The Malaysian Insight

HONEST discussions must be held on the new economic policy (NEP), specifically about who it has benefited and who it has left out, Muda vice-president Teo Lee Ken said.

He said while critics have called for the NEP to be scrapped, it cannot be as straightforward as that.

“We feel that it’s not just a matter of scrapping it or continuing it as it is,” Teo told The Malaysian Insight.

“There are parts that require continuation and there are parts that require removal and there are parts that require reform.

“It’s not black and white, Malay versus non-Malay conversation, but a policy based discussion on the gaps and what needs to be done.

“And what needs to be done need not necessarily apply across the board but targeted specifically.”

While the assumption that the NEP has always benefitted a segment of the Malay elites while marginalising others, Teo said research has shown that it does benefit the non-Muslim Bumiputeras and the Malays as well.

“In that sense, perhaps we understand why there are still strong feelings and support for the policy.”

“But, in going into the specifics of reforming it, there needs to be new and honest discussions on the need to talk about it objectively.”

“Not coloured only by politics, but it should involve academics, policy makers, Bank Negara and Khazanah to show where the gaps are and who is benefitting and who isn’t,” he said.

When it comes to reforming the NEP itself, Teo said there are two prongs to the reform.

“Firstly, the eradication of poverty and, secondly, the association with economic functions.”

“Equality fits the first prong, which means that social welfare, basic access to healthcare, housing, are matters that should be supported by the state irrespective of race and gender.”

“Then there is fairness. The idea would be to build capacity and capability to allow participation of the Bumiputeras, and also the Indian community who are left out. This is where fairness comes in.”

There must also be a continuous review of the NEP to allow it to adapt with the needs of the times, Teo said.

“The sunset clauses need to be returned to allow for continuous review while building on the needs of particular communities, there needs to be allowance for merit.”

Last year marked the 50th anniversary of the NEP.

The NEP reconfigured Malaysia’s political economy and most pivotally, cemented pro-Bumiputera affirmative action, preferential programmes to promote the majority group’s participation in higher education, high-level occupations, enterprise management and control, and wealth ownership.

Fifty-years on however, the 30% bumiputera ownership which was set out in the NEP has still not been achieved.

Bumiputera quota

Speaking on the bumiputera quota, Teo said it was important to address who are the people who are given these quotas.

“Even if there are quotas, who gets these quotas? There is a question of capacity and capability.”

“Are bumiputera companies that receive these tenders? Are they a result of open tender or direct tender? Are they politically linked?”

“In that sense, debates on bumiputera participation and quotas are linked to the NEP, it is also tied to reforms of institutions,” Teo said. – July 17, 2022.