Malays still need affirmative action, says economist

Bede Hong Bede Hong Updated 7 years ago · Published on 5 Jul 2018 2:10PM · 11 Comments

The Malays are suspicious that their rights will not be looked after by a Pakatan Harapan government. – EPA pic, July 5, 2018.

THE Malays still need an affirmative-action policy to reduce income inequality, an academic told the Council of Eminent Persons today.

Universiti Malaya economist Kamal Mat Salih said the uneven income distribution was also a big factor why Pakatan Harapan did not receive the full support of the Malays.

“Basically, I told them that 70% of the Bumiputera population voted against Pakatan Harapan. So, they cannot run away from dealing with the need for a Bumiputera policy.

“Race issues are not behind (us),” said the adjunct professor in the Department of Development Studies at the Faculty of Economics and Administration.

It is generally accepted that though PH promised to help the poor, Malays were suspicious that their rights will not be looked after by a PH government.

“Inequality between groups of income covers all people. In fact, over the last few years, inequality among the Chinese is worse than it was before,” Kamal told reporters at Ilham Tower today after briefing the council.

Kamal proposed a new Scandinavian-inspired economic model, which he called the Islamic economic model.

“It’s somewhere in between the capitalist market-based and market socialism. The Islamic economic system is universal. 

“It’s a social solidarity economic model, based on the Norwegian social democratic system. Which means the state plays a very strong role in the allocation process of the economy. 

“But the Scandinavian model is a high-tax regime, which we can’t afford. But (the) Islamic model has one solution. You can grow and accumulate wealth as much as you can but you must also share a part of that with the less fortunate. That is what I call the third factor,” he said.

He said the government’s focus should be on both growth and distribution, adding that the previous administration had failed to address them.

Kamal criticised the New Economic Model implemented by former prime minister Najib Razak in 2010, which originally sought to shift affirmative action from being ethnically based to needs-based to cater to a freer market.

“The current system is largely pro-business, largely capitalistic, based on profit-motive.

“The New Economic Model is based on market-based, more liberal approaches. It’s been shown that the market has failed to address the distribution issues.

“It matters how you handle it and translate it with programmes and how you implement it. You have to do it based on outcomes, not based on intentions.

“And so you have got to adjust your policy and continuously evaluate where you are at, in order to get growth. When the data is in your face, you still ignore it and you think that you are on the right track, when in fact you are on the wrong track, and you don’t realise you are on the wrong track,” he said.                             

The NEM sought to supplant the New Economic Policy, a Bumiputera affirmative programme implemented in 1971, following racial riots two years earlier.

The NEP was succeeded by the National Development Policy in 1991, which adopted much of the same policies. – July 5, 2018.

Sign up or sign in here to comment.

Comments

  • The first thing to do is to change the mindset of the Bumiputera. Somehow after 60 years of brainwashing they were made to think that they will always need handouts and support from the govt or business people to climb up the ladder. This is an outrageous lie propagated by Umno which has made the people believe that they will continue need to be financially assisted. Poverty cuts across race. If the govt wishes to come up with some affirmative action, it must be one which cuts across the races

    Posted 7 years ago by Peace Maker · Reply

  • Government aids should go to the needy regardless of race. Jobs and positions should go to the best candidate regardless of race. Simple.

    Posted 7 years ago by Cheng long lu · Reply

  • Don't confuse Bumiputera with Malays. Bumiputera = constitutional Malays plus natives of Sabah and Sarawak. Orang Asal = Orang Asli plus natives of Sabah and Sarawak. Please break down the povery figures by state and also by Malays vs natives. And please include Orang Asli (who do not have Bumiputera status) in the analysis. Thank you.

    Posted 7 years ago by Anak Kampung · Reply

  • The Malaysian Insight should try to obtain and publish disaggregated data.

    Posted 7 years ago by Anak Kampung · Reply

  • There must be affirmative actions to help all poor Malaysian regardless of their origin.

    Posted 7 years ago by Syahril Nizam · Reply

  • The new model, whatever you named it, has to be in charged by a non Malay, or non bumi. Only through a non bumi / Malay, then only we see an unbiased & objective implementation of the policy.

    Posted 7 years ago by Anjing kawan Kucing Comel · Reply

  • Not to beat a dead horse, but disaggregation of the data is essential. Under BN, one can ask whether certain people (Orang Asal, East Coast states notably) were deliberately kept poor in order to justify 'bumiputera' policies who benefitted the elite. The richer the elite became, the poorer the above groups had to become in relative terms in order to justify the continued existence of the NEP. I hope that academics can look into fine disaggregation of the data to pinpoint the groups which are actually poor. Secondly, the second prong of the NEP which is the eradication of poverty regardless of race must be implemented.

    Posted 7 years ago by Anak Kampung · Reply

  • I agree that some or many of our Malay friends still could do with additional help for an unlimited period of time to assist in bringing them aboard for mainstream progress. Now that we have a new govt committed to reform the Have-not Indians, Chinese, etc stand to be helped economically, so we must not grudge giving a helping hand to needy bumiputra. This will also result indirectly to cause them to support and vote Pakatan Harapan next Ge15 due around 2023 to give a 2/3rds Parliamentary majority so PH govt can be empowered to institute more reforms & take us all to the Moon and beyond..

    Posted 7 years ago by MELVILLE JAYATHISSA · Reply

  • We should be cautious about projecting a snapshot from May 9 onto the current situation. Voters may have voted differently if they had fore-knowledge (or prior assumptions) that PH would capture Putrajaya and almost all state govts (many voters try to avoid post-election victimisation, a risk for constituents with an opposition ADUN or MP) see https://www.themalaysianinsight.com/s/57971

    Posted 7 years ago by Chee chan · Reply

  • Not the ones in my taman, most have more than 4 cars in the drive and some have more than 2 bungalows, let one out as a homestay.

    Posted 7 years ago by Richard Chapbell · Reply

  • We ought to help the poor , not Malays.. perid

    Posted 7 years ago by David Lee · Reply