by Azly Rahman
The New Economic Policy (NEP) owes it genesis to a vision that sought to redistribute wealth among Malaysia’s races and create a Malay middle class. Today, there are a significant number who believe that most of the benefits have gone to upper and upper-middle class Malays. As a whole, a vast swath of the Malaysian middle-classes remain relatively poor. It is the urban lifestyle has brought this group to such a level – like America’s middle-class, they are riddled with credit card debt and face rising costs of living.
The NEP created the country’s own Rockefellars, Vanderbilts, and Carnegies (dynasties of the ‘old money’), as it continues to create its own versions of Bill Gates, Rupert Murdoch, and Warren Buffet (newer dynasties of ‘new money’). In tandem, there are a growing number of millionaire Chinese and Indians that have benefited from the truncated structure of the NEP.
The NEP has also overseen the growth of a larger class of poor across all ethnic groups too, with Malaysia witnessing the rapid growth of an urban poor who live below the poverty line. Hypermodernity and rapid industrialisation, in the hunt for huge profits through expensive real estate projects have also engendered waves of immigration from Indonesia and Bangladesh, adding to the complex social dynamic in Malaysia’s urban centres.
The NEP was quite ill conceived to begin with, although in fairness, it was not meant to continue indefinitely unlike what one observes today. It was premised upon the principles of ethnic segregation and a leg-up for the most disenfranchised community – the majority Malay-Muslim population. A noble policy then, affirmative action was also the dominant philosophy of human development in the 1960s and 70s.
Today, the NEP can hardly be appended to noble intentions. The only Indian and Chinese individuals that continue to support it are either found in political parties that are aligned to the ruling coalition, the Barisan Nasional or to those Chinese and Indians who rely on government patronage for contracts and tenders.
The state of Malaysian politics continues to worry. Even the Malay middle class – products of the Mahathir development philosophy are now in a state of confusion and contradiction. On the one hand, they have benefited from the policy of affirmative action. On the other hand, they are concerned about the depth of corruption in Malaysian politics and the number of incompetent public servants running the bureaucracy.
Concomitantly, Malaysian governments have successfully developed a strange brew of authoritarianism and contradiction while trumpeting the belief that it is doing fine in the areas of race relations and socio-economic justice. The nature of Malay nationalism is reaching a frightening apex with Malay leaders resorting to Malay nationalism as the panacea of choice when faced against anti-NEP sentiments.
A new philosophy is needed, a new paradigm needs articulation, underpinned by a new economic ethos that will benefit all ethnic groups and communities. All this, in response to a new Malaysian reality that should acknowledge the “non-bumiputras” as the “new bumiputra”. Malaysians should not continue living with the sins of their fathers and continue the archaic legacy of colonialist ideology – divide and rule. Nonetheless, more than just a token act towards placating hitherto “second-class Malaysians”, it is the technological imperatives that will probably force a review of the NEP, if it has not already.
Globalisation and the interface of new mass-reach technologies have redefined the boundaries of social justice. The international community is interested in the story of Malaysia’s NEP, just as Malaysians are interested in the story of the Palestinian question. More than at any other time in this generation, we are in an age where “the center cannot hold”, especially when the spine of its raison d’etre was hosted on the back of information dominance by the state and a social contract that cannot last beyond one generation. One might ask: what are the implications for Malaysian politics and business should the NEP continue in its current form?
Quite simply, the perception of mass dissatisfaction will continue to grow, those marginalised by the system will continue to heckle and the middle class, especially the Malays will continue to protest. Politically, mass mobilisation in support of progressive political groups will increase. The futility of affirmative action and the ideals of equal opportunity will become popular rallying calls of the Malaysian civil rights movement. Citizen journalism will continue to challenge government-controlled media outlets and online platforms like Malaysiakini, Malaysia-Today and jeffooi.com, will probably end up as the first port of call for the news-hungry Malaysian.
