Press Statement - Released on 24 January 2007

Good Morning

Important Friends,

First and foremost, I would like to welcome you to the Press Briefing of Badan Pengawas Pemegang Saham Minoriti Berhad (BPPSM) or more widely known as Minority Shareholder Watchdog Group (MSWG). This is the first Press Briefing for the Year 2007 and the fifth under our 5-Year Business Plan of 2005 to 2009.

The objectives of today’s Press Briefing are two-fold :-

• To provide a prelude to the Half-Day Seminar organized by MSWG in conjunction with the Launching of “A Guide of Best Practices for Institutional Shareholders” and “A Guide for Retail Shareholders” 2006 on 29 January 2007 at Bursa Malaysia Berhad; and

• To give an update on the activities carried out by MSWG for the Year 2006.

Half Day Seminar in Conjunction with the Launching of “A Guide of Best Practices for Institutional Shareholders” and “A Guide for Retail Shareholders” on 29 January 2007 at Bursa Malaysia Berhad.

At the Launching Ceremony of the Corporate Governance Survey 2006 held on 20 December 2006, the Honourable Deputy Finance Minister I, YB Dato’ Dr Ng Yen Yen in her Keynote Address had announced that MSWG will be publishing two important guides, namely “A Guide of Best Practices for Institutional Shareholders” and “A Guide for Retail Shareholders".

We are now pleased to announce that the two Guides are ready to be launched. The Honourable Deputy Finance Minister I, YB Dato’ Dr Ng Yen Yen has once again graciously agreed to officiate the Launching Ceremony as well as to deliver the Keynote Address.

A Guide of Best Practices for Institutional Shareholders (GBPIS)

GBPIS is developed in line with Recommendation 112 of the Capital Market Masterplan and Recommendation 3.11 of Bank Negara Malaysia’s Financial Sector Masterplan. This Guide complements the Malaysian Code on Corporate Governance (MCGG) and the “Green Book – Enhancing Board Effectiveness”. The Green Book is a reference guide for Government-Linked Companies (GLCs) boards to upgrade the effectiveness of their boards.

GBPIS has the support of the regulatory authorities, namely the Securities Commission, Bank Negara Malaysia, Bursa Malaysia Berhad and the Companies Commission of Malaysia.

In the GBPIS, the term “Institutional Shareholders” includes pension funds, insurance companies, investment trusts and other collective investment vehicles, as well as agents such as investment managers who are appointed by Institutional Shareholders to invest on their behalf.

This Guide should be used by the Institutional Shareholders to influence their investee companies towards improving performance and conformance.

A Guide for Retail Shareholders (GRS)

As part of MSWG’s basic role to enhance shareholder activism and protecting minority shareholders, MSWG has produced GRS. It is a reference material designed to assist retail shareholders to gain financial and commercial knowledge in understanding and interpreting a public-listed company (PLC)’s annual report.

GRS can be an effective tool in guiding the retail shareholders to understand and interpret in simple terms the annual reports, in raising their concerns and seek credible answers from company boards at general meetings.

Members of the media are cordially invited to the Half Day Seminar on 29 January 2007 at Bursa Malaysia Berhad.

Latest Status Report on MSWG Activities - For the Year 2006

MSWG in its best effort will ensure that it will not only ACHIEVE, but will also EXCEED the Key Performance Indicators (KPIs) as set out in its 5-Year Business Plan of 2005 to 2009. Various activities have been successfully carried out by MSWG to ensure that it can achieve its objectives to be effective in building CREDIBILITY in its journey to become the PREMIER SERVICE ENTITY in enhancing the shareholder activism and protecting minority interests.

The various activities carried out by MSWG for the Year 2006 as compared to the KPIs are as follows :-

1. Proxy Advisory & Voting Services

KPI : 30 PLCs
Undertaken : 218 PLCs
Variance : 188 or 627% (Favourable)

MSWG has taken pro-active action by purchasing shares in certain public-listed companies (PLCs). As at 31 December 2006, MSWG has a stake in 228 PLCs. This is to ensure that MSWG has locus standi to attend shareholders’ meetings as Corporate Representative and participate actively as a registered shareholder to represent various stakeholders’ especially minority interest.

In order to enhance the value of our products and services, MSWG is utilising a pool of skilled, experienced and committed associates/consultants which services will only be utilized to supplement the staff-members of MSWG or if they can add value to MSWG’s products and services.

The criteria for the purchase of shares in the selected PLCs are as follows :-

• Companies with issues raised by Minority Shareholders;
• Companies subject to action by the regulatory authorities;
• Investee companies of the five Founding Members;
• Companies having a wide impact on the stakeholders;
• Companies of strategic National interest;
• Coverage of every sector; and
• Companies with various year-ends for better spreading of work throughout the whole year

Attending AGMs/EGMs facilitate the interaction between MSWG and the attending shareholders especially with those from the retail sector.

At the same time, MSWG will also continue to attend the shareholders’ meetings by way of proxies from the minority shareholders.

Besides attending the shareholders’ meetings, MSWG represents minority shareholders in meetings with the Board/Management of PLCs to clarify issues relating to financial performance and corporate governance.

MSWG has also been briefed by Boards of Management of PLCs on certain corporate proposals.

2. Media Articles & Commentaries/Special Features

KPI : 30 articles/commentaries/special features
Undertaken : 99 articles/commentaries/special features
Variance : 69 or 230% (Favourable)

MSWG is pleased to have participated in numerous speaking engagements either as a speaker, chairman or participants in the talks and seminars organized by third parties. We have also attended various interviews by the printed and electronic media on topical issues.

