While many retail investors may feel
good with a hefty dividend pay-out that are higher than the current 12-month
fixed deposit rate (averaging 3%), some major shareholders are gleefully amused.
According to The Edge, eight of
Malaysia’s top 10 richest tycoons earned RM1.99 billion worth of dividends from
the recently announced financial results for the quarter ended Dec 31, 2020.
Of the eight tycoons, Public Bank Bhd
founder Tan Sri Dr Teh Hong Piow is expected to receive the biggest dividend
pay-out totalling RM668.18 million from his shareholdings in the bank and
insurer LPI Capital Bhd. Teh holds a 22.78% stake in Public Bank and 44.15%
stake in LPI Capital.
Hong Leong Group’s Tan Sri Quek Leng
Chan, after Teh, is estimated to receive RM296.05 million worth of dividends
from Hong Leong Financial Group (HLFG) and Hong Leong Bank Bhd (HLB). Quek
holds a direct interest of 0.47% and an indirect interest of 77.88% in HLFG,
while he controls an indirect interest of 64.51% in HLB.
Telecommunications tycoon T Ananda
Krishnan will earn RM276.04 million dividends from his holdings in Maxis Bhd
and Astro Malaysia Holdings Bhd. Ananda holds 62.3% stake in Maxis and 41.29%
in Astro.
Two of the top 10 tycoons, however, did
not appear to have gained any dividend payments from their shareholdings in
Bursa-listed companies. They are gaming tycoon Tan Sri Chen Lip Keong and Tan
Sri Lau Cho Kun, the largest shareholder in Hap Seng Consolidated Bhd.
These eight tycoons are bagging almost
RM2 billion worth of dividends. They could do more to assist the people who
have been retrenched, lost businesses due to Covid 19 or need a helping hand in
retaining employees. This where a structured tax could help. After all it is in
ensuring the survival of others that their businesses could thrive. In a
capitalist environment we cannot begrudge the reward from risk taking but it
cannot be that there was no help from the Government or society in general for
their success. Waiting or hoping for conscience to have an impact is like
‘Waiting for Godot’.
Reference:
1.
Sulhi
Khalid, Malaysia's richest tycoons and the billions in dividends they earned in
the final quarter of 2020, 18 Mar 2021, The Edge
2.
Cheah
Chor Sooi, Investors beware: Bountiful dividend payout may not be intended to
reward loyalty, 18 Mar 2021, Focus Malaysia
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