20 August 2020
Malaysia Airports Holdings Bhd (MAHB) is creating a market for bumiputera to promote their products across the airport operator’s network of airports.
MAHB has partnered with Perbadanan Usahawan Nasional Bhd (PUNB) to share retail opportunities available at the airports with members of the Bumiputera Retailers Organisation (BRO).
MAHB group chief executive officer Datuk Mohd Shukrie said fostering the bumiputera agenda has always been a key strategy for the company since 2006 as the airport operator began to embark on a collaboration with the Ministry of International Trade and Industry (MITI) and provided between 15 to 20 retail lots to small bumiputera retailers as part of its corporate responsibility initiative.
“This had provided these retailers with the opportunity and market that would not have been possible otherwise due to the small nature of their operations,” he said in a statement recently.
Mohd Shukrie was delighted that MAHB would be able to work with PUNB as both organisations share the same objective in creating a resilient, progressive and sustainable bumiputera entrepreneurship ecosystem in line with the government’s Shared Prosperity Vision 2030.
He said bumiputera’s participation in retail space at MAHB’s international airports occupied only 33 per cent, which was certainly higher than most malls within the Klang Valley area.
“In terms of number of retail outlets, there are 800 retail outlets within the entire MAHB’s network of airports and nearly 20 per cent of these are occupied by bumiputera entrepreneurs,” he said.
Mohd Shukrie said bumiputera participation was part of MAHB’s corporate key performance index, apart from setting a target for bumiputera participation within the retail space, while ensuring that 50 per cent of its procurement spend would go to bumiputera operators.
Starting two years ago, MAHB had enhanced the bumiputera entrepreneur development programmes at the airport under the Commercial Reset strategy.
Under this strategy, the Sense of Malaysia (SOM) initiative was curated where among others, consumers were presented with the opportunity to obtain local products which are of good quality, attractively packaged and displayed in retail lots with a distinct Malaysian flavour.
SOM is an ongoing initiative and has also had several successful retail campaigns such as HIMPUN that focused on small and mediums (SME) brands for fashion, craft and beauty brands; and KUEHKITA that focused on SME brands for local food products.
PUNB chief executive officer Izwan Zainuddin said the strategy and planning by MAHB through Commercial Reset was uplifting the standard of airport retail where not only international brands were being recognised but local champions specifically bumiputera entrepreneurs would be able to benefit from this initiative.
“This initiative is deemed as a stepping stone for bumiputera brands to be seen worldwide; sitting side by side with other huge range of international brands.
“Last year, PUNB has successfully introduced Tanamera (Bumiputra Retail Organisation or ‘BRO’ Member) to MAHB through its brand placement at the Kuala Lumpur International Airport (KLIA) Satellite Building.
“It was one of the many initiatives undertaken by PUNB to develop bumiputera entrepreneurs to a higher level. Not to forget, we also have Hamidah Kek Lapis (PUNB entrepreneur) which has been operating at Kuching International Airport (KIA) since 2016,” he said.
MAHB said it had plans to develop bumiputera entrepreneurship including the proposal to implement business models such as joint venture, franchising, and master concession between international or established businesses with bumiputera operators.
The aim was to enable knowledge transfer which will help in achieving long-term sustainability of bumiputera businesses. Both MAHB and PUNB also target to achieve the objectives of the Shared Prosperity Vision 2030 by providing further support in ensuring that bumiputera businesses from industries such as food and beverage and fashion, among others would be part of the retail space within KLIA and other international airports.