Budget 2020: Gov't jobs worth RM1.3b dedicated to bumiputera contractors

Government jobs worth RM1.3 billion will be made available solely for existing and newly-registered bumiputera contractors, Finance Minister Lim Guan Eng said.

He said the government has reopened the registration for contractors Grade 1 (G1) beginning Sept 1, 2019 and it has received 946 applications as of end-September.

“We are expanding opportunities for many more bumiputera contractors to participate in government procurement,” he said when tabling the 2020 Budget in Parliament today. 

Lim also said the government was expected to issue new samurai bonds early next year, where the issuance size would be determined after further discussions with the Japan Bank for International Cooperation (JBIC).

He said the trust built by Prime Minister Dr Mahathir Mohamad and the Japanese government via the JBIC, had once again seen the latter offer to guarantee an additional tranche of samurai bonds.

“The bond offer is with an even lower interest rate of less than 0.5 per cent, compared to the previous rate of 0.63 per cent,” he said.

The Budget 2020 is themed, “Driving Growth and Equitable Outcomes Towards Shared Prosperity”. 

Lim also said the government would allocate RM550 million for the smart automation matching grants to 1,000 manufacturing and 1,000 services companies to automate their business processes.

He said the grant will be given on a matching basis of up to RM2 million per company.

“The government plans to build up to 14 one-stop digital enhancement centres in all states to facilitate access to financing and capacity building of our businesses, especially small and medium enterprises (SMEs) in line with the fourth industrial revolution.

“A budget of RM70 million will be allocated to the Malaysian Digital Economy Corporation (MDEC) to set up these centres as an extension of the ‘100 Go Digital’ programme,” he said.

To also promote knowledge sharing and education through digitally-enabled content, Lim said the government proposes to establish three new digital libraries in Kedah, Perak and Johor.

As part of the government’s continued commitment to promote early-stage innovations, he said the government would provide RM20 million to the Cradle Fund for the provision of training and grants to seed companies.

“Programmes such as the 'Coach and Grow Programme' by Cradle Fund for high impact technology entrepreneurs involving 469 companies to date has generated RM2.3 billion in revenue, including RM300 million in exports,” he added.

- Bernama