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The Star, Tuesday November 14, 2006

No time limit to achieve Malay Agenda, says Najib

KUALA LUMPUR: No time limit will be set to achieve the Malay Agenda to uplift the status of the race, Datuk Seri Najib Tun Razak said. 

He said it was impossible to correct the 446 years Malays were oppressed under the rule of foreigners between 1511 and 1957 within a period of 20 to 30 years. 

“For as long as long as our goals are not achieved, we will continue the struggle, deploying every available resource for the sake of our people.  

“What we struggle for are our rights without denying the rights of others,” he said when opening the Umno Wanita, Youth and Puteri delegates conferences here on Monday evening. 

He said the Malay Agenda must continue for the community to excel in education, be economically strong, socially resilient and outstanding in the world stage. 

“Let it never happen that when the dawn of Jan 1, 2020 arrives, the Malays will wail in protest against any proclamation that Malaysia is a developed nation because they have not advanced,” he said. 

He said despite recent claims of a ’skewed study’ that bumiputra equity in businesses now stood at 45%, he said statistics showed that the Malays continued to lag behind others. 

Najib said the 45% figure came about because the study considered government-linked companies such as Petronas, TM and Tenaga Nasional as bumiputra-owned while they were actually owned by the Government. 

On the other hand, he said the government’s figure of 18.9% of bumiputra equity ownership was realistic as it was derived from the data of 600,000 companies compared to the 1,000 public listed firms in the study. 

Similarly, Najib noted that the Economic Planning Unit figures last year showed that bumiputra owned 11.7% of commercial buildings while it was 71% for the Chinese. 

Likewise, he said the average monthly income of bumiputra had merely increased from RM339 in 1976 to RM2,711 in 2004 while for the Chinese, the figure rose from RM796 to RM4,437 during the same period. 

“Based on this fact alone, Lee Kuan Yew’s allegation that Malaysian Chinese are being sidelined is completely wrong. Let it never be said that our openness and inclusiveness is a sign of weaknesses. 

“On the contrary, it is precisely these qualities that make up the formula of our success. This is the approach well accepted by all races willing to work hand in hand to develop Malaysia,” Najib added. 

He said the Malay Agenda to propel the community forward will be strengthened under the 9th Malaysia Plan and that whatever required for Malay development would be immediately implemented. 

Najib said Umno’s Malay Agenda was also being institutionalised, with the setting up of 12 main groups focusing on various fields for the drafting of special incentives.  

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

The Star, Monday November 13, 2006

Equity Ownership in the Corporate Sector

Methodology 

I. Sources of Data 

The following data sources were used to estimate equity ownership in Malaysia: 

i. Records from the annual reports of companies registered with the Companies Commission of Malaysia (CCM); 

ii. Equity ownership of public listed companies in Bursa Malaysia Berhad;  

iii. Data from Bumiputera institutions such as Lembaga Tabung Haji, Lembaga Tabung Angkatan Tentera and Cooperatives Development Department; 

iv. Data from Permodalan Nasional Berhad (PNB), MARA and all SEDCs; 

v. Data from Securities Commission on Unit Trust Funds and related trust fund management companies such as PNB; and 

vi. Information on ownership in nominee companies based on a survey done in March 2005. 

II. Corporate Equity Ownership as at 31st December 2004 (Ref: Ninth Malaysia Plan, Chapter 16, Page 336). 

From the above, overall Bumiputera equity ownership as of 31st December is 18.9%.  

Calculation of Corporate Equity Ownership by Ethnic Groups based on Companies Commission of Malaysia (CCM)’s Database 

· The main source of data to calculate equity ownership is derived from CCM. Among the information used from the annual reports of the companies in this methodology include type of companies and their activities, composition of equity ownership by ethnic groups and nationality.  

· As at 31st December 2004, a total of 609,595 active companies were registered with CCM. Equity ownership by ethnic group was calculated based on the latest annual reports submitted by the companies to CCM.  

· Only 40 percent of the registered companies submitted their annual returns by the dateline for the Ninth Malaysia Plam (30th June 2005). However, the total value of equity owned by this group of companies (40 percent of the registered companies) comprised 70 percent of the total equity ownership of all companies registered with CCM in 2004. The estimate for the remaining 60 percent of the registered companies was derived from their 2003 annual reports. Breakdown of shareholdings for companies which submitted their annual reports before 2004 and in 2004 are as follows: 

III. Par Value vs Market Capitalization 

· In calculating the equity ownership, par value was used as it provides a constant measurement to all companies in the corporate sector as compared to the market value, which can only be used on the listed companies.  

IV. Equity Ownership by Trust Agencies 

· The data on equity ownership in companies held by trust agencies was obtained directly from the agencies such as PNB, Perbadanan Usahawan Nasional Berhad (PUNB), Perbadanan Nasional Berhad (PNS), MARA and SEDCs. 

· These agencies were established, amongst others, to assist Bumiputera participation in trade and industry. Breakdown for Bumiputera agencies are as follows: 

 

VI. Equity Ownership by Bumiputera Institutions  

· Institutions such as Lembaga Tabung Haji (LTH), LTAT, Koperasi Polis and thrust funds such as Amanah Saham Nasional (ASN) and Amanah Saham Bumiputera (ASB) were established to mobilise savings held by Bumiputera. 

· The equity ownership in this category was obtained directly from the institutions involved. Breakdown for Bumiputera institutions are as follows: 

Note: Equity own by non-Bumiputera in PNB Unit Trust Scheme, ASM Mara Unit Trust and Cooperatives Development Department are as follows: 

Chinese RM 697.5 million
Indian RM 76.7 million
Others RM 8.6 million
 

 

VII. Equity Ownership by Nominee Companies 

· Nominee companies owned RM139,472.4 million or 25.9 percent of the total corporate equity in 2004. In March 2005, EPU with the cooperation of SSM conducted a survey on 359 nominee companies to ascertain the status of ownership and beneficiaries of shares registered under nominees.  

· A total of 179 companies that responded to this survey, owned RM103,713.2 million or 74.3 percent of the total equity held by nominee companies in 2004.  

· The composition of equity in the nominee companies by ethnic groups and others is as follows: 

VIII. Equity Ownership by the Government 

· The major portion of the government equity ownership is in the public listed government-linked-companies (GLCs). Equity held by Employees’ Providence Fund (KWSP), Khazanah Holdings and Minister of Finance Inc was considered as government interest. Shares held by the Government were excluded from the calculation. However, equity held by private companies and individuals in non-listed and listed GLCs such as Petronas, Telekom Malaysia Berhad, TNB and MAS was included in the calculation of equity held by the respective ethnic groups. This approach has been consistently used in all plan documents. 

IX. Equity of Listed Companies 

· The committee in EPU also calculated equity ownership in listed companies by ethnic group. Based on the calculation, as at December 2005, Bumiputera owned 21.8% or RM44.0 billion of the share capital in Bursa Malaysia Berhad. This figure is different from an earlier quoted figure of 36.64%. In estimating Bumiputera equity, the 36.64%, quoted as Bumiputera shares, included a large portion of shares held by nominee companies and the government.  

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.

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.