Khairy again talks of the failure of the New Economic Policy(NEP) to fulfill its objective of 30% bumi equity compared with the 18.9% in 2004 and that the Ninth Malaysian Plan(9MP) is the final chance to achieve it. This is untrue because the 18.9% bumi equity is based on par value of share capital of limited companies. The 9MP claims that in 2004, the Chinese owns 39%, Indians 1.2%, nominee companies 8%, others 0.4% and foreigners 32.5%.
Par value of share capital is a false reflection of the real or true worth of the company. A more accurate assessment, though not the most comprehensive and objective test, would be to take the market value of bumi equity of all listed companies in Bursa Malaysia (BM). As a millionaire from his previous shareholdings in ECM-Libra, which he has since sold, Khairy should know that his worth is not based on par value but market value.
In February 2006, Professor Dr Lim of the Centre for Public Policy Studies(CPPS), submitted a report that showed as at 30 September 2005, bumi ownership of shares in BM amounted to 45% or RM 325.08 billion out of the market capitalization of RM 715 billion. The CPSS is set up by the independent think-tank Asian Strategy and Leadership Institute as an independent research group, headed by Professor Dr Lim Teck Ghee.
Professor Dr Lim indicated that if the bumi had not sold off their shares, their equity stake would easily have been higher than the 45%. An estimated 40% of the preferential shares given to bumis were sold by them for profit gains. Documented verification is provided by an academic working paper titled, “Privatisation of Ports: A Malaysian Case Study” by Associate Professor Malcolm Tull and Dr James Revely of Murdoch University in January 2001,
“…Many shareholders took advantage of the opportunity to realise short-term capital gains and sold their shares. The sale of shares in Klang Container Terminal and other privatised companies has, however, led to a dilution of Bumiputra equity: between 1983 and 1990 it declined from 65 per cent to 38 per cent of total paid up capital on the KLSE.”
In this case Malays sold off 41% of the shares allotted to them. If this had not happened, then the Malay bumi equity component will rise to as much as 70% of BM’s market capitalization. The more important question then is therefore not attaining 30% bumi equity which has been achieved but who amongst the Malays owns the 45% bumi equity of BN based on market capitalizaton
Are UMNO and Khairy afraid of answering the question who amongst the Malays own the 45% or RM 325 Billion of the RM 715 billion market capitalization of Bursa Malaysia? Malaysians, especially Malays who do not possess millions of shares or imported vehicles APs, should focus on the important question who are the rich Malays who have benefited. And not be distracted by false lies of such rich or millionaire UMNO leaders who do not wish to answer this question and try to distract attention with lies that the 30% bumi equity of the NEP has not been achieved.
DAP will launch a campaign tomorrow night(Wednesday) at our 2007 Budget forum in the Selangor Chinese Assembly Hall that the 9MP not be about achieving the NEP’s 30% bumi equity which is already achieved, but identify and reveal the Malay owners of the 45% market capitalizaton of Bursa Malaysia. Amongst the speakers are CEO of listed company, Tony Pua, and a chartered accountant Mr Chow Kee Kan.
Just as the 2007 Budget has not benefited lower-income groups, we should adopt the correct macroeconomic policy and discard nationally divisive and outdated policies of quotas and subsidies. Such racial policies like the NEP must be replaced by those which forges national unity and encourages competition, value creation and meritocracy. Malaysian must abandon the racial premise of the NEP and its false pursuit of 30% bumi equity to pursue the real UMNO Malay owners who possess the 45% market capitalization of Bursa Malaysia.
Lim Kit Siang
No comments:
Post a Comment