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Social Development Strategies - Iskandar Malaysia

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SECTION A<br />

FRAMEWORK FOR COMPREHENSIVE DEVELOPMENT<br />

5.4 Bumiputera Participation In Commerce And Industry<br />

The Bumiputera participation in commerce and industries in SJER is still<br />

low.<br />

A. In Commerce<br />

Based on data collected by the Johor Bahru District Local Plan Study,<br />

of the total 27,910 commercial establishments in the whole Johor Bahru<br />

district in 2003, only 4,695 establishments or 16.8% of them were Malay<br />

owned. The Chinese proportion was far higher at 21,514 establishments<br />

or 77.1% whilst the Indian proportion was 884 establishments or 3.2%.<br />

Table 5.1: Equity Ownership of Industries in SJER, 2006 (weighted<br />

averages in percentage)<br />

Ownership E&E Logistics SMEs Chemical<br />

(Plastic)<br />

Food<br />

Bumiputera 10.86 29.80 11.57 5.80 17.35<br />

Non-<br />

Bumiputera<br />

Government/<br />

Public<br />

Institution<br />

27.28 47.48 45.16 76.00 49.18<br />

1.06 2.66 0.72 0.00 2.42<br />

State Owned 0.00 0.00 10.70 0.00 0.00<br />

Foreign 60.80 20.06 31.85 18.20 31.05<br />

Total 100.00 100.00 100.00 100.00 100.00<br />

B. In Industry<br />

Source: Industrial Surveys, 2006 for the SJER <strong>Development</strong> Master Plan Study<br />

The Bumiputera industrial establishments in Johor Bahru district in 2003<br />

was also low, totalling 799 establishments or 12.0% of a total of 6,642<br />

Figure 5.3: Percentage Distribution of Bumiputera SMEs by<br />

Industry Types in Johor State, 2006<br />

establishments. The Chinese and Indian shares were higher at 64.1% and<br />

19.3% respectively.<br />

18<br />

16<br />

15.04<br />

16.17<br />

The Bumiputera participation is mainly in SMEs. Of the total 1,102 SMEs<br />

in the whole state of Johor which are registered with Small and Medium<br />

Industries <strong>Development</strong> Corporation (SMIDEC), 24.2% are owned by<br />

Bumiputeras. In terms of capitalised value, the proportion is lower. The<br />

SME Survey (limited to manufacturing) indicates that the Bumiputera’s<br />

overall share is only about 11.6%. These SMEs are largely concentrated<br />

in Johor Bahru district and are largely involved in services, food and<br />

drinks and wood and wood-based industries (Table 5.1 and Figure 5.3).<br />

Percentage (%)<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

0 0.38<br />

Rubber<br />

Oil Palm<br />

0.75<br />

Non-Metallic<br />

2.63 2.63 2.63<br />

Metallic<br />

Textile and<br />

Clothing<br />

Logistics<br />

3.76<br />

Transport<br />

Equipment<br />

4.51<br />

Pharmaceutical<br />

4.89<br />

Printing and<br />

Paper Products<br />

5.26<br />

Chemical and<br />

Petrochemical<br />

6.77<br />

Plastic<br />

9.4<br />

Electrical and<br />

Electronic<br />

12.03<br />

Machinery and<br />

Engineering<br />

13.16<br />

Wood and<br />

Based<br />

Food and<br />

Drinks<br />

Services<br />

Industry Type<br />

Of the total number of business licences issued by MBJB and MPJBT<br />

numbering 35,955, the Bumiputeras represent 19.4% of the total. In<br />

contrast, the Chinese represent 72.0% and the Indians 4.3%. However, it<br />

is not known how many of the Bumiputera licensees are active.<br />

The Industrial Surveys (excluding the very large companies) also<br />

revealed that Bumiputera’s equity in specific industries is still low. Their<br />

shares (weighted) are 10.9% in the E&E industries, 5.8% in the chemical<br />

industries, 17.4% in food industries, 11.6% in SMEs and 29.8% in the<br />

logistics services (see Table 5.1, Figure 5.3).<br />

Source: Industrial Surveys, 2006 for the SJER <strong>Development</strong> Master Plan Study<br />

The proportion of Bumiputeras holding top positions (as managers,<br />

engineers, other professionals, technicians, supervisors and clerical<br />

officers) in all the industries is lower as compared to that of the non-<br />

Bumiputeras.<br />

5 - 4

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