The post-Mahathir regime thinks that it can still use the Mahathirist formula of maintaining power and wealth. It does not realise that Malaysians no longer wish to see a 5, or 6 or 7 term Prime Minister in power, as such as how the 22-year Mahathir rule. They want to see a government that serves the people and not one that makes the people modern slaves. They want to see corrupt politicians brought to justice. They do not want a government that is run by arrogant politicians who see politics as a dynasty-building vehicle and a conduit to build up a personal fortune. While the political system perpetuated by the NEP does not necessarily make the latter scenario a given, it has by default, sowed the seeds for it. The NEP is no longer serving the needs of Malaysia. The policy is hopelessly one-dimensional and short-sighted. It may be not be weeded out overnight, but its form can certainly be altered over time. Education is probably the best starting point. Children of poor Malaysians, regardless of ethnicity must be given equal opportunity funding for higher education. Children of wealthy Malaysians and members of the Malaysian royalty should not receive preferential treatment, for obvious reasons.
But there could well be a sliver of hope yet – a sure sign that the Malaysian government is aware of the travails facing the country. The government-driven Iskandar Development Region project may well be more important for Malaysia than ordinary Malaysians envisage. As the laboratory of a “no-affirmative action” special economic zone, its success may well be critical for a thorough review of the NEP, especially if Malay Malaysians do well there.
At heart ultimately in the fight to banish the NEP to the annals of history is a culture of insecurity that Chinese and Indian Malaysians need to appreciate too. As argued by Malay nationalists, the real reason the NEP was implemented in the first place was the economic under-representation of the Malays in Malaysia. Until and unless a new social contract is written, one that is seen not to align disproportionate wealth to a minority, or unevenly among the races – real change for Malaysia, is a figment of imagination. Equal opportunity would mean nothing if a new socio-economic philosophy replaces purported Malay economic preponderance with that of any other race.
Hats off to Azly, for being a rational Malaysian, despite being a Malay from the NEP era.
When you see a poor Indian or Chinese getting left out of higher education, and a less qualified rich Malay getting into Universities, your blood just boils…what choices will these poor students have, when their parents are not able to afford private colleges and overseas education? They remain in a vicious cycle of poverty, working blue collar jobs that’s so lowly paid, their children in turn get effected.
If only MALAYS realize that for the good of the entire country, the line has to be drawn across poverty levels, NOT according to race. If the Malays want successful Chinese and Indian employers and professionals in the corporate sector to hire them, then prepare to give back some in return. Don’t just say “I wan I wan I waaaaaaaaaan” all the time. Don’t keep repeating the 13 May mantra. Don’t keep reminding us how grateful we should be for giving citizenships to our ancenstors who came here around 100 and more years ago. In most civilized countries, you only need 5 years of residenceship before you get the same rights as a person who can trace his/her lineage 1000 years ago.
EQUAL rights is the foundation for building national pride, unity and hence a great nation.
“Hats off to Azly, for being a rational Malaysian, despite being a Malay from the NEP era.”
I do not think he’s gonna see this as a compliment! You have insulted the rest of his tribe. LOL.
“The NEP created the country’s own Rockefellars, Vanderbilts, and Carnegies (dynasties of the ‘old money’), as it continues to create its own versions of Bill Gates, Rupert Murdoch, and Warren Buffet (newer dynasties of ‘new money’). In tandem, there are a growing number of millionaire Chinese and Indians that have benefited from the truncated structure of the NEP.”
Sorry! This statement is wrong. NEP created greedy politicians, that’s all!
“The NEP has also overseen the growth of a larger class of poor across all ethnic groups too, with Malaysia witnessing the rapid growth of an urban poor who live below the poverty line. Hypermodernity and rapid industrialisation, in the hunt for huge profits through expensive real estate projects have also engendered waves of immigration from Indonesia and Bangladesh, adding to the complex social dynamic in Malaysia’s urban centres.”
In short, these are problems created by greedy NEP UMNO/BN politicians.
“But there could well be a sliver of hope yet – a sure sign that the Malaysian government is aware of the travails facing the country. The government-driven Iskandar Development Region project may well be more important for Malaysia than ordinary Malaysians envisage. As the laboratory of a “no-affirmative action†special economic zone, its success may well be critical for a thorough review of the NEP, especially if Malay Malaysians do well there.”
