KUALA LUMPUR, July 5 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak on Monday called on private sector to step up its role as the engine of growth following the implementation of the New Economic Model (NEM).

He also stressed the importance of the private sector's role in the NEM and the 10th Malaysia Plan that will chart Malaysia's development in the years ahead, which is premised on high income, inclusiveness and sustainability.

"While the plan outlines strategies for a more focused role for the government as an enabler, regulator and catalyst, it is important for the private sector to step up its role as the engine of growth," he said in his keynote address at the Edge Malaysia Billion Ringgit Club gala dinner here.

According to him, a strong, vibrant, competitive, dynamic and innovative corporate sector is crucial for Malaysia's economic and social well-being.

Najib said the government could act as a facilitator, provide the incentives and create an environment conducive for businesses but it was for the private sector, businesses and entrepreneurs to take advantage of the incentives to create employment, enhance value of their businesses, generate revenue and contribute to national development.

"Management is under intense pressure to be highly competitive, efficient, to increase productivity and generate higher revenues for the corporation and provide better returns to the stakeholders, including enhancing their products and services to consumers," he said.

Citing the Edge Billion Ringgit Club, Najib said its creation for companies with at least RM1 billion in revenue or market capitalisation will serve to encourage smaller Malaysian companies to strive harder.

He said it would also encourage and prompt management to work harder if they want their companies to be members of the exclusive club.

"The Billion Ringgit Club members can lead the way by setting standards with adoption of corporate best practices, increased corporate governance, transparency and increased productivity," he added.

He also said that as Malaysia strived to move up the development ladder, it was essential for the private sector to lead in the march towards efficiency, and create value for employees, shareholders, consumers, customers and society at large.

Despite the difficult stock market environment, the number of companies that qualified to be included in the exclusive club is heartening, with a total of 163 companies or 17 per cent of all listed companies on Bursa Malaysia.

Although Bursa Malaysia may not be the largest in the region in terms of market capitalisation, but with 962 listings, it has the largest number of listed companies, Najib said.

The 962 companies accounted for a market capitalisation of RM1.044 trillion as of March 31, 2010.

At the event, Najib also presented awards to successful corporate leaders.

Among the award recipients were Public Bank Bhd's founder Tan Sri Dr Teh Hong Piow and CIMB Group Holdings Bhd's group chief executive Datuk Seri Nazir Razak. They were chosen as the "Value Creator: Malaysia's Outstanding Chief Executive Officer" award winners.

The "Company of the Year" award went to to homegrown rubber glove manufacturer Supermax Corporation Bhd.

-- BERNAMA