Effective Monitoring Mechanisms for the Bumiputera Economic Transformation Plan 2035 (PuTERA35)

The Bumiputera Economic Transformation Plan 2035 (PuTERA35) is envisioned as a cornerstone for elevating Bumiputera participation and ownership in the Malaysian economy. However, for it to succeed where past initiatives have faltered, there must be an effective monitoring mechanism in place.

The journey of Bumiputera economic empowerment began in earnest during the era of Tun Abdul Razak, who laid the groundwork through the New Economic Policy (NEP). This policy was instrumental in increasing Bumiputera participation in the economy, primarily through education and professional development. Many Bumiputera students were awarded scholarships, leading to the creation of a professional middle class that could contribute to the economic fabric of the nation.

However, participation alone was not enough. In the era of Tun Dr. Mahathir Mohamad, the focus shifted towards ownership, particularly through privatisation policies. This led to the establishment of Bumiputera-owned companies, often under the umbrella of government-linked corporations (GLCs). The idea was to create a class of Bumiputera entrepreneurs who could take control of significant portions of the economy.

Despite these efforts, the goal of economic mastery has remained elusive. While participation and ownership have seen improvements, true mastery, where Bumiputera businesses are self-sustaining and competitive on a global scale, has not been fully realised. Many Bumiputera companies still rely heavily on government support, and there is a concern that the competitive edge necessary for success has been dulled.

Where did things go wrong? One possibility is that the reliance on government-linked corporations created a safety net that, while beneficial in the short term, ultimately stifled the competitive spirit required for sustained economic success. These GLCs, initially tasked with nurturing Bumiputera companies, may have inadvertently hindered their growth by not adequately fostering an environment of competition and innovation.

To address these challenges, PuTERA35 must go beyond the strategies of the past. It should incorporate a robust and transparent monitoring mechanism to ensure that participation leads to ownership, and ownership leads to genuine economic mastery. This mechanism should track key performance indicators across various sectors, evaluate the effectiveness of policies, and hold stakeholders accountable. It should also encourage a culture of competition and self-reliance among Bumiputera businesses, reducing dependence on government support over time.

As we look towards 2035, the success of PuTERA35 will depend on its ability to learn from the past. By building an effective monitoring system, we can ensure that the plan not only meets its goals but also creates a resilient and competitive Bumiputera economy for future generations.