Yes, Walk the Talk: Developing Bumiputra Wealth through Land Assets and Technology

In the recent discussions at the 24th Bumiputra Economic Congress (KEB), several key issues were raised, particularly on how to increase Bumiputra wealth through their most valuable asset, land. Land is not only a valuable asset in terms of ownership but also holds significant potential for wealth generation when utilised with the right strategies.

I want to share a my proposal as the Head of the Land Session. I would like to highlighted that there are overlapping issues between the Bumiputra Wealth Creation and Equity Ownership Cluster and the Rural and Orang Asli Development Cluster, as both are focused on two critical areas: human capital and investment capital.

The main point here is how to effectively use modern technology to elevate the Bumiputra to a level where they can be competitive in the economy.

Example: Increasing Land Productivity and Value

If paddy land yields a net return of RM5,000 annually, the land value would be approximately RM100,000 (with a 5% return on investment). People would naturally move away from paper assets like ASB, which depreciate in value each year, to real assets like land. This shift would protect Bumiputra investments from inflation, which erodes billions of ringgit in savings. Land, on the other hand, appreciates, countering the effects of inflation.

Now, if we increase productivity to RM10,000 per year, the land value rises to RM200,000 (a 10% return on investment). This is how we can boost labor income, improve returns on investment, and increase the value of Bumiputra wealth. With this, land can also become a liquid asset, enabling bank financing.

Keeping Human Capital and Investments in Rural Areas

When productivity increases, the human capital remains in rural areas, and investments flow into regions like Kelantan, Terengganu, and Kedah, where land and labor costs are significantly lower than in more developed states. If we fail to retain this human capital, we risk losing educated and technically skilled individuals to more developed states. Worse, local capital will also migrate.

For example, billions of ringgit from these states flow into funds like TH, ASB, and EPF, but the money is often invested in other regions. This enriches the developed states while impoverishing rural areas, a vicious cycle that needs urgent attention. There must be a plan to retain this capital and promote the growth of agriculture, trade, and local enterprises.

The Shame of Low GDP in Majority-Malay States

It is heartbreaking to see that the Gross Domestic Product (GDP) of majority-Malay states is among the lowest in the country. How can four states with millions of Malay residents have such low GDP per capita? We must act with determination and courage to ensure a high-impact strategy that increases Bumiputra income and wealth by billions.

The Measure of Success

The key measure of success is reducing the gap in GDP per capita between states. This will directly contribute to increasing Bumiputra wealth by billions. To achieve this, we must focus on:

1. Increasing productivity
2. Enhancing asset value
3. Developing strategic investment in land

Three Critical Issues:

1. Increasing commodity prices
2. Boosting productivity
3. Providing subsidies for those in need

Why are farmers in Japan wealthy, while their prices are ten times higher than in Malaysia? It’s because of strategic planning and value-added processes.

Start with Congress, Move to Action

We need to begin with a comprehensive Bumiputra Congress that doesn’t just make plans but ensures their execution. Planning alone isn’t enough, we need to follow through with real, measurable action. I’ve turned around 13 failing companies, and in my experience, 80% of problems and solutions involve people, while 20% relate to other factors. Many believe that securing capital, loans, or projects guarantees success, but if a company is competent, investors will naturally provide capital, and banks will offer competitive loans. If not, even with funding, the business will fail.

The Importance of Being a Cause of Change

We must strive to be the catalyst for change. Sometimes massive efforts yield little impact, while in other cases, small efforts can create significant results. The key lies in knowing where to focus and how to make the most of every opportunity.

In conclusion, it’s time to walk the talk. Let’s take bold action to increase Bumiputra wealth through strategic investments in land and technology, ensuring that the benefits are felt across rural Malaysia. Let us plan, but more importantly, let us act.