A think-tank tells us something most of us knew long ago, that the bumiputera 30% equity has not only been reached but exceeded. But we all also know that the official line won’t acknowledge that because the NEP and affirmative action for bumiputeras only would lose its justification.
Anyway, the Asian Strategy and Leadership Institute (Asli), has estimated that the rightful Malay equity should currently be 45% based on September 2005 Bursa Malaysia figures.
The study - titled 'Corporate Equity Distribution: Past Trends and Future Policy' - estimated that 70% 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.
The director of Asli, Dr Lim Teck Ghee, said 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.
When he was asked to substantiate the 70% 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).”
And for a damn good reason, to perpetuate the bull that bumiputera equity hasn’t reached 30% yet.
Lim hoped the government would exercise more transparency and publicise the methodology used by the government in providing its own figures.
Dream on, Dr Lim.