Malaysia’s New Economic Policy Under The Gun – OpEd

In the theatre of politics in Malaysia two recent events are providing opportunity for policy and public action to revive the reformation promises and process which many Malaysians see as stalled or moving backwards.

The first is the recently concluded trade agreement with the United States – Agreement on Reciprocal Trade (ART). This has opened up a Pandora box of questions regarding the nation’s economic independence, the key policy sectors targeted as well as the important issue of its impact on the nation’s core policies related to Bumiputera and non Bumiputera rights and privilege.  

The second is the establishment of the National Unity Advisory Council to advise the government on matters related to national unity, serve as a platform to discuss social cohesion issues, and recommend solutions to unity challenges.

Both developments are related to the New Economic Policy undertaken more than 50 years ago. This policy was intended to end in 1990 but instead has gone through multiple iterations, and which the stoic amongst Malaysians refer to as The Never Ending Policy. In some ways, the country’s NEP may be seen as the longest lived race – based affirmative action program in the world. 

How Effective Can The Latest National Unity Council Be

There is likely to be very few among long time observers of national unity in the country that hold hope that the newest appointed members – the new Council is a diverse group, including community leaders, representatives of non-governmental organisations (NGOs), academics, cultural figures, corporate personalities, and delegates from Sabah and Sarawak. – can do much.

The past work of the Council has apparently contributed to policies and initiatives, such as :

• ​National Unity Action Plan 2021-2030  
• ​Implementation of the Rukun Negara pledge at official events  
• ​Tabika Perpaduan Early Childhood Education Plan 2021-2030  

Most observers are not impressed with this past record and are hoping that the latest Council can do more. However, if the latest members can live up to the public pronouncements that they have made with regard to their appointments, it can provide the much needed push to bring the final closure to the NEP which many in the nation see as the single most important policy obstacle standing in the way of a more unified and resilient society. 

Post NEP Challenge: Building a Better Future For All

Here is an action project proposal for the new Council which should have been undertaken up in 1990 but is still not too late to initiate. Its initial objective is to draw on the multiple stakeholders and stake players of the NEP to undertake and share their own independent and comprehensive evaluation of the NEP and its latest proposed iteration in the Bumiputera Economic Transformation Plan 2035 which has yet to undergo rigorous public scrutiny. 

The list of potential project participants can include 

• Think tanks 
• Non governmental organizations 
• Universities and other educational institutions 
• Business and other professional organizations including the housing and building organisations, legal organisations, trade unions, etc. 
• Social and religious organisations 
• Political parties

Each participating entity can draw on their own experience dealing with NEP related policies and programmes. Their focus can be on which issues have been handled well, overcorrected, under-addressed, become irrelevant, or overlooked in relation to new challenges. A key part will relate to what lessons have been learned and what policy changes are required to meet future challenges.

Thus, business organizations will deal with the latest policies affecting their sector, be it in SMEs, industry, retailing, logistics, housing and construction, etc. Similarly universities will focus on education, including issues related to admission policy, quota systems, etc.

Special attention is likely to be given by contributing organizations on the drawbacks and failures of existing policies and how these have negatively impacted on their organisation’s well-being and development as well as on the larger concerns over social cohesion and unity. This analysis can be accompanied by a concluding section identifying proposals for policy reform to be taken up by the government.

The outcome of this nation-wide NEP evaluation exercise can subsequently be posted in a special website to be set up before the end of 2026. 

Also to encourage participation, it is proposed that the Ministry of National Unity provides think tanks, NGOs and social and religious organizations with funding assistance to undertake their project participation. If a modest budget allocation of RM50 million can be provided for this project, funding support of $100,000 to each participating organization can ensure reports from 500 contributors that can be the basis of an invaluable national data bank with ramifications for the inclusive development of the country in the socio-economic, cultural and political spheres.

This is the kind of relevant and effective participatory action research that the Malaysian Government should support. In the case of this proposed project involving key stake players and stake holders, it can generate actionable findings and address our social cohesion and national unity shortcomings through collaboration, empowerment, and democratic knowledge co-creation.   

The new portal can be part of the Ministry website to ensure that the Ministry can monitor and guide other ministries on post NEP deviations, abuses, shortcomings as well as on the situation of national unity that it has responsibility for. This will also ensure that the public and larger body of policy makers and implementers have access to data and feedback, and help to ensure transparent and accountable policies and governance. 

Especially important is that the national data bank will not only enable continuous public scrutiny. It can also provide critics of any new iteration as well as whistle blowers of alleged wrongful policy practices the means of sharing and disseminating rapid responses. 

Should this project proposal become reality, it could be a role model for reforming affirmative action policies and programmes around the world.