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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.

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, Wednesday November 8, 2006

Bumis own 36% of share value in listed companies

KUALA LUMPUR: Bumiputras own about 36% of shareholding value in companies listed on the main board and second board of Bursa Malaysia as at Dec 31 last year. 

“According to the breakdown of shareholders based on the values of shares in the listed companies of the main board and the second board of Bursa as at Dec 31, 2005, bumiputras owned RM78.4bil (worth) of shares or 36.64%,” Deputy Finance Minister Datuk Dr Awang Adek Hussin said.  

Dr Awang Adek said the total value of shares of Bursa was RM214bil, and non-bumiputras held 46.91% of shares worth RM100.4bil. 

“The remaining 16.45% of the shares or RM35.2bil were owned by foreigners,” he added. 

Dr Awang Adek revealed the figures while answering Tengku Razaleigh Tengku Hamzah (BN – Gua Musang) during question time. 

Dr Awang Adek also said that based on records from the Companies Commission of Malaysia, Malays controlled 172,568 of the 717,935 registered companies, and owned more than 50.1% of shares in the companies. 

However, he said that according to the listed companies’ annual report received by Bursa last year, Malays owned 186 public listed companies out of the 912 companies that were listed on the main board and the second board. 

Later at a press conference, Dr Awang Adek clarified that the figures of ownership of values of shares and public-listed companies in Bursa did not represent the equity ownership in the country. 

He said the Government had been calculating equity ownership based on the number of established and registered companies in the country and their paid-up capital since 1970. 

“There are over 700,000 registered companies in the country but only 1,021 are listed. 

“If you only look at the number of listed companies, you will get a certain conclusion, but the economy is bigger than that,” he said. 

Dr Awang Adek also said it would be wrong to say that the Government’s methodology of calculating equity ownership was unreliable, pointing out that the Government had received advice from the World Bank and international and domestic scholars. 

“You should avoid judging which methodology is the correct one. You should just say different bases of methodology produce different results,” he said. 

The Star, Friday October 27, 2006

Will Government reveal how it came up with 18.9%?

PETALING JAYA: Opposition leader Lim Kit Siang has asked when the methodology which the Government used to calculate the 18.9% bumiputra equity ownership will be revealed. 

He said more than a week had passed since the issue was discussed at the Cabinet meeting but there has not been official word about the controversy over the Asian Strategy and Leadership Institute (Asli) study on bumiputra equity ownership. 

Lim said Prime Minister Datuk Seri Abdullah Ahmad Badawi had said Malaysians had the right to question the Government or to seek answers on such issues. 

”Why then the thunderous silence on the part of the Cabinet in the past week on the public release of the methodology and data used by the EPU to compute the 18.9% and to rebut the 45% figure in the Asli report?” he said.