Political Concept Stocks in Malaysia

Level 3 - Strategy - Thematics Investing

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Dion Chai, Research Analyst

Reviewed By Charlie Yuan Ting Jing, CFA, CQF

Political concept stocks

A political concept stock can be called a government-linked stock. Listed companies that are directly or indirectly related to political parties are considered to be political stocks. These stocks are mostly impacted before, during as well as after the general election.

How can a stock be considered as political stocks? (sparksparkfinance)

a political party directly owns shares in a company
a politician used to own shares in a company or used to be a director of a company
a politician's family member owns the shares in a company
specific relationship between politicians and the company directors eg best friends or siblings

Political party

Source: Wikipedia.

Government-linked stocks

MYEG (0138)

Datuk Dr Norraesah Mohamad is the executive chairman of MYEG. She has a 0.73% equity interest in MyEG and used to be an Umno supreme council member.
Datuk Seri Dr. Ahmad Zahid Hamidi was suspected of accepting millions for awarding MYEG in a corruption investigation.

Employees Provident Fund (EPF) - 6.21% shares of MYEG Kumpulan Wang Persaraan (KWAP) - 6.17% shares of MYEG

MRCB (1651)

MRCB, engaged in construction-related activities, environmental engineering, real estate development, real estate investment and the provision of management services to its subsidiaries. It is also the KL Sentral developer.

The company‘s executive director Tan Sri Mohamad Salim Fateh Din is a good friend of Dato' Sri Haji Mohammad Najib.

Employees Provident Fund (EPF) - largest shareholder of MRCB

DESTINI ( 7212)

DESTINI is the provider of integrated engineering solutions for aviation, national defence, sources of energy, railway and companies in the marine sector.

Datuk Rozabil Abdul Rahman, one of the UMNO members, is the executive director of DESTINI.

Malaysia's finance Ministry - 12..2% shares of DESTINI

Other government-linked stocks

Stocks
FGV (5222)	Subsidiary company of the Federal Land Development Authority (FELDA)
SASBADI (5252)	Government Education Contract- Mainly engaged in the publishing and printing of textbooks for primary and secondary schools in Malaysia
HTPADU (5028)	Domestic IT companies. Most of the shares are held by Permodalan Nasional Berhad (PNB) which is one of the instruments of the Government's New Economic Policy. The Government successfully extended two Land Transport Authority (JPJ) contracts with HEITECH, worth a total of RM23.72 mil.
YTL (4677)	Awarded part of the contract to build the Kuala Lumpur-Singapore high-speed railway line
GAMUDA (5398)	Awarded part of the contract to build the Kuala Lumpur-Singapore high-speed railway line
IJM (3336)	IJM wins RM258m construction contract for East Coast Rail Link (ECRL) project
HSSEB (0185)	HSSEB wins RM17mil for East Coast Rail Link (ECRL) project
BHIC (8133)	Government military contracts - BHIC has secured an RM15.72 million worth of contract from the Ministry of Defence (Mindef).
AWC (7579)	Government Facilities Management contract -AWC has bagged an RM62.23 million job to provide five years of clinic support services to the Ministry of Health (MOH)

1. Dato' Sri Ismail Sabri

DATAPRP (8338) and SEDANIA (0178)

DATAPRP provides consulting and information technology services, including telecommunications, financial services and products to the government and other small and medium enterprises. They mainly provide ICT products and services as well as payment solutions and services.

SEDANIA mainly focuses on green technology and healthcare technology businesses.

United Malays National Organisation (UMNO)

DSONIC (5216)

DSONIC is the provider of the polycarbonate MyKad to the National Registration Department (NRD) and the polycarbonate datapage of passports to the Immigration Department of Malaysia.

Datuk Seri Dr. Ahmad Zahid Hamidi was suspected of accepting millions to assist DSONIC in obtaining a government contract for passport chips worth RM12.5m.
Datuk Abu Hanifah Noordin is the executive chairman and is said to be linked to UMNO. He holds an 8.1% stake in Datasonic.

KUB ( 6874)

KUB is the provider of liquefied petroleum, oil palm plantation, ICT equipment, and land engineering

Datuk Seri Johari, one of the UMNO members, is the company's chairman and largest shareholder. On the other hand, Anchorspace, which is controlled by two other UMNO members, also has a 10.5% stake in KUB.

