01 April 2008

There are thousands of public companies listed on many stock exchanges all over the world. Global investors have many choices when it comes to investing in listed companies and many more choices with other forms of investment. In today’s global world, investment capital is borderless and mobile, and will go to the best companies. Like migrant birds, it will seek safe havens and good nesting grounds. At the same time, capital is a finite resource, and often the same capital is being sought by many companies.

In Malaysia, there are over a thousand listed companies. Many of these companies that aspire towards growth are vying for the attention of investors, be they analysts and fund managers of local and foreign institutions or the investing public, in order to sustain the growth.

Yet, many listed companies find it difficult to attract investment capital. Some assume investors will come, as long as they post good financial results. They do not realise that investors require not only quantitative information, but also qualitative disclosure, including guidance on future strategies, to make their decisions.

At the same time, various corporate actions by listed companies give out varying signals to the market. Investor reaction is often not aligned with their corporate action.

Investors, on the other hand, often lament that not enough information comes across to them. Whilst they are keen to part with their investment funds, not enough quality information is received that would allow them to make good investment decisions.

Our challenge is to promote and enhance the transparent and continual flow of corporate information out of listed companies that allow investors to understand the value of investing in them. At the same time we encourage the investment community to expect and demand for timely and in-depth information from listed companies.

This two-way relationship will allow investors to make informed investment decisions and help listed companies be assured of investor support.

By the way, this month we will have an interesting event called “Media Coaching”. It’s about understanding how the media (print, broadcast and wire services) works, how to engage them effectively, how to get your messages across, and how not to be misquoted! Watch out for it under our Upcoming Events

Eddie Razak
April 2008

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