Press Statement - Released on 3rd April 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 second Press Briefing for the Year 2007 and the sixth 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 MSWG’s latest publications on 10 April 2007 at Bursa Malaysia Berhad :-

• Corporate Governance Screencard 2006 (CG Screencard), a second as well as an expanded edition in the CG Screencard series which covers selected 100 public listed companies (PLCs);

• Dividend Survey 2006, a second as well as an expanded edition of the Dividend Survey series covering the top 212 PLCs; and

• MSWG’s latest Corporate Brochure

• To give an update on the activities carried out by MSWG for the  period from 1 January to 31 March 2007.

Half Day Seminar in Conjunction with the Launching of the CG Screencard, Dividend Survey and MSWG’s Latest Corporate Brochure on 10 April 2007 at Bursa Malaysia Berhad

The Honourable Deputy Minister of Finance II, YB Dato’ Dr Awang Adek, has graciously agreed to deliver the Keynote Address for the Half-Day Seminar and thereafter to officially launch the CG Screencard, Dividend Survey and MSWG’s latest Corporate Brochure.

The CG Screencard and Dividend Survey were produced jointly by Minority Shareholders Watchdog Group and Universiti Teknologi MARA (UiTM). Both the CG Screencard and Dividend Survey 2006 are two of the performance indicators that measure the effectiveness of the PLCs and the directors in discharging their prescribed roles, duties and responsibilities that go beyond box ticking and create long term value for all stakeholders.

These two (2) publications are important tools for continuing investor education and shareholder activism to protect and enhance shareholder interests in PLCs. The publications together can become a ready aid for shareholders in understanding the policies, practices and performances of PLCs.

Detailed CG Screencard Analysis 2006 and Dividend Survey Scanner 2006 have also been produced to supplement the CG Screencard 2006 and Dividend Survey 2006 respectively.

The CG Screencard 2006, CG Screencard Analysis 2006, Dividend Survey and Dividend Scanner will be on sale during the seminar. The Corporate Governance Screencard & Dividend Survey Reports will be sold at RM100 each while the Corporate Governance Screencard Analysis and Dividend Scanner Reports will be sold at RM150 each.

At the Seminar, for the first time since commencing its operation in July 2001, MSWG will be launching its Corporate Brochure under the recently-launched logo.

Members of the Media are cordially invited to the Half-Day Seminar on10 April 2007.

Latest Status Report on MSWG Activities

MSWG in its best effort to achieve its objectives in enhancing shareholder activism and protecting minority interests had successfully carried out activities as set in its 5-Year Business Plan of 2005 to 2009. It has always been MSWG’s aim to not only ACHIEVE, but to EXCEED the Key Performance Indicators (KPIs) set out in its Business Plan.

In accordance with its Business Plan, MSWG had submitted the Progress Report on its activities for the half-year period from 1 July to 31 December 2006 and the Report on Assessment of Impact on Shareholder Activism as at 31 December 2006 to Capital Market Development Fund (CMDF).

The various activities undertaken by MSWG for the period 1 January to 31 March 2007 as compared to the KPIs are as follows :-

1. Proxy Advisory & Voting Services

KPI : 4 PLCs
Undertaken : 59 PLCs
Variance : 55 or 1,375% (Favourable)

MSWG has taken pro-active action by purchasing shares in certain public-listed companies (PLCs).  As at 31 March 2007, MSWG has a stake in 234 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 : 7 articles/commentaries/special features
Undertaken : 20 articles/commentaries/special features
Variance : 13 or 186% (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 Screencard 2006

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

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

The CG Screencard 2006 will be officially launched at a Half Day Seminar on 10 April 2007.

4. Dividend Survey 2006

KPI : By 31 December 2006 (110 PLCs)
Completion : 31 December 2006 (212 PLCs)
Also Undertaken : Dividend Analysis (Completed)

The Survey covering the top 212 PLCs is a collaborative effort between MSWG and the Accounting Research Institute, Faculty of Accountancy, Universiti Teknologi MARA. An Analysis Report, a supplement to the Survey had also been carried out.
 
The Survey will be officially launched at a Half Day Seminar on 10 April 2007.

5. Corporate Governance Rating Survey 2007

KPI : By 31 December 2007 (120 top PLCs)
Undertaken : By 31 December 2007 (350 top PLCs)
Also Undertaken : By 31 December 2007 (100 small cap PLCs/
(Additional)          40 2nd Board PLCS/10 Mesdaq PLCs)

The CG Rating Survey 2007 is being carried out in collaboration with the Nottingham University Business School.

The CG Rating Survey 2007 Report on top 350 PLCs is the expanded edition of the preceding report issued in August 2006.  MSWG will continue to produce the CG Rating Survey on 100 small cap PLCS and has taken the initiative to produce the CG Rating Survey covering   40 2nd Board PLCs and 10 Mesdaq PLCs.

The CG Rating Survey contains the findings of the level of compliance of the PLCs with corporate governance principles and best practices.

A CG Survey Analysis Report on the Top Twenty (20) companies will also be produced to supplement the CG Rating Survey.

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 : 3 April 2007