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Political patronage distorting Bumiputera financing must end: Anwar

Prime Minister calls for tighter oversight of business support schemes

3:25 PM MYT

 

KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has urged a firm end to the misuse of Bumiputera business financing, saying political patronage, licence trading and fund abuse have weakened long-standing efforts to build sustainable Bumiputera entrepreneurship.

Speaking at the launch of Perbadanan Usahawan Nasional Bhd’s (PUNB) SParK 2026: Transformasi Niaga on Saturday, he said some recipients had secured financing through political connections while others had failed to use the assistance for its intended purpose.

He added that in some cases, the support was treated as a personal windfall rather than capital to grow viable enterprises.

“Some splurged on expensive vehicles and others took another wife. This has to stop,” he said, as quoted by local media.

Anwar also criticised instances where business licences were resold for commissions instead of being used to run actual operations, saying this reflected a lack of seriousness among some recipients.

He said billions of ringgit in Bumiputera equity had been eroded over time due to weak oversight and repeated failures in financing schemes.

“I know many are not comfortable with my rebukes, but this is the reality,” he said.

While acknowledging that many stakeholders continue to support the Bumiputera agenda, he said few were willing to confront its structural weaknesses.

He also raised concern over financing approvals influenced by recommendation letters linked to political or personal networks.

“Some are using their connections with certain individuals who issued ‘yellow, blue or green’ support letters. That is a problem in our management where in the end, we assisted businesses that are not committed,” he added as reported by the Star.

However, he stressed that business failure itself should not be treated as wrongdoing, noting that entrepreneurship naturally involves risk.

“It doesn’t matter if the disbursement of the loans has shown some cracks because the businesses did not succeed. That’s not an issue. But their transparency and commitment, that is what must be measured,” he said.

Anwar said Bumiputera economic development remains a national priority that requires collective government support, rather than being confined to specific agencies.

He added that similar frameworks are already applied across the Finance Ministry, Bank Negara Malaysia and banking institutions to promote growth while ensuring equitable wealth distribution, including for the Bumiputera community.

The Prime Minister said he had chaired several meetings on Bumiputera economic development over the past two years, involving reports from various government agencies, and had recently convened heads of government-linked investment companies to improve coordination.

Instead of creating new institutions, he said the government would focus on strengthening existing ones such as Mara, Tekun Nasional and Amanah Ikhtiar Malaysia.

“If they are weak, we strengthen them. If they are truly not up to it, we take over,” he said. – July 4, 2026

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