PUTRAJAYA – The definition of Bumiputera economic empowerment should not only be seen through the control of equity alone but also genuine participation and ownership, said Economy Minister Rafizi Ramli.
He also said that the success of the New Economic Policy (NEP) can be seen as it has lifted the community out of extreme poverty and consolidated education.
Rafizi mentioned that the policy, implemented since the 1970s, has successfully created a sizable middle-class group in the country.
“We should not only look at Bumiputera empowerment in terms of equity ownership, but also their overall participation, control, and ownership.
“In terms of Bumiputera control, we see that the top management positions in government-linked companies (GLCs) are dominated by Bumiputera,” he said during a talk titled “Fireside Chat Session: Aspirations for the Future of Bumiputera” at the 2024 Bumiputera Economic Congress held here today.
Rafizi said that GLCs and government-linked investment companies (GLICs) are not classified as Bumiputera entities, although their top management is led by Bumiputera professionals.
He also stressed the need for the Bumiputera group to shift from being value-added contributors to value creators if they wish to see progress at a higher level.
“At present, the Bumiputera middle class serves as value-added contributors to GLCs through control in key positions. They are comfortable receiving salaries and maintaining that level,” he said.
“If compared to non-Bumiputera, they will not remain there but will venture out and start their own companies. It is a challenge for the Bumiputera middle class to move out of that (GLC) environment, but if they want to add value, they will need to leave.”
Meanwhile, Rafizi said that the Bumiputera group also needed to transition from a salary-dependent model to an entrepreneurial class to elevate the level of empowerment.
He said that in the 1960s and 1970s, the Bumiputera community was encouraged to serve in government as the socio-economic gap between Bumiputera and non-Bumiputera widened at that time.
“The time has come for Bumiputera to become entrepreneurs and succeed because previously, they only engaged in business due to a lack of alternative employment.
“Previously, we selected the brightest students in the country, provided them with scholarships, and tied them to the government for 10 years.
“If we want to create a Bumiputera entrepreneurial class, we need to change that successful model. The smartest individuals in the United States don’t work for large companies. Instead, they build their own companies,” he said.
“The economic growth there (in the United States) is supported by these intelligent groups. That’s why world-renowned billionaires like Mark Zuckerberg, Jeff Bezos, and Elon Musk emerged,” he said. – March 2, 2024