PERDASAMA: BUMIPUTERA ECONOMIC EMPOWERMENT

Prime Minister Datuk Seri Najib Razak today announced new measures and strategies to empower the Bumiputera economy, and the establishment of the Bumiputera Economic Council chaired by himself to replace the Bumiputera Economic Action Council, as the key umbrella body to achieve these objectives.

The measures announced by the Prime Minister, who is also Finance Minister, include:

* The government increasing the skills upgrading programs for youths with low academic qualifications and skills level;

* Activating retraining programs via increased allocations to GiatMARA to obtain modern technological equipment to conduct training programs;

* The number of training programs conducted by the National Youth Skills Institute to be increased by having dual-shift training;

* Programs such as the 1Malaysia Training Scheme, Graduate Employability Management Scheme and Skills Development Program will be extended to ensure more trainees receive the benefits to overcome the problem of employability;

* Agencies such as the Public Services Department and MARA would extend their postgraduate programs in critical and high-technology fields;

* Professionals Development Program would be widened to produce more Bumiputera professionals who are qualified and accredited human resource professionals especially in critical fields such as accountancy, medical specialists, architects, engineers and actuaries;

* Second Amanah Saham Bumiputera scheme (ASB2) to be launched by Permodalan Nasional Berhad with a capital infusion of 10 billion units;

* Ekuinas to take over role as lead agency for the Skim Jejak Jaya Bumiputera to provide guidance to Bumiputera companies to be listed on Bursa Malaysia;

* The National Endowment Foundation would be streamlined and its status changed into a endowment corporate entity to optimise the value of non-financial assets such as properties;

* Pelaburan Hartanah Bhd, Majlis Amanah Rakyat (MARA) and Perbadanan Usahawan Nasional Berhad would be beefed up to develop and acquire commercial and industrial properties in strategic locations throughout the country;

* The government through Syarikat Perumahan Rakyat 1Malaysia (PR1MA) and Syarikat Perumahan Negara Bhd with the cooperation of state governments would increase the construction of affordable houses for Bumiputeras throughout the country;

* UDA Corporation would be strengthened to assist the development of properties including residential houses, business complexes and retail space and industrial and commercial buildings in urban areas;

* GLCs dan GLICs involved in property development would be directed to emphasise developing Bumiputera properties especially housing, shophouses and commercial premises;

* The role of Bumiputera entrepreneur development agencies such as Amanah Ikhtiar Malaysia, TEKUN Nasional, MARA and PUNB would be strengthened;

* Additional financing loans of RM300 million for Amanah Ikhtiar Malaysia for a tenure of five years;

* Borrowers of Amanah Ikhtiar Malaysia, mainly comprising women, targeted to increase to 500,000 in 2015 from 350,000;

* Additional funds of RM700 million would be alloted to TEKUN Nasional;

* The number of TEKUN Nasional entrepreneurs would be increased to 370,000 by 2015 from 270,000 now;

* All ministries and GLCs have been directed to stregthen the vendor development system for Bumiputeras. The criteria to choose eligible Bumiputera vendors would be based on meritocracy so that they are viable and resilient;

* The contract tenure and concessions for vendors would be adjusted to be line line with their repayment period so that their projects operate smoothly;

* In efforts to empower the vendor development program (VDP), Petronas must step up its VDP in oil and gas, Tenaga Nasional in the energy sector, Telekom Malaysia and AXIATA in telecommuncations, UEM in construction and Sime Darby and Felda Global ventures in plantations;

* CEOs in GLCs would ensure targets for Bumiputera participation and procurement for vendors. This should be included in their Key Performance Indicator (KPI) to CEOs of companies;

* To resolve issues pertaining to the suply chain, the government through GLCs and GLICs would develop a group of Bumiputera entrepreneurs involved in manufacturing and industrial activity. GLC and GLICs would create several Bumiputera consortia in the related sectors;

* The Private-Public Partnership Unit would identify selective viable public sector services to be privatised to Bumiputeras; * The 'Carve-out' policy would be extended to other large projects in ministries and GLCs and GLICs. Four projects which have been identified for participation in this program include the Menara Warisan Merdeka, Bukit Bintang City Centre, MATRADE Exhibition Centre and the development of the Sungei Buloh Rubber Research Institute;

* A scheme to develop new Bumiputera entrepreneurs (SUPERB) has been introduced to assist start-up companies with an allocation of RM100 million over a three-year period. SUPERB would provide grants of up to RM500,000 to new innovative and creative entrepreneurs in highly-potential strategic sectors;

* a Bumiputera Development Unit (UPB) would be set up in all ministries which would be responsible for outlining proposals and implementing the Bumiputera Agenda initiatives;

* Increase the intake of students into Universiti Teknologi MARA to 250,000 by 2020 including the setting up of several new campuses nationwide;

* Establishment of a RM1 billion MARA Education Fund to finance training programs, education, entrepreneurship, research and development and innovation. It would be a 'matching fund' between MARA and the government to be distributed in stages;

* TERAJU would be placed directly under the Prime Minister's Department, headed by a minister or a Chief Executive with ministerial powers;

* National Entrepreneurship Institute (INSKEN) and the scheme to develop new Bumiputera entrepreneurs would be placed under TERAJU