MPM Puts Forward Six Proposals To Empower Bumiputera Economy Under Budget 2027
KUALA LUMPUR, Oct 30 (Bernama) -- Expanding Bumiputera contractors’ and entrepreneurs’ access to business opportunities, strengthening financing and helping local companies enter the capital market are among six proposals put forward by the Malay Consultative Council (MPM) to strengthen the Bumiputera economic agenda under Budget 2027.
The proposals were the outcome of a Budget 2027 roundtable discussion organised by MPM through its National Committee for the Reengineering of the Bumiputera Economic Agenda here yesterday.
MPM said the six key areas discussed covered procurement and contractors, entrepreneur financing, investment and corporate expansion, assets and property, green energy, as well as the halal industry and Islamic economy.
“The conclusions highlight the need to close gaps in access to economic opportunities, enhance business capabilities and strengthen coordination among implementing agencies.
“Among the concerns raised were the concentration of procurement opportunities among parties with capital advantages, financing constraints and capacity-building challenges faced by small enterprises, as well as the difficulties in preparing Bumiputera companies to advance to a higher level,” the council said in a statement today.
In procurement, MPM proposed expanding access to funds and mega projects worth RM500 million and above for active and qualified Bumiputera cooperatives and associations, as well as increasing the participation of small contractors through the implementation of large-scale projects.
Other proposals included reintroducing the Competent Bumiputera Contractor Programme, expanding the mentor-mentee approach and providing pathways for contractors to advance to higher grades.
To strengthen financing for entrepreneurs, MPM proposed tax incentives or tax credits for organisations and non-governmental organisations (NGOs) that conduct mentoring programmes for Bumiputera entrepreneurs, in addition to encouraging commercial banks to offer microcredit financing.
“For women entrepreneurs who give birth, a three-month moratorium on financing repayments is proposed, particularly when they are sole proprietors or key personnel critical to business operations,” the council said.
To help Bumiputera companies advance to a higher level, the National Entrepreneurship Institute (INSKEN), SME Corp and the Malaysia External Trade Development Corporation (MATRADE) were proposed to collaborate on developing a 'Step-Up' programme to identify, mentor and prepare promising Bumiputera companies for listing on Bursa Malaysia.
To optimise Bumiputera assets and property, MPM proposed establishing a grant or revolving financing facility coordinated by a lead agency to address legal and administrative constraints involving land, including through pilot projects on land facing such challenges but with commercial potential.
Meanwhile, in the green energy sector, the government was urged to expand incentives for further studies, technical training and skills development in green and renewable energy, while reviewing pricing mechanisms and the allocation of procurement opportunities to ensure fairer participation.
The sixth proposal focused on strengthening the halal sector and Islamic economy through a comprehensive national halal policy framework, the provision of funding assistance and tax incentives, and closer coordination among the Department of Islamic Development Malaysia (JAKIM), Halal Development Corporation (HDC) and MATRADE.
MPM also proposed establishing halal industrial parks with support from the Investment, Trade and Industry Ministry (MITI), state governments and the private sector to provide shared facilities for micro, small and medium enterprises (MSME), including production space, equipment, training, advisory services and compliance support.
“MPM believes that the proposals arising from this conference should be reviewed systematically by the relevant ministries, implementing agencies and institutions.
“Policy improvements should focus on expanding equitable access, strengthening implementation capacity, improving inter-agency coordination and establishing measurable performance indicators,” MPM said.
-- BERNAMA