MED and Petronas collaborate on Bumiputera vendor development programme

By SHAHEERA AZNAM SHAH / Pic By BERNAMA

The Entrepreneur Development Ministry (MED) has partnered Petroliam Nasional Bhd (Petronas) to establish a new vendor-based development programme (VDP) to raise the capabilities of local firms in the oil and gas (O&G) sector.

Entrepreneur Development Minister Datuk Seri Mohd Redzuan Md Yusof said the programme — “Program Lestari: Inisiatif Pemerkasaan Keusahawanan Bumiputera” — is a continuous effort by
Petronas to elevate the local vendor ecosystem.

“It is in our commitment to develop and assist the entrepreneurship ecosystems and assist businesses in raising their capabilities to the global playing field.

“The programme will be the benchmark for other organisations to empower their Bumiputera vendor programme and help boost the local business sector,” he said at the launch of the programme in Kuala Lumpur yesterday.

Mohd Redzuan said the country’s business environment has to start implementing a multiple-tier vendor ecosystem to allow more local players to participate in the market.

“It is common in Malaysia that we have a one-tier vendor scheme under an anchor company. We should have five to seven layers of vendor schemes like what is practised in countries like Japan and South Korea.

“Petronas’ vendor-based programmes are aligned to the ministry’s objective to create more tiers in the vendor market,” he said.

Mohd Redzuan said Program Lestari is aligned to the ministry’s National Entrepreneurship Framework (NEF), which was launched in November last year.

“The ministry hopes to produce and encourage more entrepreneurs, especially from the bottom 40% income group (B40) to spearhead the manufacturing sector and supply components, and provide competitive services,” he said.

Presently, there are 21 anchor companies and 1,354 vendors involved in the VDP.

For the O&G services and equipment (OGSE) sector, there are three anchor companies — Petronas, Uzma Engineering Sdn Bhd and Serba Dinamik Holdings Bhd.

Petronas president and CEO Tan Sri Wan Zulkiflee Wan Ariffin said presently there are about 4,000 local companies that are registered as Petronas’ vendors and partners, of which 80% are small and medium enterprises.

“We have been assisting the vendor development initiatives since 1993 and providing the opportunities for local firms to compete at the global level. 

“One of the main objectives of the VDP is to reduce the dependence on global firms.

“We will continue to help build the sustainability and endurance of local players in facing the headwinds in the O&G sector,” he said.