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From a business growth standpoint, these business opportunities
are catalytic opportunities given by the Government and GLCs
via procurement contracts, non-core asset divestment and or
outsourcing of non-core GLC functions that can increase revenue
or turnover. This will in turn cause the business to expand through
other organic means such as mergers and acquisitions.
Exhibit 13.11
Selection Process for High Performing
Bumiputera SMEs
The selection of the High Performing Bumiputera SMEs will be
done through a stringent programme based on selection criteria
such as:
• Core business should preferably be in one of the 12 NKEAs
• Preferably has a minimum three star and above score rating by
SME Corporation Malaysia (SME Corp)
• Preferably has a favourable Credit Bureau Malaysia rating
(Probability of Default < 20 per cent)
•
Growth Trajectory for HPBS
Revenue/Annual Turnover
1
2
3
1
Organic growth (slow & steady growth)
Broad-based ETP-catalysed growth
Catalytic opportunities by Gov, GLCs
• Procurement contracts
• Divestment
• Outsourcing
Profitable in the last two to five years
2
An independent selection panel comprising representatives from
Ministry of Finance (MoF), Ministry of International Trade and
Industry (MITI), SME Corp, Khazanah and industry experts will be
evaluating the proposals and conduct background assessment
of the companies. The selection panel will be chaired by TERAJU.
The target is to identify top 100 medium and 1,000 small/micro
Bumiputera SMEs to join the TERAS programme.
4
5
6
7
3 4
Facilitation of new market entrance
• Diversifying revenue stream,
esp. via exports
• Reduce dependency on govt
Merger & acquisition
Funding for new technology
/expansion
No intervention
5
6
7
Year
Exhibit 13.12
To ensure transparency and integrity of the selection process, an
independent audit firm will be appointed to monitor the overall
selection process. To ensure that these SMEs are eventually able
to be independent, clear exit criteria have been identified. These
companies will also have to meet key milestones to enable them
to ‘graduate’ and become large companies within five years, failing
which the companies will be dropped out of TERAS.
Moving Forward
SrI: Narrowing Disparity
Identifying top 100 medium and 1,000 small/micro
Bumiputera SMEs for the TERAS programme
BUMI 100
• Top 100
medium
Bumi SMEs
(approx. top
5 %)
11,136
High Performing
Bumi SMEs
Top 5% of the high performing
Bumi SMEs to achieve 20% GDP
contribution by 2020
BUMI 1000
• Top 1000
small/micro
Bumi SMEs
(approx. top
0.5 %)
In the BTEP Roadmap, the prime objective is to enhance
Bumiputera wealth creation through three key drivers:
1. Building up Bumiputera capabilities through better
employment;
2. Enhancing value of Bumiputera-owned assets such as
financial assets (unit trusts, zakat), property (waqaf land) and
corporate equity and;
3. Increasing Bumiputera corporate ownership and control.
Within each driver described above, specific and detailed
initiatives are already in place. Initiatives set to be implemented
in 2012 are:
• The High Performing Bumiputera Companies (TERAS)
- 30 SMEs have been selected to undergo the TERAS
Programme. These 30 companies have combined revenue
of more than RM900 million, providing jobs to 3,000 people
- 170 companies are currently being evaluated by the
independent selection panel
227