Press Statement – A Prelude to the Award Ceremony for the leading public listed companies (PLCs) in the Corporate Governance Survey Report 2006 in conjunction with the Launching of Corporate Governance Survey 2006 and to update the Media on the activities carried out by MSWG from 1 July 2006 to 15 November 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 second Press Briefing for 2006 and the fourth 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 Award Ceremony for the Leading Public-Listed Companies (PLCs) in the Corporate Governance Survey 2006 in conjunction with the Launching of Corporate Governance Survey 2006 at Hotel Nikko Kuala Lumpur; and

• To give an update on the activities carried out by MSWG from 1 July 2006 to 15 November 2006.

Award Ceremony for Top Ten (10) Companies in Conjunction with the Launching of Corporate Governance Survey 2006 on 20 November 2006 at Hotel Nikko Kuala Lumpur

The Keynote Address for the Award Ceremony will be delivered by YB Dato’ Dr Ng Yen Yen, Deputy Finance Minister I. At the Award Ceremony YB Dato’ Dr Ng Yen Yen will officially launch the Corporate Governance Survey Report 2006 (Report).

The Report is a collaborative effort between MSWG and the Nottingham University Business School. The Report covers separately the following :-

(i) Top 200 public-listed companies (PLCs) on Bursa Malaysia based on market capitalisation as at 31 December 2005; and

(ii) 100 small capitalized PLCs on Bursa Malaysia from bottom up as at 14 September 2005

This Report will be distributed and marketed to the public-listed companies mentioned in both Survey Reports, professional bodies, fund managers (local & international), research houses (local and international), institutional shareholders, statutory bodies, regulators, financial institutions (local & international), institutes of higher learning and international corporate governance bodies.

The Report on the top 200 PLCs is an expended edition of the preceding report issued in December 2005. It contains the findings of the level of compliance of the top 200 PLCs with corporate governance principles and best practices. These PLCs are ranked according to their level of compliance.

MSWG has also produced the first Corporate Governance Survey 2006 on 100 small capitalized PLCS.

A Corporate Governance Survey Analysis Report on the Top thirteen (13) companies has also been produced to supplement the Corporate Governance Survey 2006.

An Award Ceremony will also be held to recognize and honour these leading PLCs.

Members of the media are cordially invited to the Award Ceremony on 20 November 2006 at Hotel Nikko Kuala Lumpur.

Latest Status Report on MSWG Activities - 1 July 2006 to 15 November 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 period 1 July to 15 November 2006 as compared to the KPIs are as follows :-

1. Proxy Advisory & Voting Services

KPI : 15 PLCs
Undertaken : 68 PLCs
Variance : 53 or 353% (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 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 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.

Media Articles & Commentaries/Special Features

KPI : 14 articles/commentaries/special features
Undertaken : 32 articles/commentaries/special features
Variance : 18 or 129% (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 will be officially launched by YB Dato’ Dr Ng Yen Yen, Deputy Minister of Finance I at the Award Ceremony to be held on 20 November 2006 at Hotel Nikko Kuala Lumpur.

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

4. Corporate Governance Screencard 2005

KPI : By 31 December 2005 (50 PLCs)
Completion : 31 May 2006 (50 PLCs)
Also Undertaken : Screencard Analysis (Completed)

The Corporate Governance Screencard 2005 (Screencard) covering 50 selected PLCs was undertaken in collaboration with Universiti Teknologi MARA. An Analysis Report, a supplement to the Screencard has also been produced.

The Screencard was successfully launched at a Half Day Seminar on 28 August 2006 held at the Conference Room of Bursa Malaysia Berhad.

5. Corporate Governance Screencard 2006

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

The Screencard covering 100 selected PLCs is being carried out in collaboration with the Universiti Technolgi MARA. This Survey is expected to be completed by 31 December 2006. An Analysis Report, a supplement to the Screencard is also being carried out.

The Screencard has been tentatively scheduled for launching in February 2007.

6. Dividend Survey 2005

KPI : By 31 December 2005 (100 PLCs)
Completion : 31 July 2006 (100 PLCs)
Also Undertaken : Dividend Analysis (completed)

The Dividend Survey 2005 (Survey) covering the top 100 PLCs is another project undertaken in collaboration with Universiti Teknologi MARA. An Analysis Report, a supplement to the Survey has also been produced.

The Survey was successfully launched at a Half-Day Seminar on 28 August 2006 held at the Conference Room of Bursa Malaysia Berhad.

7. Dividend Survey 2006

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

The Survey covering the top 200 PLCs is being carried out in collaboration with Universiti Teknologi MARA. This Survey is expected to be completed by 31 December 2006. An Analysis Report, a supplement to the Survey is also currently being carried out.

The Survey has been tentatively scheduled for launching in February 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 Companies Commission of Malaysia (CCM), Securities Commission (SC) and Bursa Malaysia Berhad (BM).

(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.

(4) A Guide of Principles and Best Practices For Institutional Shareholders

A Guide of Principles and Best Practices for Institutional Shareholders is being finalised in line with Recommendation 112 of the Capital Market Masterplan. It complements the Malaysian Code on Corporate Governance and the “Green Book” which is a reference guide for Government-Linked Companies (GLCs) to upgrade the effectiveness of their Boards. The Green Book was launched by the Government in July 2006.

This Guide will provide Institutional Shareholders with a guide for the development of corporate governance standards in their investment policies and practices.

This Guide which has received the support from Securities Commission, Bank Negara Malaysia, Bursa Malaysia Berhad and Companies Commission of Malaysia is recommended for adoption and implementation by the Institutional Shareholders. This Guide should be used by the Institutional Shareholders to influence their investee companies towards improving performance and conformance.

In this Guide, the term “Institutional Shareholder” 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.

(5) MSWG’s Guide for Retail Investors

MSWG’s Guide for Retail Investors is a reference material designed to assist investors particularly retail shareholders to gain financial and commercial knowledge in understanding and interpreting a public-listed company (PLC)’s annual report.

The Guide 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.

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 : 15 November 2006