Transcript of bumiputera economic transformation roadmap 2.0
2.0
UNIT PENERAJU AGENDA BUMIPUTERA Aras 5, Menara Surian, No 1, Jalan
PJU7/3, Mutiara Damansara, Selangor Darul Ehsan
unit peneraju agenda bumiputera - teraju terajuofficial
terajuofficial terajuofficial
www.teraju.gov.my
Teraju Cover ENG NEW 2.indd 1 11/04/2017 11:49 AM
b BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Published by UNIT PENERAJU AGENDA BUMIPUTERA Aras 5, Menara Surian
No. 1, Jalan PJU 7/3 Mutiara Damansara 47810 Selangor Darul
Ehsan
ALL RIGHTS RESERVED. No portion of this publication may be
reproduced without written permission of the publisher. While
every
effort has been made to ensure that the information contained
herein is correct at the time of publication, TERAJU shall not be
liable
for any errors, omissions or inaccuracies which may occur.
BUMIPUTERA ECONOMIC
TRANSFORMATION ROADMAP 2.0
CONTENTS 02 FOREWORD BY YAB DATO’ SRI MOHD NAJIB TUN HAJI ABDUL
RAZAK, PRIME MINISTER OF
MALAYSIA: PAVING THE WAY FOR A NATIONAL BUMIPUTERA AGENDA
06 FOREWORD BY YAB DATO’ SERI DR. AHMAD ZAHID BIN HAMIDI, DEPUTY
PRIME MINISTER OF MALAYSIA: HARNESSING OUR STRENGTHS
10 FOREWORD BY YB DATUK SERI ABDUL RAHMAN DAHLAN, MINISTER IN THE
PRIME MINISTER’S DEPARTMENT, ECONOMIC PLANNING UNIT AND CHAIRMAN OF
UNIT PENERAJU AGENDA BUMIPUTERA (TERAJU) EXECUTIVE COMMITTEE:
GALVANISING BUMIPUTERA ECONOMIC EMPOWERMENT
14 STATEMENT BY DATO’ HUSNI SALLEH, CHIEF EXECUTIVE OFFICER OF
TERAJU: PIONEERING BUMIPUTERA ECONOMIC TRANSFORMATION IN LINE WITH
NATIONAL GOALS
20 CHAPTER 1. OVERVIEW OF THE BUMIPUTERA ECONOMIC TRANSFORMATION
ROADMAP (BETR) 1.0
42 CHAPTER 2. IMPACT OF BETR 1.0 PROGRAMMES AND PROGRESS OF
ACHIEVING BUMIPUTERA OBJECTIVES
104 CHAPTER 3. BETR 2.0: DELIVERING IMPACT THROUGH DEFINED
PRINCIPLES & POLICIES
118 CHAPTER 4. BETR 2.0: AN OVERALL FRAMEWORK
142 CHAPTER 5. JOURNEYING BEYOND THE HORIZON
148 NATIONAL TRANSFORMATION 2050: VIEWS FROM THE NEW
GENERATION
150 ACKNOWLEDGEMENTS
152 LIST OF BETR 2.0 LAB MEMBERS
PAVING THE WAY FOR A NATIONAL BUMIPUTERA AGENDA YAB DATO’ SRI MOHD
NAJIB TUN HAJI ABDUL RAZAK Prime Minister of Malaysia
02 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
ON 26 NOVEMBER 2011, THE GOVERNMENT LAUNCHED THE BUMIPUTERA
ECONOMIC TRANSFORMATION
ROADMAP (BETR) TO INTENSIFY BUMIPUTERA WEALTH CREATION IN TANDEM
WITH MALAYSIA’S TRANSFORMATION
INTO A HIGH-INCOME NATION BY 2020.
03BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
04 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
BETR builds upon the initiatives and successes of the Bumiputera
agenda introduced via the New Economic Policy (NEP) in 1971. In
2013, we launched the Bumiputera Economic Empowerment (BEE)
programme to achieve the objectives of the BETR, focusing on
empowering human capital, increasing ownership of corporate equity,
strengthening ownership of non- financial assets, enhancing
entrepreneurship and business and improving the service delivery
system.
A number of initiatives have been implemented under BETR from 2011
to 2016, which we have termed BETR 1.0 to denote the first horizon
of the new Bumiputera agenda. These initiatives were entrusted to
Unit Peneraju Agenda Bumiputera (TERAJU) as the Secretariat to the
Bumiputera Economic Council (which replaced the Bumiputera Agenda
Action Council in 2013) to lead, coordinate and drive Bumiputera
economic participation.
These programmes have benefited all levels of the Bumiputera
community by providing assistance to underprivileged students,
budding entrepreneurs and growing businesses. To date, this aid has
included RM260 million channelled to provide scholars under Yayasan
Peneraju Pendidikan Bumiputera (YPPB) with access to quality
secondary and tertiary education. Additionally, the BETR has
created RM108 billion worth of business opportunities, funding,
human capital development, private investment and value creation
through initiatives undertaken by various ministries, Government
agencies, the private sector, Non-Governmental organisations (NGOs)
and the regional economic corridor development authorities.
05BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
I am proud of TERAJU’s successful implementation of BETR 1.0. This
is proven by the large number of entrepreneurs nurtured by TERAJU’s
programmes. The efforts of BETR 1.0 are thus in line with
Malaysia’s transformation into a high-income nation by 2020.
I am pleased to launch BETR 2.0 which marks an expansion of the
activities under BETR 1.0 to a national level.
It is the Government’s hope that with BETR 2.0 in place as well as
the blueprint and achievements from BETR 1.0 under our belt, the
livelihood of Bumiputera will continue to improve in tandem with
our high-income aspirations.
I would like to congratulate all the participants of BETR 1.0 and
wish the very best to the participants of BETR 2.0.
YAB DATO’ SRI MOHD NAJIB TUN HAJI ABDUL RAZAK Prime Minister of
Malaysia
HARNESSING OUR STRENGTHS YAB DATO’ SERI DR. AHMAD ZAHID BIN HAMIDI
Deputy Prime Minister of Malaysia
06 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
AS THE BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP (BETR) ENTERS A
NEW HORIZON, WE MUST REMAIN MINDFUL THAT THE BUMIPUTERA AGENDA IS
NOT ONLY FOR BUMIPUTERA, BUT ALSO THAT IT IS A
CRUCIAL COMPONENT OF THE MALAYSIAN AGENDA. THE DIVERSITY AND
HARMONY OF OUR FAIR NATION IS ONE OF OUR MOST VALUABLE STRENGTHS,
WHICH
THE BUMIPUTERA AGENDA SEEKS TO FORTIFY.
07BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Adopting the Bumiputera agenda as a national agenda however still
requires a change in mindset. Thus, under BETR 2.0, companies which
have benefited from Government support will be encouraged to adopt
policies which harness the diversity of Bumiputera by providing
equitable opportunities to women, Sabah and Sarawak Bumiputera,
youth, as well as other Bumiputera companies.
This diversity policy should serve to enable these segments of the
Bumiputera community to compete for employment, entrepreneurship
development and business opportunities, as well as to enhance their
leadership and strategic positions in large companies. It will also
leverage the rich multiplicity of our country to widen
opportunities for Bumiputera wealth creation while contributing to
balanced socioeconomic development.
08 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Competitiveness of the Bumiputera community also remains a key
theme of the BETR in its second phase. This is as the global
economic landscape continues to evolve rapidly, with the growing
expanse of the digital economy representing a vital trend moving
forward. In line with Malaysia’s national economic and development
plans, Bumiputera must be prepared to compete amid a fast-paced
environment to identify and capture new opportunities for
growth.
It is for these reasons also that we must renew our efforts on
education and professional development, to ensure the outcomes of
BETR take root among the future generation of Bumiputera. It is in
this way that we can ensure we address the fundamental areas of
Bumiputera economic empowerment to realise a sustainable
impact.
09BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Indeed, much of our efforts under BETR are geared towards the
future as we seek to uncover new, brighter horizons for the
Bumiputera community in tandem with Malaysia’s transformation into
a high-income nation by 2020.
In achieving Malaysia’s aspirations, I encourage all parties to
remain engaged on the Bumiputera agenda and continue working with
the Government in our journey to create fair and equitable
opportunities to deliver on the best interest of all
Malaysians.
YAB DATO’ SERI DR. AHMAD ZAHID BIN HAMIDI Deputy Prime Minister of
Malaysia
10 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
GALVANISING BUMIPUTERA ECONOMIC EMPOWERMENT YB DATUK SERI ABDUL
RAHMAN DAHLAN Minister in the Prime Minister’s Department, Economic
Planning Unit and Chairman of TERAJU Executive Committee
THE BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP (BETR) LAUNCHED IN
NOVEMBER 2011
AND INITIATIVES UNDER BETR 1.0 IMPLEMENTED FROM 2011-2016 HAVE
GALVANISED THE BUMIPUTERA
AGENDA TOWARDS FURTHER IMPROVING OUTCOMES FOR BUMIPUTERA. WE HAVE
SEEN ITS INITIATIVES
UNLEASH NEW PATHWAYS TOWARDS WEALTH CREATION FOR INDIVIDUALS,
ENTREPRENEURS, SMALL- AND-MEDIUM SIZED ENTERPRISES (SMEs),
BUSINESSES
AND EVEN GOVERNMENT-LINKED COMPANIES (GLCs).
11BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
12 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
As we embark on BETR 2.0, it is vital that efforts to drive the
Bumiputera agenda expand beyond the Government’s own initiatives.
The Bumiputera community as a whole should play a role in
empowering the Bumiputera economy. This is to ensure the agenda
continues to create lasting impacts across the breadth and depth of
the national economy.
