KUALA LUMPUR, Dec 28 — Former deputy minister of investment, trade and industry Ong Kian Ming has expressed support for the Bumiputera Economic Congress (BEC) 2024 but stressed that there was an urgent need for a fresh approach.

In a statement issued today, he outlined key proposals aimed at fostering sustainable Bumiputera businesses and addressing the challenges faced by the community in economic empowerment, urging intense scrutiny and in-depth analysis of existing policies and programmes.

Ong outlined key proposals focused on fostering sustainable Bumiputera businesses and conducting a thorough examination of existing policies and programmes.

He emphasised the importance of independent studies to assess both the successes and shortcomings of past government-sponsored programmes for Bumiputera entrepreneurs.

"For example, I would be interested to examine the extent to which the Approved Permits (AP) programme for selected imported automobile models has been successful in creating successful Bumiputera companies in the automotive sector. Another area would be the extent to which government procurement policies benefit a large number of Bumiputera contractors or do they only benefit a few "cartels” which control a majority of these government contracts,” Ong said.

The former deputy minister’s proposals encompass a wide range of topics, including an evaluation of GLC-led Bumiputera vendor development programmes and the sharing of Human Resource (HR) management best practices among Bumiputera-led companies to address talent retention and development challenges.

"What are the best practices in Malaysia among SMEs as well as Large Local Corporations (LLCs) to develop, train, and retain local talent, including Bumiputera talent in Bumiputera-led companies? How do these talents get the proper international experience to get some of them ready to lead these companies into the international arena?” he asked.

"What are the most effective scholarships and internships policies to attract best fit talent into these companies? Are there lessons which Bumiputera-led companies can learn from other companies which manage to retain and develop their Bumiputera staff? This kind of knowledge should be openly shared.”

Ong also raised questions about the track record of investments from venture capital and private equity funds aimed at Bumiputera empowerment. Using Ekuinas as an example, he pointed out the challenges faced by the organisation in balancing internal rates of return (IRRs) with the objectives of Bumiputera economic empowerment.

Reflecting on Ekuinas’ experience, Ong stated that after 15 years, the company had to sell its shares in Burger King to two non-Bumiputera businessmen, "which included the founder of 99 Speedmart. Ekuinas has also disposed of other investments in the food and beverage sector including ones owned by Bumiputera owners,” said Ong.

"How easy has it been for Ekuinas to balance its objectives of seeking attractive internal rates of returns (IRRs) with the objectives of Bumiputera economic empowerment? These are difficult and challenging questions which should be discussed at the BEC. Ekuinas is only one of many such government agencies,” he added.

Ekuinas was established in 2009 to provide access to private equity funding for high potential Malaysian companies and entrepreneurs, while increasing sustainable Bumiputera wealth and participation.

Another key aspect proposed by Ong is the exploration of successful partnerships between Bumiputera-led and non-Bumiputera companies within different sectors.

He emphasised the importance of fostering conditions conducive to long-term collaborations.

Ong also advocates for a comprehensive discussion on Bumiputera empowerment in Sabah and Sarawak, acknowledging the unique challenges faced by these communities.

In expressing optimism about the appointment of Ibrahim Sani as the new CEO of Yayasan Peneraju, Ong said he envisions Sani’s corporate sector experience bringing insightful perspectives to the BEC.