KUCHING: Malaysia’s artificial intelligence (AI) and green economy sectors are expanding rapidly, yet Bumiputera participation remains limited, said TERAJU Strategic Services Senior Director Nik Nazree Nik Abdul Rahman.
He revealed that only about one per cent of companies registered with the Companies Commission of Malaysia are involved in AI, with fewer than 20 per cent being Bumiputera-owned.
“In the green economy, the figures are slightly higher but still small.
Out of 3,700 companies in renewable energy, smart cities and related industries, only around 600 are Bumiputera,” he said during his session titled ‘Building Resilient Futures: Positioning Bumiputera Enterprises in Malaysia’s AI and Green Evolution’ at the International Digital Economy Conference Sarawak (IDECS) 2025, held at the Borneo Convention Centre Kuching (BCCK) on Wednesday.
Citing a study conducted by TERAJU in June this year under the Sarawak Energy Transition Policy, he said 450 Bumiputera enterprises across the state were surveyed, with more than 80 per cent identified as small businesses.
“The majority operate in construction, services, retail and manufacturing.
Most face recurring issues that limit growth, particularly access to capital, dependence on local markets, regulatory hurdles, low technology adoption, and weak branding,” he explained.
He stressed that access to capital remains the most pressing challenge.
“It’s not that funding isn’t available.
The problem lies in access — many firms struggle with collateral requirements or meeting banking conditions,” he said.
To address this, Nik Nazree said TERAJU has introduced several financing and facilitation programmes to help enterprises scale up, including the Sabah Sarawak Scale-Up Fund in collaboration with Bank Rakyat and Affin Bank, which offers up to RM500,000 in financing with cash collateral support of up to 15 per cent.
He added that the Islamic Working Capital Project Financing (IWCPF) provides contract-based financing of up to RM1 million at a one per cent monthly profit rate, while larger firms can obtain up to RM10 million in financing with collateral support of up to 20 per cent.
Beyond financing, TERAJU also connects enterprises with mentors, advisors and corporate partners through facilitation programmes.
“There are many professionals who want to give back by mentoring SMEs.
Our platform matches them with companies that need expertise in areas such as project management and business development,” he said.
Nik Nazree also revealed that a new advisory initiative tailored to company size and revenue level will be launched in early 2026.
“Different stages of growth come with different challenges, and our advisory services will reflect that,” he said.
He emphasised that the low level of Bumiputera participation highlights the need for targeted initiatives to strengthen involvement in high-growth, highvalue sectors.
“Malaysia is embarking on the same AI and green journey as the rest of the world.
The plans are in place, but we must ensure our enterprises are ready to move with it,” he said, citing national frameworks such as the 13th Malaysia Plan, National Energy Transition Roadmap, National AI Roadmap and the recently launched PUTERA35 Economic Transformation Plan.
He added that these national strategies align with Sarawak’s digital and green policies, including the Sarawak Energy Transition Policy and Digital Economy Blueprint, which aim to close participation gaps in emerging sectors.
Nik Nazree also encouraged more Sarawak-based companies to register with TERAJU’s programme portal and participate in its ecosystem.
“We already have success stories in the AI and green sectors.
Now we need more Sarawak companies to step forward,” he said.
He urged Bumiputera enterprises to seize the momentum created by Malaysia’s ongoing AI and green transformation.
“We are all on the same journey towards sustainable growth.
The AI and green economy will shape our productivity and future resilience. Let’s ensure Bumiputera enterprises are part of that future,” he said.
