Research

Fifty Years of Malaysia’s New Economic Policy: Three Chapters with No Conclusion

Fifty Years of Malaysia’s New Economic Policy: Three Chapters with No Conclusion

Description

The New Economic Policy (NEP) which focused on poverty reduction and social restructuring has transformed Malaysia since 1971.
The New Economic Policy (NEP) which focused on poverty reduction and social restructuring has transformed Malaysia since 1971. Pro-Bumiputera affirmative action was intensively pursued and has continuously faced pushback, with heightened debate at key junctures. The NEP was marred by gaps and omissions, notably its ambiguity on policy mechanisms and longterm implications, and inordinate emphasis on Bumiputera equity ownership. Broader discourses have imbibed these elements and tend to be more selective than systematic in policy critique. During the late 1980s, rousing deliberations on the successor to the NEP settled on a growth-oriented strategy that basically retained the NEP framework and extended ethnicitydriven compromises. Since 2010, notions of reform and alternatives to the NEP’s affirmative action programme have been propagated, which despite bold proclamations, again amount to partial and selective – not comprehensive – change. Affirmative action presently drifts along, with minor modifications and incoherent reform rhetoric stemming from conflation of the NEP’s two prongs.

Author
1. Lee Hwok Aun (ISEAS)
Journal
Asian Economic Policy Review
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