Rep suggests 30 per cent Bumiputera equity rule for major contracts

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Dennis Ngau

KUCHING: The Sarawak government has been asked to consider making it a prerequisite that all state-awarded major infrastructure contracts have at least 30 per cent Bumiputera content (equity).

The proposal was made by Dennis Ngau (GPS-Telang Usan) in view of major infrastructure projects often being undertaken by big companies with large capital, relevant experience and skills as well as high-end machinery required to execute and complete the project on time and in compliance with contract specifications.

“If this approach is pursued without any proactive and deliberate intervention by the government, the gap between the large companies and smaller ones will grow wider.

“Established and larger companies will monopolise the industry while the smaller ones will never be able to gain experience and the required capital to compete and as such, wind up being unable to sustain themselves,” he said when debating the State Budget 2020 at the State Legislative Assembly (DUN) here yesterday.

He pointed out that established companies with their experience and accessibility to resources usually belong to non-Bumiputeras while small companies belong to the Bumiputeras.

“As the state progresses into the future, the government needs to take pro-active measures to lessen the gap and forge partnerships between the Bumiputera businesses.

“This will encourage a greater and more equitable distribution of wealth between and across communities. More importantly, mutual understanding, friendship and unity will be established between the communities.”

On another issue, Dennis also suggested that the state government enhance the economic status of rural communities by giving them the opportunity to become partners, co-owners or even owners of collection, processing and packaging centres (CPPC).

“A possible way is for the various Bumiputera chambers of commerce such as Sarawak Chamber of Bumiputera Entrepreneurs (DUBS), Dayak Chamber of Commerce and Industry (DCCI) and Orang Ulu Chamber of Commerce and Industry (OUCCI) to participate in the establishment and ownership of these centres.

“This creates an equitable distribution of opportunities for the rural communities who are most likely going to be the main suppliers of products to the various centres.”

He added that more importantly, they are given the opportunity to be involved in working out the processes like packaging, branding, marketing and exploring the products, thereby enabling them to participate in the main stream of commerce.