Malaysia may encourage merger of listed companies, PM says

2009/11/24

By Zainul Arifin

New York: The government may look at encouraging mergers of companies listed on Bursa Malaysia to make the exchange more attractive to foreign investors. Prime Minister Datuk Seri Najib Razak said this was the feedback he received when he met fund managers during his visit here.

"Size is important," he told Malaysian journalists when describing what was told to him by the investors.

Najib said he would bring up the matter to the Executive Committee of National Economic Action Council (NEAC) when he got back to study the possible implications of such a move.

A study would also be done on the free floats of shares in government-linked companies as the investors have suggested that a more liquid market would be of interest to them.

The government would look at the implications of, say, EPF, Khazanah or PNB reducing their stakes in the companies they have investments in.

"You don't have to have too much to retain control," Najib said.