TERAJU Restructuring to Bolster Bumiputera Agenda, Accelerate IPOs

Malaysia is undertaking a strategic restructuring of TERAJU, an agency focused on Bumiputera development, to bolster its economic agenda and expedite the public listing of companies. The move is intended to reinforce the implementation of policies aimed at strengthening the Bumiputera community, particularly in accelerating initial public offerings (IPOs) and achieving long-term economic goals outlined in frameworks like PuTERA35.

Economy Minister Akmal Nasrullah Mohd Nasir stated that the changes go beyond administrative adjustments, recognizing TERAJU's crucial role in cultivating a competitive ecosystem for Bumiputera companies in the capital market. "TERAJU has now entered an implementation phase after several years of building foundations through various development programs such as XCELERATE and the Bumiputera Capital Market Access Facilitator (BSAF), which have helped companies prepare for IPOs," he explained. The focus is now on execution and ensuring successful outcomes from these established programs.

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TERAJU has now entered an implementation phase after several years of building foundations through various development programs such as XCELERATE and the Bumiputera Capital Market Access Facilitator (BSAF), which have helped companies prepare for IPOs.

The government remains committed to its target of listing around 20 Bumiputera companies by 2026, across both the ACE Market and Main Market of Bursa Malaysia, depending on each company's readiness. This agenda aligns with the long-term PuTERA35 framework, which emphasizes enhancing competitiveness, corporate governance, and sustainable growth for Bumiputera enterprises. Akmal Nasrullah highlighted the need for private companies to demonstrate courage and confidence in their expansion, adhering to good governance practices, setting sustainable growth targets, and attracting investors.

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The transfer of TERAJU to the Prime Minister's Department will strengthen policy coordination and accelerate the implementation of the Bumiputera development agenda at the national level.

The relocation of TERAJU to the Prime Minister's Department is anticipated to enhance policy coordination and accelerate the national implementation of Bumiputera development initiatives. Elsa Berhad, a licensed vendor for Petronas known for its autonomous underwater pipeline inspection technology, serves as an example of a high-potential Bumiputera company identified through the BSAF and XCELERATE programs. Its recent listing on Bursa Malaysia signifies the effectiveness of the support ecosystem developed to help Bumiputera firms access the capital market.

TERAJU CEO Junady Nawawi noted that Elsa is the first company from the XCELERATE program to be listed this year, with more expected to follow in the coming years. This momentum is projected to accelerate the entry of more Bumiputera companies into the capital market within the next three to five years. Through BSAF, eligible Bumiputera companies can receive strategic financing of up to RM10 million to support their growth, business expansion, and pre-IPO activities.

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Elsa is the first company from the XCELERATE program to be listed this year, and more companies are expected to follow in the next few years.