The business sections of the local daily newspapers and other publications covering finance, financial planning and business are also good sources of information.

For example, it was a review in an English weekly that highlighted the fact that a PLC was diverting RM404 million to a sister unit for interest instead of rewarding shareholders with higher dividend pay-outs or bonus-share issues. Although the transaction was not illegal, the minority shareholders who were unhappy with the transaction berated the board at the annual shareholders’ meeting over this issue.

RAM and MARC – Some PLCs also issue debt securities as an alternative means to obtain financing from the market. While there is no requirement for bonds to be rated, currently all debt issues in Malaysia are rated by either the Rating Agency Malaysia (RAM) or Malaysian Rating Corporation (MARC).

Bond ratings are designed to help investors assess the issuing company’s creditworthiness, i.e. ability to service payments on time. Bond ratings are reviewed and updated periodically throughout the life of the bond. Shareholders of PLCs that have bond issues could use these ratings as indicators of how well the company is doing; for example, a company put on rating watch or is downgraded could signal deterioration in the company’s business.

You would be able to find the latest issuer rating information on the websites of RAM (www.ram.com.my) and MARC (www.marc.com.my). Rating announcements are also published from time to time in the business sections of the daily newspapers.