Anchored on increasing the mean monthly income of Bumiputera
through high-value jobs, BETR 2.0 aims to crystallise the
Government’s vision of making the Bumiputera agenda a national
agenda – one which places emphasis on the socioeconomic prosperity
of our people.
This has been achieved through TERAJU’s 27 main programmes
including Skim Usahawan Permulaan Bumiputera (SUPERB), Facilitation
Fund (Dana Mudahcara), Carve-Out and Compete as well as the
High-Performing Bumiputera Companies (Syarikat Bumiputera
Berprestasi Tinggi - TERAS) programme, which reflect the
Government’s commitment to support Bumiputera at all levels.
Implemented by TERAJU under the stewardship of the Bumiputera
Economic Council which is chaired by the YAB Prime Minister, these
programmes have provided job opportunities, funding to promote
business expansion and private investment and human capital
development. These programmes are also implemented in collaboration
with state governments and regional economic corridor authorities,
among others – all towards BETR’s objective of elevating the
position of Bumiputera to ensure socioeconomic equitability in our
national economy.
13BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
The Government is always prepared to further enhance the
development of Bumiputera and remains committed to realising the
aspirations of the Bumiputera Economic Empowerment (BEE). It is my
greatest hope that successful beneficiaries of the programmess
carried out under the Bumiputera agenda will continue to contribute
in helping Bumiputera by creating job and business opportunities,
developing talent by providing training and consulting,
distributing financial aid through the form of scholarships and
sharing of knowledge and experience to aspiring players in the
industry.
As we move closer to achieving our goal of becoming a high-income
nation by 2020, I truly hope all agencies and beneficiaries will
continue to work together towards new horizons for Bumiputera
through BETR 2.0.
YB DATUK SERI ABDUL RAHMAN DAHLAN Minister in the Prime Minister’s
Department, Economic Planning Unit and Chairman of TERAJU Executive
Committee
PIONEERING BUMIPUTERA ECONOMIC TRANSFORMATION IN LINE WITH NATIONAL
GOALS
14
BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
15BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
WHEN TERAJU WAS FIRST SET UP IN 2011, WE WERE GIVEN A CLEAR MANDATE
BY THE YAB PRIME MINISTER DATO’ SRI
MOHD NAJIB TUN ABDUL RAZAK TO PROCEED AT FULL SPEED TO LEAD THE
DEVELOPMENT AND IMPLEMENTATION
OF THE BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP. PREMISED ON
STRENGTHENING THE
PARTICIPATION OF BUMIPUTERA IN THE MALAYSIAN ECONOMY, THE BETR,
LAUNCHED IN NOVEMBER 2011 AND IMPLEMENTED OVER A PERIOD OF FIVE
YEARS IN ITS FIRST
PHASE (BETR 1.0), FOCUSED ON FINDING WAYS TO CATALYSE WEALTH
CREATION, ACHIEVE A BALANCED
REPRESENTATION IN EMPLOYMENT IN HIGH-VALUE-ADDED AREAS AS WELL AS
TO DRIVE ENTREPRENEURSHIP AMONG
THE BUMIPUTERA COMMUNITY.
16 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Another key initiative aimed at increasing the participation of
Bumiputera companies in mega projects at the national level is the
‘Carve-out and Compete’ programme. In an unprecedented approach to
unlock opportunities for Bumiputera companies, TERAJU collaborated
with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) to identify
work packages under the MRT Line 1 (Sungai Buloh – Kajang) which
could be awarded to qualified and capable Bumiputera contractors.
This resulted in an allocation of 50% of the total work packages
under MRT Line 1 for Bumiputera contractors, valued at RM10.6
billion, which were awarded to 372 Bumiputera contractors through a
competitive and transparent selection process.
BETR 1.0 has since achieved great strides in improving outcomes of
the Bumiputera who make up almost 70% of our population. From 2011
to 2016, BETR 1.0 has created RM108 billion in employment
opportunities, funding and investment.
This has been achieved through innovative programmes which do not
merely rely on Government funding, but focus on leveraging private
sector funding which creates multipliers that ensure a breadth and
depth of outcomes for beneficiaries.
One of our flagship programmes includes TERAS, which has expanded
beyond its core activity of identifying the best performers among
Bumiputera companies. Launched in July 2011, the objective of the
programme is to enable participating companies to gain access to
new business opportunities, funding, talent supply as well as
coordinate ancillary business advisory services provided by
government agencies.
17BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
We have also transformed the way Bumiputera companies obtain
financing and loans from financial institutions and banks. Based on
the allocation of RM332 million from the Government, this has
leveraged through multipliers into a financing facility worth
RM3.14 billion, of which RM1.3 billion has been approved for
disbursement. This innovative process has allowed more Bumiputera
companies to receive assistance through Government institutions,
reducing reliance on the Government and making more funds available
through banks.
These programmes are just a few among many initiated by TERAJU to
pave the way for the implementation of BETR on a national scale,
which has now led up to the introduction of BETR 2.0. Though we
should be proud of our achievements so far, we must not cease to
explore new initiatives and introduce reforms to the existing
instruments as well as forge new strategic partnerships to improve
the welfare of all Bumiputera in Malaysia.
This is especially as the Bumiputera agenda remains closely aligned
to goals and initiatives under the National Transformation
Programme, as well as the Malaysia Plans for socioeconomic
development.
Under BETR 2.0, we seek to collaborate more closely with
ministries, GLCs, NGOs and the private sector to expand or tailor
our programmes to their needs. BETR 2.0 will continue to focus on
measuring the impact of needs and merit-based programmes and
implementing initiatives in a transparent manner, all with an eye
on achieving the newly identified True North of the BETR for
Bumiputera to earn a mean monthly income of RM5,000.
We are confident that the lessons learnt from BETR 1.0 as well as
its existing programmes can act as a blueprint for other agencies
to emulate as we seek to ingrain the Bumiputera agenda throughout
all levels of our economy.
18 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
At the same time, TERAJU is also looking to expand our horizon and
play a significant role in promoting the Bumiputera entrepreneurs
abroad through strategic partnership with multiple agencies and
financiers such as Malaysia External Trade Development Corporation
(MATRADE), the Malaysia Design Development Centre (DDEC),
Export-Import Bank of Malaysia Berhad (EXIM Bank) and many more.
Among the activities we are mulling include establishing TERAJU
International, which will be responsible for facilitating
export-ready Bumiputera companies into becoming regional/global
players in their particular sectors through collaboration with
strategic partners and financial institutions in providing enablers
and assistance through various programmes in the form of capacity
and capability building, business expansion, international
marketing and joint ventures/ collaborations.
It is vital for TERAJU International to form a strong network with
Malaysia’s major trading markets such as China, APEC/ASEAN, the
United States and Western Europe through its multiple strategic
partners and agencies such as the Ministry of International Trade
and Industry/and the MATRADE to develop, facilitate and increase
the penetration of Bumiputera companies into the export
markets.
TERAJU aspires for this initiative to encourage the
internationalisation of Bumiputera companies and entrepreneurs,
enhance their competitiveness and promote an outward looking
approach in doing their business, while championing Malaysian
businesses on the global stage. Ultimately, we aspire for more
international collaborations to be sealed between Malaysian
Bumiputera companies with the world’s largest companies from
different sectors.
19BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
We are also considering game-changing initiatives such as
establishing a private equity arm to provide equity bridging
assistance for mergers and acquisitions. This would be achieved by
syndicating funds for Bumiputera assistance from all other
Ministries, agencies and investment institutions. The funds would
then be multiplied through the TERAS Fund model and be channelled
to companies looking to scale up into their next growth
stage.
As we begin an exciting new journey and reflect on the high points
and the hardships we have undergone during BETR 1.0, I would like
to take this opportunity to acknowledge the YAB Prime Minister
Dato’ Sri Mohd Najib Tun Haji Abdul Razak for his foresight and
leadership in steering the Bumiputera agenda. I would also like to
extend my gratitude to the Bumiputera Economic Council and YB Datuk
Seri Abdul Rahman Dahlan, Minister in the Prime Minister’s
Department, Economic Planning Unit and Chairman of TERAJU’s
Executive Committee.
My appreciation also goes to TERAJU’s Board of Trustees, strategic
partners and collaborating agencies including Ministries and
agencies, financial institutions, entrepreneurship development
organisations, industry development organisations, regional
economic corridor authorities, the private sector and NGOs.
DATO’ HUSNI SALLEH Chief Executive Officer of TERAJU
OVERVIEW OF THE BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP
1.0
C H A P T E R 1
21BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
The Bumiputera Economic Transformation is guided by six principles
to ensure relevance and sustainability of the outcome of its
initiatives:
The Bumiputera Economic Transformation Roadmap (BETR) 1.0 was
launched in 2011 to deliver two key objectives – to create a
Bumiputera talent pipeline that has the necessary capabilities and
competencies to meet the demands of high-skilled jobs required in a
high-income Malaysia; as well as to transform Bumiputera-owned
businesses from operating in a small-scale and fragmented manner,
to companies that have the capacity and core competencies to
compete internationally. This Roadmap serves as a continuation of
the Government’s effort in promoting the Bumiputera Agenda over the
last 40 years under the New Economic Policy (NEP).
1
Market-friendly
Resources are to be optimally allocated and shall not cause,
contribute or perpetuate economic distortions. It should also
ensure that all stakeholders benefit from initiatives.
2
Needs-based
While each stakeholder within the Bumiputera community have
differing levels of needs, specific gaps among the bottom 40%
households and disadvantaged groups will be identified to ensure
initiatives address targeted issues to narrow the gaps among the
different levels of the community.
22 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
3
Merit-based
Initiatives will be designed in a manner that encourages
competition and business opportunities will be awarded to qualified
and capable individuals and businesses.
