Gov't sanctions RM600 Million to bolster Bumi entrepreneurs

The Government will allocate RM600 million to further strengthen the position of Bumiputera entrepreneurs in efforts to boost their participation at the global stage, Prime Minister Datuk Seri Najib Tun Razak said.

In announcing the additional allocation, Najib said RM400 million would be managed by the Economic Planning Unit (EPU) in the Prime Minister's Department.

He said RM100 million would be handled by MARA for corporate development to increase Bumiputeras' equity.

The remaining RM100 million would be disbursed to Perbadanan Usahawan Nasional Bhd (PUNB) to help Bumiputera entrepreneurs secure strategic business locations at popular shopping centres to sell international brand products and services, he said before opening the Bumiputera Entrepreneurs' Assembly.

Najib, who is also Finance Minister, announced that the ceiling for loans for Bumiputera entrepreneurs under MARA and TEKUN has been raised to RM100,000 from RM50,000 currently.

The Prime Minister also announced that the limit for financing under MARA has been increased to RM1 million from RM500,000 previously.

He said the EPU would use the additional fund to set up strategic programmes to help the entrepreneurs by adopting innovative approaches to expand their market and provide adequate infrastructure.

Other than that, Najib said, the government encouraged the entrepreneurs to boost their performance and skills to become competitive and not just depend on government assistance to succeed.

Najib said if an entrepreneur was capable, there was no need for any endorsement from anybody as he was qualified to compete to bid for the project.

"We do not want this type of entrepreneurs because if we were to give the contract to them based on endorsement, we will create a new culture among the Bumiputera entrepreneurs," he said.

He said Bumiputera entrepreneurs were awarded 45 per cent of the total value of the mass rapid transit projects based on merit.