Government Committed To Ensure Growth Of Bumi SMEs At Par With Other Groups (SME Bank)

KUALA LUMPUR, March 19 (Bernama) -- The government is committed to ensure that the development of Bumiputera small- and medium-sized enterprises (SMEs) is at par vis-a-vis other groups in the country.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/etp287/Article/
Published: March 20, 2013

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=935711
Published: March 20, 2013

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2013/3/20/business/12861455&sec=business
Published: March 20, 2013


According to the Performance Management and Implementation Unit (Pemandu), the strategic reform initiative (SRI) has been introduced to promote the expansion and growth of (SMEs) to help these companies on a needs basis.

Under the SRI policy, the Bumiputera transformation programme should be market-friendly and transparent, and can be given on the basis of need and merit, according to the 2012 Annual Report of the Economic Transformation Programme (ETP) released Tuesday.

The report is issued by Pemandu under the Prime Minister's Department which oversees the implementation, assess progress, facilitate and support the ETP and Government Transformation Programme (GTP).

According to the report, as of 2010, Bumiputera ownership of share capital (at par value) of limited companies remained at 23 per cent, still short of the 30 per cent target for corporate equity ownership set for macro-level.

This concern is further magnified by the fact that Bumiputera households make up 65 per cent of total households in Malaysia, and represent a higher proportion of low-income households in the country.

Therefore, the initiatives under the SRI led by Unit Peneraju Agenda Bumiputera (TERAJU), the lead co-ordinator in driving the Bumiputera ETP, would help them grow and develop capacities, improve competitiveness and reduce their reliance on the government for procurement contracts.

Teraju has introduced the Teras (High-Performing Bumiputera Companies) programme, geared towards increasing their participation in the economy, the report said.

The programme aims to identify a total of 1,100 High-Performing Bumiputera Companies with potential for growth and help them expand beyond the Malaysian market.

This programme, which provides funds for the companies and projects through the RM2 billion Bumiputera Facilitation Fund and RM1.02 billion Teras Fund, would in addition market Teras companies to the global stage.

According to the report, in the past three years a total of 300 Bumiputera companies have shown a revenue growth of approximately 17 per cent a year.

Teraju also manages the Skim Jejak Jaya Bumiputera (SJJB) a government initiative introduced in 2007, providing "last-mile" support to eligible Bumiputera companies for listing on Bursa Malaysia.

Under the SJJB initiative, Teraju has helped several companies to be listed on Bursa Malaysia namely, Datasonic Group Bhd, Prestariang Ltd, Century Software Holdings Bhd and Handal Resources Bhd.

Moving forward, SRI would continue to focus on providing qualified Bumiputera companies with access to finance to fund their future growth.

-- BERNAMA