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business
‘Make annual reports easier to read’
by Eva Yeong
newsdesk@thesundaily.com
KUALA LUMPUR: The Minority Share-
holder Watchdog Group (MSWG) has
underlined the importance of companies
to be transparent and to disclose as much
information as possible and in a clearer
Bushon ... transparency manner so that investors can make well-
to me is ease of informed decisions.
information reading. Its chief executive officer Rita Benoy
Bushon said as an example, annual reports
disclose a lot of information but are not
transparent.
“Transparency to me is ease of informa-
tion reading,” she said, adding that sev-
eral companies have taken the initiative to
provide condensed versions of its annual
reports for easier reading.
Bushon, who joined MSWG as its
CEO on Jan 1 this year, said for effective
shareholder activism, there is a need to
continuously educate shareholders, mak-
ing them knowledgeable and responsible
to raise relevant questions to the board of
directors during annual general meetings.
“As you know, MSWG is a body set up
to enhance shareholder activism and to
protect minority interest. We aim to reach
out to the community at large to play its
part in raising investor education standard
in Malaysia, to support and complement
other initiatives undertaken by the regula-
theSun | MONDAY JULY 27 2009
tors,” she said.
She advises investors to take on a more
proactive role by going to AGMs and asking
relevant questions in order for companies to
be more transparent.
“If you care, the company will respond. You
cannot be complacent,” she told theSun in a
recent interview.
On the economic outlook, Bushon said
the market is already taking a slightly upturn
swing.
“Malaysia has the advantage of having palm
oil, and oil and gas. Now our service industry
has to be upgraded which is already going
towards that direction,” she said, adding that
several aspects such as liberalisation of the
financial sector and capital market bode well
for the economy.
“The prime minister’s efforts are all good,
but it will take time before we see any relief,”
she said.
Bushon, who remains optimistic about the
economy, feels that it is a “well-kept secret”.
“I believe we are a blessed nation. We are a
secret well-kept. Only companies who see the
fundamentals of our country will enjoy it. Now, we
need to expose the secret, tell it to the world.”
She also had some words of advice for
investors.
“Investing is different from speculating.
Some people take it as speculation but I think
everyone should have risk averseness. Inves-
tors must be savvy when making decisions on
investments, don’t just go by rumours. Look
into the company’s fundamentals,” she said.
“An investor with the right knowledge and
information can make a difference between
losing his capital in bad investments and reap-
ing steady profits from the ones with strong
fundamentals.”
Therefore, the best way to safeguard one’s
investment is to be a well-informed investor.
Investors who do not understand the invest-
ment risks may stand to lose their hard earned
money in bad investments, or can become
gullible to be easily taken advantage of by
unscrupulous market players, she added.
According to Bushon, this is the best time
to buy with the economy at a downturn and
investors should look at companies with strong
fundamentals despite having its prices bashed.
“Investors should take advantage of this
situation to accumulate for the longer term.
In the next few years, prices should come up
again. Don’t go on short-term basis.”
Bushon also advised investors to look at
their financial planning and their age profile
before making any investments.
“When you are younger, you can afford to take
risks because you’ve got a longer time period,
and in whatever circumstances, a certain amount
must be set aside for your retirement, for your
children’s education and for everyday living.
“Use your spare money to invest, and you can
invest in property so that at the end of the day,
you have a roof over your head,” said the former
executive director of Land & General Bhd.
Al-Rajhi Bank to
set up branch in
Sabah next year
KOTA KINABALU: In proving their commitment
to expand its banking network into Sabah, a
group of Al-Rajhi Bank staff are attempting to
set a record for being the first bank in Malaysia
to perform online transactions today from the
peak of Mount Kinabalu.
Once successful, the bank will be endorsed
as the first bank in Malaysia to perform online
banking transactions from the country’s high-
est altitude.
The manager for the record-breaking project,
Mohd Najid Yahya, who is also Al-Rajhi Bank’s
senior vice-president for business intelligence,
said one the objectives of the project was to
send a message to Sabahans that the bank was
coming to the state soon.
“We plan to have at least one branch in
Sabah by the first quarter of next year,” he told
Bernama in an interview yesterday.
Najid said the bank had been given licences
to open 50 branches throughout the country by
Bank Negara Malaysia.
Having started operations in Malaysia for
almost two years now, the bank currently has
19 branches in the country, 14 in the Klang Val-
ley and one branch each in Kota Baru, Johor
Baru, Malacca, Penang and Kuching.