SOS Billion Ringgit Companies In Malaysia?

"Why Are There So Few Billion Ringgit Companies In Malaysia"

35% of the Market Capitalisation of the Bursa principally came from the Banking and Plantations. It is rather unusual to have the Banking sector being a significant contributor to the stock index. In NYSE, 10 years back, the banking sector contribute about 15% of the NYSE. Today, before the financial crash in 2008, it contributed as high as 22 at its peak%. It would be interesting to find out the ratio of Financial Index over the total market capitalisation of Bursa Malaysia. As at 30 June 2010, the financial stocks market capitalisation is about RM200b as against total market capitalisation of Bursa is RM1,000b. Hence, the ratio of financial stocks is about 20%. And plantation sector is about 15%.

Other significant Market Capitalisation of Bursa are namely monopolistics or GLC type [about 20%], such as Maxis (4%) TNB (3.6%), Telekom Malaysia (3.1%), Petronas Gas (2%), MISC (4%), MMC, YTL Group (3%), etc.

Coming back to the question of so few billion ringgit companies in Malaysia is a combinations of various factors listed below:

1. lack of meritrocracy in education


2. corruption in politics


3. deficit in leaderships


4. Ineffective policies


5. Big government


6. Signifcant beauracracy in business


7. Marginalised minority


8. Security issue


9. Racial instability


10. Questionable justice system

Hence, due to the above factors, they became a deterant for businessman to reside in Malaysia and also discourage talent to stay here due to lack of opportunities.