6
Sustainable competitiveness
Policies and programmes designed moving forward must enhance market
access and enable Bumiputera to compete to ensure sustainable
outcomes which enable less reliance on Government.
4
5
Transparent
Pro-growth
Policies, procedures and criteria of programmes and initiatives
will be made clear to the public. Programmes to increase Bumiputera
participation are clearly integrated into the national development
master plans as a national agenda, with programme beneficiaries
also communicated to the public.
Programmes designed will be geared towards promoting overall sector
growth as well as Bumiputera participation in the sector while
ensuring the public is not burdened. Additionally, Bumiputera
companies which benefit from the programmes should contribute to
the national economy to ensure a multiplier effect from the
initiatives. Furthermore, BETR programmes must enhance their
participation in the country’s strategic sectors.
23BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
The roles of the Council are as follows:
• Ensuring speedy and effective results – includes reviewing
existing Bumiputera development initiatives to strengthen
Bumiputera entrepreneurship, participation in high-income jobs and
develop capacity for wealth creation;
• Enhancing Bumiputera institutional effectiveness – reviewing
existing institutions involved in delivering the Bumiputera
Economic Transformation, rationalising the functions of these
institutions and ensuring that mandate and skills sets are relevant
in the current context;
Leading the way for Bumiputera Economic Empowerment
The BETR is implemented under the stewardship of the Bumiputera
Economic Council, which leads, coordinates and drives Bumiputera
economic participation through existing and new initiatives.
Chaired by the YAB Prime Minister, the Council is also tasked with
formulating institution reforms to increase the effectiveness of
Bumiputera economic empowerment programmes.
The Council was established with a view to initiate game-changing
strategies to elevate outcomes for Bumiputera. In line with this,
TERAJU as the Secretariat to the Council was set up to
operationalise these strategies and lead the implementation of the
BETR.
24 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
• Programme management and active support – TERAJU will work with
other agencies to detail out new programmes, identify and solve
implementation bottlenecks, escalate to the Council for decision
making; and
• Impact assessment – ensure clear aspirations and targets are set
across key focus areas of employment, entrepreneurship and wealth
creation and assess impact of initiatives and refine implementation
strategies.
The Council meets on a monthly basis and to date has held 43
meetings equivalent to 140 hours since 2011.
The Bumiputera Agenda outlined in the BETR is consistent with the
National Transformation Programme at large, which transcends across
ministries and priority sectors. The implementation of the
Bumiputera Agenda is accelerated through exploration of new
initiatives and introducing reforms to the existing instruments. In
addition, to ensure full collaboration among various parties
involved in driving the implementation of Bumiputera economic
development initiatives, TERAJU ensures coordination through
strategic partnerships with government agencies, private sector and
non-governmental organisations (NGOs).
25BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
strengthen their corporate strategies, undertake mergers and
acquisitions (M&A) and institutionalise their practices with a
view of increasing their market capitalisation.
In line with this principle, Permodalan Nasional Berhad (PNB) had
also launched Amanah Saham Bumiputera 2 with a fund size of RM10
billion in April 2014, targeting young Bumiputera aged 19 to
34.
3) Increasing Bumiputera corporate control and sector participation
to drive Bumiputera vendor and employment in high-potential
sectors. For example, TERAJU has worked with large infrastructure
project owners to implement a Carve-Out and Compete policy where
viable segments within large infrastructure projects can be carved
out and awarded accordingly to the best qualified Bumiputera
companies.
BETR 1.0 Initiatives
The overall framework of BETR 1.0 is implemented according to the
following three principles:
1) Building capabilities:
• Setting up Yayasan Peneraju Pendidikan Bumiputera (Yayasan
Peneraju) to provide intervention and support for Bumiputera across
all levels and types of education
• Reinvigorating Institut Keusahawanan Negara (INSKEN) to increase
the capability of entrepreneurs
2) Enhancing the value of Bumiputera- owned assets such as
financial assets, property and corporate equity through
institutional pooling of funds and more effective management.
Through programmes such as Skim Jejak Jaya Bumiputera (SJJB),
TERAJU provides targeted assistance to companies to
26 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
In implementing the BETR 1.0 initiatives, TERAJU consistently
adopted the following set of principles:
Creating multiplier effect from government funding allocation
In the past, Government industry and entrepreneur development
agencies would directly give out funding in the form of loans or
grants to companies. This was necessary at that point in time,
because private sector banks were less willing to lend to SMEs and
Bumiputera companies in particular were getting poor coverage.
However, as the banking system matured, Malaysia now has several
strong development financial institutions and private sector banks
are also increasingly lending to SMEs. TERAJU’s approach is to
partner with these banks in the provision of loans to Bumiputera
companies, for example through the TERAS Fund, which is provided
for TERAS companies for the purposes of working capital and asset
financing.
This approach has several benefits:
• banks use the funds provided by Government as collateral and in
return lend more than 9.4 times the amount
• it does not crowd out the private sector while also complementing
financial institutions’ existing offerings
• loans are monitored through Bank Negara Malaysia’s Central Credit
Reference Information System (CCRIS) system, making it easier for
lending institutions to detect companies involved in non-
performing loans
• imposes market discipline on borrowing companies
• partner financial institutions are monitored in terms of their
disbursal success rate. Some banks perform better than others,
enabling future allocations to be calibrated accordingly.
27BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Amount of loans available and approved – TERAS Fund
(2012-2016)
RM million
Over 42% of loan amount has been committed
collateral provided by TERAJU to banks
RM332 million
funds available for loan to TERAS companies
RM3.14 billion
Total loans available RM1.84 billion
By working with banks, TERAJU has multiplied the amount of loans
given to Bumiputera companies, over and above the Government
allocation
1
Policy-maker: This role involves assessing issues in a fact-based
manner and advising the Government on policy measures required to
address such issues. It also involves assessing effectiveness of
on-going programmes in meeting the policy objectives.
2
3
4
One-stop centres: Increasingly, the Government is using a one-stop
centre model where representatives from multiple delivery agencies
are grouped together in one location for the convenience of the
user.
28 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Delivering through Partnerships
TERAJU recognises that the ecosystem from policy-setting to
programme delivery consists of multiple agencies that play
different roles:
29BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
TERAJU’s role is at the policy advisory and programme development
level. Our principle is to work with delivery partners to run the
programmes in order to avoid duplication of resources.
Additionally, the delivery partners allow us to broaden our
geographical reach and access to diverse stakeholder groups. For
example, RM20 million has been channelled via TERAJU to 14 selected
NGOs to undertake Bumiputera entrepreneur development
programmes.
TERAJU@Corridor is another effort for TERAJU to extend our reach by
partnering with all corridor agencies to ensure that programmes are
accessible across all regions and support Bumiputera companies in
line with the development goals of each regional economic corridor.
Through the Bumiputera Entrepreneur Development Fund (Dana
Pembangunan Usahawan Bumiputera - DPUB), around 9,394 entrepreneurs
have benefited from RM75 million in funding disbursed to the
regional corridor authorities,
namely the Northern Corridor Implementing Agency (NCIA), East Coast
Economic Region Development Council (ECERDC), Iskandar Regional
Development Authority (IRDA), Sabah Economic Development (SEDIA)
and Sarawak’s Ministry of Industry and Entrepreneurial Development,
Trade and Investment.
RM15 Million has been allocated for each regional corridor
authority under the DPUB programme to be channeled to small and
micro-entrepreneurs to empower the participation and involvement of
Bumiputera micro-entrepreneurs in the field of entrepreneurship
through strategic initiatives and programmes.
The programme’s objectives are as follows:
• To expand business opportunity for micro and small
entrepreneurs.
30 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
• To build and strengthen the capacity in connection with the
skills, funds, and infrastructure in specific industries such as
agro-based industries, tourism, retail and manufacturing.
• To create Bumiputera employment for skilled/semi-skilled,
professional and managerial levels.
• Assist in providing retail/business premises for
entrepreneurs.
• Assist in provision of equipment/ machinery for
entrepreneurs.
• Provide soft-loan programme/scheme in collaboration with
commercial banks for working capital.
Besides the DPUB programme, TERAJU collaborates with the Corridor
authorities to implement the Facilitation Fund programme in which
to date, RM1.59 billion has been approved for 469 projects located
nationwide.
At the same time, partnering with financial institutions and
existing agencies for delivery of funding-related programmes helps
ensure streamlined use of resources within Government.
TERAJU has partnered with SME Bank, RHB Islamic, Maybank Islamic,
Malaysia Debt Ventures Berhad and MIDF for the delivery of the
TERAS Fund programme, and with Majlis Amanah Rakyat (MARA) for the
Baron Fund programme, which is targeted at helping Bumiputera
acquire corporate equity (for example, in a management buy-out
situations). A collaboration with Bank Rakyat was established to
assist in funding of cooperatives, while PROSPER TERAS was set up
as a collaboration with Perbadanan Usahawan Nasional Berhad (PUNB)
to assist high-performing Bumiputera retailers.
31BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
In terms of capability development, partnerships with entities such
as Construction Industry Development Board (CIDB) was established,
to set up the Centre of Excellence for the Construction Industry to
enhance the skills of local workers in the construction sector
through training and knowledge-sharing.
