Bumiputera Case Study

CHAPTER 3

FINANCIAL FACTORS AMONG BUMIPUTERA CONTRACTORS IN MALAYSIA

3.1 INTRODUCTION In the previous in chapter 2, there are the definitions of the Bumiputera contractors and also the factors that affecting the failure of a Bumiputera company in Malaysia. Through the chapter 2, the first objective is answered. There are about 17 factors of why Bumiputera Company in Malaysia is not successful as other Chinese and also Indian contractors. In this chapter, the scope of study is focused whereas the financial factors that arises among Bumiputera Contractors in Malaysia. Through this chapter, the elaborations of topic are clearly described and what are the financial factors will be revealed to support the details that Bumiputera Contractor are lack of financial.

This statement by Yin (2005) had proven that the Bumiputera Contractors have not even success on preparing the sufficient capital. The study by (Suberi et al., 2014) had proven that, the firm financial factors started from their small capital at the start of their business. Imagine a low capital at the start of a business, there will be a low profit and how can the contractors roll back their profit and loss. The research has proven that, the insufficient capital to finance a construction works may affected the profit margin with a lower profit (S. A. Halim, Jaafar, Osman, & Haniff, 2012). The research conducted had prevailed the result as the lower capital tends to gets lower profit and if the profits is too low, how to pay all the bank loans and the debt? One of the financial problem is lack of monitoring on the project cost and the cash flow will affected the company financial problems (S. A. Halim et al.,