New Economics Policy

New Economic Policy (NEP) is derived from the 13 May 1969 incident and it is a policy made by the goverment. By any possible means, it is not an article from Malaysia's Constitution or something which is related to the law.

The origin of the NEP is related to the times where British Colonial is ruling Malaya where they give certain privileges to Malays which doesn't apply to their non-Malay counterparts such as quota for employment in civil service and quota for certain scholarship. Special right for the Malays continues on in 1957 where the Federation Of Malaya is formed. It is stated in the Article 153 from Constitution itself. When the Sabah and Sarawak joined and formed Malaysia,the definition changed from Malays to Bumiputera which meant all the indigenous tribes of Sabah and Sarawak.
After the riots of May 1969 NEP is being introduced as part of social restructuring programme. Initially it was expressed for Second Malaysia Plan of 1970-75 before it is elaborated further in mid 1973.

The goals for NEP is to eradicate poverty level by increasing income level regardless of race and to
correct economic inbalance by reconstructing the Malaysian society . In paper, it was supposedly reduce interethnic resentment due to socioeconomics. However,the policies were seen pro-Malay which is the largest indigenous ethnic community in Malaysia at the time. The main target is to increase bumiputra shares of 1.5% in 1969 to 30% in 20 years time.

These policies is initially implemented by the Second Malaysia Plans and followed by the Third,Fourth and Fifth Malaysia plans. As for the results, wealth for Bumiputra has skyrocketed from 4% in 1970 to 20% in 1997. Not only that, absolute poverty population is also drop significantly from 50% to astonishingly 6.8% but it is arguably that NEP is the cause of all this.
Although the official term for NEP is originally ended in 1990,it is still remained in effect up until today. New Straits Times reported that “the government believes the aim of having 30 per cent Bumiputra equity has yet to be achieved” and it is reinstated under the Ninth Malaysia Plan.

In recent years,NEP had been criticised by some party. It is called an inefficient system that promotes a laid back attitudes among the Bumiputras and is racial based. Some policies give economic advantages to the rich Bumiputras such as quotas in ownership of public company stock or a housing being sold exclusively to Bumiputras are seen as discrimination to other races Another controversial of the NEP is the education policy for the Malaysia. Most Bumiputra were given a chance to enter a one year matriculation programme which is less harder than the other choice which is more intensive. Matriculation programme only offers 10% quota for non-bumiputras. .

At the present time,there are some Bumiputras have voiced to reduce or eliminating the NEP. Both the government members and opposition alike.Anwar Ibrahim's of Parti Keadilan Rakyat demands that NEP needs to be replaced by a needs-based programme which is doesn't apply to only one particular race.On the other hand,Datuk Seri Ahmad Abdullah Ahmad Badawi has states his wish in UMNO general assembly in 2004 that he wanted reduce the effect of the NEP although not every Bumiputra leaders shared the same dreams.

The future of this programme has never been as uncertain as it is now. It has been extended for a long time and widely misused by some of the people today. An alternative approach or programme is needed to create a better conditions to improved interethnic relations before the same history struck twice.

The End.