Najib announces RM200 mil Bumiputera business expansion fund

by **Cals** Tue 11 Mar 2014, 08:06

Business & Markets 2014

Written by Bernama

Monday, 10 March 2014 20:01

KUALA LUMPUR (March 10): Prime Minister Datuk Seri Najib Tun Razak, today announced a RM200 million Bumiputera Business Expansion Fund, to help technology-based Bumiputera companies to expand their business to international level.

For a start, RM25 million allocated to the Bumiputera Agenda Steering Unit (Teraju) in the Prime Minister's Department, will be managed by the Malaysian Technology Development Corporation, he said.

"The fund will provide flexible loans without any collateral, and the repayment period is six years, starting from the second year after the loan has been disbursed.

"However, every project proposed must have profit prospects. The proposal paper must focus on business expansion," said Najib, who is also the Finance Minister, after chairing the Bumiputera Economic Council meeting at Parliament House.

The prime minister said that the business sectors eligible to receive the financing are technology-based in the biotechnology field, green technology, oil and gas, electrical and electronics, information and communications technology, nano technology and food technology.

Najib also announced another seven Bumiputera companies that would receive the Facilitation Fund Grant, totalling close to RM20 million, to implement various projects.

The companies are Grand Ten Holdings Sdn Bhd, PEPS-JV (M) Sdn Bhd, Dimension Bid Sdn Bhd, Faiza Marketing Sdn Bhd, Mansalin Education Sdn Bhd, Al Ameen Development Sdn Bhd and Majpadu Bricks Sdn Bhd.

"These companies have signed an agreement with Teraju to implement their proposed projects, that are expected to attract private investments totalling RM128.7 million, and can create nearly 700 job opportunities.

"I hope, with the availability of the Facilitation Fund Grant, more Bumiputera companies will come forward with their proposals, for high-impact projects that have vast potential to stimulate the country's economy and be beneficial to the people, particularly with regard to creating job opportunities," he said.

The Facilitation Fund was introduced in August 2012, with a whopping RM2 billion, comprising 15 per cent grant from the overall project cost, valued at RM5 million at the least, and has infrastructure, machinery and equipment components.

Najib said that up to February this year, RM1.4 billion from the Facilitation Fund has been approved to Bumiputera companies, to undertake 132 projects, in collaboration with Teraju, regional economic corridors and Public Private Partnership Unit (UKAS).

He said, the projects entailed RM15.12 billion in total private investments in the oil, gas and energy, property development, construction, wholesale and retail sectors.

"Under the Facilitation Fund programme, Teraju and the Bumiputera companies involved, are expected to provide more than 23,000 new jobs to locals.

"Every initiative announced, reflects the government's concern and its continuous effort and emphasis on the empowerment of the Bumiputera agenda, as an important national agenda.

"I'm confident, the new measures and the synergy created among the government agencies, will benefit Bumiputera entrepreneurs in propelling their business to a more progressive level," he added.