Time
Sunday, Sep. 05, 2010
By Michael Schuman / Kuala Lumpur

Malaysia is that rare country with an unequivocal national narrative. It goes something like this: Malaysia’s 28 million people, comprising mainly Malays, Chinese and Indians, make up a moderate and modern emerging democracy. Unlike members of other multiethnic countries, they respect one another’s beliefs and values and share a commitment to achieving prosperity. The official religion is Islam, but other faiths are freely allowed and celebrated. This is one harmonious place.

Much of that narrative is true — but not all of it. Malaysia’s economic miracle has stalled, and while the nation is, indeed, somewhat pluralistic, it is no melting pot. Indeed, it is a society where people define themselves first and foremost by race.

The country’s political leadership has in some respects reinforced those ethnic identities. For the past 40 years, policymakers have doled out special privileges — in education and business — to one community: the majority Malays. The program is one of modern history’s greatest experiments in social engineering and possibly the world’s most extensive attempt at affirmative action. But the policies have also bred resentment among minorities, distorted the economy and undermined the concept of a single Malaysian identity.

Now a movement is gaining strength to finally change the system — and it’s coming from the very top. Prime Minister Najib Razak, 57, has surprised the country by advocating a fundamental reform of the pro-Malay program first introduced, ironically, by his father, who was Malaysia’s Prime Minister in the 1970s. Though the specifics of the new policies remain hazy, Najib’s intent is not. “I want Malaysia to be globally competitive,” he told TIME in an exclusive interview. “For that, we need to get every single Malaysian to be together.”
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