Springboard to help Bumiputera firms move up the value chain in construction and development sector
PUTRAJAYA, 16 AUGUST 2017 – Perbadanazx,n PR1MA Malaysia has awarded more than RM15 billion worth of contracts to 574 Bumiputera firms for various types of construction, consultation jobs and other support services via its development projects nationwide.
Through its Vendor Development Programme (VDP), PR1MA is committed towards providing a level playing field for Bumiputera companies to thrive in the local property and construction sector, thus contributing towards empowering the Bumiputera agenda.
Chief Executive Officer Dato’ Abdul Mutalib Alias pointed out that given the opportunity, as well as the right guidance, Bumiputera companies are capable of taking on big development projects.
However, he said that limited financing access from financial institution as well as lack of land banks are among some of the main obstacles preventing them from moving up the value chain in this sector.
“Housing development is not rocket science. The Bumiputera firms can do it. We have seen evidence of this through several big projects handled by Bumiputera developers, who previously were just contractors.”
“However, they do need a little bit of help in gaining a foothold in the property and construction sector that is dominated by the big players. Through our Vendor Development Programme (VDP), PR1MA has become the springboard for Bumiputera companies to move up the value chain,” he told a Press conference after a gathering of PR1MA’s Bumiputera partners with the YAB Prime Minister, Dato’ Seri Najib Razak here, today.
Abdul Mutalib further said for construction-related jobs alone, PR1MA to date has awarded more than RM22.4 billion worth of contracts to its business partners, comprising developers, contractors as well as vendors.
The Bumiputera portion for these construction-related jobs accounts for 62 per cent or RM12 billion of the contract value awarded.
As a government-led initiative, he said that PR1MA programme is designed with an in-built Bumiputera Agenda element to ensure an equitable participation in this national programme. It targets to achieve a minimum of 30% Bumiputera equity share in the entire programme.
“We see ourselves as a catalyst – where we hope that our projects would have a far-reaching impact in our quest towards building the nation. PR1MA is not just about building homes…but we are also committed in building a community.
“The word community here is not confined solely to just house owners or those staying around the vicinity of our projects. It also includes our business partners, those who have worked side by side with us in ensuring the success of our projects,” he said.
In addition to creation of jobs and encouraging home ownership, Abdul Mutalib also pointed out PR1MA’s contributions to the Bumiputera Agenda can also be seen from its potential in unlocking the values of Malay reserve land.
PR1MA, to date, has 61 projects to develop a total of 53,062 units of homes on Malay reserve land, nationwide.
“Before this, the value of these land was estimated to be around RM1.2 billion. Now, with the presence of our projects, the real estate value of these areas (both land and development value) has gone up by more than 10 times to RM13 billion.
“There are more Malay reserve land with strategic locations across the country. We hope that PR1MA would be given the opportunity to develop these land not only to help unlock its values but also to generate and stimulate economic activities in these areas, and consequently contribute towards empowering the Bumiputera Agenda,” he added
PR1MA’s Members of Corporation has, to date, approved the development of 267,902 units of homes nationwide, of which, 139,393 units are in various stages of construction.
A total of 9,791 units of PR1MA homes have been sold, to date, with an estimated sales value of RM2.36 billion.
To date, more than 1.47 million Malaysians have registered for PR1MA homes nationwide, of which 166,972 have applied to purchase PR1MA homes.