That's not Malaysia "boleh", that's Malaysia "bodoh" (stupid).

While Malaysia fiddles, its opportunities are running dry
Michael Backman November 15, 2006
MALAYSIA'S been at it again, arguing about what proportion of the economy each of its two main races - the Malays and the Chinese - owns. It's an argument that's been running for 40 years. That wealth and race are not synonymous is important for national cohesion, but really it's time Malaysia grew up.

It's a tough world out there and there can be little sympathy for a country that prefers to argue about how to divide wealth rather than get on with the job of creating it.

The long-held aim is for 30 per cent of corporate equity to be in Malay hands, but the figure that the Government uses to justify handing over huge swathes of public companies to Malays but not to other races is absurd. It bases its figure on equity valued, not at market value, but at par value.

Many shares have a par value of say $1 but a market value of $12. And so the Government figure (18.9 per cent is the most recent figure) is a grossunderestimate. Last month a paper by a researcher at a local think-tank came up with a figure of 45 per cent based on actual stock prices. All hell broke loose. The paper was withdrawn and the researcher resigned in protest. Part of the problem is that he is Chinese.

"Malaysia boleh!" is Malaysia's national catch cry. It translates to"Malaysia can!" and Malaysia certainly can. Few countries are as good at wasting money. It is richly endowed with natural resources and the national obsession seems to be to extract these, sell them off and then collectively spray the proceeds up against the wall.This all happens in the context of Malaysia's grossly inflated sense of its place in the world.

Most Malaysians are convinced that the eyes of the world are on theircountry and that their leaders are world figures. This is thanks toMalaysia's tame media and the bravado of former prime minister Mahathir Mohamad. The truth is, few people on the streets of London or New York could point to Malaysia on a map much less name its prime minister or capital city

.As if to make this point, a recent episode of The Simpsons features anewsreader trying to announce that a tidal wave had hit some place called Kuala Lumpur. He couldn't pronounce the city's name and so made up one, as if no-one cared anyway. But the joke was on the script writers - KualaLumpur is inland.

Petronas, the national oil company is well run, particularly when compared to the disaster that passes for a national oil company in neighbouringIndonesia. But in some respects, this is Malaysia's problem. The verysuccess of Petronas means that it is used to underwrite all manner ofexcess.

The KLCC development in central Kuala Lumpur is an example. It includes the Twin Towers, the tallest buildings in the world when they were built, which was their point.

It certainly wasn't that there was an office shortage in Kuala Lumpur - there wasn't.

Malaysians are very proud of these towers. Goodness knows why. They had little to do with them. The money for them came out of the ground and the engineering was contracted out to South Korean companies.They don't even run the shopping centre that's beneath them. That's handled by Australia's Westfield.

Next year, a Malaysian astronaut will go into space aboard a Russianrocket - the first Malay in space. And the cost? $RM95 million ($A34.3million), to be footed by Malaysian taxpayers. The Science and Technology Minister has said that a moon landing in 2020 is the next target, aboard a US flight. There's no indication of what the Americans will charge for this, assuming there's even a chance that they will consider it. But what isMalaysia getting by using the space programs of others as a taxi service? There are no obvious technical benefits, but no doubt Malaysians will be told once again, that they are "boleh". The trouble is, they're not. It's not their space program.

Back in July, the Government announced that it would spend $RM490 million on a sports complex near the London Olympics site so that Malaysian athletes can train there and "get used to cold weather".

But the summer Olympics are held in the summer.

So what is the complex's real purpose? The dozens of goodwill missions by ministers and bureaucrats to London to check on the centre's construction and then on the athletes while they train might provide a clue.


Bank bale outs, a formula one racing track, an entire new capital city - Petronas has paid for them all. It's been an orgy of nonsense that Malaysia can ill afford.

Why? Because Malaysia's oil will run out in about 19 years. As it is,Malaysia will become a net oil importer in 2011 - that's just five years away.

So it's in this context that the latest debate about race and wealth is so sad.

It is time to move on, time to prepare the economy for life after oil. But, like Nero fiddling while Rome burned, the Malaysian Government is moreinterested in stunts like sending a Malaysian into space when Malaysia's inadequate schools could have done with the cash, and arguing about wealth distribution using transparently ridiculous statistics.

