08/09/2026

BIZ & FINANCE TUESDAY | SEPT 8, 2026

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Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Govt mulls 31% Bumiputera GDP contribution benchmark o New, higher target by 2035 reflects shift in emphasis from simply increasing participation and ownership to ensuring businesses develop sufficient scale and capability: Akmal Nasrullah

KUALA LUMPUR: The government is exploring a potential benchmark to raise the contribution of Bumiputera enterprises to Malaysia’s gross domestic product (GDP) to 31% by 2035, more than double the existing 15% target under the Bumiputera Economic Transformation Plan (PuTERA35). The proposed benchmark, discussed at the Bumiputera Wealth Creation and Corporate Control Forum here yesterday, would represent a significant increase from the current Bumiputera enterprise contribution of 8.1%. Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said the higher benchmark reflects a shift in emphasis from simply increasing Bumiputera participation and ownership to ensuring businesses develop sufficient scale and capability to exert greater economic control. “We have reached a stage where participation and ownership alone are no longer sufficient. Our focus now needs to shift towards stronger and more meaningful Bumiputera economic control,” he said at the forum. He said the 31% figure would serve as a benchmark for building larger and more competitive Bumiputera companies capable of gaining control of high-value sectors. The 31% figure is currently being explored as a potential benchmark and has not been

Akmal Nasrullah said this was particularly important as the government sought to encourage more Bumiputera participation in high-growth, high-value industries. He said Bumiputera players were beginning to gain traction in areas such as semiconductors and electrical and electronics, but the transition into more sophisticated industries required stronger technology and skills foundations. “Listing is not the end game. It is a beginning. What matters is whether these companies can use the opportunity to raise capital, grow and achieve greater economic control.” Access to public capital should allow companies to continue expanding after listing, rather than treating an initial public offering as the final measure of success, he added. The minister also said the government wanted to move away from assessing PuTERA35 primarily through programme implementation figures. Internal government reporting currently puts PuTERA35 implementation at about 66%, but Akmal Nasrullah said the year-end assessment would examine whether the initiatives had produced tangible economic outcomes. “We want to look at the actual achievements, not just the numbers.” He said the comprehensive assessment, expected at the end of the year or early next year, would also determine whether the existing targets remained achievable and what adjustments were needed for the remainder of the plan to 2035. The forum was jointly organised by Teraju, Ekuinas and UDA Holdings and brought together government agencies, GLCs, GLICs, financial institutions, capital market players, property developers and private-sector representatives. PuTERA35 comprises three pillars, 12 drivers and 132 initiatives, with wealth creation, equity ownership and greater participation by private companies, GLCs and GLICs among the areas targeted for accelerated implementation.

“The opportunity is actually larger than what the government, GLCs and GLICs can support,” he said, adding that government assistance must ultimately help businesses compete beyond the government ecosystem. He cautioned against creating companies that remain dependent on government contracts and support, saying assistance that does not lead to higher capabilities could leave businesses at the same level even after 10 years. The government is therefore looking at whether procurement can be used more deliberately to build business capabilities, including technology, machinery and skilled manpower, rather than focusing solely on completing projects at the lowest cost. Akmal Nasrullah said an emphasis on the lowest price could make it harder for companies to invest in technology and skilled workers. “If the procurement is only about the lowest price, then how do we expect companies to invest in technology and skilled manpower?” He cautioned against imposing mandatory requirements on private-sector companies, saying this could produce unintended consequences for the economy. Instead,Akmal Nasrullah said, the government needed to strengthen the continuity between government-supported programmes and opportunities in the private sector so that companies could graduate into broader markets. Ekuiti Nasional Bhd (Ekuinas) CEO Aliff Omar Mohamad Omar said the challenge was not a shortage of Bumiputera entrepreneurs, but the ability to scale businesses beyond the small and medium-sized enterprise stage. “Malaysia does not lack Bumiputera entrepreneurs. The challenge is scaling SMEs into national and regional players.” He said while access to capital had become increasingly broad, leadership, governance, talent and organisational management remained important determinants of whether companies could scale.

formally adopted as a revised PuTERA35 target. Its feasibility will be assessed based on growth across 11 sectors, with wholesale and retail trade, halal and food, agriculture and agro based industries, information technology, tourism, business services and logistics identified as seven strategic sectors. The scale of the private sector is expected to be critical to achieving the higher contribution, with Akmal Nasrullah noting that the public sector accounts for only about 17% of the economy compared with about 78% for the private sector.

