TNB's Support For Bumiputera Vendors In Malaysia's Energy Transition

In August 2023, Malaysia's government launched the National Energy Transition Roadmap (NETR), an ambitious plan to achieve its clean energy goals, including targeting massive investments and job creation. But beyond these goals comes a greater aspiration: to ensure the country's transition is inclusive, particularly by empowering its Bumiputera entrepreneurs.

As a government-linked national utility company, Tenaga Nasional Berhad (TNB) plays a pivotal role in realizing these goals, aligning its strategies with both the NETR and the national Bumiputera economic empowerment agenda. These include strengthening vendor development programmes, increasing local procurement, and fostering Bumiputera participation in new energy projects.

One example is Bumiputera Vendor Development Programme 3.0 (PV 3.0), TNB’s flagship initiative for supporting these vendors since 1994. The programme was recently revamped as PV 3.0 in response to NETR and the country’s Bumiputera economic agenda and focuses on empowering Bumiputera businesses to thrive in the energy transition—linking them to projects in renewables, grid upgrades, and green technologies. The updated framework is tailored to support TNB’s business needs in the energy transition era and to realize the Government’s aspiration in driving the Bumiputera Economic Transformation Plan 2035 (PuTERA 35). Key features of this programme include:

1. Energy Transition Opportunities

   PV 3.0 prioritizes vendor opportunities in NETR-critical sectors – renewable energy projects, green technologies, grid modernization, and digital solutions. It drives Bumiputera participation in the energy sector in line with NETR, ensuring Bumiputera vendors benefit from new clean energy initiatives.
2. Local Procurement Targets

   TNB is using PV 3.0 to steadily increase the share of its procurement spending that goes to local (especially Bumiputera) suppliers. In 2024, 47.8% of TNB’s total procurement value was with Bumiputera companies, with a target of 55% by 2030.
3. Capacity Building and Partnerships

   Beyond contracts, TNB provides capacity-building to ensure Bumiputera vendors can meet the technical demands of the energy transition. A comprehensive platform for business expansion and skill development is offered, such as linking joint ventures with high-technology companies, organizing participation in international trade missions, and helping vendors get green financing for energy projects. These efforts enhance vendors’ capabilities to deliver on complex renewable and smart grid projects.

   TNB also conducts frequent engagement programmes – such as Sesi Libat Urus TNB Bersama Vendor, Vendor Day forums, Vendor Aspiration Session, and e-tendering support via its Procurement Cycle Digitalisation (PCD) system – to strengthen vendor relationships and readiness. By providing Bumiputera suppliers with knowledge such as technical certifications, ESG training, and promoting technology transfer, TNB ensures its vendors stay competitive in a fast-changing sector.

Alignment With National Energy Transition And Bumiputera Empowerment Goals

TNB's vendor development initiatives are closely aligned with Malaysia’s broader policy goals of achieving a just energy transition and empowering Bumiputera entrepreneurs. PV 3.0 advances the government’s call on its economic principles, emphasizing sustainability, inclusiveness, and shared prosperity by:

1. Supporting Government Blueprints

   PV 3.0 is a mechanism where TNB contributes to the Bumiputera Economic Transformation Plan 2035 (PuTERA 35). This blueprint aims to elevate Bumiputera participation in high-value industries by 2035. Through PV 3.0, TNB creates opportunities for Bumiputera firms in future energy industry growth areas such as renewables, energy efficiency and electric mobility, in line with PuTERA 35’s objectives.

   The initiative is also in line with the Twelfth Malaysia Plan’s (2021–2025) goals of inclusive economic development, as well as sector-specific policies like the National Investment Aspirations and the NETR, which call for domestic value creation in the green economy. By nurturing local vendors, TNB helps ensure a large share of those new green economy jobs and opportunities go to Malaysians, especially Bumiputera, aligning with the government’s growth targets.
2. Building a Domestic Clean Energy Industry

   A key national aspiration is to develop a local industrial capacity in clean energy so that Malaysia produces and innovates its own technology. TNB’s support for Bumiputera suppliers contributes to this industrial base, where several vendors in TNB’s programme have progressed from traders to high-tech manufacturers, reducing reliance on foreign products.
3. Inclusive and Equitable Growth

   Empowering Bumiputera vendors via TNB’s programmes ensures that the benefits of the energy transition are widely shared, not concentrated among established or foreign firms. This aligns with Malaysia’s socio-economic policies aiming to uplift the Bumiputera community and close economic gaps.

Sustainable & Responsible Supply Chain

In 2024, TNB recorded non-fuel procurement spending amounting to RM13.15 billion, with around 95% sourced from local suppliers.

This local focus reinforces our dedication to supporting Malaysian businesses across various industries and marks our commitment to a sustainable procurement and supply chain approach that focuses on embedding responsible, transparent, and ethical practices across the entire ecosystem.

On top of that, some 52.81% of our total procurement spend last year was that of local spending. This means strengthening of the Malaysian economy, aligning with our goal of building a supply chain that benefits local communities and businesses.

Outcomes And Progress Of TNB's Vendor Development Initiatives

TNB’s vendor development initiatives are closely aligned with Malaysia’s broader policy goals of achieving a just energy transition and empowering Bumiputera entrepreneurs. PV 3.0 advances the government’s call on its economic principles, emphasizing sustainability, inclusiveness, and shared prosperity by:

1. Growing Local Vendor Participation

   TNB has steadily increased its spending on local suppliers, creating more opportunities for local businesses. In 2024, TNB spent RM19.21 billion on local suppliers (up from RM10.38 billion in 2022) and engaged 3,639 local vendors – the highest to date.

   In this, the Bumiputera Vendor Development Programme has a strong presence with 757 Bumiputera vendors formally under PV 3.0. TNB’s Bumiputera procurement share is about 52.8% in 2024, well on its way to its goal of 55% by 2030, and by that year the initiative aims to create over 1,700 new Bumiputera vendors in the energy sector.
2. Investment and Job Creation

   By anchoring large NETR projects, TNB’s local procurement has a multiplier effect on the economy. Contracts awarded to local firms create jobs, skills, and downstream business. Over the last five years, TNB’s local vendor contracts (RM9 to 10 billion annually) have supported over 10,400 jobs across projects.
3. Elevating Vendors and Creating Opportunities

   TNB is committed to empowering local Malaysian vendors with the skills and resources needed to thrive in a dynamic energy sector. Through targeted training, competency certification programmes, and ESG awareness initiatives, we help vendors build the expertise required to compete effectively.

   Through our business-matching efforts, the company helps to create new opportunities for vendors, and our initiatives facilitate access to green financing, support collaboration on flagship projects, and drive innovation and technological progress across the industry.

Empowering Local Vendors In The Energy Transition

The energy transition doesn’t have to mean leaving local vendors behind.

Instead, it can be an opportunity for the best of Malaysia's entrepreneurs in the energy industry to not only survive but thrive in a changing and dynamic landscape.

TNB’s commitment to developing an inclusive and sustainable supply chain is central to Malaysia’s just energy transition.

Through our initiatives, support for vendors and alignment with the national energy transition and Bumiputera empowerment goals, we are laying the groundwork for a thriving local clean energy ecosystem that empowers Malaysian businesses to lead in the green economy.

Back to ESG Stories