EQUITY METHODOLOGY - WILL IT BE RESOLVED - WHAT IS THE ACTUAL FIGURE?
Since the last 'great drama' involving ASLI, it was recently reported that way back in 2002, the Universiti Malaya research study had revealed that the bumiputra corporate equity in 1997 stood at 33.7%, way above the New Economic Policy target of 30%. But until todate, the Prime Minister, Datuk Seri Abdullah Ahmad Badawi who had told the rakyat on his arrival from Mecca after performing his 'umrah' recently (16 October, 2006) that they will let the rakyat know how the Economic Planning Unit (EPU) of the government had derived at its figure of 18.9%, which was used as a basis in order to extend the implementation of this policy for another 15 years to year 2020 in the 9th Malaysia Plan.
The latest report pertains to the research conducted in 2002 by Universiti Malaya academician Dr M Fazilah Abdul Samad, and it was based on a 10-year analysis of bumiputera equity ownership between 1988 and 1997 of public listed companies on the Kuala Lumpur Stock Exchange (KLSE) and it revealed that the bumiputera equity ownership target in 1997 was at 33.7% and this calculations had relied on figures calculated by the Economic Planning Unit (EPU) that is based on the par value of shares of the registered companies in Malaysia. Researchers had criticized this methodology methods since it does not represent the current actual value of the stocks and the figure derived could be much higher if current market methodology were used which should be the correct method used in deriving at the equity figure.
Basing on the above factors, the likelyhood would be that ASLI's latest report could be true but the government does not want to admit it. The government fears that the malays will vote against UMNO or Barisan Nasional in the coming polls if this privilege is withdrawn. The malays have been thriving due to this incentive and had never learnt to stand on their own two feet. It seems the New Economic Policy had actually failed in its 'real' objective.
When will the government or Prime Minister Datuk Seri Abdullah Ahmad Badawi reveal the government methodology of 18.9%? or does he fear that the rakyat will brand him and his cabinet a 'lier' for not telling the truth.