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Is There Something Wrong With The Government's Privatisation Policy That The People Get Only An Estimated RM 8 Million From The RM 2.5 Billion Profits Expected To Earned By Telekom Malaysia In 2004? Press Statement by Lim Guan Eng (Petaling Jaya, Tuesday): I had earlier asked Energy, Water and Communications Minister Datuk Dr Lim Keng Yaik to explain why Tenaga Nasional Bhd's estimated 2004 return of investment to the government has dropped 90% from its earlier estimate of RM 74.5 million to only RM 7.2 million. To-date Datuk Dr Lim has refused to explain the shockingly low return of investment of only RM 7.2 million to the government when Tenaga is expected to make more than RM 1.1 billion net profit in 2004. Today I wish to call on Datuk Dr Lim to explain why Syarikat Telekom (M) Bhd estimated 2004 return of investment has also dropped 92% from its earlier estimate of RM 98.3 million to only RM 8 million. According to the Ministry of Finance Report Of Estimates of Government's Revenue 2005, Telekom was estimated to contribute RM 98.3 million in 2004 before being revised downwards by RM 90 million to only RM 8 million. In contrast Petronas original return of investment to the government in 2004 of RM 5.6 billion was revised upwards by 68% to RM 9.1 billion. Telekom's contribution to the government of only RM 8 million for 2004 is too low when the government is a majority shareholder of Telekom and Telekom has the second largest market capitalisation in the KLSE at RM 35.62 billion as at 30.8.2004. Likewise Tenaga's contribution to the government in 2004 of only RM 7.2 million is too low when the government owns up to 80% of Tenaga and Tenaga has the third largest capitalisation in the KLSE at RM 31.5 billion as at 30.8.2004. TELEKOM Malaysia Bhd declared its highest ever dividend of 20 sen per share in 2003 when 2003 full-year net profit rose 65 per cent to RM1.39 billion. Profits for the year 2004 is expected to be up to RM 2.5 billion. This follows TELEKOM Malaysia Bhd's 2004 half-year net profit of RM 1.50 billion up from RM 557.5 million for the previous 2003 half year. With such increase in profits of up to RM 2.5 billion in 2004, it is puzzling why the government is estimating a return of investment from Telekom of only RM 8 million! On 11 September 2004, it was reported in the Malay Mail that CLSA Ltd, the Asian Investment banking arm of France's Credit Agricole SA, recommended investors buy shares in Tenaga Nasional Bhd and Telekom Malaysia Bhd saying "these organisation have been so badly run that any change will go to the bottom line." In other words, Tenaga and Telekom have been so badly run that things just can not get any more worse. Datuk Dr Lim Keng Yaik must explain the reason for the downward revision of over 90% for both Tenaga and Telekom. It is not acceptable that as owners of our country's supplier of electricity and telecommunications, with tens of billions of ringgit in assets and combined profits of more than RM 3.5 billion, Malaysians obtain a return to the government of only RM 7.2- RM 8 million each. Is there something wrong with the government's privatisation policy that the people get back so little from so much profits earned? (21/9/2004) * Lim Guan Eng, DAP Secretary-General