PETALING JAYA: Sarawak’s 30% Bumiputera contractor participation policy applies only to development projects worth RM100 million and above, said deputy premier Douglas Uggah Embas.
Uggah said the policy was not a blanket requirement covering all state government projects or procurement exercises, contrary to what Sarawak DAP chief and Padungan assemblyman Chong Chieng Jen had suggested.
He said the policy applied to large-scale projects worth RM100 million and above that were implemented through separate work packages by state departments, statutory bodies, and GLCs.
At least 30% of the aggregate value of designated contract packages within each qualifying project must be allocated to Bumiputera contractors.
“The 30% requirement is assessed against the aggregate value of the contract packages within a qualifying large-scale project,” Borneo Post quoted him as saying in the state assembly today.
Uggah, who is also the second minister for finance and new economy, said the remaining packages would continue to be awarded through the normal procurement process, and non-Bumiputera contractors would continue to have opportunities to take part as main contractors, joint-venture partners, and subcontractors.
He stressed that the policy was to expand economic participation rather than exclude other communities.
“This policy is not a zero-sum game. A stronger, more prosperous Bumiputera community will create a larger economic pie for everyone,” he said.
On Oct 14, Chong had urged the state government to reconsider its move to allocate 30% of major state government projects to Bumiputera enterprises, saying a race-based quota system could undermine meritocracy and affect other local contractors.
Debating the state’s 2027 budget, he said the proposal was similar to the New Economic Policy introduced in 1971, adding that such a policy could eventually spread to other procurement exercises and sectors.
“Once such a policy is started, it will never end. It will grow and grow and extend into all fields. Are we following in the footsteps of the federal government in this racially aligned policy?” he said.
Uggah urged Chong to assess the policy in the context of Sarawak’s current economic development rather than from historical and racial perspectives.
“We are building a future where every Sarawakian, regardless of race and background, has a stake in our prosperity,” he said.
He indicated, however, that the policy might not be permanent, saying it would need to be reviewed once Bumiputera contractors and businesses were “able to stand on their own feet and compete on a level playing field”.