KUALA LUMPUR – Some interesting news headlines have emerged from the Bumiputera Economic Congress 2024, which is on its third and last day today at the Putrajaya International Convention Centre.
Comments and proposals put forth appear to show a different rhetoric from similar gatherings in the past which tended to focus on calling for more and more funding allocation and assistance for Malay entrepreneurs.
Scoop dives into some eye-catching things said at this year’s congress, indicating a new approach the unity government wants to take.
The question is, will there be political will?
Identifying the problem
Bursa Malaysia chairman Tan Sri Abdul Wahid Omar noted the failure of more participation from Bumiputera business players in the private sector.
They show a preference for the public sector which only contributes 17.8% to the country’s economy. The private sector, however, contributes 76.2% to the economy.
Wahid then asked why aren’t more Bumiputera entrepreneurs participating in the private sector if it is 4.3 times larger than the public sector.
He also illustrated this with the fact that there is only one Bumiputera-owned company out of the 97 companies listed on Bursa.
“So, we must ask ourselves, if it has been six decades since we implemented various policies to empower the Bumiputera, what is the result today?” he asked.
Answers lie in diversity, equity and inclusion
Bumiputera empowerment policy efforts must change to take a more universal and inclusive approach, Wahid continued.
Efforts must not only focus on the community but be developed for implementation at the national level.
“If we don’t expand the policy to the private sector, Bumiputera achievement will continue to be low. Diversity, equity, and inclusion are important for implementation in the private sector, which is the main driver of the country’s economy, to increase effectiveness.”
One proposal from an engagement session during the congress was for a catalyst fund to also ensure that Malaysian companies practise “diversity, equity and inclusion”, besides increasing corporate performance.
Wahid described this as having “mandatory disclosures” on ethnicity, gender and age for companies.
“A diverse organisation is a strength for any organisation,” he added.
Stopping ‘Ali Baba’ practice
Plantation and Commodities Minister Datuk Seri Johari Ghani, also an experienced businessman, addressed the open secret of “Ali Baba” practices by some Bumiputera companies.
He called for a database of Bumiputera companies to weed out genuine Malay businesses from the rent-seekers.
This, Johari said, could help stop the Ali Baba practice of taking on government contracts and then subcontracting the actual work to others, including non-Bumiputera players.
No new wealth or benefits are created for the larger society, let alone for the rest of the Bumiputera community as rent-seekers pocket payments but produce subpar work.
Such practices have worked against the government’s efforts to empower Bumiputera businesses and communities, Johari added.
The database will enable screenings to determine companies’ suitability for a tender to prevent the awarding of contracts to those who cannot carry out the work.
However, the database must be comprehensive, centralised and accessible to the public, he added.
Political will
So what comes after Prime Minister Datuk Seri Anwar Ibrahim closes the congress this afternoon?
Economy Minister Rafizi Ramli has outlined the government’s intentions – it no longer wants to empower Bumiputeras using old measures.
“The government aims to produce a positive, progressive, and innovative Bumiputera class that creates value without relying on past approaches,” he said at the congress.
He added that past approaches have seen millions spent on aid, incentives and to sustain quotas which have resulted in little after six decades of implementation.
Rafizi also talked about forging “genuine smart partnerships” whereby “the most-able Bumiputeras and non-Bumiputeras” would come together to work collectively in establishing truly Malaysian enterprises.
“The Bumiputera Economic Congress, this time, is indeed designed to set the stage for that. It’s crucial for the country to discuss and develop methods to foster collaboration between Bumiputeras and non-Bumiputeras because we are a nation of 33 million and we must compete globally.”
Following the congress, the government is to develop a set of fundamental policies regarding the empowerment of Bumiputera, and release this by May or June this year, Rafizi said. – March 2, 2024