DPMM: Difficulty in getting bank loans holding back bumiputra entrepreneurs

KUALA LUMPUR: The difficulty in securing loans from financial institutions is one of the key factors why bumiputras, particularly entrepreneurs, failed to expand their economy.
Malay Chamber of Commerce Malaysia (DPMM) president Datuk Dr Syed Ali Alattas said this also led to the bumiputra economy becoming stagnant.
He cited a DPMM study, which found that only 5% of bumiputras were in the high-income group in the country.
Syed Ali said lack of affordable housing projects for bumiputras also affected them in planning their economic future.
“We are back to square one, (bumiputra’s economic dominance is low).
“The gap between bumiputra and non-bumiputra entrepreneurs economic dominance is getting bigger,” he told reporters on the sidelines of the Restructuring of the Malay Economic and Financial Management Seminar, yesterday.
Syed Ali also expressed concern on the preponderance of some developers in building expensive housing and commercial building projects targeting foreigners in order to reap high profits.
In the long run, this situation will affect the floundering bumiputra economy, including that of the entrepreneurs, he added.
In order to resolve this issue, he proposed that local banks join forces to create a fund to disburse loans to bumiputra entrepreneurs as start-up capital or to buy a house. – Bernama