Bumi equity: Prof disputes study
Malaysiakini
Sep 27, 2006
Muda Mohd Nor

A university lecturer has questioned the motive behind the study conducted by a ‘certain race’ on the bumiputera corporate equity ownership issue.

Universiti Kebangsaan Malaysia (UKM) political science lecturer Prof Shamsul Amri Baharuddin was responding to the findings of a local think-tank which claimed the 30 percent bumiputera corporate equity target - under the New Economic Policy - has been exceeded.

The study titled 'Corporate Equity Distribution: Past Trends and Future Policy' was conducted by the Asian Strategy and Leadership Institute (Asli).

“I am very sceptical about the study which has been carried out by a particular race. They (the race) usually have their own agendas,” said Shamsul.

According to him, the study did not contain accurate facts.

“So I want to know who conducted the study? When was it done and which angle they (the researchers) were looking at?

“What is the motive behind the study? Is the research for the public or for participants at a certain forum?” he asked when contacted yesterday.

Encourage competition

On Saturday, malaysiakini reported the study estimated that the rightful figure for bumiputera equity ownership should be around 45 percent, when based on September 2005 Bursa Malaysia figures.

In making that estimation, the study estimated that 70 percent ownership of government-linked companies (GLCs) was attributable to bumiputeras.

Based on a 2005 report by UBS Equity Research Malaysia, the study said GLCs made up about one-third of total market value at the time.

Asli’s Centre for Public Policy Studies director Dr Lim Teck Ghee said from the UBS report, the top-10 GLCs alone - which include Tenaga Nasional, Telekom Malaysia, Maybank Bhd - roughly made up around one-third of the market value in 2005.

Asked to substantiate the 70 percent estimation, he said: “Our study was established based on the best available information and informed opinion. The government does not make data available easily (to the public).”

Instead of encouraging race-based corporate equity ownership, he said it would be better if the government encouraged efficiency, competition and productivity of our economy.