The Malay Dilemma and New Economic Policy Ketuanan Melayu

mahathir spent political exile writing malay dilemma, contended malays original or indigenous people of malaya , people can claim malaya 1 , country. in accordance practice on world, confers on malays inalienable rights on forms , obligations of citizenship can imposed on citizens of non-indigenous origin. (referring social contract.)

mahathir expressed discomfort far many non-malay citizens can swamp malays when ...suddenly has dawned upon malay cannot call malaya land. there no more tanah melayu — land of malays. different person, malaysian, malay malaysian authority in malaya — land — not shared others, shared unequally. , if not enough, being asked give more , more of share of influence. mahathir s defence of malay rights focused both on definitive people line of reasoning , argument in favour of affirmative action, reid commission had chosen: not... reasons of malay superiority preferential treatment malays in scholarship awards insisted upon. ... means of breaking down superior position of non-malays in field of education. malays not proud of treatment. shortly after becoming prime minister, mahathir denied had altered of views since wrote book.

mahathir , musa hitam later rejoined umno , government under tun abdul razak, second prime minister, new economic policy (nep), based on of reforms mahathir s book had advocated. nep s stated goal elimination of identification of race economic function . achieve this, targeted 30% share of economy bumiputra — sons of soil, term referring malays , other indigenous peoples — 1990. became known 30 per cent solution setting bumiputra quota many items, including new public share listings , new private housing schemes. commentators alleged fostered close zero-sum attitude chiefly between malays , chinese . nep s stated aim, however, not directly redistribute wealth enlarge economic pie while providing larger share of gains malays, increasing participation in economy all.

the main rationale nep set out in second malaysia plan address economic imbalance between chinese , malays. in 1969, malay share of equity reportedly stood @ 1.5% while chinese held 22.8%; rest largely in foreign hands. detractors argued while chinese share of economy had increased @ malays expense, more significant growth in inequality had occurred between richest , poorest malays — between 1957 , 1970, wealthiest 20% of malays share in malay portion of economy reportedly increased 42.5% 52.5% while poorest 40% saw decrease 19.5% 12.7%.

the noc issued report of own analysing root causes of 13 may violence, suggesting in civil service, traditional malay employer, non-malays outnumbered malays in many areas, substantial malay majorities in police , armed forces. report concluded: allegations non-malays excluded regarded malays deliberate distortion. malays felt excluded in country s economic life, began feel threat place in public services. no mention ever made non-malay politicians of closed-door attitude malays non-malays in large sections of private sector in country.

according second malaysia plan, nep aimed create malay commercial , industrial community through wholly owned enterprises , joint ventures . prior this, government had, in words of local economist, played administrative, supportive, , regulatory roles in attempting address economic imbalance, avoided represent[ing] direct , active efforts in promoting malay interests. now, government not [limit] access of chinese , indian population universities, public jobs , public money, actively intervene in economy give [the bumiputra] bigger piece of business action . 1 criticism of increased intervention umno supposedly became major beneficiary of expanded role of state .

there had been limited affirmative action programmes before. however, these focused on civil service, article 153 of constitution did. admission higher education largely merit-based. tunku government preferred laissez-faire policies, minimising economic intervention. although agencies, such rural industrial development agency (rida), attempted aid malay entrepreneurs, existed, programs criticised being based on handouts , favouring politically connected. rida renamed majlis amanah rakyat (the indigenous people s trust council) or mara in 1965, , came symbolise development of malay entrepreneurship.

although nep aimed @ addressing economic imbalances, became associated ketuanan melayu. while 2 directly equated, mentioned together, implication nep derived ketuanan melayu. nep s greater intervention in economy led equate umno s monolithic image undisputed champion of malay supremacy party s ability shore lucrative business deals.