xfdws INVOLVING-BUMIS sked Emerging Markets Datafile
June 09, 2003
NEW STRAITS TIMES-MANAGEMENT TIMES
MALAYSIA
ENGLISH
Involving Bumis in ICT, NEW STRAITS TIMES-MANAGEMENT TIMES
Sharifah Kasim
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A holistic strategy involving all relevant Government agencies is needed to increase the participation of Bumiputera-owned companies and entrepreneurs in the local information and communications technology (ICT) sector.
Despite the promise of the sector, which analysts say will continue to grow this year, Bumiputera-owned ventures only constitute about six per cent. This is based on a recent announcement by the Entrepreneur Development Ministry that one in 17 companies involved in ICT-related activities is Bumiputera-owned.
What’s important is to generate a strong pool of Bumiputera-owned businesses involved in developing innovative ICT products and services for both local and global markets, said Roslan Bakri Zakaria, executive director of the New Entrepreneur Forum, a network of Bumiputera technopreneurs.
Hence, a comprehensive strategy must be formulated, he said, from identifying potential Bumiputera-owned companies and entrepreneurs to providing relevant financial and non-financial assistance, which could come in the form of incubation facilities.
He added that the strategy will need to include means to help commercialise the ICT products and services developed by these businesses.
With such a strategy, Roslan said Bumiputera-owned ICT companies and entrepreneurs could then move up the sector’s value chain, from predominantly involved in trading of products and services to value creation.
For Umno Youth ICT Bureau’s chairman Mohamad Norza Zakaria, access to various stages of funding is the main challenge in efforts to encourage participation of Bumiputera-owned ICT companies and entrepreneurs.
He said conventional banking is often not receptive towards providing assistance to such ventures, particularly at the seed funding stage.
”Hence, the seed fund worth RM100 million announced in the recent economic stimulus package, is certainly welcomed.”
The umbrella concept, according to Mohamad Norza, also can be introduced here, where existing big players such as telecommunications companies serve as a catalyst to spur the creation of Bumiputera-owned businesses in the ICT sector. “We could even tap on the existing pool of unemployed graduates as potential entrepreneurs,” he said.
To address this issue, all relevant agencies could work together, understanding the industry and roping in industry players, Mohamad Norza suggested.
To further drive development of innovative ICT products and services among Bumiputera-owned companies and entrepreneurs, the Government should look to strengthen the linkage between institutes of higher learning and the private sector, said Tengku Farith Rithauddeen, president and co-founder of Skali. Through such a move, these businesses will then be able to develop home-grown technologies which could be commercialised globally, he added.
Skali, under its Skali Netpreneur Acceleration Programme, partners with Mayban Ventures Capital Co Sdn Bhd to identify potential companies to invest in, and provide an advisory role and support services to young firms.
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