BUDGET 2023 incentives and funding for the Malay and Bumiputera communities needs to be monitored to prevent misuse, the community’s business groups said.

The group said it appreciated the funding, announced by Finance Minister Tengku Zafrul Abd Aziz when he unveiled the budget in parliament last week, because it could help Malay businesses recover after the impact of Covid-19.

Senior fellow of the Malay Economic Action Council (MTEM) Ahmad Yazid Othman said that the aid announced by the government would reduce the gap between Bumiputera and non-Bumiputera entrepreneurs, but feared embezzlement.

He suggested that those in charge of distributing funds should be firm and honest to offer help or opportunities, while stressing that help should be offered through political alliances.

“If not, there is no use helping them,” he said.

Government agencies that receive funding must also report in detail how the wealth has been distributed, including a breakdown by race, plus any funds left over.

“This reduces the obvious symptoms of ‘Ali Baba’ and ensures that only those with authority are given the opportunity,” he said.

In addition to the incentives, Budget 2023 also provides RM3.7 billion for small and medium projects throughout Malaysia.

It includes RM500 million for class G1 to G4 contractors to maintain federal roads, bridges, houses of worship and infrastructure damaged by floods.

Specifically for Bumiputera contractors, the government provides short-term financing to those involved in the electrical and construction fields through the RM20 million express contract financing scheme.

The President of the Class F Contractors Association (Perkobf) Tukiman Radion expected every project that is released to be done through a ballot to ensure transparency of distribution.

In addition, Tukiman said, the agencies involved need to be transparent in issuing any project and not “keep” certain projects for their favourites.

“Do not keep government projects. For example, there are 100 projects, only 30 are voted for, the remaining are awarded without any transparency,” he said.

The president of the Malaysian Malay Chamber of Commerce (DPMM) Abdul Halim Husin said Malay entrepreneurs are generally satisfied but had reservations.

He stated funding did not reflect the true number of the population, compared to that for the Chinese and Indian communities.

“The government does not emphasise the development for the Bumiputera business community. In fact such a large financial provision to Chinese and Indian traders will widen the gap between them, and the Bumiputera,” he said.

Abdul Halim said Malay entrepreneurs were given RM450 million in total – with RM150 million in micro loans from Bank Simpanan Nasional (BSN) and RM300 million in loans from the Business Enterprise Group’s Economic Fund (Tekun) – but Bumiputera accounted for 70% of the population.

Meanwhile, he said Chinese entrepreneurs were given loans worth RM200 million, which he said was disproportionate because the community made up about 20% of the population.

He claimed that Indian entrepreneurs were given RM125 million – RM25 million through the Indian Community Entrepreneur Financing Scheme (Spumi) and RM200 million through the Malaysian Indian Community Transformation Unit (Mitra) fund – but the population is only 6%.

He was referring to the SemarakNiaga 2023 programme, which was given RM45 billion, a RM5 billion increase on the 2022 Budget.

He also claimed that, from his experience in grants or open financial assistance based on merit, Malay entrepreneurs often lag behind other entrepreneurs of different races.

“Teraju got RM135 million and PUNB got RM200 million, but when compared to other open-tender funding, the amount of RM335 million is very small.

“However, we are still grateful as the Malay chamber of commerce is getting assistance from the government almost every year.

“This money is meaningful to Malay traders, struggling after the Covid-19 pandemic.

“With bank interest and high inflation now, this funding will be well received by Malay entrepreneurs,” he said, to The Malaysian Insight.

Last Friday, the government announced a RM372 billion budget, the largest in the nation’s history to date. – October 10, 2022.