Joint venture between Malaysian public corporations and foreign enterprises: an evaluation

Abstract

During the 1971 - 1980 period, a number of institutions were given the task of spearheading the efforts of the government in creating a commercial and industrial community among bumiputra through direct participation in private sector activities. These institutions, among others, included MARA, PERNAS, UDA, SEDCs and FIMA. In accordance with the restructuring objective of the NEP, these public enterprises have been made responsible as agencies at the state and federal level to play the role of caretaker, catalyst and "holder-in-trust" for the bumiputra community. They are in fact the greater part of the base for government efforts to build a flourishing bumiputra commercial and industrial community. Their involvement in business ventures, either wholly owned or on a joint venture basis with local and/or foreign companies, is calculated to bring a catalytic effect in promoting a certain industry or the economy as a whole. In its role as a caretaker and holder-in-trust, the public enterprises will nurture their ventures until such time when bumiputras, individuals or corporate, can take over. For this role, they venture particularly into areas where bumiputra participation is still very lacking especially in trade and commerce.