By NUR HAZIQAH A MALEK / Pic By AFIF ABD HALIM
Hong Leong Islamic Bank Bhd (HLIB) has pledged to contribute RM350 million to the High Performing Bumiputera Companies (Teras) through a partnership programme with the Bumiputera Agenda Steering Unit (Teraju).
The collaboration will bring the programme’s total fund to RM2.89 billion.
HLIB CEO Jasani Abdullah said the bank is targeting to fund between 20 and 30 Teras- registered companies yearly.
“The companies will be evaluated based on their growth potential within the next five to 10 years and how they can expand internationally.
The cooperation agreement gives HLIB the access potential businesses among the 1,060 registered Teras companies, while promoting the programme to HLIB’s Bumiputera companies,” Jasani said yesterday.
HLIB, he said, will concentrate on sectors with a strong capacity to facilitate job and wealth creation.
“RM225 million out of the funding will be channelled into raising working capital through the purchase of raw materials service costs and import-export activities. The remaining will be used for asset acquisitions,” he added.
The industries that HLIB will be focusing on are construction and infrastructure, telecommunications, agriculture, manufacturing and green technology sectors.
“Our main focus is to get involved and help Bumiputera small and medium enterprises (SMEs) that are involved in national construction and infrastructure projects including Mass Rapid Transit Line 2, Light Rail Transit Line 3 and Pan Borneo Highway in East Malaysia, especially for sub-contractors involved in those projects,” he said.
According to Jasani, by 2020, these sectors are expected to provide up to 40% of the country’s GDP. The bank aims to provide up to 60% of the financing facility to Bumiputera SMEs and the rest for micro-companies.
As of July 2017, a total of 310 companies under the Teras programme have received successful funding for asset acquisitions and working capital up to the value of RM1.39 billion, said Teraju CEO Datuk Husni Salleh.
Teraju has recorded RM114 billion in total value for the Bumiputera with over 44,000 jobs generated and RM13.88 billion in private investments through facilitation fund, also the Teraju has RM8.2 billion registered in market capitalisation from the listing of Bumiputera companies.