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In recent years, Malaysia has witnessed a peculiar trend in its corporate landscape: public listed companies making significant investments in other public listed companies, often without meaningful core activities of their own. While cross-shareholdings are not new, the scale and frequency of such investments have raised eyebrows, sparking discussions about their implications for the economy and corporate governance. Explore the intricacies of this trend, its implications, and the challenges it poses in terms of transparency, governance, and market stability.

In its recently published Annual Report 2023, the SC reiterates its stance to proactively monitoring the conduct of public-listed companies (PLCs) through its surveillance efforts to ensure compliance with securities laws and regulations, with the aim to safeguard the interests of investors and maintain the integrity of the capital market.

The regulator said fundraising via share issuances by PLCs and disclosures on corporate transactions remain its key priorities in the near future.

MSWG Weekly Newsletter 05 April 2024 

PLCs frequently issue new shares through placements or rights issues to meet specific funding requirements, such as acquisitions, working capital, or debt repayment. Moreover, companies may utilise various share issuance schemes (SIS) or ESOS to reward and retain their employees.

While equity fundraising is common for PLCs, it is imperative for minority shareholders to scrutinise how the proceeds are utilised carefully. Minority shareholders should pose pertinent questions whenever investee companies propose to issue new shares

MSWG Weekly Newsletter 29 March 2024

Warren Buffett’s annual letters to shareholders are masterclass in investing. His letters are candid, clear, transparent, and full of wisdom. A must-read for investors and CEOs.

In the recently released 2023 letter to shareholders of Berkshire Hathaway, Buffett paid tribute to his long-time partner, Charlie Munger, who passed away in November last year.

And as usual, he sprinkled some investing lessons throughout the letter.”

The scale and pace of change required to stave off the worst impacts of global warming will be more disruptive and costly than expected, especially when it is almost certain that climate change is here to stay.

Amidst rising temperatures, investors and businesses face unprecedented challenges in integrating the potential climate impacts into their decision-making processes and risk assessments.