Anak Malaysia: A Unified Malaysia

In August 2005 FNF and Parti Gerakan organised a conference on ANAK Malaysia that generated discussions not only during the conference, but the issue continues to be one much widely debated.

The focus of the debate centres around whether or not the National Economic Policy (NEP), a social contract entered into 30 years ago with the aim of improving the Malays’ share in corporate ownership, should be extended.

Malaysia prides itself on being a multi-racial society, one with sound and stable political conditions. Yet at the same time, this political stability comes at a price. NEP was introduced in 1970 after the infamous 1969 racial riots that saw the Malays anger and frustrations directed at the wealthier Chinese race. The NEP became the social ‘contract’ that aimed to improve the economic situation of the Malays over the next 30 year period, with the specific aim being to raise the Malays equity to 30 per cent of the nation’s corporate assets.

UMNO Youths are demanding that the NEP be extended until the Malays achieve the 30 per cent equity envisaged. However, this has an implication that with growing Malay population (with the Malays having the fastest birth rates amongst the races), this threshold of 30 per cent equity may always remain the next milestone to be achieved.

Under the NEP Malays are given priority for obtaining certain business licenses, securing government employment and contracts, rights to property and others. These affirmative actions intended as a tool to bring about social reform, comes at a cost of suppressing the other section of society from accessing and fully utilising its resources to contribute to Malaysia’s economy.

The NEP has benefited a small group of Malays rather than the general Malay population, a majority of who remain poor despite the various subsidies, concessions and quotas extended to them under NEP.

Does this not suggest that after 30 years of implementation with little effect, the various strategies under the NEP may not be the right way to make a difference? Is it then not time to re-evaluate and rethink the strategies rather than persisting on with something that has proven to be unsuccessful?

The unfair opportunities created for the Malays puts a block on other sections of society to realise its full potential, thus limiting Malaysia’s productivity. This in turn has a negative effect on Malaysia’s competitiveness in the global market in the long run.

In order to compete globally with new emerging markets with low labour cost and high productivity, efficiency becomes crucial. Revival or extension of the NEP seems more likely to be an obstacle to developing this efficiency and dampening the economic advantage of Malaysia. For instance, the Economic Freedom Index for the years 2002 and 2003 shows that Malaysia has maintained a score of 6.5 (out of ten), indicating that the comparative level of economic freedom has largely remained stable. However, Malaysia’s ranking among the 127 countries covered by the index has dropped from 57th to 59th. This indicates that maintaining the status quo will only result in other countries bypassing Malaysia.

Affirmative actions along racial lines will only widen the gap amongst Malaysians and stop integration and unity, the very concept of Bangsa and Anak Malaysia that the government is aiming to achieve for Malaysia. Is it then not time to all work together as Malaysians to compete globally and increase opportunities for all?

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