Boosting bumiputera wealth creation, the main objective of The Bumiputera Economic Transformation Roadmap, will be achieved via enhancing the value of bumiputera-owned assets, says Peneraju Agenda Bumiputera (Teraju).

"The value of bumiputera-owned assets such as unit trusts, zakat funds and waqaf land can be enhanced via pooling them and more effective management by bumiputera investment institutions," it said in the 'Bumiputera Economic Transformation: A Roadmap' document launched by Prime Minister Najib Razak today.

Teraju said there was a solid starting base of bumiputera wealth as significant efforts have already been undertaken through pooling them and the management of the assets by several government institutions.

Citing the Economic Planning Unit data, Teraju said, over RM120 billion in financial assets have been pooled through bumiputera investment institutions such as Permodalan Nasional Bhd (PNB) and Lembaga Tabung Haji (LTH).

"These assets have shown significant growth," it said, adding that PNB-managed funds grew to about RM150 billion in early 2010 from RM30 billion in 1999, representing 15 percent of total Bursa Malaysia’s market capitalisation.

Property ownership at 24%

As for bumiputera ownership of property, Teraju, the secretariat to Majlis Tindakan Agenda Bumiputera (MTAB), said it was at 24 percent based on property loan submission to Bank Negara last year.

At the same time, programmes such as Program Perumahan 1Malaysia have been developed to facilitate home ownership by bumiputera and other Malaysians, it said.

Teraju said there was still potential to unlock the value of bumiputera property such as waqaf land through long-term lease to property developers which can generate income to bumiputera developers and contractors.

"One such example is the building of an office tower by LTH on waqaf land in Kuala Lumpur which has been leased to Bank Islam.

"The leased property will create additional income and returns for LTH and the local Islamic council," it said.

Teraju said there are over 11,000 hectares of registered waqaf land nationwide, of which about 6,200 ha are designed for specific used such as for mosques while the remaining is for general use.

- Bernama