ECONOMIST: MOVE TO SCRAP AFFIRMATIVE ACTION COULD STOKE RACIAL TENSION
Govt should redefine policy by setting new parameters, standards to suit current situation, says expert
THE time is not right to yank affirmative action plans like the New Economic Policy (NEP) or similar policies under the National Economic Model (NEM) from under the feet of Malays and Indians as many of them are still in the low-income bracket.
Veteran economist Professor Dr Hoo Ke Ping said the government’s decision to exclude racial consideration in NEP would not only risk it being rejected by Malays, but could also trigger racial tension.
“Just because the Chinese supported the government, it does not mean they could do away with the protectionism mechanism... They could be alienated by Malays.
“Malays need patronage. The need to protect the Malay middle class is strong... The Chinese have penetrated into so many global (industries), but not Malays. We cannot just please non-Malays because it might lead to another May 13 tragedy.”
Hoo said NEP was introduced after the May 13 incident to not only eradicate poverty, identify race-based economic opportunities and support the Bumiputera Commercial and Industrial Community.
“It was created at a time when Malays have no assets... only political power and position in the government. The Chinese held half of the economy and the rest belonged to foreigners.
“At that time, the government was trying to protect the rich Chinese and Indians, while Malays were sidelined.
“So, if we remove their benefits, what will happen to them?”
The government, he said, should instead redefine NEP by setting new parameters and standards to suit the current situation.
This, he added, included the term “poverty”.
“We may have eradicated poverty if we are basing it on the government’s figures that the poverty line has dropped to 0.5 per cent from more than 40 percent (in the past).
“The question is, can we use the same poverty line definition that we used 45 years ago?
“There has not been much change. Malays are generally still padi farmers and fishermen. Many who move to the city for employment in the service sector become taxi drivers, low-rank government servants and remain in the low-income group,” he said, adding that the standards in identifying race-based economic opportunities in the past no longer suited current demands.
Hoo said the government should look into the issue of urban poverty considering that 75 per cent of the population could occupy cities by 2020.
“Azmin should rethink his plan (to do away with affirmative action plans) and get his facts right. They need to redefine poverty for different levels of the poor.”
Tan Sri Ramon Navaratnam, who was partly involved in the drafting of NEP, was of a different opinion, saying that the review of NEP would create equal opportunities for Malaysians.
“What can be done by the new government through the policy is to give equal access to all races, especially those in the Bottom 40 per cent income group.”
Economic Affairs Minister Datuk Seri Azmin Ali, on Monday, said economic policies should not be race-based, but rather needs-based.
He said this had been the practice of economic policies in Selangor when he was menteri besar and that the policies would be expanded to the national level to benefit the people.
“The review of NEP is to ensure that it fulfils Malaysians’ demands and aspirations.
“We need a review on the policy, which was implemented by Umno and the Barisan Nasional government in the past.”
Azmin said NEP would not be replaced entirely, but if the needs arose, new policies would be introduced in line with the new direction of the Pakatan Harapan government.
Azmin said the Economic Planning Unit would look into the matter and hoped that part of the new policies, if necessary, would be introduced during the 11th Malaysian Plan (20162020) mid-term review in November.
“Unlike before, when you talk about mid-term reviews, you have to present the assessment and evaluation of the past two years. This time, (because) we (PH) just came in, we are going to introduce our new policies and directions.”
He gave the assurance that the review of the policy or the introduction of new policies would continue to guarantee the rights of Bumiputeras and be more equitable to all races, including those in Sabah and Sarawak.
On the objectives of new policies, Azmin said the biggest challenges for the government was to restore investors’ confidence and sustain foreign direct investment, which were the government’s priority.