Stop giving loans based on endorsement letters, Anwar tells Bumiputera agencies

PUTRAJAYA: Prime Minister Anwar Ibrahim has warned Bumiputera agencies to stop the practice of issuing loans based on endorsement letters.

He said such cronyism has been widespread over the past 30 years, and the inability of borrowers to repay these loans has contributed to the collapse of numerous Bumiputera agencies.

Anwar, who is also the finance minister, said some recipients of startup funding have misused the money on luxury cars and extravagant offices instead of business development.

“Loans are granted because of close connections with certain individuals. This is a problem that is damaging us.

“We help them, and in the end, their business collapses.

“Once they get the first loan, what do they do? They set up a grand office. Then they purchase luxury vehicles and take on second wives. All of this must be stopped immediately,” he said when officiating an event here.

Stressing the need for Bumiputera economic empowerment to be handled transparently and with integrity, he added that he would not hesitate to take firm action against those who violate rules.

Anwar added that the government had no plans to establish new Bumiputera agencies, but instead intends to strengthen existing ones.

He said key agencies such as Perbadanan Usahawan Nasional Bhd, Majlis Amanah Rakyat (Mara), Tekun Nasional, and SME Corp should work in a more coordinated and synergised manner, with regular meetings to avoid duplication of programmes.

Anwar also said it was “outdated” to think that only Bumiputera agencies should implement Bumiputera programmes, adding that all government agencies, ministries, GLCs, and GLICs have roles to play in Bumiputera economic empowerment.

The prime minister also called for successful entrepreneurs to be mentors to new companies and entrepreneurs because their real experience in the business world is more meaningful than just relying on a theoretical approach.

He suggested that successful entrepreneurs collaborate with new companies in addition to being invited as speakers to share their experiences in developing businesses.