MSM MALAYSIA LISTING SIGNIFICANT TO CAPITAL MARKET, SAYS M'SIAN DPM

KUALA LUMPUR, June 2 (Bernama) -- The upcoming listing of MSM Malaysia
Holdings Bhd, which will further boost Bursa Malaysia's (Malaysia's stock
exchange) standing in the eyes of the international investment community, is
very significant in the context of revitalising Malaysia's capital market,
Deputy Prime Minister Muhyiddin Yassin said Thursday.

He was also confident that the listing would spur other government-linked
investment companies to divest their shareholdings in some major companies to
further increase liquidity and trading velocity in the market.

"This much awaited listing will enhance the quality and depth of the
Malaysian capital market.

"The liquidity and weightage of sizeable public offering such as this will
attract interest from both domestic and foreign international investors alike,"
he said at the launch of MSM Malaysia's listing prospectus here.

MSM is the leading producer of sugar in the country. The Federal Land and
Development Authority (Felda) acquired MSM and its related businesses from PPB
Group Bhd for RM1.25 billion (US$416 million) last year.

MSM which is scheduled for listing on the Main Market of Bursa Malaysia on
June 28 will offer up to 234,564,700 shares to Malaysian and foreign
institutional investors including Bumiputera investors approved by the Ministry
of International Trade and Industry as well as Malaysian retail investors.

Muhyiddin said the access to capital market was an enabler that would allow
MSM to compete internationally and help expand the country's global footprint in
the sugar business space.

He added MSM was the proxy to sugar business prospects in the country as it
would be the only company solely involved in the sugar business on Bursa
Malaysia pursuant to its listing.

Meanwhile, he said Koperasi Permodalan Felda (KPF), a cooperative which
comprises Felda settlers and staff as members would have approximately 20 per
cent shareholding in MSM post-listing.

"Hence, not only MSM will be able to tap the capital markets for its
expansion forays, but it will first and foremost also create value for the
112,636 Felda settler families nationwide," he explained.

The deputy prime minister said the settler community would have the
opportunity to indirectly diversify and ride on the sugar business returns as
MSM strives to pursue its market driven profit objective.

"The Felda settlers via KPF is well positioned to benefit from this stable
growth segment, with the local consumption of sugar in Malaysia increasing at a
steady growth of approximately 3.31 per cent on average in the last 20 years,"
he said.

Last year, Malaysians consumed 1.42 million tonnes of refined sugar.