by SHAHEERA AZNAM SHAH/ pic by MUHD AMIN NAHARUL
BUMIPUTERA Agenda Steering Unit (Teraju) has proposed to extend the Facilitation Fund (Dana Mudahcara) programme in 2020 with a total fund of RM400 million.
Teraju chairman Datuk Seri Mustapa Mohamed (picture) said the total amount requested is part of the remaining RM2 billion fund established under the 10th Malaysia Plan (10MP).
“We believe the programme should be continued. Teraju has proposed for the government to consider a RM400 million fund to be distributed through the programme this year.
“The RM400 million will be sourced from the remaining RM2 billion from the previous fund introduced under the 10MP,” he said in a statement recently.
Up to 35% of the Facilitation Fund has been distributed to assist the development of Bumiputera’s economic activity.
Teraju said the fund was established in 2011 under the 10MP amounted to RM20 billion to serve as a foundation of domestic private investments in the strategic development of the country.
“Of the total fund, about RM5 billion was approved and distributed to Bumiputera firms to execute large-scale development projects with a value of over RM50 million.
“Teraju was provided with RM2 billion in 2011 to assist Bumiputera firms on new projects ranged between RM500,000 and RM50 million,” it said in a statement.
The programme is a collaboration between Teraju and its strategic partners namely Public Private Partnership Unit (UKAS), Iskandar Regional Development Authority, East Coast Economic Region and Northern Corridor Economic Region.
Teraju said the programme distributes grants to eligible Bumiputera companies with a reimbursement of 15% from the total cost of the project.
“The programme provides funds in terms of grants to Bumiputera and was created as a tipping point for private investment.
“The fund for large-scale projects at UKAS reimburses 10% of the total cost project, while Teraju allows for a 15% reimbursement on a project’s infrastructure development and the procurement of machinery and other equipment,” it said.
Since its establishment, about RM1.76 billion of the fund has been approved, distributing to 474 Bumiputera companies for 550 projects with a combined value of RM14.79 billion. The projects have provided about 50,000 job opportunities.
Teraju said the fund has raised the rate of asset acquisitions of Bumiputera companies and assisted them to manage monopoly issues within the industry’s supply chain through tightening their financials.
“The fund has supported Bumiputera investments in the development of Malay reserve land, native land and waqf land.
“The fund also supports projects in important and high-value industries that will lead to the growth of Malaysia’s economy.
Among the realised projects under UKAS are the 30MV solar power plant in Bidor, Perak, with an investment of RM214 million, by Gading Kencana Development Sdn Bhd and a woman specialist hospital in Shah Alam, Selangor, by Avisena Women & Children Sdn Bhd.