The NEP's Impact: Malay Advancement vs Indian Decline - Entrenched Privilege, and the Fading Voice of a Community

MALAYSIAKU

Satesh Vasu

10/25/20226 min read

Malaysia is a country unlike any other: Full of promise and fragility. Its history, cultural and religious diversity make it a rich, compelling and surprising land.

So, back in '71, after things got a bit spicy in '69 (you know, the racial riots), Malaysia rolled out the New Economic Policy (NEP). The idea? To fix the economic scales and give the Bumiputera (that's mostly Malays, for those playing at home) a leg up. And hey, in some ways, it totally worked. But like that one well-intentioned aunt who always goes a tad overboard with the gifts for one cousin, the NEP's impact on other communities, especially the Indian one, has been... well, let's just say less celebratory. Some folks have even raised eyebrows, muttering about echoes of that other place with a history of segregation.

Malay Advancement: Not Too Shabby, Actually

Look, you can't deny the numbers. The NEP did do some heavy lifting for the Malay community:

  • Bye-Bye Poverty (Mostly): Back in the groovy year of 1970, nearly 65% of Malays were living in poverty. Fast forward to 2022, and that number had shrunk to a mere 7.2%. Not too shabby, right? Chalk it up to policies that were all about giving Malays a boost in education, jobs, and business. (Department of Statistics Malaysia, 2023)

  • Uni Boom: Remember when public universities were a bit... less Malay-centric? Well, Malay enrollment shot up from about 40% in 1970 to over 70% in the early 2000s. Quotas and scholarships with "Malay Only" signs definitely played a part. (Gomez, 1999)

  • Money, Money, Money (for Some): The NEP really pushed for Malays to own more of the economic pie. Think mandatory Bumiputera equity in companies and a "Malays First" lane for government contracts. And guess what? Bumiputera ownership in the corporate world jumped from a tiny 2.4% in 1970 to almost 20% by 2011. Ka-ching! (Economic Planning Unit, 2011)

  • Hello, Middle Class!: All this economic action helped a solid Malay middle class sprout up, which is generally seen as a good thing for keeping things stable and the economy humming. (Shamsul, 2004)

Indian Decline: Hold on, What About Us?

Now, while the Malays were enjoying the upward climb, the Indian community's story sounds a bit like a sad Bollywood plot twist. Comparisons to a certain South African system might raise eyebrows, but the data does paint a picture of a community that feels like it's been left singing in the rain:

  • Poverty That Lingers: Sure, poverty rates for Indians also dropped, but in 2022, at 4.8%, it was still higher than the national average of 5.6%. Makes you wonder if everyone got the same memo about economic progress. (Department of Statistics Malaysia, 2023)

  • University Blues: Despite all the talk about education for all, those university quota systems didn't exactly roll out the welcome mat for Indian students. In 1970, even though Indians were over 10% of the population, they only snagged 2.5% of public uni spots. By '95? Only a slight nudge to 5%. Progress? Debatable. (Anbalakan, 2003)

  • Economic Sideline: Remember when Indians had a decent chunk of civil service jobs? Well, their share plummeted from 22% in '57 to a measly 5% in '70. And their slice of the corporate equity pie? Stuck at around 1% in 1990, despite the NEP supposedly leveling the field. Ouch. (Gomez, 1999; Jomo, 1990)

  • Brain Drain and Feeling Lost: With fewer opportunities at home, smart Indian folks started packing their bags, leading to a "brain drain" that weakened the community's economic muscle. Plus, losing traditional jobs in plantations didn't help their sense of belonging either. (Narayanan, 2006)

The NEP: Malaysia's Untouchable Topic?

Over time, the NEP kind of morphed into this sacred cow, all tangled up with the idea of Malay special rights in the Constitution. What started as a temporary fix seems to have become a permanent feature, and suggesting it might need a tweak is like suggesting someone's grandma's rendang needs more chili – prepare for some serious side-eye. (Case, 2004)

This entrenchment has created a system where some feel entitled to benefits just because of their ethnicity, rather than, you know, actual need or merit.

Friends in High Places (and Their Wallets)

While the NEP was meant to lift up the whole Malay kampung, some critics point out that it mostly benefited a select group of well-connected individuals and businesses. Surprise, surprise, right? This cozy relationship between politics and profit didn't exactly help close the gap within the Malay community itself. (Gomez & Jomo, 1997)

Throwing a Bone?

The government has made some gestures towards the Indian community, like the Malaysian Indian Blueprint (MIB) and SEDIC. But often, these feel like band-aids on a bigger wound, lacking the serious oomph and resources needed to make a real difference. (Saravanamuttu, 2018)

And let's not forget the shrinking Indian population. Faced with economic struggles and iffy prospects, families are smaller, and some are even leaving the country. Plus, the whole statelessness issue for some Indians due to bureaucratic nightmares doesn't help their numbers or their voice. Throw in some gerrymandering and a growing focus on Islamisation, and you've got a recipe for a community feeling increasingly sidelined.