Other programmes delivered through partnerships also include:
• Bumiputera SME Equity Financing Programme (BASE) with SME Bank
which aim to provide equity financing to credible Bumiputera SME
companies. This allows the companies access to financing for equity
acquisition for the purpose to take over, control and expand or
diversify its businesses
• Pre-Export Capacity Building Programme with Design Development
Centre (DDEC) to assist Bumiputera entrepreneurs in brand building
and development activities especially in branding, packaging and
labelling as well as foreign market reach via product
exportation
• The Bumiputera Business Expansion Fund (BEF) in collaboration
with Malaysian Technology Development Corporation was introduced to
assist Bumiputera entrepreneurs to expand their operations locally
and internationally. The fund offers a combination of equity and
loan-based financing
32 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
• Program Tunas Usahawan Belia Bumiputera (TUBE) with SMECorp,
implemented through National Blue Ocean Strategy, involving various
related ministries and agencies. TUBE aims to encourage Bumiputera
youth to venture into entrepreneurship by providing coaching,
advice and financial assistance through its Business Grant &
Buddy System as well as Management Activity Programme
• The Bumiputera Technology Fund (BTF) with Malaysia Debt Ventures
Berhad (MDV), which assists technology-based companies in an effort
to facilitate their business expansion through shariah- compliant
working capital and asset financing facilities
• Best Exporters Programme with SME Bank and MATRADE which targets
export-ready companies, entrepreneurs and youth, offering support
in funding and capacity building to enable Bumiputera entrepreneurs
to be more competitive both at domestic and global markets
• Facilitation Fund under PUNB, which assists Bumiputera retailers
to develop prominent local brands and acquire renowned
international brands to enhance their industry competitiveness. The
programme also aims to help Bumiputera retailers to establish their
brands to provide a platform for enhancing their market
accessibility in strategic premium locations and the global
market
Meanwhile, as part of the equipment purchase aid scheme, Siti Azah
bt Zakaria, a frozen food manufacturer, has seen her monthly income
double after participating in the Programme. “I have increased my
income following ECER’s support in securing assistance for the
purchase of equipment from TERAJU,” said Siti, who is from Bachok,
Kelantan. This scheme enabled her to acquire a mixer, steamer
machine, freezer and gas fryer for her business needs.
“The scheme has helped me to expand my business and increase my
stock.”
Siti Azah bt Zakaria
TERAJU@ECER
Bumiputera Micro-Entrepreneur Development Programme
The ECER Bumiputera Micro-entrepreneur Development Programme
provides a number of assistance schemes through bank financing as
well as aid for working capital, the purchase of equipment and
infrastructure as well as funding for agriculture projects. These
include a Retail Micro Financing Scheme provided by Maybank in
collaboration with ECER. Among recipients of this scheme include
health product business owner Bismillah bt. Mahmud from Kota Bharu,
Kelantan.
“The scheme has helped me to expand my business and increase my
stock,” said the micro-entrepreneur, who has seen a 110% increase
in her annual earnings since becoming a recipient of the
scheme.
Success Stories
34 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
The group of companies is wholly-owned by Dato’ Mohd Saffian Azizul
Rahman and Datin Zawyah Md Yusof, alongside a few shareholders
comprising long-serving employees.
Products offered by the MCMSB are certified by Tenaga Nasional
Berhad (TNB) and Telekom Malaysia Berhad (TM), conforming to
international quality standards, namely SIRIM Malaysia Standard
(MS), British Standard (BS), International Electrotechnical
Commission (IEC), Japanese Industrial Standard (JIS) and Japanese
Automobile Standard Organisation (JASO).
The Group conducts all cable-testing in its own in-house quality
control laboratories. It commissions world-renowned machineries and
testing equipment namely; Rosendahl, Ets Pourtier, Setic, Ceeco,
Henrich, Troester, Niehoff, Afa Industries, Dcm, Beta Lasermike,
Aesa Cortaillod, Labotek, Hipotronics, Hubbell and others.
TERAJU@ISKANDAR MALAYSIA
MITTI CABLES MANUFACTURING SDN BHD (MCMSB)
MCMSB, a recipient of funding from Dana Mudahcara, is a Bumiputera
company which manufactures various types of cables and wires. It is
a TERAS company (given a 4-star SCORE rating by SME Corp) and is
one of the earliest to be certified under the programme.
35BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Establishment of MoUs Tied to Clear KPIs
As TERAJU works with partner agencies, we established MoUs tied to
clear key performance indicators (KPIs) and programme outcomes
which are monitored through monthly reports and TERAJU- Agencies
joint review exercise held twice yearly (mid-year and year-end
review). This ensures impact is monitored and when necessary,
additional delivery partners can be brought in. MoUs are also used
with
companies or entities receiving assistance; for example under the
SJJB programme and the NGO funding programme.
In this case, the companies’ commitment to make certain
improvements, for example in strengthening governance and financial
management and in helping other Bumiputera is captured in the
agreement and matched with Government assistance.
36 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Fostering Competition
A primary aim of the BETR is to enhance the competitiveness of
Bumiputera companies by unleashing opportunities for their
participation in the Government’s mega projects. This is to help
companies develop their track record while also providing a
platform for TERAS companies which had demonstrated their
capability and capacity in undertaking sizeable projects.
The key driver of this approach has been the implementation of the
Carve-Out and Compete programme, which identifies a percentage of
projects which can be allocated to Bumiputera companies which meet
specific requirements based on the BETR’s six principles:
market-friendly, needs and merit-based, transparent,
competitiveness, pro-growth and sustainable development.
Under this programme, qualified Bumiputera companies must compete
with each other to bid for contracts carved out from projects, with
the award of contracts based on merit.
While Carve-Out and Compete assists the more established Bumiputera
companies in accessing business opportunities, TERAJU also
recognises the importance of enabling innovative ideas to surface
and be given due consideration. To this end, we launched the Skim
Usahawan Permulaan Bumiputera (SUPERB) programme in January 2014
with an initial fund size of RM100 million. SUPERB is a national
competition run every quarter targeting start-ups (companies below
three years) and individuals below 40 years of age who have
innovative proposals.
37BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Embedding the Bumiputera agenda as a national agenda
As one of the five pillars of BETR 1.0, Strengthening the Delivery
System has paved the way for the Government to ingrain the
Bumiputera agenda on a national level by driving its implementation
through its Ministries.
This effort has been guided by the Bumiputera Economic Council
(BEC), which now includes BEC Sabah and BEC Sarawak, and
operationalised by TERAJU, with a Bumiputera Economic Empowerment
Unit (Unit Pemerkasaan Ekonomi Bumiputera – UPEB) established in
all 24 Ministries and the Prime Minister’s Department.
The UPEB are headed by a Director or Head of Unit who reports to
the Bumiputera Economic Empowerment Committee of their respective
Ministries. The Committee, in turn, is chaired by the
Secretary-General or Deputy Secretary-General of the Ministry,
which meets at least on a quarterly basis to monitor the
implementation of the Bumiputera agenda at the Ministry
level.
The implementation of KPIs is then monitored by the Bumiputera
Economic Empowerment Monitoring Task Force, which is made up of
representatives from the EPU and TERAJU and meets on a quarterly
basis. The KPIs are then reported to the Bumiputera Economic
Council, chaired by the YAB Prime Minister.
In addition to Ministry-level activities, TERAJU has also
collaborated with and set the Bumiputera agenda to be implemented
by GLCs and GLICs through Khazanah Nasional Berhad, which acts as
the Secretariat for the Putrajaya Committee on GLC
High-Performance.
38 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
39BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
MINISTRY-LEVEL REPORTING STRUCTURE OF BUMIPUTERA ECONOMIC
EMPOWERMENT
YAB DATO’ SRI MOHD NAJIB BIN TUN ABD RAZAK
Chairman
HAMIDI
YBHG. TAN SRI DATO’ SERI UTAMA NOR
MOHAMED YAKCOP
YBHG. TAN SRI SHAHRIZAT BINTI
ABDUL JALIL
OMAR
YBHG. DATO’ SRI IDRIS JALA
YBHG. DATO’ DR NORRAESAH BINTI HJ
MOHAMAD
HJ. DAHLAN
ABDULLAH
40 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Bumiputera Economic Council, Sabah
Sabah Chief Minister
YB Datuk Seri Abdul Rahman Dahlan Minister in the Prime Minister's
Department
• EPU Sabah • TERAJU
• Members of Parliament 3 seats
• YB Datuk Haji Tawfiq bin Datuk Haji Abu Bakar Titingan Sabah
Minister of Youth and Sports
• YB Datuk Haji Masidi Manjun Minister of Tourism, Culture and
Environment
• YB Datuk Ramlee Marahaban Assistant Finance Minister
• YB Datuk Bolkiah Ismail Assistant Minister of Industrial
Development
• Sabah State Secretary
• Director Yayasan Sabah
• CEO Institute for Development Studies (IDS)
• President Malay Chamber of Commerce Sabah
• President Sabah Chamber of Bumiputera Entrepreneurs
• President Sabah Chamber of Bumiputera Businesses
• President Kadazan Dusun Chambers of Commerce and Industry
(KCCI)
41BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Bumiputera Economic Council, Sarawak
FEDERAL STATE ENTREPRENEUR NGOs
• YB Sarawak Minister
• YB Sarawak State Legislative Assemblyman
• YBhg. Tan Sri Datuk Amar Wilson Baya Dandot CEO Sarawak Corridor
of Renewable Energy (SCORE)
• YBhg Datu Haji Mohamad Abu Bakar Bin Marzuki Director State
Planning Unit Chief Minister's Department
• Sarawak State Secretary
• YBhg. Tuan Haji Samat bin Junai Director Halal Hub Unit and
Entrepreneur Development Unit
• Sarawak GLC
• General Manager Sarawak Economic Development Corporation
(SEDC)
• YBhg. Datu Haji Abang Helmi Bin Ikhwan President Sarawak Chamber
of Bumiputera Entrepreneurs
• YB Datuk Joseph Salang Gandum President Dayak Chamber of Commerce
and Industry
• YB Dato’ Henry Jinep State Legislative Assemblyman N2 Tasik
Biru
• YB Ripin Lamat State Legislative Assemblyman N72 Lambir
• Sarawak State Planning Unit • TERAJU
VICE CHAIRMAN JOINT SECRETARIAT
CHAIRMAN
YB Datuk Haji Mohd Naroden B Haji Majais Assistant Minister of
Resource Planning and
Assistant Minister of Entrepreneur Development
YB Dato’ Sri Haji Fadillah Bin Haji Yusof Minister of Public
Works/BEC Member
42 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
IMPACT OF BETR 1.0 PROGRAMMES AND PROGRESS OF ACHIEVING BUMIPUTERA
OBJECTIVES
C H A P T E R 2
43BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Anchored on initiatives undertaken through its five pillars, BETR
1.0 has recorded expansive impact during the period of its
implementation (2011- 2016). These initiatives and impact further
supplement activities undertaken outside of BETR, including private
sector-led activities.
