• Celest Wan Youu

Analysis of Bursa Malaysia

Among all of the listed companies in Bursa Malaysia, there are a lot of family businesses that dominate a huge proportion of the Malaysian market such as the Berjaya Corporation Berhad, IOI Properties Group Berhad and Genting Berhad. Many stated that the rich will become richer while the poor will become poorer over time. In my opinion, it is not an excuse for us to slack just because we are not born in a wealthy family. The efforts and determination of the older generation shall not be neglected and we should learn more from their past experiences and as motivations that push us forward.

Busy directors which sit on the board of numerous companies raise concerns on whether the directors have sufficient time to contribute to the strategic development of each company. The majority of the directors will be busy serving in the listed company of their Group and also their own subsidiaries. In addition, related party transactions could hurt the shareholders’ interests as the flow of money from surplus to the deficit will affect the mother company’s profitability. Based on the research, most of the directors which are running a family business will be less likely to serve on the board of other unrelated listed companies.

It has been found out that most of the listed companies in Malaysia are led by a majority of Chinese, followed by Malay, foreigners then Indian. According to an article written by Nurwati A Ahmad-Zaluki in 2012, Chinese ethnic group accounts for 57% of board seats, followed by Malays, Indians and Others while foreigners account for 7% of board seats on average. This could be contributed to the Main Market Listing Requirements (MMLR) which requires companies to allocate at least 12.5% of their enlarged issue or paid up share capital to Bumiputera investors. Currently, all corporations seeking listing must meet the 25% public spread requirement under the Bursa Malaysia Listing Rules. Corporations with Malaysian-based operations seeking listing on the Main Market are required to allocate 50% of the public spread requirement to Bumiputera investors at the point of listing.

*Paid up share capital: Amount of money a company has received from shareholders in exchange for shares of stock.

*25% Public spread requirement: An applicant must have at least 25% of the total number of shares or units for which listing is sought in the hands of a minimum number of 1,000 public security shareholders or unit holders holding not less than 100 shares or units each.

To be honest, it is merely unfair for those entrepreneurs or founders of a certain race to include another race in their board of directors. Not only that it creates a sense of comfort for the privileged race, it discourages innovation and competitiveness among races. Although MMLR has mandated Malays to be included in the board of listed companies, Malay public investors are still lacking compared to investors of other races. In another word, it is undeniable that the majority of Malays still lack awareness in utilising their opportunities and privilege. In order to achieve more unity in the sense of economy, Malays should step out of their comfort zone and start venturing into wealth generating activities.

On the other hand, listed companies which include Cuscapi Berhad, Daya Materials Berhad, Dolphin International Berhad, Eden Inc Berhad, Impiana Hotels Berhad, Khee San Berhad and Khind Holdings Berhad fail to issue their annual reports for financial year 2019. According to my research, those companies are all having severe financial difficulties or even dealing with lawsuits. Thus, investors should be alarmed that when a company does not issue their annual report on time, it might not be a valuable investment.

Besides that, there are 23 companies which are currently under Practice Note 17 (PN17). It is issued by Bursa Malaysia to companies which face financial difficulties. In order to maintain the listing status, companies under PN17 will be required to submit their proposal to the Approving Authority to restructure and resurrect the company. If the management team decides to give up on the company, the company will be delisted and face bankruptcy.

By the way, it may be beneficial for a corporation to have subsidiaries working in the same business line. A great example will be CAB Cakaran Corporation Berhad, which has its direct subsidiaries working in the food industry such as the trading and distribution of meat products, fast food franchising and poultry. Another corporation that owns subsidiaries related to its major business line is Carimin Petroleum Berhad. Thus, it could help the Group to save cost as most of the business transactions are within its own subsidiaries.

Furthermore, the concepts and differences between companies being listed on Main Market, ACE Market and LEAP Market should be learned. Main Market is a major market for those established companies which already met the standards from different aspects such as quality, size and operations. For companies listed under the Main Market, investors can easily trade the companies’ shares through various platforms. Meanwhile, ACE Market is a sponsor-driven market, creating fundraising opportunities for companies with favourable growth prospects. Companies that are more industry-specific such as the technology industry which aim to be listed in Bursa Malaysia will do so at the ACE Market. In contrast, LEAP Market is an adviser-driven market which helps to provide emerging small and medium enterprises (SMEs) with greater visibility and fundraising access from the public, through the capital market. In addition, the companies’ shares are accessible only to sophisticated investors (high net worth: RM3 million)

Moreover, investors might be curious on the way of subscribing to an initial public offering (IPO). Firstly, investors can register with a stockbroker then channel funds to their brokerage accounts. When the IPO is launched, investors can then contact their brokers or purchase the desired amount of shares via online. For instance, there is an “investment” option in the xxxBank application which investors can select the option of “eShare”. Thus, investors can select and apply for their desired IPO. Lastly, investors should read the terms and conditions before agreeing to perform the transaction and perform trading based on their risk tolerance.

Due to the pandemic of Covid-19, the world economy deteriorated significantly, so does the stock market. Regardless of S&P 500, Dow Jones Industrial Average nor Kuala Lumpur Composite Index (KLCI), the stock prices of the majority of companies have fallen. Therefore, it is a great opportunity for individuals to invest in the stock market as the stocks now are generally selling at discount. In addition, it is never costly nor difficult to start investing. Everyone could start to spare out a proportion of money to purchase stocks by now and to earn profits when the market becomes stable and stock prices begin to rise in the future.

