Collaboration and blue ocean strategy among GLCs, private sector and the govt are important for entrepreneurs

by FARA AISYAH / Pic by HUSSEIN SHAHARUDDIN

Government-linked companies (GLCs) and the private sector should be more involved in assisting the Bumiputera agropreneurs for the sector’s benefit, says Deputy Agriculture and Agro-based Industries Minister Datuk Seri Tajuddin Abdul Rahman.

Tajuddin said the government has made it very clear that the involvement of Bumiputera agropreneurs in the industry needs to be increased, for them to be major players in the economy.

“Collaboration and blue ocean strategy among GLCs, private sector and the government are important for entrepreneurs especially in the agriculture and agro-based industries,” Tajuddin told reporters during his visit to Bank Pertanian Malaysia Bhd (Agrobank) headquarters in Kuala Lumpur yesterday.

“Prime Minister Datuk Seri Mohd Najib Razak has given mandates to the related parties to assist Bumiputera agropreneurs in expanding their businesses. It’s now their turn to play their parts and deliver their responsibilities.”

In commending Agrobank for assisting the local agropreneurs, Tajuddin stressed the need to close the gaps between the Bumiputeras and Non-Bumiputeras in the nation’s economy.

To date, Tajuddin said Bumiputera entrepreneurs have not even achieved 30% Bumiputera equity ownership targets.

“Including the trustee institutions contribution, Bumiputera entrepreneurs make up 25% share of the economy. However, individual Bumiputera agropreneurs who share the economy of the country make up less than 10% of the total number, hence, it is a wide gap.”

Closing the gap, he said, is vital in order to have a stable economy in the long run.

Based on Bumiputera Agenda Steering Unit data, as of 2013, Bumiputera equity ownership stood at 23.5% with a value of about RM203 billion.

Meanwhile, Tajuddin also urged agropreneurs, especially farmers to change their mindsets and practise good governance in their businesses.

Currently, Agrobank has given financial aid to 189,000 Bumiputera entrepreneurs, 89% from the total number of loans approved.

However, Tajuddin said these entrepreneurs are mostly from the small and medium enterprises, while the government hopes to see more Bumiputera entrepreneurs to become major players in the agrofood and agriculture industry.