Press Statement - Released on 4 September 2007
Good Morning
Important Friends,
First and foremost, once again I would like to welcome you to our Press Briefing this morning. This is our third Press Briefing for the Year 2007 and the seventh 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 following events organized by MSWG:-
- Half-Day Seminar for Retail Shareholders on “Analysing Companies, Stocks and Shares – How to Make the Right Investment” on 7 September 2007 (Friday) at the Conference Room of Bursa Malaysia Berhad; and
- Half-Day Seminar in conjunction with the Launching of the Directors’ Remuneration Survey 2007 on top 500 PLCs on 12 September 2007 (Wednesday) at the Conference Room of Bursa Malaysia Berhad.
- To give an update on the activities carried out by MSWG for the period from 1 January to 31 August 2007.
Events Organised by MSWG
(i) Half-Day Seminar for Retail Shareholders on “Analysing Companies, Stocks and Shares – How to Make the Right Investment” on 7 September 2007 (Friday) at the Conference Room of Bursa Malaysia Berhad
This Half-Day Seminar is organized specifically for the Retail Shareholders and is aimed to assist the shareholders on how to analyse companies, stocks and shares for making the right investment. This Seminar will also look at the common ways in which the accounts can often mislead or reported with hidden meanings
This event will be held at the Conference Room, Bursa Malaysia Berhad on Friday, 7 September 2007. Each participant will be charged a fee of RM50.00 which includes seminar materials and refreshments as well as lunch. As seats are limited, registration will be based on “first come first served” basis. A copy of the seminar leaflet is attached for your ease of reference.
Members of the Media are cordially invited to this Half-Day Seminar. This invitation is on gratis basis.
(ii) Half-Day Seminar in conjunction with the Launching of the Directors’ Remuneration Survey 2007 on top 500 PLCs on 12 September 2007 (Wednesday) at the Conference Room of Bursa Malaysia Berhad
A Half-Day Seminar will be organized on 12 September 2007 at the Conference Room, Bursa Malaysia Berhad in conjunction with the official launching of MSWG’s new product, i.e. “Directors’ Remuneration Survey”. The Honourable Deputy Minister of Finance I, YB Dato’ Dr Ng Yen Yen has graciously agreed to deliver the Keynote Address and to launch the Survey.
The Survey which covers the top 500 public-listed companies (plcs) based on market capitalization as at 31 December 2005 was produced in collaboration with the Universiti Teknologi MARA.
The Directors’ Remuneration Survey highlights the plcs’ compliance with the current recommended disclosures on directors’ remuneration under the Malaysian Code of Corporate Governance and the international best practices drawn from various international guidelines and codes. Board composition, profile of directors and directors’ remuneration vis-á-vis company financial performance are also covered by the Survey.
The Survey Report will be on sale during the Half-Day Seminar.
Members of the Media are cordially invited to the Half-Day Seminar on 12 September 2007.
Latest Status Report on MSWG Activities
In accordance with its 5-Year Business Plan of 2005 to 2009, MSWG had submitted the Progress Report on its activities for the half-year period from 1 January to 30 June 2007 to the Capital Market Development Fund (CMDF).
The various activities undertaken by MSWG for the period 1 January to 31 August 2007 as compared to the KPIs are as follows :-
- Proxy Advisory & Voting Services
KPI : 27 PLCs
Undertaken : 183 PLCs
Variance : 156 or 578% (Favourable)
MSWG has taken pro-active action by purchasing shares in certain public-listed companies (PLCs). As at 31 August 2007, MSWG has a stake in 232 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 whose services are only 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/directors/staff of plcs 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.
- Media Articles & Commentaries/Features
KPI : 27 articles/commentaries/features
Undertaken : 74 articles/commentaries/features
Variance : 47 or 174% (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, locally and internationally. We had also attended various interviews by the printed and electronic media on topical issues.
- Corporate Governance Screencard 2006
KPI : By 31 December 2006 (50 PLCs)
Completion : 31 December 2006 (100 PLCs)
The coverage of 100 PLCs exceeded the KPI of 50 PLCs
Also Undertaken : Screencard Analysis (Completed)
The Corporate Governance Screencard 2006 covering 100 selected PLCs was successfully launched by the Honourable Deputy Finance Minister II, YB Dato’ Dr Awang Adek Hussin on 10 April 2007.
