Following the publication of a study on ‘Corporate Equity Distribution: Past Trends and Future Policy’ by the Centre for Public Policy Studies (CPPS) there has been public debate on the extent of ownership of equity capital by ethnicity in the Malaysian economy and the methodology employed by the government.

Central to the debate has been the divergence in the estimates contained in the Ninth Malaysia Plan and the CPPS study. The debate has revolved around two key issues, namely: what should be incorporated in the calculation of equity and the basis of valuation.

Public discussion has been further fueled by the release of new estimates, along with some information on the methodologies used by the Economic Planning Unit (EPU) of the Prime Minister’s Department.

In addition to the CPPS estimates and those issued by the government, a study conducted by Dr Fazilah Abdul Samad of the Universiti Malaya has also become available.

	Origins of equity targets
	GLCs should be included