What hope? There is no hope when Abdullah is the Prime Minister. If a Malay is truly business minded, hardworking and not fanatical about their religion, Malaysia will be known as Boomtown Charlie! You see and know where is the problem, still I insist the Malay is not sutpid and lazy.
.
Everything is created to be exploited to the very limit of one’s greed and nep is conspicuous so.
The idea itself that nep is the foundation of a race future is so flawed especially so when considering what transpires in all transactions that leads to loss in no small amout.
Who then benefit though – definitely not the poor malays, chinese or indians but the FAT PIGS.
.
What about slaying the immortal tiger?? You should not slay the tiger. Conservationists would call for your head!
You should ride the tiger in the same tradition as you would the dragon – only in the case of the dragon, you don’t ride it but you only puff the magic dragon!
An important policy for the country and her ordinary people abused and exploited in such a shameful way with permanent, long term and far reaching consequences.
It is clear the government had lost its credibility and integrity to govern the country…….there is no quick fix.
“The NEP created the country’s own Rockefellars, Vanderbilts, and Carnegies (dynasties of the ‘old money’), as it continues to create its own versions of Bill Gates, Rupert Murdoch, and Warren Buffet (newer dynasties of ‘new money’). In tandem, there are a growing number of millionaire Chinese and Indians that have benefited from the truncated structure of the NEP” – We have people with money but many who became rich without hard work or intelligence. Just bullying tactics. Are you putting these people together with the likes of Bill Gates and Warren Buffet? Please do not insult them.
â€ÂThey do not want a government that is run by arrogant politicians who see politics as a dynasty-building vehicle and a conduit to build up a personal fortune.” – Do you remember Machap & Iljok? So do u think ur statement here is true at all?
“Quite simply, the perception of mass dissatisfaction will continue to grow, those marginalised by the system will continue to heckle and the middle class, especially the Malays will continue to protest.” – Malays continue to protest? When did this protest start & for how long will it continue? Words without meaning….
“The NEP is no longer serving the needs of Malaysia.” – Did it serve malaysia in the first place? It was proposed after those in power who seek more power caused distraught & planted seeds of hate within the community. It was for personal benefit all along…
“Until and unless a new social contract is written, one that is seen not to align disproportionate wealth to a minority, or unevenly among the races – real change for Malaysia, is a figment of imagination.” – The current social contract that we have is not fatally flawed. Only those who interpret & enforce it are at fault. I dont believe that our forefathers fought & died to build a country only to plan to ruin it. Can you show which statements in the social contract are flawed?
Good intention but from what I have just read, all words but no substance…
Dr Azly and Farish are the modern, well-educated and rational malay intellectuals. So why cant the rest of the malays follow their example? The malays are in a position to lead the other muslims in the world to a better life and standard of living. Instead they would rather follow Osama. The malays are going backwards and getting arabised or islamised and prefer to live on handouts so much so they have lost the creativity, perseverence, independence, rationale thinking etc that are so necessary for a paradigm shift. Where’s that human spirit and political will? Just look at those idiotic UMNO MPs, always harping on NEP, malay rights and privileges, nationalism just to protect their position and share of the pie. Malays have lost the will to face challenges but instead would rather be apathetic and just follow instructions without which nothing is done whilst waiting for open opportunities to prey on innocent citizens for bribes such govt agencies, land offices and town councils. Corruption is so prevalent so much so it has become a way of life for malays. Of course, the politicians and the wealthy irrespective of race are the biggest culprits like Diam, SV, Ling, IGP etc. The whole malaysian culture and way of life between the various races has now become symbiotic instead of generating REAL ECONOMIC VALUE beneficial to the nation as a whole. Yes. There is no quick fix. Its now an addiction.