That's not Malaysia "boleh", that's Malaysia "bodoh" (stupid).

Goverment formula on calculation shareholding

The following is a statement by Minister in the Prime Minister's Department Datuk Seri Effendi Norwawi:
I. Sources of Data
The following data sources were used to estimate equity ownership in Malaysia:
i. Records from the annual reports of companies registered with the Companies Commission of Malaysia (CCM);
ii. Equity ownership of public listed companies in Bursa Malaysia Berhad;
iii. Data from Bumiputera institutions such as Lembaga Tabung Haji, Lembaga Tabung Angkatan Tentera and Cooperatives Development Department;
iv. Data from Permodalan Nasional Berhad (PNB), MARA and all SEDCs;
v. Data from Securities Commission on Unit Trust Funds and related trust fund management companies such as PNB; and
vi. Information on ownership in nominee companies based on a survey done in March 2005.
II. Corporate Equity Ownership as at 31st December 2004 (Ref: Ninth Malaysia Plan, Chapter 16, Page 336).
From the above, overall Bumiputera equity ownership as of 31st December is 18.9%.

Calculation of Corporate Equity Ownership by Ethnic Groups based on Companies Commission of Malaysia (CCM)'s Database
· The main source of data to calculate equity ownership is derived from CCM. Among the information used from the annual reports of the companies in this methodology include type of companies and their activities, composition of equity ownership by ethnic groups and nationality.
· As at 31st December 2004, a total of 609,595 active companies were registered with CCM. Equity ownership by ethnic group was calculated based on the latest annual reports submitted by the companies to CCM.
· Only 40 percent of the registered companies submitted their annual returns by the dateline for the Ninth Malaysia Plam (30th June 2005). However, the total value of equity owned by this group of companies (40 percent of the registered companies) comprised 70 percent of the total equity ownership of all companies registered with CCM in 2004. The estimate for the remaining 60 percent of the registered companies was derived from their 2003 annual reports. Breakdown of shareholdings for companies which submitted their annual reports before 2004 and in 2004 are as follows:

III. Par Value vs Market Capitalization
· In calculating the equity ownership, par value was used as it provides a constant measurement to all companies in the corporate sector as compared to the market value, which can only be used on the listed companies.
IV. Equity Ownership by Trust Agencies
· The data on equity ownership in companies held by trust agencies was obtained directly from the agencies such as PNB, Perbadanan Usahawan Nasional Berhad (PUNB), Perbadanan Nasional Berhad (PNS), MARA and SEDCs.
· These agencies were established, amongst others, to assist Bumiputera participation in trade and industry. Breakdown for Bumiputera agencies are as follows:

VI. Equity Ownership by Bumiputera Institutions
· Institutions such as Lembaga Tabung Haji (LTH), LTAT, Koperasi Polis and thrust funds such as Amanah Saham Nasional (ASN) and Amanah Saham Bumiputera (ASB) were established to mobilise savings held by Bumiputera.
· The equity ownership in this category was obtained directly from the institutions involved. Breakdown for Bumiputera institutions are as follows:


Note: Equity own by non-Bumiputera in PNB Unit Trust Scheme, ASM Mara Unit Trust and Cooperatives Development Department are as follows:
Chinese RM 697.5 million
Indian RM 76.7 million
Others RM 8.6 million
VII. Equity Ownership by Nominee Companies
· Nominee companies owned RM139,472.4 million or 25.9 percent of the total corporate equity in 2004. In March 2005, EPU with the cooperation of SSM conducted a survey on 359 nominee companies to ascertain the status of ownership and beneficiaries of shares registered under nominees.

· A total of 179 companies that responded to this survey, owned RM103,713.2 million or 74.3 percent of the total equity held by nominee companies in 2004.
· The composition of equity in the nominee companies by ethnic groups and others is as follows:

VIII. Equity Ownership by the Government
· The major portion of the government equity ownership is in the public listed government-linked-companies (GLCs). Equity held by Employees' Providence Fund (KWSP), Khazanah Holdings and Minister of Finance Inc was considered as government interest. Shares held by the Government were excluded from the calculation. However, equity held by private companies and individuals in non-listed and listed GLCs such as Petronas, Telekom Malaysia Berhad, TNB and MAS was included in the calculation of equity held by the respective ethnic groups. This approach has been consistently used in all plan documents.

