150 Sarawak Bumiputera contractors join Empowerment Programme

KUCHING: About 150 Bumiputera-owned companies from across Sarawak are taking part in the inaugural Sarawak Bumiputera Contractor Empowerment Programme jointly organised by TERAJU and the Malaysian Malay Contractors Association (PKMM) Sarawak Branch.

PKMM’s Vice-President and President of PKMM Sarawak, Datuk Ismail Suut said the programme provided opportunities for contractors to engage with industry players and financial institutions.

He said working capital remained one of the main issues faced by Bumiputera contractors, particularly when they had to wait for payments from clients.

“Usually, the main issue faced by Bumiputera contractors is working capital. They often have to wait quite a long time for payments from their clients, and there can be delays in receiving those payments,” he said.

Speaking at the programme at Pullman Hotel, Kuching, today, Ismail urged financial institutions to facilitate financing for contractors who had received project offer letters.

“Once a contractor receives an offer letter, please facilitate their access to project funding because they have already been evaluated by the issuing agency,” he said.

He said financing delays could result in project delays, particularly when contractors lacked capital and payments from agencies were also delayed.

Ismail also urged financial institutions not to impose excessively high interest rates and to expedite the financing approval process.

He said contractors needed financing at the beginning of their projects, rather than after the projects were already underway.

He said the programme focused on working capital financing, business matching and other activities, with representatives from financial institutions including Affin Bank, Agrobank and MIDF.

Ismail said the financial facilities offered could assist contractors with working capital when they secured projects or undertook business activities, whether from the government or private companies.

He also reminded contractors to ensure their financial documentation was complete when applying for financing.

He said the requirements included registration documents, offer letters, three months of bank statements and audited accounts.
Ismail said TERAJU, financial institutions and contractors needed to cooperate and assist each other to make the financing process work.

He also urged financial institutions to expedite financing once contractors received offer letters, noting that Sarawak had many projects requiring substantial capital.

Meanwhile, Ismail said similar programmes could be organised in other divisions in the future, including Bintulu, Miri, Limbang and Lawas.