Objective: Increase Bumiputera income, reduce inequalities and
foster national unity
Strengthening Delivery System
Strengthening Human Capital
2 Increasing
Corporate Equity
3 Strengthening
Human Capital
Initiatives under BETR 1.0 to enhance Bumiputera human capital have
contributed to better outcomes for Bumiputera talent. This includes
improvements in the number of students continuing on to tertiary
education and in the grade point averages of graduates, with the
percentage of scholars achieving a CGPA of more than 3.5 rising to
19% in 2015 from 14% in 2010.
The percentage of Bumiputera employed in high-value add
occupations, as classified by the Department of Statistics
Malaysia, has also increased from 17.8% in 2011 to 26.7% in 2015.
This is as a result of the higher number of Bumiputera obtaining
tertiary qualifications.
45BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
14% 19% >3.5
Distribution of Grade Point Averages, 2010 - 2015 Percent
Subsequently, Malaysia’s income equality has substantially improved
and is now comparable to some developed countries. In tandem with
this, income equality of Bumiputera is higher compared to other
ethnic groups and has narrowed to 0.389 in 2014 from 0.440 in 2009.
In addition to education outcomes, the improvement in income
equality were also contributed by revisions in the salary scale of
the civil service and GLCs, which previously lagged behind
non-GLCs; the enactment of the Minimum Wage Order in 2012 and the
Government’s direct assistance programmes such as Bantuan Rakyat
1Malaysia (BR1M).
Percentage of Bumiputera scholars with CGPA of more than 3.5: 2010
2015
14% 19%
Percentage of Bumiputera employed in high-value add occupations:
2010 2015
17.8% 26.7%
Yayasan Peneraju Pendidikan Bumiputera
TERAJU’s efforts with regard to human capital are implemented via
Yayasan Peneraju Pendidikan Bumiputera (Yayasan Peneraju). Since
its inception in 2011, Yayasan Peneraju has raised RM 260 million
from Government and private sector. From this amount, Yayasan
Peneraju has undertaken nearly 150 intervention programmes,
focusing on enabling underprivileged Bumiputera students access to
quality secondary and tertiary education, assisting Bumiputera
youths without formal qualifications to obtain industry-recognised/
international certification and employed in high income sectors,
and increasing the number of Bumiputera professionals.
After 5 years in operations, Yayasan Peneraju has enrolled more
than 14,000 scholars. From this total, 3,000 scholars had been
enrolled under the Peneraju Tunas thrust, 8,000 scholars enrolled
under the Peneraju Skil thrust and another 3,000 scholars enrolled
under the Peneraju Profesional thrust.
In 2016, 6,239 scholars were enrolled into 53 programmes, utilising
RM110 million worth of funds. Highlights for 2016 include: 75% of
scholars under Peneraju Tunas achieving a CGPA (or equivalent)
scoring of above 3.0, 85% of scholars securing employment within
their intended industry, as well as 70% of those employed earning
targeted salary band under Peneraju Skill, and a passing rate of
80% for scholars under Peneraju Professional for their professional
papers.
47BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Tunas Geliga
Auni Wadhiah Azahar, 15 years old, is from Kuala Terengganu,
Terengganu. Her parents are divorced, and Auni currently lives with
her mother, who works as a dressmaker, with a monthly salary of
RM700. She is the youngest of three siblings, all of which are
still studying. Despite familial and financial challenges, Auni had
obtained straight A’s in her UPSR examinations. Shortly after, Auni
became a Yayasan Peneraju scholar under the Peneraju Tunas Geliga
programme, and continued her secondary education in SMKA Dato’ Haji
Abbas in Kuala Terengganu, Terengganu. Conducive studying
environment, as well as nurture and development and financial
support from Yayasan Peneraju, had enabled Auni to strengthen her
academic performance. In 2016, Auni obtained 11 A’s for PT3
examinations. She is currently in Form Four.
Success Stories
Peneraju Tunas Potensi (Overseas Pathway)
Siti Nur Mashitah Sufian, 22 years old, is from Rompin, Pahang. Her
father is self-employed, while her mother is deceased. She is the
eldest of seven siblings, all of whom are still in school. In the
face of family commitments and financial constraints, Mashitah’s
academic potential was evident. She obtained 9A’s and 1B in her SPM
examinations. In 2012, she was accepted into the pioneer batch of
Peneraju Tunas Potensi programme. With the support from Yayasan
Peneraju, Mashitah continued to persevere and remained focused in
realising her academic potential. Her hard work and commitment
earned her the opportunity to study overseas, where she was
accepted into the University of Queensland, Australia. After 2
years abroad, Mashitah became one of the first overseas Peneraju
Tunas Potensi scholar to have completed the programme, graduating
with Bachelor of Arts, majoring in Psychology.
49BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Tunas Potensi (Local Pathway)
Winnie Kariza Bakri, 25 years old, is from Tawau, Sabah. She is the
eldest of five siblings. Her father is a retiree with an income of
RM1,000 a month, while her mother is a full-time housewife.
Although her initial ambition was to become a doctor, her average
SPM results had led her towards the STPM pathway to obtain
placement in public tertiary education. From here on, Winnie began
slowing realising her potential, successfully balancing her studies
and her curriculum activities. With STPM CGPA result of 4.0, Winnie
was accepted as a Peneraju Tunas Potensi scholar, and continued her
studies in Universiti Kebangsaan Malaysia (UKM) in 2012. Through
Yayasan Peneraju’s continuous nurture and development, as well as
financial support, Winnie continued to excel in her studies. In
2016, she graduated with a first class honours in Bachelor of
Social Science (Hons) Geography, with a CGPA of 3.77. In February
2017, she completed her Masters
post-graduate degree in Environmental Management. Winnie is now
working as a Gred 41 officer with the Ministry of Women, Family and
Community Development.
50 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Skil – Iltizam Juruterapi Spa
Erelina David, 23 years old, is from Tambunan, Sabah. She is the
third of ten siblings. Her father is a farmer, with an income no
more than RM 1,000 a month, while her mother is a full-time
housewife. Determined to ease her family’s burden, Erelina had
enrolled in the Peneraju Skil Juruterapi Spa programme in October
2015 to gain the necessary skills and certification that could
ensure employment. In April 2016, she completed the training and
obtained her industry-recognised certification, and began working
as a spa therapist in Legacy Spa, Penang in May 2016. Erelina is
currently earning more than RM5,000 monthly, inclusive of
commissions, tips and other incentives, and is finally able to
financially assist her family. Emerging as an inspiring role model
to her peers, Erelina hopes one day to be able to open a spa of her
own.
51BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Skil – Site Safety Supervisor
Zulhaizam Mohd Noh, 40 years old, is from Terengganu. He is the
second of nine siblings. Zulhaizam had been trained as an
Electrical and Instrumentation (E&I) Pre- commissioning
Technician in the oil & gas industry, with a respectable
monthly salary between RM6,000 – RM7,000. However, due to the
softening of industry and job market, as well as limited career
opportunities, Zulhaizam decided to upskill himself through the
Peneraju Skil Site Safety Supervisor programme. Upon completion of
the programme, he is a certified Site Safety Supervisor employed by
Lesus Engineering and earns an average monthly income of RM 10,000.
Zulhaizam is married with three children, and is currently
expecting a fourth child.
52 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Profesional – Akauntan Muda
Fathin Nur Amirah Mohd Nor, 20 years old, is from Hutan Melintang,
Perak. She is the sixth of nine siblings. Her father has retired
while her mother is a full-time housewife. A highly motivated
student, Fathin scored straight A’s for SPM in 2015 and is an
active member of the Silat Society. In 2015, Fathin had been
accepted to become a Yayasan Peneraju scholars under the Peneraju
Profesional Akauntan Muda programme. Fathin managed to complete her
CAT foundation papers within one year, with an average score of
85%, and subsequently proceeded to undertake ACCA programme. In the
December 2016 ACCA examinations, she achieved the highest score in
Malaysia for F5 paper (Performance Management). Overall, Fathin had
the 3rd highest score in the world. In recognising her
achievements, she had awarded the World Prize by ACCA. Fathin is
now more determined than ever to realise her dreams on becoming a
chartered accountant.
53BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Profesional – Certified Financial Analyst (CFA)
Izulman Telimik is from Banting, Selangor. He is the twelfth of
fourteen siblings. Both parents have retired. In 2013, Izulman
accepted the offer to be part of the first batch of the Peneraju
Profesional CFA programme. By June 2016, he was one of the six
scholars who had successfully completed the programme, having
passed all papers in one straight sitting. At the age of 28, he is
the first scholar to be awarded the CFA charter and is now a member
of CFA Society Malaysia. Izulman is currently attached to Celcom
Axiata as Lead, Special Projects and Partnership.
54 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Peneraju Profesional – Licensed Aircraft Engineer
Fikri Izzan Kip, 19 years old, is from Kuching, Sarawak. He is the
fourth of five siblings. His father is a research assistant in
MARDI while his mother is a full-time housewife. As a young boy,
Fikri harboured aspirations of becoming an aerospace engineer.
