Continuous Support in Nation Building through Bumiputera Empowerment Agenda (BEA)

Bumiputera Empowerment Agenda (BEA)
The GLC Transformation Programme (GLCT), which was implemented from 2004 to 2015, had three underlying principles, one of which is the National Development Agenda. The Bumiputera agenda is part of this (Figure 1), where various initiatives towards nation building were implemented over the years, achievements made and benefits delivered to the target groups by the Government-Linked Iinvestment Companies (GLIC) and the G201 .

Following the launch of the Bumiputera Economic Empowerment Agenda by the Prime Minister of Malaysia on 14 September 2013, and in response to his expectations of the GLICs and G20 delivered in his speech at the launch, the then Putrajaya Committee of High Performing GLCs (PCG) established the Bumiputera Empowerment Agenda (BEA) to continue with the nation building initiatives related to the Bumiputera community.

With the graduation of the GLCs and the graduation of the 10-year GLCT in July 2015, Khazanah was mandated by the Government to continue its role as the Secretariat of the BEA Programme until 2020.

In executing the intentions of the BEA and to facilitate effective programme management, the implementation of the programme was planned over three phases (Figure 2) illustrating the aspirations, expected outcomes and level of engagement required during each phase of the programme.

Phase 1 involved establishing policies and getting the programme started during the first two years of the programme. Under this phase, specific key performance indicators (KPIs) were set out and imposed, various initiatives were successfully implemented by the GLICs and G20. Phase 2 focuses on strengthening and deepening the BEA initiatives to provide impact to the targeted stakeholders and the Bumiputera community. Leveraging on the current momentum, GLICs and G20 are enhancing current BEA initiatives and establishing new collaborative game-changing initiatives (GCIs) via the BEA network that has been developed. Entering Phase 3, the emphasis is to build institutions at the personal and entity levels, as well as catalysing and extending initiatives further. Under this phase, GLICs and G20 will institutionalise current initiatives to ensure sustainability, gearing them to deliver the expected outcomes of the programme.

GLCS IN ADVANCING BUMIPUTRA AGENDA ARE GUIDED BY:

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Figure 1

Source: BEA Secretariat

Note: TeraS - High Performing Bumiputera Companies


PROGRAMME MANAGING GLCs ON BEA

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Figure 2

Source: BEA Secretariat

Enhanced BEA Programme

Realising the need to enhance the programme further, a holistic approach was developed and four key levers were identified in order to quantum leap BEA and ensuring better delivery of the intended impacts and better outcomes by 2020.

BUMIPUTERA EMPOWERMENT AGENDA (BEA) MANDATE CHART

Figure 3

Source: BEA Secretariat

Lever 1: BEA Mandate Chart
The Mandate Chart (Figure 3) was developed as the overarching guide to the focus areas and the intended outcomes for the targeted stakeholders. The chart is also to promote common understanding, clarity and consistency of the programme.

Lever 2: Robust and Intense Governance
The BEA governance is structured such that the programme is given serious commitment, rigour and intensity, including regular reporting to the Majlis Ekonomi Bumiputera (MEB) chaired by the Prime Minister.

Lever 3: BEA Plans to 2020
The BEA Plans to 2020 are being enhanced and outlined as future guide and direction for the GLICs and G20 to create impact by 2020. Such ambitious plans require new shifts, new thinking and GCIs to elevate Bumiputera into a higher level. GLICs and G20 are also encouraged to embark on collective and collaborative initiatives that can provide complementary advantage for the companies and also for the various stakeholders.

Lever 4: Orchestrated Engagements
In order to garner support and advocacy from various stakeholders, BEA engagements need to be orchestrated, paced and sequenced to ensure increasing understanding and commitments towards institutionalisation of BEA. Leadership-led key engagements via multiple platforms are also key to strengthen and reinforce BEA messaging to the various key stakeholders.

Overall BEA Achievements Thus Far…

The overall BEA programme showed encouraging results with GLICs and G20 delivering KPIs above 90.0% in 2014 and 2015 with significant improvement achieving 95.3% in 2016. Some of the key achievements thus far (2014 – 2016) by GLICs and G20 (Figure 4) include:

BUMIPUTERA EMPOWERMENT AGENDA (BEA) MANDATE CHART

For 2017, GLICs and G20 initiatives for the Bumiputera community under the BEA KPI and non-KPI are targeted to value approximately RM53.7 billion (Figure 5). There is an increase in target monetary value for KPI in 2017 compared to the KPI achievements in 2016. The programme is dedicated to ensure more holistic, institutionalised and sustainable initiatives to provide impact and benefits to the Bumiputera in general. Some of the key commitments and achievements between January and September 2017 by GLICs and G20 (Figure 6) include:

ANALYSIS OF COMMITMENTS BY YEARS (BASED ON SUBMISSIONS)

Khazanah’s Contribution for BEA
At the company level, Khazanah supported the BEA via various initiatives which contributed to the development of Bumiputera community. These initiatives including Yayasan AMIR Trust Schools Programme, Yayasan Khazanah scholarships, Khazanah-Skim Latihan 1 Malaysia (SL1M) programme, and various other contributions via Yayasan Hasanah and its collaborative partners.

In 2017, 64 schools were identified in Kedah for the roll out of the Trust Schools Programme, bringing the overall total to 147 schools to-date. Through Yayasan Khazanah, Bumiputera students comprised at least 75% of the total number of students who were awarded scholarships, after a rigorous selection process. Besides helping to provide educational opportunities, , Khazanah has also been a supporter of graduate traininig programmes such as SL1M. In 2017, Khazanah spent RM78.1 million to train 4,220 graduates, bringing the total to 9,380 to-date, the majority of whom were Bumiputera graduates. In 2018, Khazanah was awarded the SL1M Programme Platinum Award by the Prime Minister. The award is given to organisations that contributed significantly to the SL1M programme.

Moving Forward
The onset of major initiatives, developments and trends impacting the nation, such as the Fourth Industrial Revolution, Transformasi Nasional 2050, and Transformasi Kesejahteraan Bumiputera, places the BEA at an inflection point that necessitates a change in the way we think and adapt the BEA programme as we drive it further forward. At this junture, a new framework (Figure 7) to capture the various requirements, linkages, and thinking needs to be deliberated by GLICs and G20. This would help ensure that the BEA aspiration of producing an independent and progressive Bumiputera community remains true and relevant.

Khazanah, as the Secretariat of the BEA Programme, will continue to work with the GLICs and G20 to generate new and innovative ideas, as well as enhance current initiatives in our collective responsibility to manage and help deliver the intended outcomes.

Khazanah Turkey Regional Office

The Khazanah Turkey Regional Office (KTRO) which opened in 2013, is Khazanah’s fourth regional office after the Beijing, Mumbai and San Francisco offices. KTRO serves as a platform to enhance and strengthen regional investment and business links, including in the Middle East and North Africa, Central Asia and Europe.

CREATING VALUE THROUGH OUR INVESTMENTS

Khazanah adopts an active role and macro-management approach as shareholder in its drive for transformative results. We partner our investee companies in a collaborative manner to venture into new markets and work with public and private sector entities to help catalyse growth and development of Malaysia.

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