Updated List of Securities Approved by SC’s Syariah Advisory Council


The Securities Commission (SC) today released an updated list of securities approved by its Syariah Advisory Council (SAC). The list of approved securities, which are listed on the Bursa Malaysia, will take effect from 30 April 2004 .


Fifty-five securities, newly classified by the SAC as approved securities, have been added to the list (Table 1). Ten securities which were in the previous list have been excluded (Table 2). The List of Securities Approved by the Syariah Advisory Council of the Securities Commission, which contains the names of the 743 approved securities is available on the SC website here.

Table 1: Newly-classified approved securities














































































































































1.


AMDB Bhd.


29.


LCL Corporation Bhd.


2.


AsiaEP Bhd.


30.


Lebar Daun Bhd.


3.


Aturmaju Resources Bhd.


31.


LFE Corporation Bhd.


4.


Boon Koon Group Bhd.


32.


Malaysian Bulk Carriers Bhd.


5.


CAB Cakaran Corporation Bhd.


33.


Malaysian Resources Corporation Bhd.


6.


Century Bond Bhd.


34.


Mithril Bhd.


7.


Cymao Holdings Bhd.


35.


MOL Accessportal Bhd.


8.


DBE Gurney Resources Bhd.


36.


Opcom Holdings Bhd.


9.


Digistar Corporation Bhd.


37.


OpenSys (M) Bhd.


10.


Dominant Enterprise Bhd.


38.


Plastrade Technology Bhd.


11.


DVM Technology Bhd.


39.


Plenitude Bhd.


12.


eBworx Bhd.


40.


PMB Technology Bhd.


13.


Emas Kiara Industries Bhd.


41.


Poh Kong Holdings Bhd.


14.


Esthetics International Group Bhd.


42.


Poly Tower Ventures Bhd.


15.


Fountain View Development Bhd.


43.


Prime Utilities Bhd.


16.


FTEC Resources Bhd.


44.


REDtone International Bhd.


17.


Furniweb Industrial Products Bhd.


45.


Reliance Pacific Bhd.


18.


G.A. Blue International Bhd.


46.


Scope Industries Bhd.


19.


George Town Holdings Bhd.


47.


Seal Polymer Industries Bhd.


20.


Hyundai-Berjaya Corporation Bhd.


48.


Sern Kou Resources Bhd.


21.


Ingenuity Solutions Bhd.


49.


Sunway Infrastructure Bhd.


22.


Ire-Tex Corporation Bhd.


50.


Toyo Ink Group Bhd.


23.


Johore Tin Bhd.


51.


TPC Plus Bhd.


24.


JSPC i-Solutions Bhd.


52.


UDS Capital Bhd.


25.


KBB Resources Bhd.


53.


VTI Vintage Bhd.


26.


KBES Bhd.


54.


Y.S.P. Southeast Asia Holding Bhd.

27. Kejuruteraan Samudra Timur Bhd. 55. Yu Neh Huat Bhd.
28. Kluang Rubber Company (Malaya) Bhd.

Table 2: Newly-classified non-approved securities



























1.


Berjuntai Tin Dredging Bhd.


6.


Hong Leong Industries Bhd.


2.


FACB Resorts Bhd.


7.


Hong Leong Properties Bhd.


3.


Fraser & Neave Holdings Bhd.


8.


Kemayan Corporation Bhd.


4.


General Corporation Bhd.


9.


Lion Industries Corporation Bhd.


5.


Golden Frontier Bhd.


10.


Pan Pacific Asia Bhd.


In classifying these securities, the SAC received input and support from the SC. The SAC has applied a standard criterion in focusing on the activities of the companies listed on the Bursa Malaysia. As such, subject to certain conditions, companies whose activities are not contrary to the Syariah principles will be classified as approved securities.


The approach and criteria in classifying the securities as well as the SAC’s advice on disposal of Syariah non-approved securities are also on the List.


A new feature in this latest list is the outline of the benchmarks used in determining the tolerable level of mixed contributions from permissible and non-permissible activities towards turnover and profit before tax of a company. The benchmarks, established by the SAC based on ijtihad (reasoning from the source of Syariah by qualified Syariah scholars) are:


a. The five-percent benchmark


This benchmark is used to assess the level of mixed contributions from the activities that are clearly prohibited such as riba (interest-based companies like conventional banks), gambling, liquor and pork.


b. The 10-percent benchmark


This benchmark is used to assess the level of mixed contributions from the activities that involve the element of “umum balwa” which is a prohibited element affecting most people and difficult to avoid. An example of such a contribution is the interest income from fixed deposits in conventional banks. This benchmark is also used for tobacco-related activities.


c. The 25-percent benchmark


This benchmark is used to assess the level of mixed contributions from the activities that are generally permissible according to Syariah and have an element of maslahah to the public, but there are other elements that may affect the Syariah status of these activities. Among the activities that belong to this benchmark are hotel and resort operations, share trading, stockbroking and others, as these activities may also involve other activities that are deemed non-permissible according to Syariah.


The latest list also provides an additional table, as below, which lists the names of securities of new companies that have replaced the listing status of previously-listed companies which were classified as Syariah-approved securities. The new companies do not automatically take over the Syariah status accorded by the SAC to the previously-listed companies. Their Syariah status will only be determined after sufficient information which are relevant and material have been obtained from the new companies.






























































































No.


New securities


No.


Previous securities that has been delisted from Bursa Malaysia


1.


Dolomite Corporation Bhd.


1.


Sunway Building Technology Bhd.


2.


Greatpac Holdings Bhd.


2.


Associated Koalin Industries Bhd.


3.


Har Len Corporation Bhd.


3.


Sportma Corporation Bhd.


4.


Kumpulan Europlus Bhd.


4.


Europlus Bhd.


5.


Kumpulan Hartanah Selangor Bhd.


5.


Brisdale Holdings Bhd.


6.


Kumpulan Peransang Selangor Bhd.


6.


SAP Holdings Bhd.


7.


Liqua Health Corporation Bhd.


7.


Parit Perak Holdings Bhd.


8.


Major Team Holdings Bhd.


8.


Kiara Emas Asia Industries Bhd.


9.


Maxtral Industry Bhd.


9.


General Lumber Fabricators & Builders Bhd.


10.


Media Prima Bhd.


10.


Sistem Televisyen Malaysia Bhd.


11.


MP Technology Resources Bhd.


11.


Kelanamas Industries Bhd.


12.


Prinsiptek Corporation Bhd.


12.


L&M Corporation (M) Bhd.


13.


Proton Holdings Bhd.


13.


Perusahaan Otomobil Nasional Bhd.


14.


QSR Brands Bhd.


14.


Ayamas Food Corporation Bhd.


15.


Sime Engineering Services Bhd.


15.


DMIB Bhd.


16.


UEM Builders Bhd.


16.


Intria Bhd.


17.


Versatile Creative Bhd.


17.


Tai Wah Garments Manufacturing Bhd.


The next updated list will be available in October this year.



SECURITIES COMMISSION
29 April 2004