Their political clout? Well, even though they make up around 7% of the population, their representation in Parliament doesn't quite match up. Fewer voices mean fewer chances to push for policies that actually address their concerns.

Enter HINDRAF: When Enough is Enough

All this simmering frustration finally boiled over in 2007 with the rise of HINDRAF. Tens of thousands took to the streets in Kuala Lumpur, asking for an end to the discrimination and a fair shake for the Indian community.

The government's response? Not exactly a hug and a listening ear. Think tear gas, water cannons, and some HINDRAF leaders being thrown in the slammer under the Internal Security Act. Peaceful protest meets heavy-handed crackdown – a story we've seen before, sadly.

Charting a New Course: By the Community, For the Nation

Given the uphill battle and the feeling of waiting for a government miracle that might not come, the Indian community might need to take the reins themselves:

The onus is increasingly on the Indian community to chart its own course towards self-empowerment and revitalization. A critical element in this journey is the emergence and support of strong, unified Indian leaders who can transcend traditional divides of caste and creed. For too long, internal fragmentation has, at times, diluted the community's collective voice. Leaders who can forge unity, articulate a common vision, mobilize the community, and engage effectively with all stakeholders will be instrumental in amplifying their concerns and driving meaningful change.

Awareness and Advocacy: Education and Outreach: Indian and Hindu organizations need to spearhead awareness campaigns, both within and outside the community, highlighting the socioeconomic disparities and their historical roots. This includes educating the younger generation about their heritage, rights, and the importance of political participation. Media and Advocacy: Utilizing various media platforms, including social media, to amplify their voices and advocate for policy changes that promote inclusivity and equal opportunities.

Economic Self-Reliance: Supporting Indian Businesses: Promoting and patronizing Indian-owned businesses to create a self-sustaining economic ecosystem within the community. Networking and Collaboration: Organizing events and platforms to facilitate networking and collaboration among Indian entrepreneurs and professionals, fostering economic growth and empowerment. Philanthropy and Mentorship: Successful Indian business leaders and professionals need to step up and give back to the community through financial support, mentorship programs, and skill development initiatives.

Cultural Revival and Community Building: Temples as Community Hubs: Transforming temples into vibrant community centers that offer religious classes, cultural events, and social support services. Celebrating Heritage: Organizing festivals, cultural performances, and language classes to instill pride in Indian heritage and identity. Welfare Organizations: Supporting and strengthening welfare organizations that provide essential services and uplift the community, particularly focusing on those with tax benefits and transparent financial management.

National Reconciliation and Policy Reform: Open Dialogue and Honest Conversations: Encouraging open and honest dialogue among all ethnic groups to address historical grievances, promote understanding, and build trust. Need-Based Affirmative Action: Shifting the focus of affirmative action policies from race-based to need-based criteria, ensuring that assistance reaches those who genuinely require it, regardless of ethnicity. Meritocracy and Transparency: Emphasizing meritocracy and transparency in education, employment, and business opportunities to create a level playing field for all Malaysians. Political Reform: Addressing gerrymandering and electoral malpractices to ensure fair representation for all communities

In Conclusion:

The Indian community in Malaysia faces some serious hurdles, and while government help is crucial, waiting around might not be the best strategy. By banding together, building economic strength, and celebrating their culture, they can definitely carve out a stronger future.

But let's be real – lasting change needs a national rethink. Malaysia needs to move beyond the old NEP playbook and embrace a future where everyone gets a fair shot, no matter their background. Only then can Malaysia truly be the harmonious, multiracial success story it keeps talking about.

References:

  • Anbalakan, K. (2003). The new economic policy and further marginalisation of the Indians. Kajian Malaysia, 21(1&2), 119-146.

  • Department of Statistics Malaysia. (2023). Household Income & Basic Amenities Survey Report 2022.

  • Economic Planning Unit. (2011). New Economic Model Report 2010.

  • Gomez, E. T. (1999). Chinese business in Malaysia: Accumulation, accommodation and ascendance. University of Hawaii Press.

  • Gomez, E. T., & Jomo, K. S. (1997). Malaysia's political economy: Politics, patronage and profits. Cambridge University Press.

  • Jomo, K. S. (1990). Growth and structural change in the Malaysian economy. Macmillan.

  • Narayanan, S. (2006). The Malaysian Indian diaspora: A study in marginalisation. Institute of Southeast Asian Studies.

  • Saravanamuttu, J. (2018). New bottle, old wine: The Malaysian Indian blueprint and the 'Indian problem'. Journal of Contemporary Asia, 48(3), 382-404.

  • Shamsul, A. B. (2004). Nation-state, Identity and Citizenship in Malaysia. In: Leo Suryadinata (ed.), Ethnic Groups and Nation-Building in Southeast Asia, pp. 175-204. Institute of Southeast Asian Studies.

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