Supporting Local Businesses

To support the local economy, we believe in working collaboratively with start-up companies while also supporting local vendors and suppliers to fulfil our procurement needs.

As part of Reinventing Boustead, we are venturing into new business opportunities with a focus on digital technologies and sustainability. This second growth engine is being accelerated through partnerships termed Boustead Innovators Creators Ecosystem Partners (BICEPs), which has seen us sign memorandums of understanding with a number of new tech and green companies such as:

  • NextGen Group for crude algae oil
  • Hive Sea and Aimcloud Sdn Bhd for apps development
  • Accubits for AI and blockchain technologies
  • MyAngkasa Digital Services for Islamic Digital Banking License
  • Meraque Services Sdn Bhd for drone pharmaceuticals delivery

Over the years, we partnered with numerous upstream and downstream vendors across all our operations in various industries as follows:

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Plantation

66

Smallholders and outgrowers
Supplying FFB to mills

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Property & Industrial

3,790

Suppliers and vendors for:

  • Building materials
  • Construction and maintenance
  • Advertising and event management
  • Festive campaigns, pop-up stores and pushcarts

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Heavy Industries

2,661

Suppliers and vendors for:

  • Ship spare parts
  • Raw materials
  • In-service support

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Pharmaceutical

3,187

Suppliers and vendors for:

  • Raw materials and packaging materials
  • Parts and machineries
  • Repair and maintenance work
  • Specialised services including testing and gamma
  • Alliance pharmacies

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Trading, Finance & Investment

645

Suppliers and vendors for:

  • BHPetrol service station operations
  • Other services

Vendor Development

Just as our vendors are critical to the sustainability of our business, we seek to help them grow by supporting their development. Our Pharmaceutical as well as Heavy Industries Divisions run Vendor Development Programmes (VDPs) through which we invest in capacity-building of our vendors. By developing our vendors, we also drive healthy competition across the value chain for the benefit of entire industries.

Through the Heavy Industries’ VDP, vendors are trained in project management skills, technical know-how, integration of shipyard production as well as value-added activities in both shipbuilding and ship repair.

Our Pharmaceutical Division, through its Pharma Alliance Programme, offers community pharmacy members competitive pricing, training as well as long-term credit and an extended credit limit to support them in managing their working capital. In 2021, a new partnership was forged with Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA), under which the Alliance will serve as a one-stop centre for the purchase of items offered in ANGKASA’S COOP Farmasi.

Both Divisions conduct quarterly assessments on the delivery and product quality of their vendors, subsequently sharing their results to the relevant government ministries.

Details of vendor improvement initiatives across the Group are outlined below:

Pharmaceutical

InitiativeProgress in 2021
VDP A total of 24 vendors participated in the programme. We also conducted training on warehouse management for vendors to improve their warehouse quality performance.
RoyalPharma Alliance Programme Launched in 2017, the programme network expanded to 413 members.

Heavy Industries

InitiativeProgress in 2021
VDP In 2021, there remained 36 vendors in the programme. RM777,915 VDP Geran Program Pembangunan Vendor (GPPV) awarded to VOSS Engineering Sdn Bhd by Ministry of Entrepreneur Development and Cooperatives (MEDAC) with assistance from BHIC.
Localisation Initiative Programme (LIP) In 2021, BDNC launched LIP to engage local vendors in the RMN Submarine MRO programme. Vendors will be selected based on technical merit. To date, BDNC has engaged eight local vendors to take over functions that were previously provided by foreign players. Our subsidiary is also collaborating with the Sabah State Government to extend its reach to vendors in the East Malaysian state.
We have also extended our efforts to assist local vendors and businesses in the following Divisions:
DivisionInitiatives in 2021
Property & Industrial
  • We have partnered with 852 vendors across eight of our hotels and resorts in Malaysia.
  • Our subsidiaries, Boustead Curve and Damansara Entertainment Centre, continued to provide local entrepreneurs with floor space to set up push carts and pop-up stores, while organising flea markets for them to market their ware.
  • Our chain of malls collaborated with a total of 383 local vendors.
Trading, Finance & Investment In 2021, Boustead Petroleum Marketing partnered with 595 suppliers and vendors. It also provided support and assistance for four new vendors to operate BHPetrol service stations. This brought the total number of BHPetrol service station operators in Malaysia to 373.