Archive for May 7th, 2015

Is the 11th Malaysia Plan irrelevant?

Rama Ramanathan
The Malaysian Insider
7 May 2015

John F. Kennedy’s 1961 vision of putting a man on the moon energised the United States to “catch up to and overtake” the Soviet Union in technological prowess. The Soviets humiliated the US by being the first to put a human in space. Kennedy’s vision spurred the US into action to achieve technological domination.

Tun Abdul Razak’s 1971 vision, in the New Economic Policy similarly energised Malaysia. Razak wanted to eliminate poverty and to eliminate the association of occupation (and income) with race. Razak’s vision spurred the nation to recognise and reverse the effects of race-based choices with inequality-reducing choices.

The NEP reduced the income inequality between the Malay and Chinese communities. It succeeded so well that at the end of the NEP in 1991, the government decided to stop reporting figures for the Malay community. The data was hidden because the government lacked political will to end handouts which increased income inequality.

To avoid making the hard political choice of ending benevolence to rich Malays the government combined “other Bumiputera” with Malays and reported only figures for Bumiputera, Chinese, Indians and Others in national reports. Energising vision gave way to superficial vision. Read the rest of this entry »