IX. Equity of Listed Companies
· The committee in EPU also calculated equity ownership in listed companies by ethnic group. Based on the calculation, as at December 2005, Bumiputera owned 21.8% or RM44.0 billion of the share capital in Bursa Malaysia Berhad. This figure is different from an earlier quoted figure of 36.64%. In estimating Bumiputera equity, the 36.64%, quoted as Bumiputera shares, included a large portion of shares held by nominee companies and the government


The above is publish by government, how their derived the shareholding calculation ;
My question here is :

1. how their value those land owner or property owner without register as company or sole proprietor. As we know many malaysian are small land owner for any racer.

2. How to value those RM 2 company to getting government project?
3. If market capitalised not taken into accounts, Does Par value is reflect the company valuation ?

Wrong Malaysia Boleh Spirit

KJ John Oct 31, 06 12:11pm
(The following article that i think good to share with everyone)

Recently, I have been very bothered by the lack of respect for the system ofrule of law enshrined in the Rukunegara and premised on principles ofnationhood or Merdeka, as agreed in the 1957 social contract.

The Rukunegara frames and undergirds one core set of principles in oursystem of constitutional governance. But, of late, the 'close one-eye'culture has become a way of life in the governance of Malaysia, especiallyat local level.

It began with a MP asking the Customs department to close one eye over hisbusiness interests. Then we had the Inspector-General of Police agreeingthat the police can close an eye and settle compounds on the basis ofplea-bargaining. Mat Rempit break the law at whim, killing innocents in theprocess.

Now we have municipal councillors who build mansions like little kings, withtotal disregard for the very council in which they serve. Those who make thelaw seem to be above the laws they make.

Reggie Lee's cartoon (The Star, Oct 24) captured the very essence of my deepconcern. It said: 'First we had Mat Rempit, now we have Mat Build it.Malaysia Boleh' (with an illustration of the two illegal mansions built byKlang councillors).

My question: where is our concern for adherence to the rule of law headed?If all it takes is for one to pay 10 times the value of the application fee,what we are actually saying is that you can break the law; only be preparedto pay a fine. In fact a citizen wrote that we could perhaps do away withthe need for applications and invite all residents to build now and paylater.

If you follw the logic of the second councillor, breaking such rules isperfectly okay and legitimate. Mr Selangor Menteri Besar (MB), do you reallymean that this is your government's policy on adherence to the law, asexemplified by your two councilors?

Then can we go on to say all that Mat Rempit need to do is to pay a fine andthey can be excused for breaking the law? Where is the Attorney-General andwhat has happened to prosecution? Is the role of the state legal advisoronly to give wrong advice to the government?

No wonder we get multiple mixed signals about governance and messages whichare open to multifarious interpretations. Anything is okay so long as apolitician says so.

The prime minister has said no one should break the law. The MB even said noone is above the law, but then went on to say that there is no law statingthat law-breakers cannot be appointed to a local council. The deputy premiersaid the matter of 'the family of councillors' needs to be looked into as itmay promote an unintended practice and an undesirable corporate culture.

The people of Klang are flabbergasted to say the least, as they are beingtaken for a ride. The PM has left it to the MB to take appropriate actionagainst the law-breaker, but surely this cannot simply be a token fine forbreaking the law, especially when utter disregard has been shown for boththe law and due process of compliance with the law. All the more so if oneis a councillor, as per the Selangor Sultan's statement. Is this the kind orquality of leadership by example we are promoting in the so-called'developed' state?

Disregard for law

Thankfully that is not the end of the story in Selangor. I am appreciativeof the Sultan who has delivered the strongest rebuke to date for suchblatant disregard and disrespect for the law.

The Star report by Wong Chun Wai quoted a source reflecting the Sultan'sviews: "Tuanku is deeply disappointed at what has taken place and hecertainly cannot accept leaders in the state who have committed offences orshowed disregard for the law. As elected representatives, Tuanku expectsthem to demonstrate exemplary behaviour."

I can only agree 100 percent with this well stated view. Leadership in thestate that does not respect the law and worse still shows overt disrespectand contempt for the principle of rule of law must not remain part ofleadership, of which the Sultan is the head.

