Ruunt Officium Retractu

The launch of Model Ekonomi Bumiputera

Prime Minister Dato’ Sri Mohd. Najib Tun Razak just outlined the five thrust in the strategy to fortify the Malay economy and the inception of the Bumiputera Economic Council. He felt that something should be done to address many of the issues raised by the hardliners of UMNO, which provided the mainstay of BN supporters that retained the 14 coalition parties into power at Federal Government level and 10 State Governments in the recently concluded 13GE.

BUMIPUTERA ECONOMIC AGENDA: Empowering Bumiputera economy under MEB

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SHAH ALAM — The government today announced new measures and strategies to empower the Bumiputera economy, with the Bumiputera Economic Council (MEB), to be chaired by Prime Minister Datuk Seri Najib Razak himself, to be set up soon.

Najib said the MEB, which will replace the Bumiputera Agenda Action Council (MTAB), will implement five main strategies as a continuation of the implementation of the Bumiputera economic empowerment agenda.

Speaking at the launch of the Bumiputera Economic Empowerment Council today, Najib, who is also Finance Minister, said the focus areas will include enhancing Bumiputera equity ownership in the corporate sector as well as asset ownership.

“The government heard the cries for help from the Bumiputeras regarding their level of participation in socio-economic development programmes,” he said.

One of the main measures in this strategy is the setting of targets for all Chief Executive Officers (CEOs) of Government-Linked Companies (GLCs), including for projects awarded to vendors.

Najib said this information has to be included in the CEOs’ Key Performance Index (KPI), adding all ministries will also create a Bumiputera Development Unit (UPB) responsible for formulating proposals and implementing Bumiputera agenda initiatives.

To enhance Bumiputera equity ownership in the corporate sector, the Skim Amanah Saham Bumiputera 2 (ASB2) will be launched by Permodalan Nasional Bhd with 10 billion units, while Ekuiti Nasional Bhd (Ekuinas) will take over the role of steering the Skim Jejak Jaya Bumiputera to assist Bumiputera-owned companies to be listed on Bursa Malaysia.

“To ensure the Bumiputera socio-economic development agenda is effectively implemented, the delivery system will also be strengthened to create an efficient, comprehensive and constructive ecosystem,” said Najib.

Najib said various measures have also been outlined to help Bumiputeras, who still lag behind in the ownership of non-finance assets such as houses, industrial premises and commercial complexes.

For this purpose, Syarikat Perumahan Rakyat 1Malaysia (PR1MA) and Syarikat Perumahan Negara Bhd in cooperation with state governments will build more affordable houses for Bumiputeras nationwide.

The role of UDA Corporation will also be strengthened to help develop properties including houses, business complexes and spaces, as well as industrial and commercial buildings in urban areas, said Najib.

He added that GLCs and Government-Linked Investment Companies (GLICs) involved in property will also give emphasis to Bumiputera property development especially of housing, shophouses and commercial premises.

To optimise the value and benefit of non-finance assets such as property for Muslim Bumiputeras, the Yayasan Wakaf Malaysia will be turned into a corporate wakaf entity.

Meanwhile, the roles of property institutions such as Pelaburan Hartanah Bhd, Majlis Amanah Rakyat and Perbadanan Usahawan Nasional Bhd will be strengthened in order to develop or acquire commercial and industrial properties, especially in strategic locations nationwide. — BERNAMA

Prime Minister Datuk Seri Najib Razak, accompanied by his deputy Tan Sri Muhyiddin Yassin (right) admiring the model of Nautica Tg. Puteri 1 during his visit to the exhibition centre before starting his speech this morning — Pix by Khairull Azry Bidin.

Read more: BUMIPUTERA ECONOMIC AGENDA: Empowering Bumiputera economy under MEB – Latest – New Straits Times


In the glimpse of all fairness, what have been offered seems to very inspiring for the Malays. Essentially, these are the summary of the speech:

Fortification of the Bumiputera Human Resource

  • Increase training and vocational programs
  • More intense up-skilling programs
  • Intensifying Skim Latihan 1 Malaysia and Graduate Employability Management Scheme programs
  • Extended the post graduate programs via JPA, MARA and relevant agencies
  • More programs under Yayasan Peneraju Pendidikan Bumiputera

Fortification of Bumiputera Standing in the Corporate Sector

  • The launch of ASB2 which RM10billion funding
  • Expanding the Skim Jejak Jaya Bumiputera (SJJB) through Ekuinas.
  • Fortification of Bumiputera Non Financial Assets
  • Strengthening for Malaysian Waqaf Foundation

