The government, based on a certain logic, has decided to purchase Malay entrepreneur Tajudin Ramli's 29 percent stake in the beleaguered MAS for RM1.8 billion or RM8 per share, that is at the same price he paid when he bought a 32 percent stake in MAS from Bank Negara in mid-1994, as reported in The Sunday Star last Dec 31.

The closing price for MAS shares on Dec 26, the last trading day of KLSE, was RM3.84 and its market capitalisation was about RM2.95 billion, which means that at the current price the amount the government is coughing out would be equivalent to 60 percent of MAS' market capitalisation. Many have argued that the government would do better to inject that sum of money into MAS rather than paying it to a single shareholder. This deal is probably fait accompli, but since it is the rakyat's money that is being used, it is only fair that the rakyat's comments be heard.

Firstly, this may not be strictly a takeover exercise under the Companies Act 1965. However, there must be a provision somewhere for the protection of minority shareholders. Furthermore what would prevent the seller from acquiring shares from the market at prevailing market rates and selling them at the higher price? What rules apply here with regard to corporate governance in the spirit of the Companies Act, Securities Commission Act and KLSE codes, rules and regulations? If the current price of MAS shares were, say, RM12, it would seem silly for Tajudin to sell off his holding at RM8, wouldn't it? Where is the spirit of entrepreneurship?

Secondly, being small-time Bumiputra investors, my wife and I have confined our investments in unit trusts such as Amanah Saham National (ASN), Amanah Saham Bumiputra (ASB) and Amanah Saham Johor (ASJ). They are considered low risk.

Initially, we had to borrow from the banks as much as our credit standing allowed us in order to acquire these unit trust shares. We have since almost fully paid the loans and are now holding relatively sizeable units representing our life savings (we are both over 55 and have fully withdrawn our savings in the Employees Provident Fund).

The ASB units fortunately have been giving good returns to date. But it is a different situation with ASN and ASJ. Because the value of these unit trusts at one time exceeded our acquisition price we were quite happy to keep them even when their prices went below cost. The prices of both ASN and ASJ began coming down from their highs of around RM1.65 and RM2.00 in late 1993 to the current lows of RM0.65 and RM0.16, respectively. While the ASN still provides a relatively reasonable return, the ASJ has become a kind of investment disaster. Its value is less than one-fifth the original and the annual return does not even cover our "cost". The only consoling thought is that we were not able to obtain more units when the ASJ was launched.

I am sure all the other holders of ASN and ASJ would be very happy if the government (federal and state) or Permodalan National Berhad (PNB) and Pelaburan Johor Berhad (PJB) would buy these shares from us at the mid-1994 levels (the price of both ASN and ASJ then was about RM1.50) or even at the price we paid for them (about RM1.00). There are about 1.3 million investors in ASN holding a total of 2,500 million units. Similarly there are over 125,000 investors in ASJ holding a total of over 250 million units. (These figures are based on the annual reports of ASN and ASJ.)

Assuming all had acquired the units at the price of RM1 each, the ASN holders have suffered a loss of over RM800 million while the ASJ holders have suffered a loss of over RM200 million. Would the government consider compensating these unfortunate ASN/ASJ investors for a mere RM1 billion? It would make over a million Bumiputra happy for much less than it costs to make one Bumiputra satisfied. Other state unit trusts such Amanah Saham Darul Iman (RM0.44) and Amanah Saham Kedah (RM0.30) are going through a situation that's just as bad.

My wife and I may have been stupid for holding on to our ASN an ASJ investments, but then we are not smart big-time investors like Tajudin and some others. We have personally lost more than half our initial investments in ASN/ASJ, a big chunk of our hard-earned savings for our old age. But who cares.

When can we expect the ASN or ASJ price to reach RM1 again, let alone the RM5 the ASJ managers promised us some years ago? Only recently a director of PJB was reported to have said that the ASJ unit would increase to RM5 when the Composite Index reaches 1,200. So we will just hang on. I wish they'd stop making these promises.

Finally, while I sympathise with both MAS and Tajudin, I do not think that innocent ordinary citizens should solely bear the consequences of a privatisation debacle. Some bad decisions have been made and those responsible for them must also suffer the pain. Otherwise we have not learnt any lesson (I am not sure what the lesson is. Is it "nothing ventured, nothing gained" or is it "no pain, no gain"?).

The Bumiputra special rights are not forever. I sincerely hope that at the end of the wealth redistribution exercise the 30 percent Bumiputra portion is evenly distributed (irrespective of politics) and not held by a few privileged individuals or groups. Let's make it look good. Let's make it our New Year resolution.