3. Corporate Governance Rating Survey 2006

KPI : By 30 June 2006 (110 top PLCs)
Completion : 31 August 2006 (200 top PLCs)
Completion : 31 August 2006 (100 small cap PLCs)
(Additional)

The Corporate Governance Rating Survey 2006 (CG Report) covering the top 200 PLCs and 100 small-cap PLCs is a collaborative effort between MSWG and the Nottingham University Business School.

The CG Report was officially launched by YB Dato’ Dr Ng Yen Yen, Deputy Minister of Finance I at a Ceremony held on 20 November 2006 at Hotel Nikko Kuala Lumpur.

At the Ceremony, awards were given to the top thirteen (13) public-listed companies (PLCs) ranked top ten (10) in the CG Report of the top 200 PLCs and the top three (3) PLCS in the CG Report of the 100 small-cap PLCs.

A Corporate Governance Survey Analysis Report on the thirteen (13) leading companies had also been produced to supplement the CG Report.

4. Corporate Governance Screencard 2006

KPI : By 31 December 2006 (50 PLCs)
Completion : 31 December 2006 (100 PLCs)
Also Undertaken : Screencard Analysis (Completed)

The Screencard covering 100 selected PLCs is a collaborative effort between MSWG and the Accounting Research Institute, Faculty of Accountancy, Universiti Technologi MARA. This Survey had been completed. An Analysis Report, a supplement to the Screencard had also been carried out.

The CG Screencard 2006 has been tentatively scheduled for launching in March 2007.

5. Dividend Survey 2006

KPI : By 31 December 2006 (110 PLCs)
Completion : 31 December 2006 (200 PLCs)
Also Undertaken : Dividend Analysis (Completed)

The Survey covering the top 200 PLCs is a collaborative effort between MSWG and the Accounting Research Institute, Faculty of Accountancy, Universiti Teknologi MARA. This Survey had been completed. An Analysis Report, a supplement to the Survey had also been carried out.

The Survey has been tentatively scheduled for launching in March 2007.

Apart from ensuring that MSWG not only achieves its KPIs, but also exceeds them, MSWG has also carried out various other activities in enhancing the shareholder activism and protecting minority interests, including :

(1) Collaborative Work with the Regulatory Authorities

MSWG is working closely with the Regulatory Authorities including the Bursa Malaysia Berhad (Bursa), Securities Commission (SC) and Companies Commission of Malaysia (CCM).

(2) Corporate Governance Expert Working Group Roundtable on National Integrity Issues

MSWG had been actively participated as a member of the Corporate Governance Expert Working Group Roundtable to contribute towards the development of a thematic Training Module on National Integrity issues.

(3) Other Activities Participated by MSWG
From time to time, MSWG had participated in numerous activities of the various regulatory bodies, professional associations, accounting firms and the mass media. All these activities are to assist in the development of the Malaysian Capital Market thereby making Malaysia a better place to invest.

Conclusion

MSWG is proud to say that over the last one year, it has succeeded in achieving a high level on Visibility and Credibility. This achievement is borne by the various evidences including :-

(1) MSWG is properly licensed;

(2) Participation as Guest Commentator on TV3 Prime Time Programme “ The Exchange” on six (6) occasions;

(3) Appearance as a Guest on TV2 Programme : Money Tree;

(4) MSWG featured on Prime Time, i.e. TV News, TV1, TV2, TV3 and Astro on numerous times;

(5) Invitations received to attend AGMs/EGMs;

(6) Invitation for MSWG to become the member of the panel of judges for the Malaysian Business Corporate Award. MSWG’s representative was selected to make the Address on behalf of the Judges Panel. The Guest-of-Honour at the Ceremony was YAB Tun Dr Mahathir Mohamed;

(7) Invitation for MSWG to pen a monthly column in the Malaysian Business Magazine;

(8) Willingness of The Star and Utusan Malaysia to give a Regular Column to MSWG.

(9) Invitation to participate in the roundtable organized by the Organisation for Economic Cooperation and Development (OECD) and the Asian Corporate Governance Association (ACGA);

(10) Publication of numerous commentaries and articles from MSWG on topical issues in the newspapers and journals;

(11) Invitation for MSWG to be a speaker/panelist in various international as well as national seminars and conferences;

(12) Invitation to MSWG for various functions including the initial Star CEO breakfast dialogue and 2006 Budget dialogue with the Finance Ministers;

(13) Invitation to be a panelist in the Edge-PwC Roundtable on Board Effectiveness;

(14) Request from the Securities Commission to play a leading role in the setting up of the Institutional Shareholders’ Committee;

(15) Appointment as Proxies to attend AGMs/EGMs by various investors;

(16) Proposed appointments as Independent Scrutineers by public-listed companies;

(17) Briefings by directors and advisers of a number of public listed companies on their corporate restructurings and acquisitions;

(18) Holding of Corporate Governance Award Ceremonies and Seminar on Corporate Governance; and

(19) Positive actions and feedbacks from numerous relevant parties including corporate leaders and retail shareholders.

Detailed list on the achievements by MSWG for the period from 1 January 2005 to 31 December 2006 is attached.

Lastly, MSWG welcomes any questions or/and comments from the media on its activities in ensuring that MSWG achieves its objectives effectively. Together, we will try to enhance the development of our capital market thereby making Malaysia a better place to live in.

ABDUL WAHAB JAAFAR SIDEK
Chief Executive Officer
Minority Shareholder Watchdog Group (MSWG)

Dated : 24 January 2007