Even SME's aren't spared the racial profiling
In a country whose entire psyche is couched in racial terms, how can we possibly avoid discussing the issue of Malaysian SME’s in a racial context?An essay in the academic Kyoto Review of SouthEast Asia by researchers Drs Lee Kam Hing and Lee Poh Ping puts the figure of SME ownership by Chinese Malaysians at as much as 57% (quoting Economic Planning Unit sources).
Chinese-owned businesses weathered reasonably well through the 1998 financial crisis largely because they were less exposed to foreign borrowings and used retained earnings to tide them through the tough times.However, faced with rising interest rates from commercial banks during that period, these non-bumi SME’s had no choice but to turn to the government for help. Apparently, only after a seminar was organized by the ACCCIM (Associated Chinese Chambers of Commerce in Malaysia) & the MCA, to present the impact of the Jan 1998 crisis on SME’s, were non-bumi SME’s able to tap off the RM1.5billion Rehabilitation Fund for Small and Medium-Scale Industries. Incidentally this was presented to Anwar Ibrahim in his position as Finance Minister before he was sacked later that year.
Edmund Gomez, one of my favourite local writers and researchers, puts the situation of Chinese Malaysian businesses as such: “Chinese capital remains very subservient to the UMNO-led government, and to remain productive, dynamic and to develop their corporate base, [the Chinese] have no choice other than to link up with the Malay political elite.” (Chinese Business in Malaysia: Accumulation, Ascendance, Accommodation, Edmund Terence Gomez) This statement might apply more to the larger Chinese-owned conglomerates but there would certainly be some spillover to SME’s as well.
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On a macro level, in the name of social and economic restructuring, the government is aiming to increase bumiputera participation in these sectors of the economy: wholesale and retail, ICT, biotechnology, oil & gas and property - all mainly through the establishment of SME’s.
The most concrete of these efforts are through its PROSPER (Projek Usahawan Bumiputera Dalam Bidang Peruncitan or Bumiputera Entrepreneurs in Retail Trade Project) programs where generous amounts of funding are provided by the PUNB (Perbadanan Usahawan Nasional Berhad or National Entrepreneurs Coporation) for budding bumi entrepreneurs to set up a business in selected retail or wholesale trades.
For example, under its Business Joint Venture package (for a project value not exceeding RM1 million), the entrepreneur need only come up with 10% with the rest in the form of loans; PUNB providing 30% & the remainder 60% from an appointed financial institution (guaranteed by the Credit Guarantee Corporation).
Will all this contribute to a stronger BCIC (government lingo for the bumiputera commercial and industrial community)? Time will tell, though I am sure many non-bumi wish their bumi counterparts success so that the country can just move forward with nation building and put aside the racial cloak that masks the country’s true potential.
Positive words to end an altogether not very exciting 2005! Happy 2006!
posted by hew @ 5:08 pm
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