No more free rides for Bumi entrepreneurs, says minister

Diyana Ibrahim Diyana Ibrahim Updated 6 years ago · Published on 23 Aug 2019 7:00AM · 5 Comments

Entrepreneur Development Minister Mohd Redzuan Md Yusof says most Bumiputera entrepreneurs want Putrajaya's help, but do not have the knowledge or staying power to do business. – The Malaysian Insight pic by Hasnoor Hussain, August 23, 2019.

PUTRAJAYA has stopped the practice of giving grants to Bumiputera entrepreneurs as it wants them to be independent and not rely on government handouts, said Mohd Redzuan Md Yusof.

The entrepreneur development minister told The Malaysian Insight that most Bumiputera entrepreneurs only want government assistance, and do not have the knowledge or staying power to do business.

“I can give RM50 million, RM100 million, as capital, but the question remains if the business is viable. More often than not, we find them to be not viable.”

He said the previous Barisan Nasional administration had simply dished out grants to the point where the idea of entrepreneurship was turned into an “Ali Baba” enterprise or a rent-seekers’ activity.

The Ali Baba method of awarding contracts sees Bumiputeras securing contracts, and sub-contracting works to non-Bumiputeras.

“It was a vicious cycle with no end to it,” said Redzuan.

He said the ministry is mulling legislation to end such arrangements, and is working with the Malaysian Anti-Corruption Commission on this.

The idea is still nascent, he said, and it will take time before something concrete is put on paper.

He said Bumiputera entrepreneurs’ poor performance can be seen in their level of contribution to the country’s gross domestic product over the last two decades.

It was reported that the group contributed just between 8% and 9% to GDP each year.

However, Redzuan said, not all grants to Bumiputera entrepreneurs have been stopped.

“Agencies under the ministry are still giving matching grants, but the grants that used to be disbursed freely have been stopped.”

He said the government still gives out grants for the purpose of research that will benefit entrepreneurs.

He said the ministry is working on a national entrepreneurship policy, which will outline its vision until 2030.

Redzuan added that the ministry is collecting feedback, and hopes to produce Bumiputera entrepreneurs who are not only competitive, but also open to new ideas.

There were 44,741 registered Bumiputera contractors up till last month, he said. – August 23, 2019.

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Comments

  • Is Redzuan the Minister for all Malaysians or only Minister for the Bumis? Each time he talks - it is always about his flying car fantasy or on Malays and bumis.

    Posted 6 years ago by Rupert Lum · Reply

  • Something yet to be seen

    Posted 6 years ago by Teruna Kelana · Reply

  • To build the strength of the community, the money should be better used to train and educate the people and thus build the strength from the ground up. Giving free meals is not the way to go as we have seen the money has many times gone astray.

    Posted 6 years ago by Tanahair Ku · Reply

  • Finally this idiot is saying something sensible.

    Posted 6 years ago by Mike Mok · Reply

  • hmmmph....
    Take it with a pinch of salt.

    Coming from a politician.

    Still , sounds sensible (which is a rarity there days)

    Posted 6 years ago by Lan Lan · Reply