MEDIA (4502)

MEDIA owns TV（TV3, NTV 7, 8TV, TV9, WowShop), newspapers (New Strait Times, Berita Harian, Harian Metro), the RevMedia Group, Big Tree (outdoor advertising), and Primework Studio.

Datuk Seri Johari is one of the UMNO members. His private vehicle, Jag Capital Holdings Sdn Bhd, has 20% shares of MEDIA.

Other parties-linked stocks under Barisan Nasional (BN)

Malaysian Chinese Association (MCA)

Stocks	Party
STAR (6084)	MCA, the largest shareholder, has a 43.23% stake in the company.
RESINTC (7232)	Managing director Datuk Cheng Keng Poh is the MCA Klang District Association chairman
MATANG (0189)	Huaren Holdings Sdn Bhd is the investment arm of the MCA. It is the largest shareholder of MATANG.
FAJAR (7047)	Tan Sri Chan Kong Choy is the chairman of the company which is also the former transport minister under MCA.
PECCA (5271)	MCA’s Huaren became a substantial shareholder after acquiring 6.18% of the company.
CGB (8052)	Chiew Hian Tat, the substantial shareholder and candidate for MCA during the previous election.
JIANKUN (8923)	Executive director Datuk Saiful Nizam Mohd Yusoff, son-in-law of Datuk Seri Dr. Ahmad Zahid Hamidi has been reappointed as deputy executive chairman of JIANKUN

2. Dato' Seri Haji Anwar

MUIIND (3891) and ASB (1481)

MUIIND, is a Malaysian investment holding company which is involved in retail, real estate, hospitality, and food production. Farizon binti Ibrahim, is one of the company's directors who is also Datuk Seri Anwar’s sister. MUIIND's subsidiaries including MUI PROPERTIES (3913), PMCORP (4081) and PMHLDG (1287) are also listed in Malaysia.

ASB is an investment holding company that trades plastic bottles and containers, develops properties, trades sawn timber, and operates sawmills and hotels through its subsidiaries. Datuk Farizon Ibrahim, the younger sister of Datuk Seri Anwar is on the board of directors.

Other parties-linked stocks under Alliance of Hope (PH)

Democratic Action Party (DAP)

Stocks	Party
IHB (7240)	Company that was earlier implicated in the Penang Undersea Tunnel project - related to Lim Guan Eng, the chairman of DAP.
EWEIN (7249）	Company that was earlier implicated in the Penang Undersea Tunnel project - related to Lim Guan Eng, the chairman of DAP.

3. Tan Sri Dato' Haji Muhyiddin

EDEN (7471) and THRIVEN ( 7889)

Datuk Fakhri Yassin Mahiaddin, Muhyiddin's son, who is the director of Eden and Thriven.

Eden is involved in the Energy Components division, Food, Beverage (F&B) and tourism sector, as well as property leasing.

Thriven was involved in property development.

4. Tun Dr.Mahathir Mohamad

BJCORP (3395), OPCOM (0035), and DRBHCOM (1619)

BJCORP is a diversified group with businesses including hotels, retail, gaming and property. Chairman Chan Chi-yuen has a good relationship with the Mahathir family.

OPCOM is engaged in building leasing and provides management services to its subsidiaries as well as an investment holding. Datuk Seri Mukhriz, son of Tun Dr.Mahathir Mohamad, is OPCOM’s largest shareholder.

DRBHCOM is a diversified conglomerate with major interests in automotive, services and real estate. Tan Sri Syed Mokhtar Albukhary, who has a close relationship to Tun Mahathir owns 56% shares of DRBHCOM.

References

Author

This article is written by Dion Chai, Research Analyst

Dion Chai is a fresh graduate student majoring in Finance and Investment in Tunku Abdul Rahman University of Management and Technology (TAR UMT). Dion once participated in the CFA Research Challenge and Trading competition organized by Malaysian Finance Expert Convention 2022. She is an in-house author from TED Optimus.

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Political concept stocks
Political party
Government-linked stocks
Other government-linked stocks
1. Dato' Sri Ismail Sabri
United Malays National Organisation (UMNO)
Other parties-linked stocks under Barisan Nasional (BN)
2. Dato' Seri Haji Anwar
Other parties-linked stocks under Alliance of Hope (PH)
3. Tan Sri Dato' Haji Muhyiddin
4. Tun Dr.Mahathir Mohamad
References

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Political Concept Stocks in Malaysia

Political Concept Stocks in Malaysia

Political concept stocks

Political party