Narrowing Disparity (ND)
Supporting Policies

Narrowing Disparity (ND)

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.

Public Service Delivery

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.


  • 300 companies were approved for TeraS status.
  • Bumiputera companies were awarded 47% of the total MY Rapid Transit Project (MRT) packages, valued at RM9.1 billion.
  • The Working Capital Guarantee Scheme (WCGS), available to SMEs and all TeraS companies, was extended to 31 December 2013 from its initial expiry of 2011.
  • RM100 million from the Bumiputera Facilitation Fund (worth RM2 billion) was allocated to each Regional Economic Corridor under the TERAJU@KORIDOR for high impact Bumiputera projects.
  • The Bumiputera Facilitation Fund approved RM223.8 million in funding for 35 Bumiputera companies, with RM1.64 billion worth of projects. Of the companies approved, 11 are TeraS companies.
  • In July, TeraS and SME Bank introduced the RM500 million TeraS Fund – 29 applications were approved for financing valued at RM202 million.
  • In December, a second TeraS Fund worth RM520 million was launched with RHB Islamic Bank, providing access to TeraS companies to finance facilities to expand their business, with an emphasis on funding property acquisitions.

Skim Jejak Jaya Bumiputera (SJJB)

This initiative is aimed at paving the way for greater Bumiputera-owned corporate equity.


  • Seven companies were listed on Bursa Malaysia – Datasonic Group Bhd, Prestariang Bhd, Century Software Holdings Bhd, Cypark Resources Bhd, Malaysian Genomics Resource Centre Bhd, Handal Resources Bhd, and Theta Edge Bhd.
Economic Transformation Programme
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The Economic Transformation Programme (ETP) is a comprehensive effort that will transform Malaysia into a high-income nation by 2020.
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