- Dividend Survey 2006
KPI : By 31 December 2006 (110 PLCs)
Completion : 31 December 2006 (212 PLCs)
The coverage of 212 PLCs surpassed the KPI of 110 PLCs
Also Undertaken : Dividend Analysis (Completed)
The Survey covering the top 212 PLCs was successfully launched by the Honourable Deputy Finance Minister II, YB Dato’ Dr Awang Adek Hussin on 10 April 2007.
The Launch Event for the Corporate Governance Screencard and Dividend Survey was given a good coverage by the mass media.
5. Directors’ Remuneration Survey 2007
KPI : By 31 December 2007 (120 top PLCs)
Completion : 30 June 2007 (500 top PLCs)
The Directors’ Remuneration Survey 2007 covering 500 top PLCs was undertaken in collaboration with the Universiti Teknologi MARA.
This Survey was originally scheduled for completion by the second half of 2007, but was undertaken and completed in June 2007 in place of the Corporate Governance Survey 2007.
The Directors’ Remuneration Survey 2007 will be launched on 12 September 2007.
- Corporate Governance Survey 2007
KPI : By 30 June 2007 (120 top PLCs)
Completion : 31 October 2007
(The Survey covering 350 top PLCs, 100 Small-Cap PLCs, 40 Second
Board PLCs and 10 Mesdaq PLCs exceeds the KPI of 120 top PLCs).
The Corporate Governance Survey 2007 is undertaken in collaboration with Nottingham University Business School.
The Corporate Governance Survey 2007 was originally scheduled for completion by first half of 2007. However, this Survey will only be completed in October 2007. The Directors’ Remuneration Survey which was scheduled for second half of 2007 has now been completed in place of the Corporate Governance 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. Products
(i) A Guide of Best Practices for Institutional Shareholders
“A Guide of Best Practices for Institutional Shareholders” was successfully launched by the Honourable Deputy Finance Minister I, YB Dato’ Dr Ng Yen Yen on 29 January 2007.
(ii) Shareholding Survey 2007
- MSWG in collaboration with the Nottingham University Business School is completing the Shareholding Survey 2007 covering all companies listed on the Bursa Malaysia Securities on 30 June 1997 and 30 June 2006.
- The objective of this Survey is to identify and compare the demographic of shareholding, shareholdings’ structure and value of the PLCs before and after the 1997 financial crisis.
- This Survey is expected to be completed by end of October 2007.
(iii) Company’s Meetings Survey 2007
(a) The Company’s Meetings Survey 2007 covering top 100 PLCs is a collaborative effort between MSWG and the Universiti Teknologi MARA .
(b) This Survey is currently in progress and is expected to be completed by end of November 2007.
2. Increasing Retail and Institutional Education Participation in the Stock Market
(i) A Guide for Retail Shareholders
(a) “A Guide of Best Practices for Retail Shareholders” has been published to assist the retail shareholders to gain better financial and commercial knowledge in understanding and interpreting a public-listed company’s annual reports and financial statements.
(b) This Guide was successfully launched by the Honourable Deputy Finance Minister I, YB Dato’ Dr Ng Yen Yen on 29 January 2007.
(ii) Seminars Held
MSWG has planned as well as carried out a series of investors education programme to inform, educate and broaden the retail shareholders’ knowledge in investing in the public listed companies, thus making them better investors.
(a) Half-Day Seminar in Conjunction with the Launch of “A Guide of Best Practices for Institutional Investors” and “A Guide for Retail Shareholders”
This Half-Day Seminar was held on 29January 2007 and was attended not only by the institutional shareholders, but also the retail shareholders who had actively participated in the question & answer session. There were 130 attendees for the Event.
(b) Half-Day Seminar in Conjunction with the Launch of the Corporate Governance Screencard 2006 and Dividend Survey 2006
This Half-Day Seminar was held on 10 April 29 January 2007 and was attended by 160 participants including the retail shareholders.
(iii) MSWG will also continue to look into possible areas to collaborate with Bursa Malaysia, Securities Industry Development Centre (SIDC), professional bodies and stockbroking houses to increase retail investors’ awareness and participation in the stock market.
- MSWG had recently conducted dialogue sessions with the retail investors, professional bodies, institutional fund managers as well as the media. The objective of the dialogue was to obtain feedbacks on its products & services as well as suggestions on how MSWG can play its role more effectively.
3. 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).
4. 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.
5. 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 activitiesare 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 period, it has succeeded in achieving a high level on Visibility and Credibility.
Emphasis is now being placed for focus on addressing the public mandate to develop shareholder activism among the retail shareholders.
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 : 4 September 2007
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