Can u BELIEVE what our PM says these days???!! Good grief! I am floored. Might as well listen to a fire hydrant for all the sense he makes these days.
The latest case of him trying to be smart is about denying that the New Economic Policy (some call it the Never Ending Policy) has met its goal of 30% bumiputera equity interest for the malays (he says that they have only achieved 18.9% equity stake), versus the Asian Strategy and Leadership Institute’s (Asli) report that states that Bumiputras owned 45% of the country’s business equity.
This report (which is an independent report), cites statistics from the Bursa Malaysia Corporate Equity’s 2005, which estimates that the amount of bumiputra equity ownership is 45% of the RM715.4bil worth of stocks on the stock exchange, or RM325.08bil.
According to The Star, “Prime Minister Datuk Seri Abdullah Ahmad Badawi was recently quoted as saying that Asli’s 45% Bumiputra equity ownership result was wrong as it was based on a survey involving 1,000 companies listed on Bursa Malaysia, while the Economic Planning Unit (EPU) had surveyed 600,000 companies to come up with its 18.9% figure for the Ninth Malaysia Plan.
Badawi also says that Asli’s report is inaccurate because (get ready for this): “Government-linked companies (GLCs) are not bumiputra companies”. What would you classify them then? A ‘special’ corporate entity? If you exclude these companies from the poll, then you might as well not poll at all. Almost all the monopolistic big companies in Malaysia are GLC’s. It’s a bit ridiculous excluding some of the largest cap companies in the country from this report.
This is like taking a national poll on obesity and excluding the VERY HUGE people because they will skew the results. Gimme a break. Who are these people who makes these rules?
Another shocker: the PM claims that Asli’s report is inaccurate also because they calculate the value of a company using it’s market value, as opposed to the par value used in the government’s calculation.
DUH!!!! It’s such a stupid comment I cannot even believe I read it! The Edge has a good article on this. I think a 19 yr old finance undergraduate can tell you that NO ONE values a company using its par value! How ludicrous is that?!!!
Look, I buy Maybank shares. I bought them for about RM 7.50 some yonks ago. It’s par value is RM1. It’s market value now is about RM 11.20 ie. it’s trading in the Bursa now for RM 11.20. Heck if I’m gonna say my share is worth RM1 when it’s jolly well trading at 11.20! I’m not going to sell my shares for RM1 (par value)!!! I sure as heck am gonna sell it for RM11.20.
So, the PM thinks that companies shld be valued at par value. Okaaaaaay. I’m a bit worried here for our nation. I think this one remark of his is gonna make us a laughing stock to anyone who reads The Wall Street Journal or The Financial Times, not to mention our local papers!