COMMENT | Let’s look at Bumiputera Economic Congress differently

COMMENT | Recently, there has been some discussion on whether there is a need to convene a Bumiputera Economic Congress (BEC) next year.

I would be supportive of a BEC but of a different kind in terms of content and approach. My proposals for a BEC would cover the following areas:

Evaluation of past success, shortcomings

The government ministries and agencies (Entrepreneur and Co-operatives Development Ministry, Tekun, SME Corp, Mara, Investment, Trade and Industry, Finance Ministry and others) should work together with academics and other stakeholders such as industry associations to evaluate the effectiveness of bumiputera entrepreneurship programmes.

These studies should highlight the success stories but also be honest about the shortcomings of many of these programmes.

For example, I would be interested to examine the extent to which the approved permits (AP) programme for selected imported automobile models has been successful in creating successful bumiputera companies in the automotive sector.

Another area would be the extent to which government procurement policies benefit a large number of bumiputera contractors or do they only benefit a few “cartels” which control a majority of these government contracts.

Only with such independent studies can existing policies be improved so that sustainable bumiputera businesses can have the space to flourish.

Evaluation of bumiputera vendor schemes by GLCs

Many GLCs have bumiputera vendor development programmes including in the oil and gas sector under Petronas and also the telecommunications sector, just to name a few.

What are the lessons that could be learned from the success stories of these vendor development programmes and how can they be improved over time?

Are the right governance processes put in place under these programmes so that we don’t have the experience of Serba Dinamik being repeated in the future?

Sharing best HR practices among bumiputera firms

The issue of talent retention and development is faced by all companies. What are the best practices in Malaysia among SMEs as well as large local corporations (LLCs) to develop, train and retain local talent, including bumiputera talent in bumiputera-led companies?

How do these talents get the proper international experience to get some of them ready to lead these companies into the international arena?

What are the most effective scholarship and internship policies to attract best-fit talent into these companies?

Are there lessons which bumiputera-led companies can learn from other companies which manage to retain and develop their bumiputera staff? This kind of knowledge should be openly shared.

Experience working with non-bumiputera companies

Any bumiputera-led company will have to work with non-bumiputera companies which are part of the supply chain in different sectors of the national economy.

What are the conditions which can lead to the establishment of successful long-term partnerships between bumiputera-led and non-bumiputera companies? What are some examples of such positive partnerships?

Examining record of govt-led investments with bumiputera empowerment agenda

There have been certain venture capital (VC) and private equity (PE) investment funds created by the government with the objective of bumiputera economic empowerment in different industries.

What has been the track record of such investments? What can be done better in the future to better achieve the desired objectives? What are the major challenges faced by such companies?

Ekuinas would be a good case study. It was established in 2009 to “promote equitable and sustainable bumiputera wealth creation and economic participation based on the principles of market-friendliness, merit, and transparent via the creation of Malaysia’s next generation of leading companies”.

Fifteen years on, what has been Ekuinas track record? It had to sell off all of its shares in the Burger King franchise in 2015 to a group controlled by two non-bumiputera businesspersons which includes the founder of the 99 Speedmart chain.

Ekuinas has also disposed of other investments in the food and beverage sector including ones owned by bumiputera owners.

How easy has it been for Ekuinas to balance its objectives of seeking attractive internal rates of returns (IRRs) with the objectives of bumiputera economic empowerment?

These are challenging questions which should be discussed at the BEC. Ekuinas is only one of many such government agencies.

Looking at Sabah and Sarawak

We often overlook the needs of the bumiputera communities in Sabah and Sarawak when we discuss bumiputera empowerment challenges and opportunities.

Any BEC would need to include this topic as a key topic and would need to engage with the state governments of Sabah and Sarawak.

I am sure there are many other areas which can be included in the BEC which I have not listed above.

And I am encouraged by the appointment of Ibrahim Sani as the new CEO of Yayasan Peneraju, an agency which sits under the Economy Ministry.

If Yayasan Peneraju were to be one of the main organisers of BEC 2024, I am sure that Ibrahim would bring his many years of experience and exposure to the corporate sector (via his role as a member of the media) to ask many tough questions and get insightful answers from the people and institutions which are part of the bumiputera economic empowerment community.

I hope that the people invited to speak at the BEC 2024 will not be confined to the bumiputera community in Malaysia.

I am sure many entrepreneurs from the non-bumiputera community would want to contribute their insights and experience to this discussion.

For me, I would be glad to participate in this kind of BEC, to contribute my thoughts as a policymaker, in ways which are consistent with the objectives of the Madani Economic Vision.

ONG KIAN MING is former Bangi MP and former deputy international trade and industries minister.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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