Fikri was first inducted as a scholar under the Peneraju Juruteknik
Pesawat Berlesen programme in June 2016. However, due to his
determination, consistent performance and passion, Fikri had been
promoted into the Peneraju Jurutera Pesawat Berlesen programme in
January 2017. Now Fikri more determined than ever to achieve his
dream of becoming a licensed aircraft engineer.
55BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
INSKEN
Programmes conducted by INSKEN include:
• Coaching by Industry Players • Professionals Business Development
• Start-up Business Accelerator Programme • Programme Outreach and
Stakeholder
Engagement • Idea Generation/Business Fundamental/
Coaching • INSKEN 500 Intervention Programme • INSKEN Assessment
Centre • INSKEN Talent Development • INSKEN SME Management
Programme • INSKEN SME High Performing Public
Programme • INSKEN SME Regional Star Programme with
INSEAD • INSKEN Business Seminar/Knowledge Sharing • Biskaunselor
Training and Development • Biskaunselor Enhancement Training
Programme
J&J Services Trading
J&J Services Trading Sdn Bhd was established in 1995 by
Norjannah Ahmad, who is also the Managing Director of the company.
Norjannah, 47, who is from Sarawak, ventured into the business of
cleaning services when she was 25 years old. With RM4,000 capital
from her personal savings, she was determined to start the business
with only one employee. Her business focuses on cleaning services
which include cleaning of office carpets, car seats and overall
building cleanliness maintenance. Over the years, the business of
this mother of two has started to make its name in Kuching, Sarawak
and has recorded sales of up to RM1 million a month.
57BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Since participating in INSKEN’s business consultancy initiative by
Biskaunselor to help enhance Bumiputera companies and businesses,
J&J Services Trading is now taking larger steps in business and
is targeting for up to RM2 million in monthly sales in 2017. It has
also benefited from two grants from SME Corp. Most recently,
J&J Services Trading Sdn Bhd has expanded the scope of its
business to supplying chemical cleaning supplies and currently
employs a workforce of over 600 employees all over Sarawak.
According to Norjannah, a friend of hers
once said that she lacks the ability and knowledge to run a
business and her academic qualifications is only up to SPM, but
that did not break her spirits to build her empire. In fact, she
took that as a challenge and it became her drive to achieve
success.
Success Stories
KAT Technologies
KAT Technologies Sdn Bhd is the largest prepaid card wholesaler and
distributor in Malaysia in terms of gross monthly sales and
coverage of distribution. The company was founded by YBhg Datuk Ir.
(Dr) Khairol Anuar Mohamad Tawi.
Among the INSKEN programmes that Datuk Khairol has attended include
the INSKEN SME Regional Star programme, which objective is to
create awareness among SME entrepreneurs on the opportunities to
expand their business to regionally and internationally.
Out of the several programmes carried out by INSKEN, Datuk Khairol
is more keen on programmes which focus on creating business
awareness. He believes that programmes that provide theoretical
knowledge is important in the earlier stages of starting up a
business, but once a company is ready to expand, programmes that
involve interaction and sharing of experience among entrepreneurs
will be more beneficial. Besides being able to network with other
players in the industry and learn about the industry in greater
depths, entrepreneurs will be able to create pathways to future
business opportunities.
59BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
KAT was established in Kuala Lumpur in 1999, with three employees
and a yearly sales of RM600,000. Since then, KAT has rapidly
developed and in 2015, the company recorded RM853 million in sales.
The current management and administration of the KAT Group is
supported by 200 employees in 16 offices nationwide. The main
prepaid card brand distributed by KAT is Celcom, and the other
brands include iTalk (TM), TuneTalk, Merchantrade and Altel.
The KAT Group has received several awards throughout its 18 years
in the industry. In 2015, KAT Group was awarded the PUNB “Anugerah
Khas – Usahawan Unggul PUNB (SPARK 2015)”. More recently, in
October 2016, one of KAT Group’s system and solution was recognised
by APICTA as the winner of the “Retail & Supply Chain
Management” category.
60 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Siti Khadijah Apparel Sdn Bhd
Siti Khadijah Apparel Sdn Bhd was established in 2009, specialising
in tailoring and sales of prayer clothing for women. Starting from
a small shared with only 200 items in stock, Siti Khadijah Apparel
Sdn Bhd has now expanded to 12 branches all over Malaysia, and one
branch office in Jakarta, Indonesia. The Executive Chairman and
founder of Siti Khadijah Apparel Sdn Bhd is Aminuddin Mohd
Nasir.
Aminuddin has attended some of the programmes organised by INSKEN
including the INSKEN SME Mergers & Acquisitions Programme,
INSKEN SME Financial Management Programme and INSKEN SME Management
Programme. Encik Aminuddin, is one the TERAS company entrepreneurs
who is highly supportive of programmes carried out by INSKEN. He
also sends his employees to attend the programmes.
61BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
He says that the INSKEN programmes that he has attended have given
him greater insights on how to manage a company. The content of the
programmes joined by Encik Amiruddin is engineered towards helping
the management of a company understand the position of the company
better and sharpen the process of evaluating choices and making
decisions.
Among the practices that he is considering to adopt within his
company after attending INSKEN’s high performance company programme
includes the implementation of the KPI and key ratios systems to
measure the effectiveness of operations, productivity and leverage.
His company is also in the midst of identifying risks in all
departments as part of the ISO 9001 initiatives and they are taking
prudent steps to manage business risks.
62 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Corporate Equity
The promotion of Bumiputera corporate equity was identified as a
pillar under BETR 1.0 due to its role in catalysing employment of
Bumiputera in management positions which provide higher pay, wealth
creation through share value appreciation and dividend payments as
well as drive the development of Bumiputera vendors through
investment and procurement. Vendor development programmes, in turn,
contribute to strengthening the Bumiputera sectorial supply
chain.
As set out by the Malaysia’s national economic development plans,
the Government targets for corporate equity ownership by Bumiputera
of 30%. Up until 2014, Bumiputera-controlled market capitalisation,
which accounts for the majority share of corporate equity
ownership, increased by RM70 billion. It is important to note that
efforts to enhance Bumiputera corporate equity ownership have
mainly been market-led, in line with BETR’s market-friendly
approach.
In order to facilitate participation in this market-driven activity
in a way that does not disrupt the market, the SJJB and Teras
programmes were implemented under the BETR to enable Bumiputera
companies to record revenue growth over and above general market
growth to help drive corporate equity ownership.
63BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Skim Jejak Jaya Bumiputera (SJJB)
With the aim of providing corporate advisory to Bumiputera
companies which have the potential to pursue IPOs, focusing on
capacity building for the companies through comprehensive advisory
solutions, the SJJB programme has facilitated the listing of 13
Bumiputera companies on Bursa Malaysia. The programme has also
enabled value creation of RM7.8 billion.
In addition to listing, the programme was successful in assisting
Bumiputera companies undertake M&As. These include Censof
Holdings Bhd’s acquisition of a 51% stake of Singapore’s Asian
Business Software Solutions Pte Ltd and its takeover of Dagang
NeXchange Bhd (DNeX), formerly known as Time Engineering Bhd
through the GLC asset divestment plan. The programme had also
assisted DNeX in acquiring OGPC Sdn Bhd and UK firm Ping Petroleum
Ltd.
Furthermore, through the SJJB programme, the following companies
had increased their equity substantially via growth of their market
capitalisation as follows:
Public Listed Company Market Cap upon Listing
(RM) Market Cap@31 Mar 2017
(RM) +/-
Datasonic Group Bhd – 9.45x 180 million 1.701 billion
Dagang NeXchange Bhd – 3.7x 180 million 688 million
GFM Services Bhd – 1.85x 162 million 300 million
Serba Dinamik Holdings Bhd – 1.2x 2 billion 2.4 billion
64 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
CENSOF HOLDINGS BERHAD
Censof Holdings Berhad (Censof) was established in 2008 and has
become one of the leading Bumiputera companies in the accounting
and technology industry with a growing portfolio of clients from
the private and public sectors.
Its business is segmented into six division:
• Enterprise Financial Management Software
• Payment Gateway System
• ‘National Single Window’, Oil & Gas, and Energy
65BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Its Enterprise Financial Management Software business is its
largest revenue generator, providing solutions and maintenance
services for some Federal Government agencies.
In 2015, Censof acquired 51% of Singapore’s Asian Business
Solutions Software Ltd (ABSS) to expand its operations and market
reach, leveraging ABSS’s portfolio of 340,00 customers in 11 Asian
countries. This acquisition adds to the stable of companies Censof
has acquired since 2012, including a 60% acquisition of PT
Praisindo Teknologi, a web management company from Jakarta,
Indonesia, its 80% takeover of Knowledgecom Corporation Sdn Bhd, a
human capital development company which provides training and
certifications for tertiary graduates, government staff and
professional workers. Censof also acquired 49.2% of Dagang
NeXchange Berhad (DNeX) (formerly known as Time Engineering Sdn
Bhd) in 2015.
With its products, Censof aims to enhance efficiency within
Government and to capture export markets.
“Our advice to other entrepreneurs is to keep developing their
products and emphasise on constant improvement to stay resilient
and competitive in the long-run.”
“There are many business opportunities in Malaysia in many
technological fields. Entrepreneurs must be positive towards new
technology like cloud technology, Mobile Technology and Internet of
Things. These technologies will lead business into the 21st
century.”
Datuk Samsul Husin
PRESTARIANG BERHAD
Established in 2003, Pestariang Berhad is a leader in the fields of
talent, technology and education, providing a holistic chain of ICT
services for talent & software licensing, technology &
services as well as education through Malaysian University,
Computer Science & Engineering (UniMy). We provide a
comprehensive suite of services including training and
certification, talent procurement and management, software license
distribution and management services, software assets management
and technology management.
