Press Statement - A Prelude to the Half-Day Seminar to Unveil MSWG’s New Corporate Logo & to Launch the Corporate Governance Screencard 2005 and Dividend Survey 2005; and to update the Media on the activities carried out by MSWG frm 1 January 2006 to 30 June 2006.

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 2006 and the third 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 the Corporate Governance Screencard 2005, Dividend Survey 2005 and the Unveiling of MSWG New Corporate Logo on 28 August 2006 at Bursa Malaysia Berhad; and
• To give an update on the activities carried out by MSWG from 1 January 2006 to 30 June 2006.

Half-Day Seminar and Launching of the Corporate Governance Screencard 2005, Dividend Survey 2005 and Unveiling of MSWG New Corporate Logo

The Keynote Address for the Half-Day Seminar will be delivered by YB Dato’ Dr Awang Adek Hussin, Deputy Finance Minister II. Thereafter, YB Dato’ Dr Awang Adek will officially launch the Corporate Governance Screencard 2005, Dividend Survey 2005 and unveil MSWG New Corporate Logo.

The Corporate Governance Screencard 2005 and Dividend Survey 2005 were produced jointly by Minority Shareholders Watchdog Group and Universiti Teknologi MARA (UiTM). Both the Corporate Governance Screencard 2005 and Dividend Survey 2005 are two of the performance indicators that measure the effectiveness of the public-listed companies and the directors in discharging their prescribed roles, duties and responsibilities that go beyond box ticking and create long term value for all stakeholders.

Detailed Corporate Governance Screencard Analysis 2005 and Dividend Survey Scanner 2005 have also been produced to supplement the Corporate Governance Screencard 2005 and Dividend Survey 2005 respectively.

The Corporate Goveranance Screencard 2005, Corporate Governance Screencard Analysis 2005, Dividend Survey 2005 and Dividend Scanner 2005 will be on sale during the seminar. The Corporate Governance Screencard 2005 & Dividend Survey 2005 Reports will be sold at RM 50 each while the Corporate Governance Screencard Analysis 2005 and Dividend Scanner 2005 Reports will be sold at RM 150 each.

At the Seminar, MSWG will also unveil its new Corporate Logo which carries the acronym “MSWG”. The acronym “MSWG” stands for Minority Shareholder Watchdog Group.

Members of the Media are cordially invited to the Half-Day Seminar on 28 August 2006.

Latest Status Report on MSWG Activities

In accordance with our 5-Year Business Plan of 2005 to 2009 and which has been endorsed by the Capital Market Development Fund (CMDF), MSWG had submitted a report on its activities for the half-year period from 1 January to 30 June 2006 to CMDF. 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 the said Plan. 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.

Todate, the activities undertaken by MSWG for the relevant period as compared to the KPIs are as follows :-

1. Proxy Advisory & Voting Services

KPI : 15 PLCs
Undertaken : 112 PLCs
Variance : 97 or 647% (Favourable)

MSWG has taken pro-active action by purchasing shares in certain public-listed companies (PLCs). Todate, MSWG has a stake in 225 PLCs. This is 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 line with our Business Plan, we have also engaged the services of volunteers to attend the shareholders’ meetings as MSWG’s Corporate Representative. After all, shareholder activism comes from the ground and not top to bottom.

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 : 16 articles/commentaries/special features
Undertaken : 51 articles/commentaries/special features
Variance : 33 or 219% (Favourable)

MSWG had participated in 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 2005

KPI : By 31 December 2005 (50 PLCs)
Undertaken : By 31 May 2006 (50 PLCs)

The Corporate Governance Screencard 2005 covering 50 selected PLCs has been undertaken in collaboration with the Universiti Technolgi MARA. We are pleased that the Report has been completed and wil be launched at the forthcoming Half-Day Seminar on 28 August 2006.

4. Dividend Survey 2005

KPI : By 31 December 2005 (100 PLCs)
Undertaken : By 31 July 2006 (100 PLCs)

The Dividend Survey 2005 covering the top 100 PLCs is another project undertaken in collaboration with Universiti Teknologi MARA. It is pleasing to note that the Assignment has been completed and will be launched at the forthcoming Half-Day Seminar on 28 August 2006.

5. Corporate Governance Rating Survey 2006

KPI : By 30 June 2006 (110 top PLCs)
Undertaken : By 31 August 2006 (200 top PLCs)
Also Undertaken : By 31 August 2006 (100 small cap PLCs) - additional
(Additional)

The Corporate Governance Rating Survey 2006 covering the top 200 PLCs is being carried out in collaboration with the Nottingham University Business School.

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

(i) Tool Kit for Shareholders
A Tool Kit is in place as a learning aid for shareholders which can be used to suit them appropriately.

(ii) Institutional Shareholder Statement and Code of Best Practices
A Statement and Code of Best Practices for the Institutional Shareholders had been drafted. The exercise is expected to be completed by October 2006.

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

(iv) Corporate Governance Expert Working Group Roundtable on National Integrity Issues
MSWG had been invited by the Malaysian Institute of Integrity to participate 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.

(v) 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.

Finance

MSWG has received RM 900,000 from the Capital Market Development Fund for its operational expenditure for the period of January to June 2006. For the same period, the total expenditure incurred by MSWG was RM 586,774 which is approximately 26% below the budgeted expenditure of RM 794,580 for the same period.

As a national trust entity, we will continue to spend wisely and prudently.

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.

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 : 17 August 2006