THE government will increase the value of government procurement reserved for Bumiputera G1-G4 contractors to RM7.5 billion in 2027 from RM4 billion this year, alongside expanded financing and investment support for Bumiputera businesses under Budget 2027.
For government facility maintenance, repairs and upgrades, the direct appointment threshold will be raised to RM200,000, while quotation-based procurement will be allowed for contracts worth up to RM3 million.
The government will also provide up to RM1 billion in financing through TERAJU, strengthen its capacity to monitor 32 Bumiputera projects across government departments, agencies and companies, and increase financing through Perbadanan Usahawan Nasional Bhd (PUNB) to RM500 million from RM350 million.
To ease financing costs, stamp duty on loan and financing agreements under the CAKNA II scheme will be set at RM10 from Jan 1, 2027, to Dec 31, 2030. The same facility will be extended to CAKNA I until the end of 2030.
Government-linked companies (GLCs) and Petronas are targeting RM58 billion in procurement from Bumiputera companies. From 2027, GLC procurement guidelines that have remained unchanged since 2006 will be updated, with vendor performance assessed not only by contracts secured but also by business growth, innovation and access to new markets.
Government-linked investment companies (GLICs) will invest RM2 billion to strengthen Bumiputera businesses. Ekuinas and PHB will help companies prepare for public listings and strengthen strategic property ownership, while Khazanah and TERAJU will establish the RM250 million Dana Ciptawan to support the growth of mid-sized Bumiputera companies.
The government will also develop affordable housing and expand opportunities in renewable energy.
Nearly 11 acres of government land in Belfield, Kuala Lumpur, will be developed to build at least 2,500 Rumah MADANI units, with 70 per cent reserved for Bumiputera buyers.
Separately, land will be developed by Permodalan Nasional Bhd (PNB) in line with affordable housing needs and Bumiputera interests.
A centralised solar park for government buildings will be developed with an investment of RM1.5 billion, creating opportunities for 33 Bumiputera construction, engineering and maintenance companies. Under the LSS6 solar programme, 150 megawatts of capacity will be allocated to Bumiputera companies.
The 10 Juara Bumiputera programme will continue with RM40 million to develop 15 promising companies by 2027.
Malaysia’s Islamic finance sector will also receive new incentives. Providers of Shariah-compliant fund management services will qualify for a 40 per cent income tax exemption for assessment years 2028 to 2030, while approved issuance costs for Sukuk Prisma will qualify for tax deductions from 2027 to 2030. Grants under the SRI Sukuk and Bond Grant Scheme will be exempt from income tax from Jan 1, 2027.
SME Matching Grants
To help smaller businesses enter wider markets, the government will offer matching grants of up to RM5,000 to micro, small and medium enterprises seeking halal certification for the first time. A further RM25 million will be provided to strengthen halal SMEs, including those in cosmetics and pharmaceuticals.
Employees Provident Fund members who opt for Simpanan Shariah will also be allowed to pay zakat directly from their dividends, following similar arrangements at PNB and Tabung Haji. - October 9, 2026