Fortification of Bumiputera Property Sector

  • Strengthening the role of property institutions like Pelaburan Hartanah Bhd (AHB), Majlis Amanah Rakyat (MARA) and Perbadanan Usahawasan Nasional Bhd (PUNB) for acquiring and development commercial and industrial properties
  • Increase in number of affordable housing under PR1MA and Syarikat Perumahan Negara Berhad (SPNB)
  • Strengthening UDA Corporation for property development
  • More involvement of GLC in property development
  • Intensifying Bumiputera Business and Entrepreneurial Community

Strengthening Bumiputera development agencies such as Amanah Ikhtiar Malaysia (AIM), TEKUN Nasional, MARA and PUNB

  • A directive for strengthening the Vendor Development Program (VDP)
  • Ensuring that the contracts and concessions under the VDP commensurate with the financial facilities and commitments from financial institutions
  • Petronas VDP programs vaued at RM 20 billion and under 22 scope of works
  • GLC CEOs now have to determine their KPI for Bumiputera participations
  • GLCs and GLICs is to pioneer a consortium to develop and upstream supply chain and intensifying selected services
  • Expanding the ‘carve out’ policiy program under GLCs and GLICs
  • New Bumiputera Commercial and Industrial Community
  • Introdution of Skim Usahawan Permulaan Bumiputera (SUPERB)

Strengthening the delivery ecosystem

  • Development of an efficient, comprehensive and constructive delivery system – incorporation of Bumiputera Development Unit in all Ministries
  • Increasing the enrolment into UiTM to 250,000 per annum by 2020 and building of new UiTM campuses
  • MARA education fund of RM1 billion
  • TERAJU would now be upgraded and jobscope expanded where a ministerial status CEO would be appointed and INSKEN and SUPERB programs absorbed under TERAJU

Artikel Penuh:
© Utusan Melayu (M) Bhd


Let us not sound too skeptical without having some practical basis to these arguments and criticisms.

It is interesting for the creation of the Majlis Ekonomi Bumiputera (MEB) as a proper institution instead of a working group, that consists of various Ministers that meet on a scheduled timetable to address issues pertaining  to the Bumiputera economic and corporate agenda.

Some of what Prime Minister Najib announced with the measures and strategy to empower the Bumiputera economy seems to be very inspiring and able to bring new hopes for the Malays and Bumiputera communities. At least, academically it should weighted in the bigger picture, without being skeptically baseless. Some of the projects announced would have herculean roll out task, if not negative impact otherwise if and when it is not fully realised.

However, realising and making sure it is workable isn’t what meets the eye.

Example issues about education. Education has been identified as one of the thrust to bring the Bumiputera out of the rural poverty trap, outlined by Tun Hj Abdul Razak Hussein 42 years ago when the New Economic Policy was first announced. Yet, less than 10% of Bumiputera have tertiary qualifications.

Graduate Employability Management Scheme

Employability is a solution defined by the government to address the unemployed graduates. The SL1M and GEMS programs are developed and executed, previously undertaken by GLCs like Khazanah Holdings Bhd and all related corporations. Students who are unable to find employment are drafted into these internship programs where they serve GLCs and some of MNCs, to gain a short stint of experience where else their more than lucrative allowance is paid by Khazanah.

After a six month stint, majority of these GEMS and SL1M interns are uanble to be placed for a permanent or contract positions and they went back into the unemployment market. This time, no more internship allowance. It has been said that these unemployed former GEMS interns are sore with the Government and willingly to support the Opposition.

The launch of the RM10 billion fresh funds under ASB2 is well and good. However, if majority is unable to subscribe, based on the number of account holders with maximum investment allowed under existing ASB scheme is a good indication that even though the unit trust funds are created, the taken-up rate is not encouraging.

Infact, the figure is alarming. 73.1% of unit trust holders amongst the Bumiputera holds a savings of below RM5,000. The mean is actually RM610. Only 0.2% amongst Bumiputera unit trust holders have savings in the RM500,000 band.

ASB dividends Vs BLR

ASB dividends Vs BLR

The pressing issue here is that majority of Bumiputera households are not into the position of having savings. Data have shown that an average Bumiputera savings in EPF is RM21,500 compared to a Chinese, RM51,000.

Probably to address this, government should start a separate scheme where fixed income earners and non fixed income earners could borrow from commercial banks to take up all of these available unit trust schemes and induce a tight system to reliquidate it.

Skim Jejak Jaya Bumiputera (SJJB) is the extension from the current Ekuinas and Teraju programs, where the objective is to realise potential Bumiputera companies into the apex and eventually main bourse of Bursa Malaysia. It is a venture capital program, to ensure that a scheduled and structured capital and fund raising timeline is being realised and met.

