KPMG RECOGNISES PLCs FOR SHAREHOLDER VALUE CREATION

KUALA LUMPUR, Aug 21 (Bernama) -- The average economic profit over invested
capital (EP/IC) among Malaysian public-listed companies (PLCs) increased to
15.46 percent in 2008 from 14.35 percent in 2007, according to audit and tax
advisory firm KPMG.
The firm today recognised several PLCs in the country for demonstrating
exemplary shareholder value creation for the financial year ended 2008.
"The shareholder value creation, saw an upward trend despite the impact of
the global market turmoil locally," KPMG business advisory executive director
Anita Menon told reporters at 2008 KPMG Shareholder Value Award ceremony here.
She said consumer market, agriculture and plantations were among the sectors
that saw positive improvement in their shareholder value creation in 2008.
The award recognised companies across nine industries, comprising
agriculture and fisheries, financial services, infrastructure, consumer markets,
leisure, energy and natural resources, industrial markets, construction and
property, and information and communications technology.
British American Tobacco Bhd was declared to have the highest EP/IC.
On the outlook for next year, KPMG head of Malaysia financial services, Dr
John Lee, said the EP/IC for next year is expected to be lower due to the impact
of the global financial crisis.
Securities Commission chairman Tan Sri Zarinah Anwar, who officiated the
event, said delivering shareholder value was key towards achieving success in
today’s markets where competition for capital was intense.
"In other words, there is an increased awareness among companies that the
essence of shareholder value boils down to being able to set long-term
objectives and delivering them," she said in her speech.
The global nature of capital markets means that capital can easily migrate
to higher yielding, often foreign opportunities, Zarinah said.
"It is essential therefore that all companies understand and appreciate the
critical role that they play in building investor confidence and in ensuring
that the Malaysian capital market remains competitive," she said. -- BERNAMA
WNA LC