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Kota Kinabalu: The Bumiputera Agenda Steering Unit (Teraju) has launched the Sabah and Sarawak Bumiputera Scaling Fund (BSSF) to accelerate the growth of local companies and bridge the business development gap in East Malaysia.

Chief Minister Datuk Seri Hajiji Noor launched the fund at the opening of the Teraju Aspirasi Outreach Sabah 2026 event at Sabah International Convention Centre (SICC), Thursday.

Teraju Chief Executive Officer Junady Nawawi said the fund was introduced specifically taking into account the unique demographics and business ecosystems in Sabah and Sarawak, which differ from the Peninsula.

“Through research findings and engagement sessions, we understand the needs of Bumiputera businesses in Sabah and Sarawak require a more specialised approach.

In view of this, Teraju is launching the Sabah and Sarawak Bumiputera Scaling Fund (BSSF) to help achieve the targeted growth surge,” he said in his welcoming address.

According to him, BSSF provides flexible financing with competitive terms and sufficient periods to help companies stabilise operations and accelerate growth.

He said the fund is also supported by guarantee mechanisms through collaboration with financial institutions and alternative financing platforms, besides being reinforced by non-financial programmes such as Ascend, Enhance and Accelerate.

The implementation of BSSF is also expected to support more than 100 startups and create at least 500 high-quality job opportunities in Sabah, he said, adding that additionally, the initiative will help strengthen local supply chains by increasing the participation of Bumiputera companies as main suppliers in large-scale development projects.

Meanwhile, Junady said Teraju’s research found four main constraints that still hinder the growth of Bumiputera companies in Sabah.

“The first constraint is access to capital, where many entrepreneurs have potential but face difficulties in obtaining flexible financing to expand operations.

“The second is the need to strengthen internal structures and company resilience in an increasingly challenging economic environment,” he said.

He said the third constraint involves the need for better coordination and facilitation of a more structured and integrated business ecosystem.

According to him, the fourth constraint is limited market access, particularly for penetrating wider markets including at the global level.

“If these issues are not addressed, it will create a ‘missing middle’ gap that prevents companies from growing to a larger scale,” he said.

In this regard, he said Teraju acts as a key facilitator to help companies transition from small enterprises to large-scale industry players.

“We want to turn companies that were previously ‘unbankable’ into ‘bankable’ and subsequently ‘investment ready’,” he said.

At the same time, Junady said Teraju has set a target to produce between five to 10 scale-up companies from Sabah within the next five years.

He said these companies have the potential to achieve initial public offerings (IPOs) on Bursa Malaysia and become major players in the industrial value chain.

“Our ultimate goal is to produce 5 to 10 scale-up companies from Sabah that are ready to achieve public listing within the next five years,” he said.

He added that this effort is also supported through the development of a cohort of approximately 20 high-potential companies targeted to achieve market valuations exceeding RM1 billion within two to three years.

Junady also emphasised the importance of a shift in approach among entrepreneurs, including moving from competition to collaboration and strengthening strategic partnerships.

“We must be brave enough to change our approach, build consortia and strengthen the collective growth ecosystem to ensure local companies are able to compete at a higher level,” he said.

He added that this step is vital to ensure Bumiputera entrepreneurs in Sabah are not just observers, but key drivers in high-growth sectors including the blue economy.

“Teraju is committed to ensuring Bumiputera entrepreneurs in Sabah become major contributors to the supply chain and the economic development of the State and the nation,” he said.