– Danny Quah
The Malaysian Insider
31 July 2015

In 1971, more than forty years before the world would turn its attention to the top 1% and the problem of income inequality, Malaysia embarked on one of history’s boldest and most noble of experiments to reduce social disparity. Malaysia’s New Economic Policy or NEP would seek to “eradicate poverty for all” and “eliminate identification of race by economic function and geographic location”. This polity was setting out to solve the massive problem of injustice and inequality that other societies much more mature continued to struggle with.

Malaysia was a democracy that hewed the rule of law. The NEP would be Malaysia’s key political driver. Over the decades that followed, the NEP’s mantra would serve as backdrop to almost all political discourse in the country. NEP-themed policies would, among much else, flesh out the concept of Bumiputera – an ethnic-driven formulation of native peoples in Malaysia.

It is difficult to grow an economy – look at train wrecks strewn around the world. But seeking to do so and at the same reduce ethnic- and rural-urban inequality, and maintain social harmony among diverse ethnic and religious groups is an order of magnitude more arduous. Malaysia succeeded: Its income is now well above world emerging-economy average, and its urban infrastructure and worker skills approach those in the first world. Malaysia’s top bankers, business people, and entrepreneurs are admired everywhere. NEP reduced pockets of extreme poverty and created a significant, thriving, and successful Bumiputera middle class – a group of professionals and intellectuals whose contributions to Malaysian society would be the pride of any country.

And, although from time to time patchily diverging from the ideal, throughout this history Malaysia worked hard to maintain its young democracy and its adherence to rule of law, and to support a healthy vigorous open sphere of public debate. Sensitive racial questions were out of bounds, but open questioning of the government was lively. Top government officials routinely had the judiciary rule against them. And a national identity emerged, one that combined the best aspects of local culture and an easy-going open-minded cosmopolitanism developed from, among other things, the many Malaysians who have seen significant international experience. More so than even when within, Malaysians outside Malaysia saw each other for the warm and lively friends they genuinely were, people who felt driven by a mission to make their country better.

Since his 2009 swearing-in, Malaysia’s current prime minister has sought to articulate an international vision for a ‘coalition of moderates’. As leader of a successful moderate Muslim country, he carried an authority and credibility sorely needed in global discourse. He was widely accepted in international circles, and even famously golfed with Barack Obama.

All this is now at risk. Read the rest of this entry »