PERDASAMA: Najib announces investment opportunities for Bumi firms in four projects

PUTRAJAYA: Prime Minister Datuk Seri Najib Tun Razak today announced an additional RM4.2 billion worth of opportunities for Bumiputera companies to participate in four mega projects.

He said the government had agreed to extend the opportunities to Bumiputera firms to part take in the Menara Warisan Merdeka, Bukit Bintang City Centre, development of the Rubber Research Institute (RRI) land in Sungai Buloh and Malaysia External Trade Development Corporation (Matrade) exhibition centre.

About 40 per cent of the total value of the projects would be reserved for Bumiputera companies and the rest would be distributed via open tenders, Najib, who is also Finance Minister, told a media briefing after chairing the Bumiputera Agenda Action Council meeting, here.

Of the four projects, some are already being implemented such as the Matrade Exhibition Centre while the Menara Warisan is still in the preliminary stage although the timeline for the project is being determined.

"For the Bukit Bintang City Centre project, it is in the request for proposal stage, while the development of the RRI land is expected to start soon," the prime minister said.

Najib said the four projects had varied timelines but they were expected to be implemented over the next five years and some would have been completed by then.

He said the Unit Peneraju Agenda Bumiputera (Teraju), the lead coordinator in driving the Bumiputera Economic Transformation Programme, set up two-and-a-half-years ago, had created RM18.2 billion worth of business opportunities, financing and human capital development for Bumiputera companies through strategic collaboration with various government agencies and private firms.

"Up to August 2013, Teraju has approved facilitation grants totalling RM412.2 million for 87 projects implemented by Bumiputera companies from diverse sectors, with private investments amounting to RM3.7 billion.

"This initiative has helped towards creating about 13,000 job opportunities," he said.

Najib also said the participation of Bumiputera companies in the High Performing Bumiputera Companies Programme (Teras) had increased to 450 companies.

"Under the Teras programme, Teras has established a Teras Fund in several financial institutions to finance working capital and assets totalling RM1.62 billion.

"To date, RM387 million has been approved to 91 Bumiputera companies. Before this, Teraju has provided contract opportunities worth RM9.1 billion in the Mass Rapid Transit (MRT) project to bidding Bumiputera firms.

"The contracts were awarded based on merit," he said.

Najib said the Bumiputera Agenda Action Council also discussed the overall position of Bumiputeras including their corporate equity based on the statistics furnished by the Economic Planning Unit in the Prime Minister's Department.

He said the Bumiputeras' corporate equity had increased from 23.09 per cent in 2010 to 23.45 per cent in 2011.

"The council opines that significant measures must be taken to strengthen Bumiputeras' participation, particularly in equity ownership, job and business opportunities as well as in education.

"To come up with policies and approaches that can be further improved on the measures to be more efficient, a meeting will be held on Sept 14.

"At that meeting, policies and strategies as well as intervention programmes based on new approaches to enhance and empower the Bumiputera Economic Agenda will be announced.

"Currently, we are still preparing the input from various quarters, and at the meeting the new meaures to be implemented by the government will be tabled," he said.

On the latest progress in the Trans-Pacific Partnership Agreement (TPPA) negotiations,, Najib said the agreement was still being studied, including by Teraju, on its impact on Bumiputeras' participation.

He said the government would also take input from Teraju.

Asked on the Goods and Services Tax (GST), Najib said discussions and dialogues with interest groups had already been held.

"On whether the GST will be included in the 2014 Budget or not, we will have to wait," he said. Najib will table the budget in Parliament on Oct 25.

On the narrowing current account surplus, the prime minister said: "I will comment on it when it's appropriate. The government is monitoring the situation very closely.

"It means that the market expects us to manage our deficit and balance of payment in a way to ensure the market will have confidence in the micro and fiscal management of the country.

"The details relating to that matter will be announced when it is appropriate," he added.

The Finance Ministry is currently monitoring the narrowing current account surplus by considering thoroughly future public sector projects.

Projects with low import content and high multiplier effect will be given priority without compromising on the economic growth. -- BERNAMA