Malaysia rocked to the economic core

Malaysia rocked to the economic core
Anil Netto
Asia Times - Mar 20, 2008

Malaysia's race-based affirmative action policies have come under the spotlight in the aftermath of a pivotal general election which saw opposition parties making sweeping gains.

Opposition parties captured the "rice-bowl" state of Kedah and the industrialized states of Penang, Perak and Selangor in addition to retaining power in the Muslim heartland state of Kelantan on the east coast in the March 8 general election.

The three industrial states will be ruled by coalition governments made up of the multi-ethnic - but largely ethnic Chinese - Democratic Action Party (DAP), the multi-ethnic People's Justice Party (PKR) and the Islamic party PAS. The opposition parties won 82 of 222 parliamentary seats while the ruling federal coalition Barisan Nasional (BN), or National Front, clinched 51.5% of the popular vote.

The new state governments now have their work cut out for them to make good on their opposition campaign promises of ending the New Economic Policy in favor of their "Malaysian Economic Agenda". The NEP was introduced in 1971 to uplift the economic position of the majority ethnic Malays and remove the stereotyping of race with specific occupations.

But along the road, economic planners became obsessed with its 30% target for bumiputra (Malays and other indigenous groups) equity ownership while huge privatization projects and neo-liberal policies benefited the elite of all ethnic groups. This concentrated wealth in their hands while fueling discontent among the lower-income groups who have struggled to cope with rising prices for essential goods and services, as income inequalities grew.

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