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THE NEP/DEB: Is it still relevant?

THE NEP/DEB: Is it still relevant?. Shamsul A.B. Universiti Kebangsaan Malaysia Web Portal: <www.malaycivilization.com> First Annual Malaysian Student Leaders Summit 4th and 5th August 2007, Kuala Lumpur. A Question of Relevance, or Ignorant Questions?. Is the DEB/NEP still relevant?

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THE NEP/DEB: Is it still relevant?

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  1. THE NEP/DEB: Is it still relevant? Shamsul A.B. Universiti Kebangsaan Malaysia Web Portal: <www.malaycivilization.com> First Annual Malaysian Student Leaders Summit 4th and 5th August 2007, Kuala Lumpur

  2. A Question of Relevance, or Ignorant Questions? • Is the DEB/NEP still relevant? • Is the ‘Social Contract’ still relevant? • Is the Malaysian ‘Federal Constitution’ is still relevant? • Is ‘the Barisan Formula’ still relevant? • Are these questions relevant?

  3. (1) A QUESTION OF SURVIVAL

  4. J. STIGLITZON MALAYSIA: Nobel Prize Winner Economics 2001 “I had the opportunity to talk to Malaysia’s prime minister after the riots in Indonesia. His country has also experienced ethnic riots in the past. Malaysia has done a lot to prevent their recurrence, including putting in a program to promote employment for ethnic Malays. Mahathir knew that all gains in building a multiracial society could be lost, had he let the IMF dictate its policies to him and his country and then riots had broken out. For him, preventing a severe recession was not just a matter of economics, it was a matter of the survival of the nation.” Joseph Stiglitz, Globalization & Its Discontents, 2002, p.120

  5. The survival mechanism • The Constitution as a “Social Contract” (Instrument of Inclusion) • Thus Constitution is always open to contestation • Contestation due to peculiarities in the nature of our FEDERALISM thus creating contradictions in the implementation of ‘Social Contract’ • Why? Historical circumstances when Constitution was created in 1955-57

  6. Peculiarities • West Malaysia (Peninsular Malaysia) and East Malaysia (Sabah & Sarawak) loosely-integrated, or AUTONOMOUS • West Malaysian has to carry International Passport or official ID to enter East Malaysia • Cannot stay more than three months • West Malaysian has to get work permit to work in East Malaysia • English, not Malay, is the main medium of instructions in schools, etc. etc.

  7. Contradictions • “Fundamental Liberties” vs. “General & Miscellaneous” • “Article 8: Equality”vs. ”Article 153:Reservations of Quotas in respect of services for Natives (BUMIPUTERA)…” • Contradictions could only be corrected through the Parliament • When? Perhaps when an opposition party wins the election? note:[BUMIPUTERA:MALAYS (MUSLIMS) & OTHER NATIVES (MUSLIMS & NONMUSLIMS)]

  8. (2) EQUALITY VS. SPECIAL PRIVILEGES

  9. Equality vs. Special Privileges • Art. 8:EQUALITY, universally, allows ‘special privileges’ to the ‘minority’ (disabled, etc.), principally, as an EXCEPTION • Art. 153: Allows ‘special privileges’ for the majority, who is the Native, based on the historical agreement that it is a PRE-CONDITION to EQUALITY, introduced by colonial rule

  10. Evolution of the ‘special privileges’ provision Colonial • 1905 Malay College Kuala Kangsar (MCKK) • 1913 Malay Reservation Enactment • 1950 Rural Industrial Development Authority (RIDA) • 1955-56 negotiation for the Constitution: equal citizenship as a ‘special privilege’ for Non-Malays in exchange for special privileges for the Malays • Islam as official religion (Article 3) • Malay Sultan head of state (Art.32) • Special provision on Customary Land (Art. 90) • Malay official language(Art.152) • Malay education & economic development to be promoted & subsidized thro’ reservation of quotas for jobs, scholarship etc… (Art 153)

  11. Evolution of special privileges… • Special privilege for Non-Malays: the right of equal citizenship was tangible & enforced with immediate effect on 31 Aug 1957 for all the non-Malays & their descendants • Special privilege for the Malays & other natives (both classified as BUMIPUTERA) to achieve economic parity with Non-Malays: no quantitative targets or timetable or time limit were set in 1957, left to nature to take its course…

  12. The Ethnic riot: Tuesday, 13 May 1969 • 1957-69: Malay economic poverty & relative economic backwardness, worsened, government strong intervention benefited “the strong few not the weak many”; • the economic gap Malay-NonMalay increased many folds • 13 May 1969: ethnic riot broke out in Kuala Lumpur & in small pockets around Malaysia

  13. (3) REPACKAGING ARTICLE 153 (MALAY SPECIAL PRIVILEGES)

  14. MALAY “SPECIAL PRIVILEGES” CUSTOMIZED PACKAGED NEW ECONOMIC POLICY (NEP)1971-90 • CLEAR OBJECTIVES: • 1. eradication of poverty; 2. restructuring society • QUANTITATIVE TARGET: 30% ownership • ACTION PLAN & IMPLEMENTATION: • Based on a combination of constitutional provisions and plus… • GUIDING PRINCIPLE: expanding pie • TIME SCHEDULE • Within a period of 30 YRS • Suspended when pie shrunken in 1985-1986 economic crisis & globalization

  15. MALAY ‘SPECIAL PRIVILEGES’ POST-1990: MORE REPACKAGING • NEP ended in 1990, but targets unfulfilled; objectives redesigned • THE NEP repackaged, more funds allocation • THE NDP: NATIONAL DEVELOPMENT PLAN OF 1991-2000 • THE VDP: VISION DEVELOPMENT PLAN OF 2001-2020

  16. THE NEP PACKAGE: CONTEMPORARY DEBATE • THE NON-MALAYS RESPONSE: • When is it going to end? • Non-Malays “2nd Class Citizen” • The 30% target: still 18%, 22% or 45% • Happy with meritocracy • THE NEP: Is it a Never Ending Policy? • THE MALAYS RESPONSE: • Haven’t reached the 30% target • Why only 30%, not 60% or 70%? • Abolish meritocracy. Why? Based on ARTICLE 8; AGAINST the spirit of ARTICLE 153

  17. SPECIAL PRIVILEGES FOR ALL: EQUAL CITIZENSHIP vs. ECONOMIC PARITY • Special privilege for Non-Malays: the right of equal citizenship was tangible & enforced with immediate effect on 31 Aug 1957 for all the non-Malays & their descendants • Special privilege for the Malays & other natives (both classified as BUMIPUTERA) to achieve economic parity with Non-Malays: NO quantitative target, NO specific schedule; NO time limit were set in 1957, left to nature to take its course…

  18. (4) WHERETO FROM HERE?

  19. CAN WE FIX THE PROBLEM? CHOICE (1) • Re-negotiating the SOCIAL CONTRACT • Is this possible? • AMEND THE CONSTITUTIONespecially Article 153: • A fixed target • A fixed schedule • A fixed time limit

  20. Possible Choices CHOICE (2) • Retaining Status Quo • Opening & Containing contestations • Process as a Solution • NEW ECONOMIC POLICY [NEP] will remain a NEVER ENDING POLICY [NEP] generating an NEVER ENDING POLEMIC [NEP]

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