BUSINESS

REALIGNMENT OF BUMIPUTERA-MANDATED AGENCIES HELPS TO DOUBLE BUMIPUTERA COMPANIES ON BURSA MALAYSIA -- RAFIZI

20/05/2024 02:56 PM

CYBERJAYA, May 20 (Bernama) -- The government intends to double the number of resilient bumiputera companies to be listed on Bursa Malaysia in the future through the realignment of bumiputera-mandated agencies, namely the Unit Peneraju Agenda Bumiputera (TERAJU), Yayasan Peneraju and Ekuiti Nasional Bhd (Ekuinas).

Economy Minister Rafizi Ramli said apart from that, the government through the ministry also hopes that the realignment of the three agencies will restructure the economy of bumiputera companies.

Three bumiputera-mandated agencies under the supervision of the Ministry of Economy are realigned in line with the MADANI Government's goal to empower and boost bumiputera economic participation in a strategic, sustainable and effective manner.

"This (realignment) is one of the government's measures to add more quality and resilient companies to go all the way to listing," he told the media after attending the Scaling Up Bumiputera Value Creation event here today.

In March this year, Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar was reported as saying that out of the 97 listed companies in the last three years, only one is a bumiputera company.

Rafizi said the problem that bumiputera companies often face is in terms of structuring and stressed that they actually need an ecosystem. The government, according to him, already has a channel where it helps from the beginning to ensure that talents with potential can share their thoughts.

“You start from the beginning, then the companies have an ecosystem in TERAJU and before they go for listing, they have one more step to Ekuinas.

"So if we channel this way by focusing on companies that are resilient, we can double the number of bumiputera companies that are resilient to be listed," he said.

Rafizi also said the government is not agnostic about the companies.

"If, for example, the bumiputera company grows vegetables but can still become big, it needs to be supported. We want the entrepreneur who started the business to develop a business model that brings profit and resilience regardless of which sector.

"So our focus is the creation of value, resilience and its potential," he said, adding that the financial support product provided by the government (through the agency) is in the form of credit and the company has to pay it back.

Meanwhile, Rafizi also admitted that the government will take time to convince the bumiputera business ecosystem because they were previously given grants.

"We need liquidity, so agencies like Yayasan Peneraju (YP) will recollect loans given before so that we can sponsor more,” he said.

Through the realignment announced by the Ministry of Economy today, YP, TERAJU and Ekuinas will play specific roles in the bumiputera entrepreneurial ecosystem.

He said YP will focus on talent development to raise the level of bumiputera value creators while TERAJU will act as a 'super-scaler' in driving growth and expanding the scale of bumiputera companies to a higher and competitive level in the global arena.

Ekuinas, on the other hand, will continue to drive wealth creation and the economic involvement of bumiputera through corporate equity ownership.

By 2030, as a result of this realignment, the three agencies involved have been given targets to achieve. YP needs to prepare 10,000 bumiputera talents who are ready to compete and become industry players, TERAJU is targeted to provide financing facilities amounting to RM1 billion through collaboration with the private sector and develop and improve the capabilities of 1,000 companies.

-- BERNAMA


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