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The Malaysian government has launched the Bumiputera Economic Transformation Plan 2035 (PuTERA35), aiming to significantly increase the contribution of Bumiputera companies to the country’s gross domestic product (GDP) from 8.1% in 2022 to 15% by 2035. This ambitious target is part of a broader effort to enhance Bumiputera economic participation and support their socio-economic advancement.
In addition to this, the government has set a goal to increase Bumiputera equity ownership through government-linked companies (GLCs) and government-linked investment companies (GLICs) to 20% by 2035, up from 18.7% in 2020.
Commitment to Socio-Economic Development
Economy Minister Rafizi Ramli, during the launch of PuTERA35, highlighted the Unity Government’s commitment to ensuring the Bumiputera agenda remains central to Malaysia’s socio-economic development plans. He stressed that there are opportunities to enhance the socio-economic status of the Bumiputera community through structural economic reforms, which will help Malaysia transition into a developed, high-income nation.
“Bumiputera have the opportunity and potential to play a more significant role in high-growth, high-value (HGHV) industries,” Rafizi noted, identifying sectors such as Digital Agriculture, Digital Cities, and high-value manufacturing as key growth areas.
However, Rafizi was quick to emphasize that PuTERA35 does not come at the expense of other races. Instead, it will contribute to the overall development of the country, benefiting all Malaysians through economic growth and progress.
A New Direction for Bumiputera Economic Empowerment
PuTERA35 is built on three pillars that align with the government’s Madani Economy framework:
- Strengthening the nation’s economic foundation
- Enhancing governance and institutional integrity
- Upholding social justice
While the plan lays out a clear roadmap for Bumiputera empowerment, Rafizi emphasized that the key challenge lies in implementation. He echoed the Prime Minister’s call for increased productivity, efficiency, and readiness to implement changes to enhance the country’s competitiveness.
Preparing Bumiputera for Global Competition
PuTERA35 aspires to produce a new generation of Bumiputeras who are progressive, innovative, and competitive on both domestic and international stages. According to the government, the 2024 Bumiputera Economic Congress played a crucial role in shaping the plan, with input from stakeholders across public and private sectors, including non-Bumiputera groups.
Rather than replacing existing development plans, PuTERA35 serves as a continuation and expansion of the government’s policies, in line with the Madani Economy and Agenda 2030 for sustainable development.
Addressing Ongoing Challenges
Despite past efforts to empower Bumiputeras, structural issues still hinder their full participation in the national economy. These include income and wealth disparities, the concentration of Bumiputeras in low-value-added sectors, and limited equity ownership. Additionally, challenges in areas such as education, competitiveness, and governance continue to hold back broader socio-economic progress.
PuTERA35 aims to address these issues by focusing on high-value-added industries, improving talent development, and enhancing social protection measures to uplift the Bumiputera community.
Ensuring Effective Implementation
A critical aspect of PuTERA35’s success will be its monitoring and implementation framework. The Ministry of Economy will take a top-down approach, while the Bumiputera Agenda Empowerment Unit (UPAB) will adopt a bottom-up strategy, ensuring initiatives are implemented effectively across ministries and agencies. A PuTERA35 Monitoring Dashboard will track the progress of the 132 initiatives under the plan’s three pillars and 12 drivers, ensuring accountability and timely action.
PuTERA35 represents a strategic plan to elevate the economic standing of the Bumiputera community. By focusing on structural reforms, inclusivity, and high-value industries, the plan aims to empower Bumiputeras to take a more active role in Malaysia’s socio-economic growth. However, its success will depend heavily on efficient implementation and the collective commitment of all stakeholders to bridge socio-economic divides and drive national progress.