DR ABU HASAN ISMAIL
67BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
As one of the participants of SJJB, Prestariang has set its sights
on expansion into ASEAN. Following its listing in 2011 through the
SJJB programme, it was included on the FTSE Bursa Malaysia Fledging
Index in December 2011 and the FTSE4Good Bursa Malaysia Index 2014.
It has also been named Best Under One Billion 2013/2014 Forbes
Asia, Winner of Industry Excellence Award (ICT Services Category)
from MITI and was listed in the Minority Shareholder Watchdog Group
(MSWG)’s “Top 100 ASEAN Corporate Governance Scorecard for
2014”.
The company aspires to move away from being a company which relies
on project- based business to one that is based on talent and
technology which provides solutions and services on an
international level.
Listed on
Bursa Malaysia in 2011
• Included on the FTSE Bursa Malaysia Fledging Index in December
2011 and the FTSE4Good Bursa Malaysia Index 2014
• Named Best Under One Billion 2013/2014 Forbes Asia
Prestariang fast facts:
DATASONIC GROUP BERHAD
Datuk Haji Abu Hanifah Noordin is the Managing Director and
Executive Director of Datasonic Group Berhad. Datasonic is an ICT
solution of products and services including smart card services
(secure ID chips-based cards such as credit/debit/bank cards),
software adaptation and hardware solutions, project management,
consultancy, research and development and technical consultancy
services.
Datuk Hanifah graduated from Universiti Malaya with an honours
degree in Economics and has 20 years’ experience as an accountant.
In 2005, Datuk Hanifah took over the management of Dibena
Enterprise and in 2006, took over Datacard QSS Sdn Bhd (now known
as Datasonic Corporation). This was followed by his taking over of
Datasonic Technologies (formerly known as Guthrie Technologies Sdn
Bhd) in 2007.
DATUK HAJI ABU HANIFAH NOORDIN
69BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
His vast experience in the field of finance and business has helped
him expand the scope of business to include the MyKad, MyKid and
passport system and becoming a provider of integrated ICT
softwares, ICT services, project management, hardware systems and
solutions, including the integrated city surveillance system known
as the “Safecity”.
A farsighted man, Datuk Hanifah joined the Skim Jejak Jaya
Bumiputera (SJJB) to move towards listing Datasonic on Bursa
Malaysia. In 2012, with the help of SJJB, Datasonic was listed on
Bursa Malaysia.
Datasonic’s market capitalisation has grown to over RM1 billion and
500 employees. At present, Datuk Hanifah is focusing on research
and development of technology- based products such as nano
batteries, electric cars and e-health systems. He is also planning
to expand his business internationally.
Datasonic fast facts:
SEDANIA INNOVATOR BERHAD
Kumpulan Sedania Innovator is primarily involved in the business of
telecommunication and IT, offering among others multimedia products
and other relevant services.
Datuk Azrin Mohd Noor is the founder and CEO of Kumpulan Sedania.
According to him, the biggest challenge that he has to face is to
find talent that is trustworthy and has the innovative capacity to
realise his aspirations and delivery products that meets the needs
and expectations of consumers.
Datuk Azrin Mohd Noor is the founder and CEO of Kumpulan Sedania.
According to him, the biggest challenge that he has to face is to
find trustworthy and innovative talent to realise his aspirations
and delivery products that meets the needs and expectations of
consumers.
DATUK AZRIN MOHD NOOR
71BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
His ultimate vision for the company is to provide a platform and/or
product that fulfils the needs and dreams of consumers and will
continue to be used by consumers even when he is no longer around.
To date, the most significant achievement of the company is the
collaboration between Sedania Innovator and TuneTalk on the Airtime
Share platform. This collaboration enables the sharing of talk time
among TuneTalk prepaid mobile users. Besides that, the
collaboration could also catalyse more innovative ideas in the
future.
The SJJB programme has helped provide comprehensive consultancy to
the company and created a huge impact when the company was listed
on the ACE Market of Bursa Malaysia Securities on 29 June
2015.
This programme also advises and introduces a list of potential
investment institutions to ensure the company has various groups of
investors to be part of the company’s initial public offering (IPO)
plan.
Datuk Azrin hopes this programme will continue to be carried out to
ensure the effectiveness of the Bumiputera agenda initiatives,
intensify business development and heighten economic participation
and Bumiputera equity in the long run. His advice to ambitious
entrepreneurs is to focus on one specific goal and work hard toward
realising the goal.
72 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
TERAS
The TERAS programme was introduced in 2011 to identify and develop
potential high-performing Bumiputera companies. Companies are
selected based on their fulfilment of criteria, namely:
Established Bumiputera company with good financial track
record
Minimum revenue of
Maintained net profitability for its last three years
Bumiputera ownership
of at least 60%
Additionally, the companies must not be a subsidiary of a GLC or
MNC (although associate companies are eligible) and must record a
SCORE rating of three stars and above by SME Corp, MDEC, CIDB or
other certifying bodies. The companies must also employ Bumiputera
as their CEO or managing director, with management team to be made
up of mainly Bumiputera as well. Additionally, preference is given
to companies involved in any of the National Transformation
Programme’s National Key Economic Areas. Companies should also
possess a good credit rating.
73BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
In terms of impact, an independent consultant assesses that 76% of
626 TERAS companies surveyed outperformed the revenue growth rate
for their sector, the breakdown of performance according to sector
as follows:
Breakdown of TERAS companies which outperformed the revenue rate of
their sector (%)
Clear strategic direction 83% of companies have a written business
plan
Financially supported
Dana Mudahcara
TERAS Fund
Focus on HR spending 39% spend more than 20% of operating
expenditure on HR spending
Existence of export strategy 35% of companies are currently
exporting
Bankable 89% approval rate for loan
Malaysia’s Income Gini Coefficient1
65%
15%
M.S. TIME SDN.BHD
M.S. Time Sdn. Bhd. (M.S. Time) is a company involved in the
business of heavy mechanical lifting since its inception in 1955.
The services of this company cover a wide range of industries
including oil and gas, power plants, cement, iron and steel, marine
and construction.
Datuk Seri Mohd Effandie Ahmad, founder of M.S. Time can now be
proud of the company’s achievements since its establishment 21
years ago with only five employees. It now employs a headcount of
300 employees, of which the majority are Bumiputera. M.S. Times now
also has branches all over Malaysia including in Penang, Miri,
Terengganu, Lumut, Labuan, Johor and several branches in Kuala
Lumpur.
DATUK SERI MOHD EFFANDIE AHMAD
75BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
“In 15 years of working with non-Malays, I was thinking, could I
help my people? Can I provide education to my children without
depending on the aid from the government? While working with non-
Bumiputera companies I was able to bring encouraging total sales to
the company that drove the company further, why not I set up my own
company?”
Datuk Seri Mohd Effandie Ahmad
His entrepreneurial spirit arose from his desire to do and
contribute more than what he has done at any given time. With that
spirit, he established his own company able to compete in the local
market.
In an effort to expand to new markets, M.S. Time applied for
funding from TERAJU, and through the TERAS programme and Dana
Mudahcara, was able to expand its machinery to 30 units of skylifts
and 38 units of forklifts. The addition of these machines will open
new business opportunities and enable the company to compete with
other large companies.
As an entrepreneur, Datuk Seri Effandie believes that Bumiputera
companies should not just depend on government projects, but also
explore the market and business opportunities in the private
sector. He also advises new entrepreneurs to be honest, committed
and focused on their business.
At the same time, the entrepreneurs need to be tough and strong and
not to easily give up when faced with challenges. He is also
willing to help and guide new entrepreneurs who want to learn the
ins and outs of business.
Success Stories
AUEI TERAS HOLDINGS SDN. BHD.
The company, which is based in Kota Bharu, Kelantan was established
in 2005 and is involved in property development and investment. To
this date, AEUI has successfully managed and completed projects
worth more than RM25 million, with on-going projects worth more
than RM35 million.
Its largest projects include the development of University Garden
Condominium and Bazar Dragon Hypermarket in Kok Lanas, Kelantan. In
addition, AUEI also owns a subsidiary that provides vocational
training, Astonians International College of Skills and Technology
recognised by the Ministry of Human Resources.
RITA SARBANI BINTI ISMAIL
77BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
The company joined the TERAS programme in 2014 and has since taken
steps to take on larger value projects worth more than RM300
million, leveraging the financing provided through TERAJU.
As testament to the company’s success, Rita has been awarded the
People Development Award under the category of Female Entrepreneurs
organised by International Business Review Summit 2016. According
to her, there are three main factors contributing to the success of
AUEI: talent management, funding allocations for business growth
and sufficient marketing and promotion.
“The biggest factor in ensuring the company to remain competitive
and resilient does not come from TERAJU, but it comes within us. We
have to grab all opportunities to take our success to the highest
level,” she said.
“Entrepreneurs should not be waiting for projects from the
government, but they should create their own projects to be
implemented. Each company should aspire to be a game changer or a
key player in the industry.”
Rita Sarbani binti Ismail
Entrepreneurship
Initiatives under the entrepreneurship pillar have been centred on
financing business expansion. These were undertaken both directly
through TERAJU as well as in collaboration with partner
institutions. This has contributed to capacity building of
entrepreneurs as well as businesses, in addition to fostering
competitiveness. These initiatives are aimed at enabling
entrepreneurs scale up along the growth stages of a business, with
a view to nurturing entrepreneurs towards global market-readiness.
At the same time, support for entrepreneurs helped to create
self-employment opportunities, which represents another objective
of Bumiputera entrepreneur development.
79BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
80 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
SUPERB
Skim Usahawan Permulaan Bumiputera (SUPERB) was introduced in 2014
to encourage innovation among entrepreneurs and assist start-ups by
providing grants of up to RM500,000 to young entrepreneurs. To
date, 6,255 participants have entered the competition, with 125
winners receiving RM62.5 million of funding. The funding is given
to enable the winners to undertake industrial level proof of
concept with potential customers to enable their product to move
forward. In addition to providing funds, SUPERB also offers
developmental services and commercialisation support which includes
mentorship, training for competency building and possibly further
funds from TERAJU’s Strategic Partners. TERAJU currently has 10
partners, namely, Bioeconomy Development Corp, Cradle Fund,
Kumpulan Modal Perdana (KMP), Malaysia Venture Capital
Management
Berhad, Malaysia Digital Economy Corporation (MDeC), Malaysia Debt
Ventures (MDV), Malaysia Technology Development Corporation (MTDC),
My Creative Ventures (MCV), PUNB and Technology Park Malaysia
(TPM). TERAJU will, from time-to-time appoint new strategic
partners when the opportunity arises.
It is important to note that in line with BETR’s principles, SUPERB
winners are selected based on merit, and are chosen by a panel of
successful business owners and entrepreneurs who have made a name
for themselves in their chosen fields.
81BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
The judges include:
1. YBhg. Datuk Wira (Dr) Hj Ameer Ali bin Mydin MYDIN Mohamed
Holdings Berhad
2. YBhg. Tan Sri Rozali Ismail Puncak Niaga (M) Bhd
3. YBhg. Dato’ Kamarudin Meranun AirAsia Berhad
4. YBhg. Dato’ Norman bin Abdul Halim KRU Capital Sdn Bhd
5. YBrs. En. Afzal Abdul Rahim Time dotCom Berhad
6. YBhg. Dato’ Hazimah Zainuddin Hyrax Oil Sdn Bhd
7. YBhg. Datuk Awang Buhtaman DPMM Sabah
8. YBhg. Datuk Mohd. Khay Ibrahim Zikay Group Sdn Bhd
9. YBrs. Tuan Haji Ali bin Hassan Al-Ikhsan Sports Sdn. Bhd
10. YBrs. Syahrunizam Samsudin Touch ‘n Go Sdn Bhd
11. YBhg. Datuk Noor Azrin bin Mohd Noor Sedania Group Sdn
Bhd
12. YBhg. Datuk Seri Haji Syed Zainal Abidin WiEdu Sdn Bhd
13. YBhg. Datuk Noraini Soltan Sipro Plastic Industries Sdn
Bhd
14. YBrs. En. Mohd Nizam Abd Razak Animonsta Studios Sdn Bhd
15. YBrs. En. Rashdan Ramlee Netcarbon Corporation
16. YBrs. En. Syed Naqiz Shahabuddin Bumiputra Retailers
Organization (BRO)
17. YBhg. Dato’ Haji Ramly Mokni Ramly Food Processing Sdn.
Bhd.
18. YBhg. Datuk Ir. Guntur Tobeng Gading Kencana Sdn. Bhd.
82 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
NURUZON TECHNOLOGY RESOURCES SDN. BHD.
The saying, ke mana tumpahnya kuah, kalau tidak ke nasi is a
perfect representation for Muhamad Nuruzon, a SUPERB winner.
The heir to his father’s legacy, Wagiman Dulahabedi or Wak Wagiman
who is renowned nationwide as an innovator for his success in
creating machinery for agricultural use from recycled goods since
2001.
“My father only studied until primary six but he managed to create
a multipurpose truck from used metal and sell it at a reasonable
price to help independent farmers who can’t afford machinery
transport trucks in the current market.
MUHAMAD NURUZON WAGIMAN 26 Years Old Muar, Johor
83BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
“I am only an SPM holder and spent a lot of time in workshops to
learn how to repair vehicles. I am passionate in the automotive
field and aspired to create multipurpose vehicles that can be
exported to other countries,” says Mohd Nuruzon.
Through the SUPERB grant, he established Nuruzon Technology
Resources Sdn Bhd in 2015; constructing a more systematic workshop
which adopts Standard Operating Procedures (SOP) in manufacturing
machinery; including the necessary purchase of equipments needed to
make the machinery.
“I am grateful to TERAJU for giving me the opportunity to expand
and enhance my machinery in hopes that it gives a positive impact
to the agriculturists/agronomists.” he said.
Each machinery manufactured by Muhamad Nuruzon is unique with 80%
of the materials made from metal. The multipurpose machinery is
capable of carrying two to three tonnes of weight.
“We use a lot of hand tools in making the machinery. For instance
if we want a round metal, we shape it by hitting the metal into a
round shape, while for cutting metal plate, we use a metal grinder.
Even so, we managed to make three machineries all at once.
“This company is in the process of testing our latest creation, a
machinery for farm cleaning that uses a 1.5 tonne roller to
compress the grass while allowing farmers to clean one-acre of land
in a day,” he proudly said.
Success Stories
NURHIDHAS SDN. BHD. (CIPELA SHOES)
As an accountant, most of her day is filled with numbers. At night
however, Nur Hidayah Hassan, founder of Nurhidhas Sdn. Bhd. of shoe
brand Cipela Shoes, sees her dreams turn into reality.
Her obsession with shoes started after she received her first pair
of leather shoes for Hari Raya when she was five years old.
Spending her teenage years in Bosnia Herzegovina where she lived in
near a shoe factory was what fuelled her dream to create locally
produced shoes at international standards.
NUR HIDAYAH HASSAN 29 Years Old
Kuala Lumpur
85BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
“After living for 12 years in Europe, I came back to Malaysia five
years ago to build my career as an accountant. At the time, I had a
business startup, creating my own line of shoes with what little
capital I have. And I noticed it is difficult to bring your own
line of shoes so I started creating a fashion label called HiDY
that focuses on kurti-like tunic dresses made of high quality
cotton and linen.
“I was very active in direct sales, and often participated in
bazaar and exhibition fairs to promote my brand in the market. It
helped me gained a lot of customers and after a year of doing it
part time, I became more financially stable and decided to pursue
it full-time,” she said.
Inspired by the art of Italian shoe making, Nur Hidayah focuses
entirely on making shoes and manufacturing in small batches
depending on the customer’s request. She sells her handcrafted
shoes under the brand CIPELA Shoes and promotes it along with her
HiDY brand through ‘word of mouth’ and social media such as
Instagram and Facebook.
“CIPELA itself means shoes in Bosnia, Croatia, Serbia and Brazil.
Wearing handcrafted shoes in everyday life is a norm in the
European society and I too hope of seeing it put into practice
here.
“I had the idea to create shoes using our proud traditional
heritage like batik and songket and make it comparable with the
fine craftsmanship of handcrafted European shoes that can be
marketable, both locally and internationally,” said Nur
Hidayah.
86 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
“I am grateful to win the SUPERB grant because the fund I received
has helped me upgrade my equipment and shoe making machinery. We
only use imported high quality materials from around the world and
high quality leather to produce the shoes.
“The grant has also enabled me to upscale my manufacturing while
opening up more opportunities for me to establish relationships
with other government agencies that can help me expand my
business,” she explained
CIPELA has now designed more than 200 shoes for formal and casual
use which highlights Malaysia’s traditional heritage of songket and
batik.
Having won the “Broadband and Empower Entrepreneur Award” awarded
by Malaysian Communications And Multimedia Commission (MCMC) last
year, Nur Hidayah has since opened the first CIPELA boutique in
Bangsar Shopping Centre, with aspirations to expand abroad.
“I hope to open a CIPELA boutique overseas and having international
partnership in the commercialisation of our handcrafted shoes by
2017,” she added
“To young entrepreneurs, focus on your advantages and strength and
know and understand your target market,” advises Nur Hidayah.
87BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
WATERBAY SDN. BHD.
His passion for entrepreneurship drove Mohd Azhan Ahmad from Pulau
Pinang to venture into business at the young age of 25, running a
variety of businesses before starting Waterbay Sdn. Bhd., a
dentistry supplier.
After 16 years in the business, he can now savour his success with
his products having gained the trust of companies including the
Ministry of Health Malaysia (Dental division). Yet he continues to
shock his employees with his obsession for the business.
“My obsession began when I was working with a private company that
markets various dental products including mobile treatment chairs
that are widely used in clinics and rural schools. I had the idea
to create an automatic mobile treatment chair or ‘Stuhl’ after
noticing two persons are needed to assemble that mobile chair and
it took a long time build,” he said.
“I had fully devoted my life and energy into creating ‘Stuhl’ until
I lost focus on my core business; I even used the company’s profits
for the chair creation. Fortunately I became aware of it and
instead, I strived to increase the company’s sales by setting aside
a budget for research and development (R&D),” he
continued.
88 BUMIPUTERA ECONOMIC TRANSFORMATION ROADMAP 2.0
Winning the SUPERB grant enabled him to increase his R&D team
and expand the company’s engineering sector by increasing the
employment of engineers and designers who excel in their relative
field.
“With the help of the SUPERB grant, we successfully created ‘Stuhl’
2.0, the first automatic mobile treatment chair in Malaysia. We
created ‘Stuhl’ with a more ergonomic design, compact, high quality
and user friendly, whilst giving us the confidence to try and
market our products globally,” says Mohd Azhan.
“TERAJU has not only helped us in terms of funding but also
provided us guidance and support in terms of skills and opportunity
to expand our network with other agencies.
“The opportunity to win the SUPERB grant was not easy, because I
had to try four times to convince TERAJU panels about my obsession.
Alhamdulillah, without giving up, I made it to the finals and won
the grant at the fifth attempt,” he said smiling.
Mohd Azhan feels proud as his obsession has led to the successful
creation of the automatic mobile chair treatment that enables blood
donation programmes and outdoor dental treatment clinics or
hospitals to be done comfortably. “We aim to be innovators that
cater to high-tech medical or dentistry products not only in
Malaysia but also internationally,” he add