Daulat Tuanku, for your statement; only with such foresight and values canwe fully preserve our version of constitutional monarchy. The Thai monarchyhas consistently demonstrated that the institution of the monarch has aclear and unmitigated role to maintain and preserve the interests of thepeople even against democratically elected governments, if f they violatethe unwritten and God-ordained principles of honesty and sincerity.

Back to the Rukunegara principles of belief in God, loyalty to king andcountry, upholding the constitution, rule of law, and good behavior andmorality. How can anyone in Malaysia claim to be a leader if they violateany of these principles?

With due respect to the Klang councillor and his rags-to-riches background,the illegal construction of a mansion clearly demonstrates the violation ofALL the Rukunegara principles. Allow me to clarify.Our belief in God makes it a preamble to follow God-made and man-made rulesand regulations in any system of administration that is legally constituted.Therefore breaking local government rules is tantamount to violating thefaith in the God that we espouse. And this is especially so if you are anappointed councillor and a steward of good governance. It is never aquestion of whether it is a small law or a big law; it is the very act ofviolation that makes it wrong by evidence. Intentions are made evidentthrough actions.

At state level, the Ruler is the constitutional monarch. When one breaks thelaw, one shows disloyalty to both the Sultan and the nation-state.

The Federal Constitution is the national set of rules and regulations. TheLocal Government Act is the federal law that specifies the appointment ofcouncillors, who must also enjoy the favour of the state ruler, I believe.How can the MB then say that there is no law that disallows law-breakers tobe appointed? Immorality is surely a moral law also.

Even if the MB is badly counselled regarding the federal law, surely heknows the simple criteria for good behaviour and morality. Any kid inprimary school will know that you cannot elect the worst law-breaker or themost undisciplined kid in class as class monitor. Does the MB need theSultan to re-educate him on this subject?

Lack of integrity

I sincerely hope the MB will recognise that he is also currently underobservation for good behaviour and morality. As a citizen who voted forBarisan Nasional in the 2004 election, I am observing the MB to see if hisleadership meets the ground rules of good stewardship of the so-calleddeveloped status he claims to have engineered. Unfortunately, he has failedto date to convince me of the same.

This event is one more marker of the latitude the PM has given him to do theright thing. In the rape of Bukit Cahaya, the MB was chairperson of one ofthe companies that violated the law, but it was let off with a minimal fine.I hope the MB is not tempted to do the same in this case.

We know that he appointed the councillor who is a strongman of Umno Klang,but the core issue is directly related to leadership by example, as theSultan has pointed out. Unilateral and blatant violation of all theprinciples of the Rukunegara cannot be surely justified even if theappointee is chairperson of of Umno Selangor.

I hope the MB realises that more is at stake here than merely poorleadership in the Klang council, headed by a president who saw no evil,heard no evil and spoke no evil until The Sun shone on this with aphotograph of the illegal mansion.

The real and core issue is about the quality and calibre of people chosen torepresent the interests of ordinary taxpayers and law-abiding citizens inKlang. The truth of the matter is that in the matter of governance of theKlang council, the councillors are also the 'legislators'. How then can theyinclude law-breakers?

It goes to the heart of integrity of leadership of the state. I am thankfulthat the Sultan has highlighted this issue of uprightness.I wonder what the Attorney-General and ACA chief think of all this. How dida railway gatekeeper build a mansion costing at least RM3 million, excludingfurnishings?If he has not paid assessment rates, shouldn't the Inland Revenuedirector-general pull out his files to review what kind of taxes this people's representative has been paying?

It is time to get rid of bribery and corruption as the grassroots. Toordinary citizens it is becoming increasingly aware that we cannot trustpoliticians who say one thing and do another.That is a clear indication of the lack of integrity.

Mr MB, do you stillhave any doubts?____Nazri: Umno members are immune to graft laws

http://www.malaysiakini.com/news/58901__

__http://thestar.com.my/news/story.asp?file=/2006/11/1/nation/15878918&sec=nation

Councillor Faizal also blames it on his architect

Wednesday November 1, 2006KLANG:
It is the architect's fault.

Faizal Abdullah, a councillor from the Klang Municipal Council, gave thesame excuse as his fellow councillor and Port Klang state assemblyman DatukZakaria Md Deros for building a bungalow without obtaining prior approvalfrom the local authorities.