在众多的马来西亚上市公司中, 是有很大一部分的市值是被各个家族所霸的。其中著名的上市公司,且由自家族所领导的公司有:Genting集团,Berjaya集团和IOI 地产集团。许多人都会把贫穷怪罪于本身不出生于一个富裕的家庭,而“富人会变得更富有;穷人会变得更穷”此句,也是耳熟能详的。然而,我认为我们不应该怨天尤人,因为认命就等于认同了自己的失败。那些所谓成功的大集团,如果没有后人用心的维系,前人努力的耕耘也将化为泡沫。我们应该从那些成功的案例中探讨前人成功的过程,吸取宝贵的经验,才是真正对我们的未来有所帮助的。

从接近1,000家上市公司的调研中,我们发现有许多公司董事也在许多其他的上市公司中担任董事长一职,尤其是大部分母公司的董事长们也同时管理着许多旗下的子公司。这让人不禁担心多重职位在身的董事长们是否会被其导致身心俱疲,无法全心管理一家公司,使其发展得更好。除此之外,公司之间的“互惠交易”(例如说叔叔的酒店食物由侄子的食物产业公司供给)也对投资者存在一定的威胁。这是因为资金链的流动会一直从收益的公司流动到有资金缺口的一方,忽略了上市公司最重要的目标:注重投资者们的收益。

此报告也像发表关于马来西亚上市公司,由各个家族所掌控的种族分布。虽然上市条规中已明确指定各个上市公司都必须有各个种族组成的董事长们,值得探讨的一个课题是掌管着在2019至2020年,最多控管各个上市公司的种族依然是华人、接着到马来人、外国人,最后才是印度人。根据Nurwati A Ahmad-Zaluki在2012年所发表的文献,有57%的董事长都是由华人组成,而外国人平均占了7%。在马来西亚上市条规中写道:上市公司必须分发最少12.5%的股资(公司从派出股票给投资者们收获的前)给原住民。现今凡是要上市在马来西亚的公司都必须达标于25%的公众所拥估值(最少25%的股票总值或单位是被1,000位投资者所持,并各拥有不少过100个单位)

以旁观者的角度而言,那些辛勤奋斗的企业家因上市条规而必须让其他种族的董事加入,对他们是绝对不公平的。这不只会无形中为有特权的种族们建造一种“虚假安全感”,还会让马来西亚的国民竞争力降低。虽然马来西亚上市条规已让每个上市公司都必须包括马来同胞的投资者和董事,相较与其他种族的投资者们,马来投资者还是相对少的。这是因为长久以来的马来族群大多都不自觉于本身所拥有的特权和机会。如果国家要更好的发展,马来同胞必须踏出舒适圈,开始朝财富积累迈进。

此外,有数位上市公司并没有公布2019财务年的总结报告,例如有Cuscapi Berhad, Daya Materials Berhad, Dolphin International Berhad, Eden Inc Berhad, Impiana Hotels Berhad, Khee San Berhad 和 Khind Holdings Berhad。这些公司都面对着相似的难处,像是公司基金周转不灵或正打着官司。投资者们可以从这些案例中清楚地认知到,当一间上市公司长时间没有公布年度报表,很大可能那件上市公司正面对着极大的外部或内部问题,并不适合投资。

现今有23间上市公司正面临”Practice Note 17”。此警告是由Bursa Malaysia所发出的,给与正面临经济困难的上市公司。若是其公司想维持上市的状态,它需重新编排公司内部系统与人事,向有关单位呈交提案,以拯救其公司。若是公司内部决定放弃,其公司将面临移除上市状态,并倒闭。

我们也发现许多成功,大规模的上市公司一般都会发展与其母公司产业有关的子公司,就像是 CAB Cakaran Berhad的子公司们都专注于食物产业,包括食物运送,动物养殖和快餐等。另外一个例子是Carimin Petroleum Berhad, 其子公司专注于各种石油提炼、加工、运送等。母公司于子公司在同一个领域运行最明显的好处就是可以把绝大部分的开销和利益都流转于自己的集团,印证了肥水不流外人田的名句。

投资者们也应该了解马来西亚股票市场:主要市场,ACE市场和LEAP市场之间的差别和特质。主要市场有那些相对稳定,有一定规模,管理品质的上市公司,投资者们可以通过各种平台注资。ACE市场一般上由特定行业领域的公司组成,例如说科技公司。相反的,LEAP市场是由较新的中小型企业所组成,有着较高的风险。此市场只为高端投资者(身价超过马币3亿令吉)而设。

接着,一部分的新手投资者们也常对如何买入首次公开募股的方法而感到好奇。其实,投资者们可以向中介登记所要买入的股票,然后进钱到他们的投资户口。当首次公开募股开始,投资者们就可以告知中介,让中介替他们买入其股票。另一种方式是投资者们通过网银的投资选项,选择“投资”,再选择“网股”,便可以登记所要买入的股票。最后,投资者们需注意投资条款,与衡量其风险与回报,做个明智的投资者。

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