total of 609,595 active companies registered with the CCM. 

The methodology used by the technical committee is based on the best practice available and has been consistently used. The methodology used is recognized by international financial bodies, such as the World Bank, the International Monetary Fund and the Asian Development Bank.  

The recently quoted figure of 36.64% of Bumiputera equity ownership in 2005 for listed companies is incorrect. 

The methodology used in deriving the estimated figure of 36.64% for 2005 is inaccurate because it apportioned 45% of equity ownership held by nominee companies to the Bumiputera. Instead, based on a survey conducted by the EPU on equity of nominee companies, Bumiputera ownership in such companies is only at 8.3%. Not only that, the estimated figure of 36.64% so derived, assumed that the equity held by government agencies are also owned by Bumiputera. 

The correct figure of Bumiputera equity ownership in listed companies for 2005, derived by using the methodology of the technical committee of the EPU, is 21.8%, and not 36.64%. 

The Government, therefore, wishes to reaffirm that the equity ownership of Bumiputera in the corporate sector, as at 31 December 2004, was 18.9% as clearly set out in the Ninth Malaysia Plan.  

13 November 2006