Akmal Nasrullah (right) during a dialogue session at the Bumiputera Wealth Creation and Corporate Ownership Forum in Kuala Lumpur yesterday. On the left is moderator Tan Sri Abdul Wahid Omar.

Minister proposes greater transparency in salary offers KUALA LUMPUR: Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir has raised greater transparency in salary offers as a potential way to strengthen workers’ bar gaining power. Akmal Nasrullah stressed that greater salary transparency was not about establishing an absolute salary level. “It is not about an absolute number. It is about openness and transparency in the salary offer.” He said he would bring the issue back to the Economy Ministry for consideration. He pointed to high-growth, high-value industries such as electrical and electronics and semiconductors, while stressing the importance of strengthening science, technology, engineering and mathematics participation to prepare more Bumiputera talent for such sectors.

August foreign inflows into M’sian govt bonds hit RM11b: Kenanga IB KUALA LUMPUR: Foreign inflows into Malaysian government bonds totalled RM11.1 billion in August, according to Kenanga Investment Bank Bhd (Kenanga IB). “Foreign investors turned net buyers of Malaysian government bonds, with RM11.1 billion of inflows in August and RM5.6 billion of that in the final week,” it said in its Bond Market Weekly Outlook yesterday. Kenanga IB said Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields rose across the curve by between 1.3 basis points (bps) and 11.1 bps. The 10-year MGS yield rose 11.1 bps to 3.985%, while the 10-year GII yield increased 10.1 bps to 3.953%, with the sell-off concentrated in the seven- to 10-year segment, it said. “External rates led the move. Cautious remarks from US Federal Reserve chair Kevin Warsh at the Jackson Hole symposium tempered expectations for near-term Fed rate cuts, while escalating United States-Iran tensions lifted front-end US Treasury securities yields and oil prices,” it said. – Bernama

Speaking at the Bumiputera Wealth Creation and Corporate Control Forum here yesterday, he said workers were often presented with salary offers without sufficient information to determine whether the remuneration was appropriate based on their qualifications and skills. He added that some workers face a “take it or leave it” approach to salary offers, leaving them with limited bargaining power. Akmal Nasrullah said the issue was particularly relevant to young people and job seekers entering the labour market, as workers were generally represented by unions but there was less clarity on how the voices of younger workers and those seeking employment were reflected in salary negotiations. He questioned whether employers’ salary offers were based on merit or other factors, saying such information was generally not shared because there was no clear mandate for employers to disclose it.

Akmal Nasrullah said reports received by him indicated that fresh semiconductor graduates could earn starting salaries of about RM5,000 to RM5,500 after training. He also linked wage growth to productivity, saying workers should see better returns as productivity and economic value increase. Malaysia’s formal-sector employees earned a median monthly wage of RM3,027 in March 2026, according to the Department of Statistics Malaysia. The bottom 10% earned RM1,700 or less, while the 90th percentile earned at least RM11,500. The government is also implementing the Progressive Wage Policy to encourage wage increases alongside productivity improve ments. As at end-2025, 4,025 employers involving 51,363 employees had participated in the policy and met the conditions for salary increases. - by HAYATUN RAZAK

Akmal Nasrullah said wage-setting involved three parties, namely employers, the government and workers, with the government already having tools such as the minimum wage and Progressive Wage Policy. However, raising the minimum wage alone did not necessarily resolve the broader issue of wage progression, particularly for workers with higher qualifications. “When the minimum wage goes up, does it mean the salary of someone with a diploma or degree also goes up?” Akmal Nasrullah said. This, he added, raised the issue of wage compression, where increases at the bottom of the wage scale could narrow the gap with workers who had higher qualifications without corresponding increases in their salaries. Akmal Nasrullah said wage reviews needed to take place periodically, while workers also needed access to industries offering stronger income prospects.