Political Concept Stocks in Malaysia
Dion Chai, Research Analyst
Nov 24 2022
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)
Related politicians
- 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.
Government-related institutions
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.
Related politicians
The company‘s executive director Tan Sri Mohamad Salim Fateh Din is a good friend of Dato' Sri Haji Mohammad Najib.
Government-related institutions
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.
Related politician
Datuk Rozabil Abdul Rahman, one of the UMNO members, is the executive director of DESTINI.
Government-related institutions
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.
Related politicians
- 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
Related politicians
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.
Related politician
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
- 张润萍. (2022, June 29). 9月大选风声不断 政界大佬们，有哪些关联股值得留意? 老板好.
- 国内政局不稳定, 马华概念股起飞在即Klse.i3investor.com.
- 官联股. (n.d.). Klse.i3investor.com.
- Bursa and Malaysia Politics related counters before GE. (n.d.). Klse.i3investor.com
- October 17, E. L. / T. E. M., & Pm +08, 2022 14:00. (2022, October 17). Stocks that could be impacted by GE15. The Edge Markets.
- Yeon, S. (2022, October 21). 大馬第15屆大選要來了！來看看政治概念股有哪些？. Spark Spark Finance.
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.
Disclosure
Information and articles provided by The Trade Wizard (TTW) are for general knowledge and educational purposes only. They do not constitute an offer, recommendation or solicitation to enter into any transaction. This article has not been prepared for any particular person or class of persons and it has been prepared without regard to the specific investment or insurance objectives, financial situation or particular needs of any person. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product or investment for you. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you are fully responsible for your investment decision, including whether the investment is suitable for you.
To the best of our knowledge, all content is accurate as of the date posted. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. This commentary may contain forward-looking statements, which by definition are uncertain. Actual results could differ materially from our forecasts or estimations. The Trade Wizard (TTW) will not be held liable for the use of and reliance upon the opinions, estimates, forecasts, and findings in this article.
The author(s) may have a beneficial position in the shares mentioned above (if any) either through stock ownership, or other derivatives. He(She) wrote this article on a personal capacity, and expressed personal opinions. He(She) is not receiving compensation from the listed company covered in this article (other than from The Trade Wizard (TTW)). He(She) has no business relationship with any company whose stock is mentioned in this article.
Table of Contents
- 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