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Bumiputera owns 36.1 percent of share capital at Bursa Malaysia


Media Statement
by Chow Kon Yeow

(Penang, Tuesday): The New Sunday Times carried an article entitled “Is share capital a fair indication of wealth?” on 14 May 2006.

It reproduced a table from the Ninth Malaysian Plan report on “ownership of share capital of limited companies” which put the Bumiputera share at 18.9 percent at the end of 2004.

There can be a lot of debates on how should wealth be measured for the purpose of distribution.

MCA Youth secretary-general Dr. Wee Ka Siong was interviewed and he said the Ninth Malaysia Plan table “does not reflect the property and wealth accumulated by GLCs which hold one-third or 35 percent of total market capitalization.”

Dr Wee is also MP for Air Itam, however did not release figures of ownership of ownership of share capital at the Bursa Malaysia.

He has asked the Finance Minister through an oral question at Dewan Rakyat on 18 April 2006 to state the latest figures on the percentage of ownership held by Bumiputera, non-Bumiputera and foreign equity based on the current market value.

The Finance Minister replied that based on the financial reports of listed companies submitted as at 30.6.2005, the percentage of share ownership
are as follows:

Bumiputera*  36.1%

Non-Bumi      41.0%

Government** 6.4%

Foreign             16.5%

*    includes government agencies meant for Bumiputera

**  government agencies which include non-Bumiputera interests like Khazanah, MoF Inc., Bank Negara, EPF and Pension Fund

All the above figures are calculated on the par value and not net value and therefore do not reflect the true Bumiputera equity.

It is interesting to note that if shares held by GLCs, which are recognized as Bumiputera private sector investments, are included it would bring Bumiputera equity to more than 40 percent.

Another interesting observation is if shares allocated to Bumiputera are still retained, it would further increase Bumiputera equity.

The government must come out clean on the issues as continuing the NEP objective of 30 percent Bumiputera equity and its abuses would not be able to help achieve the goal of national unity.


* Chow Kon Yeow, DAP National Vice Chairman and MP for Tanjong

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