NST story:

14 September 2013| last updated at 05:38PM

BUMIPUTERA ECONOMIC AGENDA: Ekuinas ready to helm Skim Jejak Jaya

SHAH ALAM: Ekuinas Nasional Bhd (Ekuinas), a government-linked private equity fund company aims to provide the best and successful options for Bumiputera companies to list themselves on Bursa Malaysia.

“We are moved and proud to be given the mandate to be the lead agency for Skim Jejak Jaya, currently under the purview of Teraju, a strategic unit within the Prime Minister’s Department.
“We will look on how to boost and help more Bumiputera companies to list on the local bourse,” its chief executive officer Datuk Abdul Rahman Ahmad told reporters on the sidelines of the Majlis Pemerkasaan Ekonomi Bumiputera launched by Prime Minsiter Datuk Seri Najib Razak here today.
He said Ekuinas would discuss with Teraju on ways to make the scheme more successful so that more Bumiputera companies could be listed on Bursa Malaysia.
“We will plan out something. We will focus on capacity building, how they (Bumiputera companies) can be given the right exposure as well as strengthen them, not just in terms of capital, but also in terms of operations and management capability,” he said, citing the PM had made a very comprehensive and innovative announcement.
“We hope that this would provide a meaningful impact to Bumiputera Agenda.”


What is lacking to develop a fortified SMI/SME program is technology and competency building. This is the more important component, to ensure that the expansion programs of any SMIs are sustainable besides not having adequate capital.

Technology and competency building is the key underlying factor to sustain the VDP programs, especially for technology based GLCs such as Petronas, TNB, TM and Celcom Axiata. Bumiputera VDP companies should be the ones acquiring and developing technology competency, so that evenually when they graduate, they are able to compete without the VDP program protectionism and go head on into the bigger and more challenging market.

The 5Cs for financial and capital market viability

Strengthening the Waqaf Foundation would not be realistic, without the Government and public holdings of corporations which are supposed to be the custodian and stewards of specific industries be protected under the Waqaf scheme. It is the best avenue to ensure that the holdings of GLCs remain intact and not susceptible for private take overs.

Prime Minister Najib did not announce any schemes to develop Non GLC Bumiputera property development competency. Federal Government and GLCs should provide a a strong and workable mechanism where more Bumiputera businesses based on land assets and property development as the core activity can be involved and developed.

Even as smaller corporations these middle scale property developers seemed to be unable to compete against the bigger Non Malay ones, however with availability of capital and opportunity, consortiums amongst these Bumiputera property developers could be incorporated.

Property price range: Out of majority Bumiputera affordability

Property price range: Out of majority Bumiputera affordability

The MEB also did not address property ownership opportunity programs to the downtrodden Bumiputera. Only 68% of Bumiputera own homes compared to the Chinese, which is 80%. Homeownership is a good measurement for affordability as well as assets that could be used for collateral, to start an enterprise.

Then again, Prime Minister Najib who is also the Finance Minister did not address the mitigating issues that made property more and more out of the range of affordability, especially to the Bumiputera. Artificial demand due to speculative trading is one of the major culprit, especially in the urban and suburban areas in the major cities.

After all, what is the point of GLCs and GLICs getting into businesses and industries and compete against the market where there are existing Bumiputera entrepreneurs are struggling to position themselves.

The uptrend of house prices, in the major cities

The uptrend of house prices, in the major cities

GLCs and GLICs are supposed to facilitate and accommodate Bumiputera SME/SMIs into their businesses. That is more meaningful, where opportunity is provided so that Bumiputera entreprenuers could develop the competency, technology, network and eventually market expansion. Even if it means that these GLCs and GLICs have to make lesser profits, in the quest of expanding Bumputera SME/SMIs competency and market.

Whether or not what have been included in this is an afterthought rush job, structured to pacify the majority of Malaysians which contributed to BN’s power base in the recently concluded 13GE isn’t as important as how all these will structure how Bumiputera socio-economic position would eventually fair and positioned.

What was shown this morning is just bold rough strokes in the abstract of sending really strong messages that the Bumiputera community which forms 67.9% of the populous are not forgotten and omitted in the various ‘Transformation Plans’ to move Malaysia forward. In general, it is probably good and promising. However, the finer lines and how the colours immerse would define to make the grand plan for the Malay economy a beautiful one.

* Title in English: Afterthought rush job

*Updated 2000hrs

Published in: on September 14, 2013 at 13:30  Comments (52)