SOMEtimes, experts say that in order to avoid the mistakes of the past and create a successful economic agenda for bumiputras, the unity government should abandon certain outdated practices.
For example, the focus on the 30% bumi corporate equity target—a policy that mandates that bumiputras or bumi companies should hold 30% of all shares on the stock market—should be abandoned, according to Ahmad Yazid Othman of the Malay Economic Action Council (MTEM).
Yazid explains that while achieving the 30% equity ownership target would give one rich bumi owner a significant stake in many companies, it does not necessarily improve the overall well-being of bumi families or businesses.
Economist Dr Lee Hwok Aun suggests that the focus on achieving this target has diverted attention from developing real business acumen and capability among bumiputras, thereby hindering the community from becoming “full partners” in the economic life of the nation.
At the Bumiputra Economic Congress, MTEM is proposing a new goal to increase the Gross Operating Surplus (GOS) of bumi enterprises, which refers to their ability and capacity to produce goods or provide services.
Teraju, a government agency established in 2011, also aims to increase bumi GOS so that they contribute 20% of the national economic output or GDP by 2030, totaling RM438 billion.
In addition to helping bumi entrepreneurs, MTEM also emphasizes the need for a policy that ensures living wages for all workers, regardless of their bumi or non-bumi status.
Teraju must also come up with strategies to increase bumi companies’ presence in various industrial sectors, according to Yazid, in order to integrate them into each sector’s supply chain.
The focus on equity targets should be replaced with a focus on scaling up small and micro bumi businesses to medium enterprises and developing competitive brands, says Lee.
Dr Nungsari Ahmad Radhi, a former executive director at sovereign wealth fund Khazanah Nasional Berhad, suggests that the new bumi economic agenda should be inclusive, benefitting all Malaysians, and not exclusively for bumiputras.
