Bumis Told To Enter Manufacturing, IBS

malaysia business news

Bumiputra companies should be more involved in manufacturing based and industrialised building system (IBS) sector, UDA Holdings Bhd’s chairman Datuk Nur Jazlan Mohamed said.

Currently, there is only 10 per cent Bumiputera participation in procurement and supply chain within the construction industry.

Bumiputera participation is most highest in maintenance, planning and design, he said.

Jazlan said greater involvement in manufacturing based and IBS will help sustain Bumiputera participation in the industry.

“Having more locally produced IBS will not only make the industry more cost effective but through this effort, Bumiputera players can be more innovative and grow globally,” he told Business Times.

Jazlan said the government needs to restructure the outdated Bumiputera agenda and ensure that a reformed policy will not just benefit the one person who gets the contract.

“Times have changed … creation of wealth must be shared,” he added.

UDA has been criticised for neglecting its social responsibility in supporting Bumiputera initiatives against profit generation and corporate objectives.

Jazlan said the government should not give in to the pressure groups and should realise that the cost of Bumiputera agenda is not sustainable in the long run.

“UDA is one example. It was not profit-driven from the start. When it was established, the company’s main aim was to develop and build, and was given an annual grant of multi-million ringgit,” he said.


He said the completed projects were given to Bumiputeras who requested for a further discount in rental cost. The assets were then left rundown as they got too expensive to be managed by UDA.

While its neighbours like Starhill, Lot 10 and Fahrenheit 88 have undergone several refurbishment exercises over the years, BB Plaza, which is owned by UDA has not been refurbished or renovated since 1992 due to lack of cash.

UDA had recently spent RM63 million to renovate the Puduraya bus terminal and is now set to lose RM1 million a year because tenants refuse to pay higher rent.

“The Bumiputera agenda desperately need to be restructured. It is not impossible. Government must explain properly on the losing cost to sustain this agenda,” Jazlan said.–BTimes