The Narrowing Disparity Strategic Reform Initiative (SRI) aims to improve Bumiputera representation in market equity, employment, high value-added occupations, and management positions. Under this SRI, policy measures were proposed for Bumiputera transformation programmes to be market-friendly and transparent, with Government support granted on the basis of need and merit.
The SRI follows on from recommendations from the New Economic Model as introduced by the National Economic Advisory Council. Its goals will be achieved through two main thrusts: developing Bumiputera small and medium-sized enterprises (SMEs) and building Bumiputera Corporate Champions.
These efforts are spearheaded by the Unit Peneraju Agenda Bumiputera (TERAJU), which was established to drive the Bumiputera Economic Transformation Programme. In order to help Bumiputera companies grow and develop capacities, improve competitiveness, and reduce their reliance on the Government for procurement contracts, TERAJU oversees the following programmes:
- TeraS (High Performing Bumiputera Companies), geared towards increasing Bumiputera participation in the economy.
- Skim Jejak Jaya Bumiputera (SJJB), a Government effort introduced in 2007 to provide “last-mile” support to eligible Bumiputera companies for listing on Bursa Malaysia.
TeraS aims to identify a total of 1,100 high-performing Bumiputera companies with potential for growth, and to help them grow beyond the Malaysian market.
TERAJU Economic Corridors Programme
- 413 new TeraS companies across sectors were identified in 2014 and another 76 companies venturing overseas were recognised by TERAJU.
- Some 25 Bumiputera Corporation Champions were identified under TERAJU’s collaboration with MITI in 2014.
- To date, some RM2.24 billion has been raised under the Teras Fund; and RM897.65 million has been approved to Bumiputera companies.
- A new RM475 million Bumiputera Expansion Fund (BEF) was created in 2014 to assist the expansion plans of Bumiputera technology firms. Two applications worth RM16.49 million were approved during the year.
Skim Jejak Jaya Bumiputera (SJJB)
- As at 30 November 2014, 124 projects have been funded and facilitated, exceeding the target of 80 projects.
- Six new mega projects worth RM10.2 billion were identified for the Carve Out and Compete initiative in 2014. The projects include: EMKAY Group Bhd, MRB’s Centre of Excellence in Sg Buloh, Asia Aerospace City, West Coast Expressway, Projek Lintasan Damansara –Shah Alam (DASH) and Projek Sungai Besi – Ulu Kelang (SUKE).
- The new Skim Usahawan Permulaan Bumiputera (SUPERB) was successfully rolled out in 2014, disbursing grants up to RM500,000 to deserving Bumiputera entrepreneurs.
This initiative is aimed at paving the way for greater Bumiputera-owned corporate equity.
- Since 2014, TERAJU has worked closely with Ekuinas to expedite new Bumiputera listings on Bursa Malaysia, as part of the SJJB programme.
- As of December 2014, market capitalisation of 10 SJJB companies reached RM4.14 billion.
- 2014 also saw the listing of another SJJB company, EA Technique Bhd on 11 December 2014.