The government is committed to ensure that the development of Bumiputera small and medium enterprises (SMEs) is on par with other groups in the country.
According to the Performance Management and Implementation Unit (Pemandu), a strategic reform initiative (SRI) has been introduced to promote the expansion and growth of SMEs so as to aid them on a needs and case-by-case basis.
According to the 2012 Annual Report of the ETP, the Bumiputera transformation programme should be market-friendly and transparent and can be handed out on the basis of need and merit under the SRI policy.
The report was issued by Pemandu under the Prime Minister’s Department which oversees the implementation, assesses progress and facilitates and supports the ETP and Government Transformation Programme (GTP).
The report shows that as of 2010, Bumiputera ownership of share capital (per value) of limited companies remained at 23 per cent, short of the 30 per cent target for corporate equity ownership set for macro-level. This concern is further aggravated by the fact that Bumiputera households constitute 65 per cent of total households in Malaysia and represent a higher proportion of low-income households.
As such, the initiatives introduced under the SRI would help them grow and develop capacities, improve competitiveness and reduce their reliance on the government for procurement contracts.
Unit Peneraju Agenda Bumiputera (TERAJU), the lead coordinator in driving the Bumiputera ETP leading the SRI initiatives, has introduced the Teras (High-Performing Bumiputera Companies) programme, which aims to increase their participation in the economy. The programme aims to identify a total of 1,100 companies with potential for growth and help them expand beyond the Malaysian market.