will become a high income advanced nation
with inclusiveness and sustainability by 2020
(Figure D). No one goal should be achieved
at the expense of the others.
[page 9]
They will live,
work and study in localities free from the
fear of crime, the indignity of discrimination,
and the anxiety of need. Inclusiveness will
enable all communities to contribute to and
share in the wealth of the country.
Ethnically divided societies are more prone to
violent conflicts. The multi-racial composition
of the Malaysian population is still its
outstanding feature and this ethnic diversity
will always be with us. But the excessive focus
on ethnicity-based distribution of resources
has contributed to growing separateness
and dissension.
[page 10]
Reduce ‘friction costs’
- Have zero tolerance for corruption
- Address underlying weak governance structures
- Codify best practices
- Implement an open, efficient and transparent process of government procurement at all levels
[page 23]
Promote equal and fair access to opportunities
- Emphasise equitable and fair opportunities for employment, health and education and access to business opportunities
- Apply government savings to wider social safety net for the bottom 40% of households prior to subsidy removal
- Create a Transformation Fund to assist distressed firms during the reform period
- Set up an Equal Opportunities Commission to deal with possible cases of unfair treatment and discrimination
[page 25]
Inclusiveness is the second goal and a
key part of the NEM. It is a prerequisite
for fostering a sense of belonging.
Not having the opportunities to benefit from
economic progress breeds resentment within
marginalised groups in the urban and rural
areas, especially those in remote locations
of Sabah and Sarawak. Inclusiveness will
enable all communities to contribute to and
share in the wealth of the country.
Reducing inequality is one of the defining
features of the NEM. Equality before the law
is safeguarded in the Constitution. A key
challenge of inclusive growth is the design
of effective measures that strike a balance
between the special position of bumiputera and
legitimate interests of different groups.
Malaysia is in a vicious circle of underperformance. Breaking that
circle calls for a big push, not incremental change
For the NEM to succeed, political leadership
must unite to break the logjam of vested
interests; it must overcome the scepticism
and convince the rakyat that Malaysia is
indeed embarking on a path that will improve
their lives and those of generations to come.
[page 110]
Some segments of the rakyat who no longer qualify for government
subsidies and grants might react strongly,
and those that have enjoyed secure jobs and
a stable lifestyle from protected firms may
feel threatened. Both these groups might
then turn to their political representatives
and politicians may then attempt to lobby
and water down the needed measures. The
resistance from these vested interest groups
must be dealt with fairly and transparently,
following genuine consultation.
[page 111]
Shortages of qualified bumiputera and capital have encouraged the
setting up of spurious fronts. Excessive use of ethnic quotas has encouraged the use of less qualified recipients and bred inefficiency.
Ethnic-based quotas have been imposed
extensively throughout the economy in the
past and currently some still exist. The quotas
for limited companies in certain industries still
require at least 30% bumiputera ownership
of share capital. Preferential pricing and
quotas have led to distortions.
Rent-seeking behaviour is market distorting
and has been a serious, undesirable outcome
of the past approach to affirmative action.
Rent-seekers do not really create wealth, or
add to economic growth. Rent-seekers are
engaged in unproductive activities and can
add sizably to the cost of doing business.
The growth of bribery and corruption is closely
associated with the growth of rent-seeking
in the economy.
[page 135]
You, rakyat Malaysia should know what your Prime Minister announced as the new economic policy (Tuesday, 30 March 2010)
Disclaimer: This is just the jeez of the whole policy. The selection is based on personal preference. For further information, read the whole report at http://www.neac.gov.my/nod
