The continuing lie of race-based economics

The NEP target was never about putting economic power into the hands of the poor. Poor people don’t have corporations.

Murray Hunter

With Department of Statistics figures showing that the median monthly wages of bumiputras were 45 percent lower than Chinese employees in the formal sector released at the Bumiputera Economic Congress 2024, the Kutuanan Melayu tendencies of the Madani government were exposed for all to see.

These theatrics were all played out in order that a proposed hybrid of the New Economic Policy (NEP), called the Equitable Opportunities Policy would now use the ‘western’ diversity, equity, and inclusion framework to continue Ketuanan Melayu policies.

The fact the Equitable Opportunity Act is framed on wealth creation in the Bumiputra corporate world, shows this DEI ploy is only aimed at making the rich richer.

As long as bumiputra wealth lags behind others, the elite of Malaysia will get richer at the expense of all others, including Malays.

Back in 2006, the then head of the think tank ASLI Dr Lim Teck Ghee published a study that showed the NEP Bumiputra corporate equity target of 30 percent had already been reached. Dr Lim Teck Ghee was personally attacked and left ASLI.

Please note: the NEP target was never about putting economic power into the hands of the poor. Poor people don’t have corporations.

Bumi equity: Asli report ‘will be vindicated’

Malaysiakini Mar 23, 07 12:04pm

Dr Lim Teck Ghee, the man who was at the centre of the bumiputera equity controversy last year, has reasons to feel vindicated.

Yesterday, Prime Minister Abdullah Ahmad Badawi told Parliament that the government hopes to achieve the 30 percent bumiputera corporate equity target in three years.

Lim Teck Ghee harassed for telling the truth and embarrassing the establishment.

Lim had earlier suggested that the government had already exceeded the 30 percent bumiputera share in corporate equity, and argued this could be as high as 45 percent – more than double the government’s estimates.

However, the government has strenuously denied this. According to official statistics, the bumiputera share in the corporate sector is around 18.9 percent.

In his written reply yesterday in Parliament, Abdullah did not explain how the government would be able to make up the shortfall in three short years.

The prime minister also did not say whether the government’s preferential treatment for the country’s bumiputeras will continue after 2010.

Lim, a former World Bank official, argued that the target can indeed be reached much sooner than 2010.

“When that target achievement announcement is made, I am sure that the findings of the Asli report on corporate equity distribution will be vindicated,” he said, referring to the Asian Strategy and Leadership Institute report which sparked the bumiputera equity debate a few months ago.

Statistical spin-masters

At the height of the controversy, Lim quit his post in Asli when the think-tank retracted the controversial report after coming under intense pressure.

Lim said that the prime minister’s announcement “sets the stage now for the civil service statistical spin-masters to work towards a clear date for that target to be achieved.”

“I am optimistic in light of the recent brouhaha that this milestone will finally and definitively be reached soon.”

However, he said there were several other concerns Abdullah should now address.

“One is to ensure that during the remaining three year life span of that condition, it is the bumiputera poor that will become the beneficiaries of the quota condition, and not the politically connected and already wealthy.”

Lim said that this would require greater transparency and disclosure by the government in pursuing the target, especially in its New Economic Policy (NEP).

“The other is that the corporate equity condition is a small part of a large system of racially privileged entitlement. That larger system needs to be dismantled if the country is to go forward as a united and cohesive nation.”

A gift to young Malaysians

The NEP was enacted in the 1970 as part of a bold blueprint to reduce income disparity among different ethnic groups. This include a wide range of measures including the 30 percent bumiputera equity target.

It was given a shelf life of 20 years but the policy continued after 1990 under a different name – the New Development Policy – to be implemented up to 2000.

The National Vision Policy was set to be implemented between 2001 and 2010. However, the government in the Ninth Malaysia Plan unveiled last year, revived the NEP targets.

Debate over the NEP target became heated after two studies – the Asli report and a University Malaya research – showed that the target had been reached.

The government, maintaining that the figure was 18.9 percent as at end 2004, said the NEP policy will continue until 2020.

“The best gift Pak Lah can give to young Malaysians on the eve of the 50th anniversary of Merdeka is to define a new and historic direction for the country in which all Malaysians, regardless of race, religion, political affiliation, class and region, will be treated equally; and the poor and vulnerable are provided resources and special attention to help them improve their lives.” said Lim.

The continuation of race based economic policy is just a facade. These policies are presented on false pretences and actually only benefit a small group of establishment elite get richer. This is all being hidden behind race based politics.