Corporate ownership and performance in Malaysia: Bumiputera and Non-Bumiputera companies

Abstract

The structure of share ownership in Malaysia is characterized by two distinct sets of shareholders: Bumiputera (indigenous Malays) and non-Bumiputera. The paper consists of two sections. In the first part, we analyze the share ownership structure of a sample of Bumiputera-controlled companies and compare the results with those for a matched sample of non-Bumiputera companies for the same period Several interesting features emerge which have implications for corporate policy and governance structures, especially in the light of recent proposals by the Malaysian authorities to make Kuala Lumpur an international financial centre. In the second part, the financial performance of the two sets of companies is analyzed and compared, and conclusions drawn about the relative performance of Bumiputera and non-Bumiputera companies The results are relevant to both academics and practitioners who are concerned with the structure and development of the corporate sector in Malaysia.