Unclear if Bumiputera enterprise programmes working, says think tank

 IDEAS says the success of support schemes should be measured by business growth, exports, and supply chain participation.

IDEAS said Bumiputera enterprise programmes needed clearer benchmarks and stronger coordination.

PETALING JAYA:

 A think tank has called for clearer performance benchmarks and stronger coordination in programmes supporting Bumiputera enterprises, saying it is still difficult to determine whether such initiatives are producing competitive businesses.

In two new policy papers released today, the Institute for Democracy and Economic Affairs (IDEAS) said many government programmes measured success through participation rates, outreach and funds disbursed, rather than whether businesses grew, products were exported, or integrated into wider supply chains.

The papers, titled “From Support to Success: Refocussing Bumiputera Trade Policies on Enterprise Outcomes” and “The Bumiputera Vendor Development Programme in Practice: Selection, Development and Graduation”, examine Malaysia’s support ecosystem for Bumiputera small and medium-sized enterprises (SMEs).

IDEAS said trade-related assistance for Bumiputera SMEs, including loans, grants, training, certification assistance, mentoring and trade promotion, was spread across multiple ministries and agencies with different objectives.

The support is delivered through various programmes across ministries and agencies, which risks duplication and inconsistent implementation, it said.

It also found that development pathways for enterprises were not clearly defined, with limited transparency on how firms progressed from early support to export participation.

Similar issues were observed in the Bumiputera Vendor Development Programme, where reporting often focussed on participation numbers and procurement indicators rather than vendor competitiveness or diversification beyond anchor firms.

IDEAS said the absence of a consolidated system to track enterprise progression made it difficult to evaluate the long-term impact of these programmes.

To address these gaps, it recommended greater coordination across ministries and agencies, clearer success benchmarks focussed on enterprise growth and export participation, and stronger monitoring systems to track businesses from programme entry through graduation.

IDEAS CEO Aira Azhari said discussions around Bumiputera policies were often politicised, which could overshadow practical questions about whether the programmes were performing.

“For many entrepreneurs building businesses, what matters most is whether these initiatives genuinely support their growth and competitiveness in the supply chain.

“Stronger programme design and coordination will be essential to delivering that,” she said. - FMT