KUALA LUMPUR, April 23 2012 (Bernama) -- Bumiputera equity ownership rose to 23.09 per cent worth RM167.7 bilion in 2010, up from 21.9 per cent worth 27.4 billion in 2008, Prime Minister Datuk Seri Najib Tun Razak said.
He also announced the collaboration of the Unit Peneraju Agenda Bumiputera (TERAJU) with two companies under the TeraS programme -- Ahmad Zaki Resources Bhd and MITC Ancasa Hotel (M) Sdn Bhd -- which will see the award of supply contracts worth RM500 million to Bumiputera firms in two years.
Najib, who is also Finance Minister, attributed the increase in Bumiputera equity ownership to the implementation of policies that continue the Bumiputera development agenda.
These policies had enlarged the role of Bumiputera institutions such as the Pilgrims Fund Board (Tabung Haji), Lembaga Tabung Angkatan Tentera (LTAT) and Permodalan Nasional Bhd (PNB).
"All this has helped to bring about the very good increase in Bumiputera equity owneship, and we also see the increasing capability of Bumiputera firms which has also contributed to the rising percentage of Bumiputera companies," he told reporters after chairing a two-hour meeting of the Bumiputera Agenda Action Council here.
On the possibility of achieving the target of 30 per cent Bumiputera equity by 2020, Najib said it would depend on several factors including the prevailing domestic and foreign economic conditions and climate.
"According to our analysis, if the economy can grow like in the last one or two years and we can maintain this momentum, there is a good chance, Insya Allah (God willing), that the 30 per cent can be achieved by 2020," he said.
The rise in equity ownership in 2010 is based on the total equity amounting to RM726.4 billion in that year compared to RM581.8 billion in 2008, he said.
Najib said the figure includes ownership by individuals, institutions with Bumiputera interest such as Tabung Haji and LTAT, and trust agencies mandated by the government to increase Bumiputera involvement in the economy such as PNB, Perbadanan Usahawan Nasional Bhd (PUNB), Majlis Amanah Rakyat (MARA) and State Economic Development Corporations.
The prime minister said 130 Bumiputera companies have been identified under the TeraS programme and the collaboration between TERAJU and Ahmad Zaki as well as MITC Ancasa under the programme will create more business opportunities for smaller Bumiputera firms in their quest to become Bumiputera coprporate giants in future.
Under the collaboration, Ahmad Zaki will develop a supply chain in the construction industry and offer supply contracts worth RM500 million, while MITC Ancasa Hotel will invest RM100 million over a three-year period to aggressively expand its business and create business opportunities for other Bumiputera companies in the halal, logistics, cultural performances and other sectors.
Meanwhile, the Economic Planning Unit (EPU) in a separate statement said the the highest Bumiputera equity ownership was in the finance, insurance and takaful sectors, which grew from 37.56 per cent of these sectors in 2009 to 38.97 per cent in 2010.
Bumiputera equity ownership in these sectors rose 22.5 per cent by value from RM53.35 billion in 2009 to RM65.37 billion in 2010.
Most Bumiputera firms are in the wholesale and retail sector.