What is the alternative? Mr. Lim Kit Siang. UMNO is in cahrged and they are intend to enrich their own circle for as long as possible. Can Mr. Lim Kit Siang do anything about it, the answer is NO. What is the DAP policy in governing Malaysia? It is not going to be so hard for DAP to have its own organization in Finance, Education and Internal Security. Start from this 3 ministry, do research and analysis, keep what is good, propose better policy to replace the one used by UMNO. Can Mr. Lim Kit Siang do this, with his talent, this will take at most 3 months. But, why Mr. Lim Kit Siang not doing this, because he is so consumed by his own talent, he cannot produce fruitful achievement. He won and lost election North and South, but where is his root? Only when the opposition leader can further improve himself, then, he can pose a serious threat to the lazy and greedy UMNO leaders to ensure a healthy competition. As it stands now, UMNO leaders don’t even bother with Mr. Lim Kit Siang. Mr. Lim Kit Siang is actually defeated by his own talent. Just likes water, it can float a boat, it can also capsize a boat. Malaysia’s future is in your own hand, Mr. Lim Kit Siang. But, are you Prime Minister material? Just for a moment, think of you as the Prime Minister, then go walk the talk, start for small, lay out a game plan, formulate nation building policy, improve DAP, bring in more talents, plant the seed across the country, in 10 years, we will start to see the perish of those lazy and greedy UMNO leaders.
I think Bill, Rupert and Warren made their riches on their own merit. They used their brains.
Here they use political connections, corruption, cronyism, fraud, manipulations and deceit to make their riches.
There are hard working Malays, intelligent Malays, well educated Malays, fair-minded Malays, and rational Malays.
However, this nation is controlled and ruined by super-rich and greedy Umno-Malays or Umnoputras (some of whom are not even pure Malays – Do we really have ‘pure Malay’?) and their marauding cohort of various races – sucking the wealth of this nation openly and legally under the NEP and other national policies.
The NEP is actually destroying the Malays. Look at the property auctions advertised in the papers the past 2 days.
The owners actually comprises of 85% malays, 13% indians and 2% chinese.
Its a real pity that this policy only flourishes the very very rich malays. It is actually creating an economic gap among the malays.
Syabas PM.
Our Second Finance Minister is now proposing a fund to help petty traders who CAN AFFORD to obtain loans from banks. Who are these petty traders? Your guess is as good as mine.
In other words, the govt is now admitting that these petty traders who CAN AFFORD are not declaring their income truthfully to the IRB causing the banks to reject their application.
Syabas PM
When I was busy studying for SPM exam many years back, I ask my Malay friend why he still can afford to “lapak sini lepak sana” while the exam is just around the corner. He said he did not have to worry about the exam result because the government will give them special rights when applying for University. He said “cukup-cukup makan sudahlah”.
This type of mentality causes the Malay loses their competitiveness. This in turn causes Malaysia to become a failed state.
excellent article Azly!
NEP = Right to steal
YB Kit,
I am sorry but I think it is an insult to the noble tiger to compare it with the NEP. The tiger hunts its own food while the NEPees depends on handouts. The tiger fears no competition but the NEPees fear their own shadows.
If at all there is an analogy, the NEP is like a drug and the BN is like a drug dealer who has turned 60% of the population into NEP addicts. These addicts are now so addicted they simply cannot give up the drug. And the BN knows they can manipulate these addicts with the NEP drug come any election. All they have to do is threaten the addicts that the non bumis are demanding the NEP drug to be removed and they can be assured the 60% NP addicts will rally behind them.
And we all know what happens eventually to addicts.
Kindergarten Question==> 3 year old kids can answer this question
Which political party does not support the NEP?
A. MCA
B. DAP
C. Gerakan
D. MIC
Easier question (for 2 year old kiddies)
In the coming general elections, those who wish to put an end to the NEP must vote for
A. Gerakan
B. MIC
C. DAP
D. MCA
E. UMNO
New philosophy?, what else is there but meritocracy? If you try and tinker with other preference group, the result would be even more chaotic. Social solution – that is easier said than done as many countries have tried.
As an intellectual Azly Rahman should be given credit. As a real solution provider, he has little to offer if you ask me..
Who knows what else contain in the NEP besides those quota and share deals? Honestly, for so long, nothing else except these had been talk about. Where can I get the whole concept details of the NEP? I would like to know it because I don’t think the whole NEP is that simple and would like to research on it and give fair comment. If it is a good plan but had been abused, then the story will likely to be on the other way.
Can i ask? Is now good time to come back Malaysia and work? I am graduating soon, and unfortunately, not as a commerce student but engineering. Is it worth 100 thousands of RM from my parents to come back and help the country? Is there any chance i might even help?