Teraju allocates US$30mil for bumiputera entrepreneur programmes
By Digital News Asia August 14, 2015
- 3 programmes announced, including financing and capacity-building
- US$25mil allocated to SME Bank to operate equity financing scheme
THE Malaysian Government’s Bumiputera Agenda Steering Unit (Teraju) said it has allocated RM120 million (US$29.9 million) for programmes it will be running with collaborators enable bumiputera entrepreneurs to be more competitive in both domestic and global markets.
Teraju, part of the Prime Minister’s Department, was set up in 2011 to lead, coordinate and drive bumiputera participation in the economy.
‘Bumiputera’ is the term used for the largely, though not restricted to, Malay Muslims in Malaysia, who enjoy special privileges in education, housing, and civil service appointments. Many government contracts also stipulate a procurement preference for firms with a majority bumiputera ownership.
Teraju will collaborate with Malaysia Design Development Centre (DDEC), SME Bank and SME Corporation Malaysia (SME Corp) in programmes that will target export-ready companies, entrepreneurs and youth, offering support in funding and capacity-building, Teraju said in a statement.
“These programmes take a holistic approach, providing opportunities and encouraging entrepreneurship from ideation up to global export-ready levels,” said Teraju chief executive officer Husni Salleh.
“In line with the 11th Malaysia Plan (11MP) to raise wealth ownership and income of the B40 households, such collaboration is reflective of Teraju’s emphasis to further develop entrepreneurship capacity, encouraging participation in high-productivity, innovative, and creative economic activities,” he added.
The Malaysia Plans are five-year national development plans, while B40 refers to the lowest 40% of Malaysian population in terms of household income.
According to Teraju, the collaboration agreement with SME Bank involves the establishment of the Bumiputera SME Equity Financing Programme (BASE).
RM100 million (about US$25 million at current5 rates) was allocated to SME Bank for BASE, which would provide equity financing to credible bumiputera SMEs (small and medium enterprises), giving them access to financing for equity acquisition to take over, control and expand, or diversify their business.
The DDEC collaboration involves the Pre-Export Capacity Building programme, where DDEC will receive RM10 million to assist bumiputera entrepreneurs in brand-building and development activities.
Twenty eligible and export-ready bumiputera companies/ entrepreneurs in the halal (kosher) food and beverage industry would be identified for this programme, Teraju said in its statement.
Finally, a Memorandum of Understanding (MoU) between Teraju and SME Corp for the Program Tunas Usahawan Belia Bumiputera (TUBE), for which RM10 million was allocated.
The programme aims to encourage bumiputera youth to venture into entrepreneurship by providing coaching, advice and financial assistance through its Business Grant & Buddy System as well as a Management Activity programme.
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