Go for alternative funding mechanism instead of relying on banks, Bumi companies told

NOR AIN MOHAMED RADHI

KUALA LUMPUR: Bumiputera companies should secure funds for their businesses through the capital market instead of relying solely on banks for loans.

Second Finance Minister Datuk Johari Abdul Ghani said this was because the capital market has a bigger fund capacity compared to banks.

"The banking sector has assets of about RM2.2 trillion while capital market has about RM2.9 trillion.

"There's a lot of capital out there. But, before making any investment, they need to know the companies they are investing in.

"Therefore, in order to expand their businesses, Bumiputera companies must be transparent by going out and showcase their products.

"By doing so, people will come and invest," he told reporters after officiating a session on "Explore Listing on Bursa Malaysia" at 'Memacu Agenda Bumiputera' Exhibition here today.

Johari said Bumiputera companies should also consider utilising alternative funding mechanisms such as peer-to-peer (P2P) and crowdfunding to raise capital.

"The growing prominence of alternative finance is in tandem with the broader shifts in economic activity towards those that are more knowledge-based with higher deployment of technology." he said.