Prime Minister Anwar Ibrahim has called for an end to political patronage in distributing financing to bumiputera entrepreneurs, lamenting that some had abused the aid to indulge in luxury, and even expand their marriages.
New Straits Times reported him saying that loans and financial assistance should be awarded based on capability and commitment, rather than personal connections or recommendation letters.
"In some cases, the first thing they did after receiving financing was set up luxurious offices, buy vehicles and even take a second wife.
"Others simply sold their business licences for commissions. This has to stop," he reportedly said during his speech at an event in Putrajaya.
Anwar also said the long-standing reliance on political endorsements had weakened bumiputera development institutions, leading to public funds being channelled to individuals with little interest in building sustainable businesses.
"I do not care whether recommendation letters come from division chiefs, branch leaders or other influential figures.
“What matters is whether the entrepreneur has the capability. That is who we should help," he added.
No to endorsement letters
Anwar said that decisions on financing must no longer be swayed by what he described as “yellow, green or blue letters”- a reference to endorsement letters issued by politicians or other influential figures.
"These practices have damaged our bumiputera institutions for far too long. People received loans because of their close ties to certain individuals, not because they were capable entrepreneurs.
"In the end, the businesses collapsed because those receiving the assistance were never truly committed," he lamented.
However, Anwar drew a distinction between genuine business failures and the deliberate misuse of government assistance, saying the two should not be treated alike.
He said entrepreneurship was inherently risky, adding that even established start-up ecosystems abroad recorded high rates of business failure.
He also said agencies should shift away from assessing success solely on the amount of financing disbursed, and instead place greater emphasis on whether entrepreneurs demonstrate transparency, commitment, and the capacity to develop viable businesses.
Anwar also called on agencies involved in bumiputera entrepreneurship development, including Perbadanan Usahawan Nasional Bhd (PUNB), Mara and Tekun Nasional (Tekun), to improve coordination among themselves and avoid overlapping programmes.
"The bumiputera agenda can only succeed if it is managed properly and if we put an end to stealing and abuse. On that, I will not compromise," he added. - Mkini
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