Two NGOs have criticised premier Najib Abdul Razak’s announcement of RM180 million in loans for Indian Malaysian businessmen, arguing this would amount to nothing if government policies do not support businesses run by this community.

The money would only “disappear into thin air” if bumiputera policies on business with the public sector or government-linked companies (GLCs) are not relaxed to allow Indian Malaysian participation, they argued in a joint statement.

p sivakumar miba interview 120609 Malaysian Indian Business Association (Miba) president P Sivakumar (left) and Malaysian Indian Entrepreneurs and Professionals Association (MIE) president Mohana Krishnan were responding to Najib’s trumpeting of the allocation last Saturday.

The allocation was provided in Budget 2012 and comprises various forms of loans to be disbursed through several channels.

“(At present) no GLC allows non-bumiputera suppliers or vendors to participate in their businesses. Will this change?” reads the statement.

“MIE and Miba cannot understand how RM180 million will ever change the demographics of Indian equity.”

The NGOs went on to request that the government allows the community access to one GLC.

“We can use this as a vehicle to develop and support Indian businessmen, prove our worth and chart our course,” they said.

indian crowd malaysia 291107 All non-performing loans (NPL) by Indian businessmen should also be forgiven, as the government had already forgiven up to “billions ... for tycoons and GLCs”, they said.

They highlighted Indian NPLs from the 2008 Bank Simpanan Nasional micro-finance scheme as an area that requires intervention.

Both groups extended an invitation to the government to work with them, saying they could “engage with governments that will work to elevate Indians in Malaysia”.

They put forward several other suggestions to promote Indian business equity, including:

  • Enhancing business knowledge through entrepreneurship colleges
  • Opening doors to GLCs’ vendor-supplier contracts and perhaps eliminating ‘bumiputera-only’ policies for business
  • Establishing financial facilities for start-up companies and setting up incubators or business angels