Sprucing up Malaysian listed companies with PLCT

Recently, Bursa Malaysia Bhd, which operates the stock exchange, undertook an analysis of 39 major public-listed companies (PLCs) in key sectors, which collectively make up 50% of the total market capitalisation on the local bourse. The study, dubbed Assessment of Corporate Malaysia, compared the 39 companies’ performances for two time periods from 2004 to 2015 and from 2016 to 2020 and found that during the first period, the companies performed better than in the last five years, despite the market downturn of 2008 and the crude oil glut of 2014. According to the study, the benchmark FBM KLCI’s earnings per share has been muted since 2007-2009, the index’s earnings have declined by 34% since 2017, and the compound annual growth rate (CAGR) from 2016 to 2020 was -5.4%. On the back of these findings, Finance Minister Tengku Datuk Seri Zafrul Aziz during his special address at InvestMalaysia 2021 announced a PLC Transformation (PLCT) programme to be spearheaded by Bursa Malaysia and hinged on five tenets the PLCs are to be performance-driven; grow as sustainable, socially responsible and ethical organisations; have improved corporate governance; be digitally enabled, and support the nation-building drive to advance the economy.