Prime Minister Datuk Seri Anwar Ibrahim has called for an immediate end to the practice of issuing loans based on endorsement letters within Bumiputera agencies, warning that such arrangements have long been associated with cronyism and weak financial discipline.
He said the issue, which he claimed has persisted for over three decades, has contributed to the collapse of several Bumiputera-related institutions due to borrowers failing to repay their loans.
Anwar, who is also Finance Minister, said some recipients of startup funding had misused the funds on non-business purposes, including luxury vehicles and extravagant office setups instead of investing in their enterprises.
He criticised the culture of approving financing based on personal connections, saying it has led to repeated failures in business outcomes and weakened institutional credibility.
The Prime Minister also stressed that the government would not hesitate to take firm action against those who violate financial governance rules.
He added that there are no plans to establish new Bumiputera agencies, but instead the focus will be on strengthening existing institutions such as Perbadanan Usahawan Nasional Berhad (PUNB), Majlis Amanah Rakyat (MARA), Tekun Nasional and SME Corp.
Anwar said these agencies must operate in a more coordinated and efficient manner, including regular collaboration to avoid duplication of programmes.
He also stated that Bumiputera economic empowerment should not be limited to specific agencies, as all ministries, government-linked companies (GLCs) and government-linked investment companies (GLICs) also have a role to play.
The Prime Minister further encouraged successful entrepreneurs to act as mentors for new businesses, noting that practical experience in the industry is more valuable than purely theoretical approaches.
He said established business figures should collaborate with emerging entrepreneurs and actively share their expertise to strengthen the wider business ecosystem.
