The government may withdraw projects awarded to Malay contractors who pass them on to other races.

Deputy Finance Minister Awang Adek Hussin added they may also blacklist contractors from winning any future contracts, as part of an effort to stop some Malays from abusing government projects awarded to them under positive discrimination policies.

"The problem of selling projects to a third party seems very serious of late and causes concern by the top leadership," Awang Adek was quoted as saying by Bernama .

Malaysia's economically disadvantaged bumiputra - ethnic Malays and indigenous groups - are favoured under government policies, aimed at boosting their economic development.

However, critics say its poor implementation has mainly benefited an elite group of Malay entrepreneurs.

Reaping quick profits

Prime Minister Abdullah Ahmad Badawi complained last week that 85 percent of projects won by bumiputra contractors were passed on to other races in the country.

Awang Adek said while the government had been striving to develop bumiputera contractors, they were more concerned with reaping quick profits.

"I'm sure the government will take firm measures to curb the problem. If not, it will continue," Awang Adek said. It was not clear if the measures were aimed at future or existing contracts.

He added that government-linked companies such as national utility firm Tenaga Nasional, Telekom and Petronas would have to closely monitor projects handed out to ensure they are not passed on to others.