Faizal openly apologised for his misdeed.

"Yes, it is my mistake for not submitting the building plans beforeconstructing the house," Faizal said, when contacted yesterday after it wasrevealed that a property under his name in Jalan Melikai, Kampung Raja Udahere, had been slapped with a stop-work order from the council.

"With a sincere heart, I apologise to the people of Klang, Selangor MentriBesar Datuk Seri Dr Mohd Khir Toyo and council president Abdul Bakir Zin,"said Faizal."Being a businessman, I was pressed for time and left it to the architect todo the necessary applications. He failed to do so."

The council had issued stop-work orders on three properties belonging tolocal VIPs, after checks showed the council had not approved theirconstruction. The properties - all bungalows - belong to Zakaria, Faizal anda third councillor, Datuk Mazlynoor Abdul Latiff.

Council president Abdul Bakir Zin had repeatedly reminded Zakaria, Faizaland Mazlynoor to submit the building plans for their bungalows after hefound out they had not done so prior to constructing the properties.

On the bungalow under construction in Kampung Raja Uda, Faizal said he wasentrusted with rebuilding the house belonging to his father-in-law, SelangorSpeaker Tan Sri Onn Ismail. The house needed to be torn down and rebuiltbecause it was termite-infested and the wiring was old.

The second Klang Municipal Councillor caught building his house in KampungRaja Uda in Klang without approval.Faizal said he regretted that his architect had taken things easy."

When I questioned him, he told me plans were not in yet. He even told methat he assumed he could start work first without the necessary approvalsbecause I was a councillor and I could get the matter sorted out later," hesaid."

I was shocked when he said such things. Even though I am a councillor, noone is above the law. I directed him to quickly get things in order."

Faizal added that the architect had gone to the council's planningdepartment on Monday to sort things out.

"Please give me and my architect until the end of this week to submit theplans and settle the fine," said Faizal, who is Selangor Umno Youthvice-chairman and Kapar Umno Youth chief
.____Photo of Faizal's house:
http://thestar.com.my/archives/2006/11/1/nation/n_01faizal.jpg
Photo of Zakaria's house:
http://thestar.com.my/archives/2006/11/1/nation/n_01zakaria.jpg
Photo of Mazlynoor's "SMALL" house:
http://thestar.com.my/archives/2006/11/1/nation/n_01mazlynoor.jpg

Datuk Z is crying! How about tomorrow for Malaysia?

Crocodile tear, crying in front of public and reporter, win the crocodile point, this must be learning from Tun M Or Ms pretty Rafidah. They are founder for crying culture in Malaysia politic. The Datuk Z think with this move I can win a lot of sympathy polling and smile from hearts

What he cries for? For the money he earn during the past 10 year in politic. After sultan scolding and consultancy still acting like gangster, politic gangster is Malaysia culture for the past 20 year. Cry for the little heart that he got 34family member living in small house. What wrong with him? The government shall allow him to build 10-time bigger house and demolished the whole housing estate for him. He work so hard for the people in the past 10-year and earning a million of dollar of money to build a big house. What wrong with me? This may just a corner of the issued. Many of members UMNO also enjoy the priority and riches than me, why everybody just shoot me?

The supporter of Datuk Z. also try to link this with Malay issued, said this is protect the Malay interests and the newspaper and DAP try to rotten the Malay ………God! How they relate this into the politic issued. (May be pak lar Daughter in Law). This is our culture? People make mistake no need to paid off, but tax payer to paid off everything (may be petronas paid partial)

We are now waiting the action from government to settle. Does anti corruption will verify how he can be so rich in short time, Does the income tax department will verify whether he paid tax or not ? Does illegal house will be torn down or remove, Does he house…… He just a small boy in our politic system. What a big deal to settle this? How Malaysia government to win people heart in next election. How they claim they are anti-corruption? That I don’t understand. If I got contact with government office. I can have such big power and authority. Importantly can create such a big wealth is so short time. Please teach me how to make it
If this issued take such long time to issued. How you think our government foreseeable to change to leads us to Global. But if not choice BN. Who can we choice? Any alternative? I still remember Singapore government few year ago, a minister kill himself because of corruption. Will Malaysia politic member will do so? I am doubt