RM600m fund for Bumi firms to take part in infrastructure projects

Source From (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/7/9/business/20120709160602&sec=business

Published: on 09 July 2012

PUTRAJAYA: The government has allocated RM600mil for a facilitation fund to help Bumiputera companies implement infrastructure projects costing a minimum of RM5mil, with a maximum funding of 15% of the overall cost of the project.

Minister in the Prime Minister's Department, Tan Sri Nor Mohamed Yakcop, said previously, the fund was limited to projects costing a minimum of RM20mil.

"The response then was poor with only seven applications, of which four were approved.

"This is a new facility that has been approved by Prime Minister Datuk Seri Najib Tun Razak to enable more Bumiputera companies get access to the fund," he told a media briefing on Monday.

Nor Mohamed said the applications for the fund could be made via the five economic corridors Iskandar Malaysia, Northern Corridor Economic Region, East Coast Economic Region, Sabah Development Corridor and Sarawak Corridor of Renewable Energy or Bumiputera Agenda Coordinating Unit (Teraju).
He said each applicant would be scrutinised carefully and a decision would be made within a month.

Nor Mohamed said prior to this, the government had decided to allocate RM20bil under the 10th Malaysia Plan as facilitation fund under Public-Private Sector Partnership Unit (UKAS) to help private sector companies undertake projects with a minimum cost of RM100mil, with maximum funding of 10% of the cost of the project.

"Of the total, RM2bil is allocated for Bumiputeras under Teraju, with the flexibility that the minimum cost of the project is RM20mil and the maximum funding would be 15 per cent of the total cost," he said.

Earlier, he witnessed the signing of the agreement between UKAS and Plaza Merdeka Holdings Sdn Bhd for the RM30.69mil funding to build a shopping centre at Hotal Plaza Merdeka in Kuching, Sarawak.

Another agreement was signed with Tasja Development Sdn Bhd for RM57.5mil fund to build a hi-tech park in Kuantan, Pahang.

To-date, total funding that has been approved, including the two projects signed on Monday, amounted to RM5.1bil, he said.

"The fund is still processing applications for RM4.7bil funding," he said. - Bernama