February 9, 2017
COMMENT: The objectives of the Tun Abdul Razak’s New Economic Policy (1970) were (1) to eradicate poverty regardless of race and (2) to create a Malay Commercial and Industrial Community to eliminate the identification of race with economic function. It was intended to deal the root causes of the May 13 1969 riots that shook Malaysia and promote national unity.
It was Tun Dr. Ismail Abdul Rahman, Tun Razak’s Deputy, who likened it to a golf handicap system to enable the Malays to compete against the more economically successful Malaysian other. It was to “serve as a temporary affirmative action policy with a 20 year lifespan but which now appears to have been extended ad infinitum.”(Lim Teck Ghee).
Tun Dr. Mahathir Mohamad used it to create a UMNO crony capitalism and make the Malays beholden to the UMNO state for handouts. In the name of “democratization of education” our fourth Prime Minister also lowered university entrance requirements to enable Malays to attend our public universities, the consequences of which are quite well-known to all of us.
If the Malays are to compete in a globalized world, they must learn to be self-reliant and resilient in the face of adversity. Like my friend Teck Ghee, I feel that empowerment of the Malays, not dependence on UMNO handouts, is the way forward in the pursuit of national unity.–Din Merican
The NEP –“A Magical Touch” or Systemic State-Sponsored Discrimination against The Malaysian Other?
by Lim Teck Ghee
Surely our well informed Royalty must also be aware of the collateral damage that pro-Malay bumiputra policies have had on governance, economy, social cohesion and race and religious relations. Surely Sultan Nazrin, with degrees from Oxford and Harvard, must be aware of the vast literature available, in English and the national language, of the downside of maintaining the NEP past its original shelf-life of 1990.–Dr. Lim Teck Ghee
Recently the Sultan of Perak, Sultan Dr.Nazrin Shah, officiating at a religious discourse described the NEP (New Economic Policy) as a “magical touch”. The word “magic” is associated with the the power of influencing the course of events by using mysterious or supernatural forces. It is a word whose synonyms include “sorcery, witchcraft, wizardry, necromancy, enchantment,the supernatural, occultism, the occult, black magic,the black arts, shamanism” and the like.
The “magical touch” of the NEP which gave more opportunities for the Malays to participate in mainstream development and encouraged the growth of youths especially from the rural areas to have a strong foundation of race and religion. of course, did not come from the waving of any supernatural or magical wand, although some of the superstitious in the audience may believe it.
It was a human and politically-crafted public policy in the aftermath of the racial violence in May 1969 and it was intended to serve as a temporary affirmative action policy with a 20 year lifespan but which now appears to have been extended ad infinitum.
The assertion that the the NEP benefited Malay individuals and families and also injected a new confidence and pride into the Malays is also well-known and is incontestable. No one can deny that the younger generation Malays, especially women, “filled Malay secondary classes in bigger numbers, held high positions in their careers, especially in the public sector, enjoyed influence and underwent a cultural transformation, including in the workplace and home” as a direct outcome of the NEP.
But there were other ripple effects from the application of the “magic” touch which the Sultan did not bring to the attention of his audience. These effects – principally relating to the non-Malay community but also now impacting on the Malays – are also important and necessary to bring to the attention of those who continue to advocate it as the panacea for the ills and shortcomings of the Malay community.
Such a critical, empirically-grounded ]and non-romantic analysis is especially necessary to emphasise in religious and Malay-centric fora that are held ostensibly to instill “Islamic values” of justice, moderation, equality, and the other ethics deemed as central to the practice of the religion; or during events intended to uplift Malay pride and self-esteem.
Who Lost Out With The NEP
That magic wand waved to secure the employment of Malays in the public sector and their accelerated promotion and advancement in it, as well as in other sectors, has required the suppression and holding back of other citizens in their employment, career and even life prospects, however deserving or qualified they may have been, simply on account of their minority ethnic identity. Enough has been written about this for so long that even the most out-of-touch or uneducated in the country is fully aware of it.
UMNO-BN Election Gimmick?
The loss has not only been to the many hundreds of thousands of non-Malays who have had to make personal sacrifice or have been denied fair treatment as a result of a policy pushed down their throats to ensure ‘national unity’ and so that Malay politicians (and Royalty) can have what these dominant groups consider to be a fair share of the nation’s wealth.
The loss is also that of the nation as a whole.
Surely our well informed Royalty must also be aware of the collateral damage that pro-Malay bumiputra policies have had on governance, economy, social cohesion and race and religious relations. Surely Dr, Sultan Nazrin, with degrees from Oxford and Harvard, must be aware of the vast literature available, in English and the national language, of the downside of maintaining the NEP past its original shelf-life of 1990.
Sultan Dr.Nazrin who is also the Financial Ambassador of the Malaysian International Islamic Financial Centre (MIFC) also said that Malaysia is always described as a modern Islamic nation which is developed, progressive, peaceful and moderate. According to him, “Islamic leadership in Malaysia is highly respected. The wisdom of the Malay leaders in implementing programmes for the development of the people and the country has been acknowledged throughout the world.”
OECD’s Damning Analysis
As Financial Ambassador, he would do well to read the recent Organisation for Economic Cooperation and Development (OECD) Review of Innovation Policy report which categorially states that the NEP is among the causes of Putrajaya’s limited success in upgrading the economy through science, technology and innovation policies since the mid-1980s. The recently released Malaysia report noted that “[s]ocial equity rules associated with the New Economic Policy, affecting a wide range of domains including education and businesses, did not allow sufficient mobility of resources which, in the end, hindered innovation activities”.
The report also noted that the domination of government-linked companies (GLCs) and major family-owned conglomerates – all factors the Sultan should be very familiar with – have tended to block competition, innovation and entrepreneurship.
Finally the reported noted that “[e]ven the best initiatives have suffered from a lack of sustainable efforts, political interference or, in some cases, clientelism and corruption”.
The NEP and its successor policies need an open, rigorous and transparent stocktaking to ensure that the Malay community and other Malaysians do not continue to be led astray or become victims of an anachronistic, increasingly elite-favouring, corrupt and indefensible policy.
The magic has been long gone and will never return. Perhaps the Sultan’s next speech may see him provide some ideas on the replacement policy to the NEP. Empowerment of the Malays, not dependence of UMNO handouts is the way forward in the pursuit of national unity.