Social Development Strategies - Iskandar Malaysia
Social Development Strategies - Iskandar Malaysia
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 />
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