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----- Original Message -----
From: "Yap Yok Foo" <[EMAIL PROTECTED]>
Newsgroups: jaring.general,soc.culture.malaysia
Sent: Friday, August 03, 2001 5:54 PM
Subject: BTS : Malaysia's modern Malay dilemma


> From The Business Times, Singapore
> 4th August 2001
>
> Malaysia's modern Malay dilemma
>
> THE Malaysian Prime Minister's recent announcement on the need to
> review racial quotas for university entry is vintage Dr Mahathir. Once
> again Mahathir Mohamad is right in principle but wrong in execution.
>
> Yes, the country's education system desperately requires an injection
> of meritocracy. In a Darwinian twist of fate, the non-Malays, having
> been forced to compete harder, have achieved higher academic standards
> than the Malays. By way of comparison, young Malay males - the 'chosen
> of the chosen' - with a few notable exceptions, have fallen behind.
>
> This anomaly demands greater scrutiny. However, the Prime Minister's
> decision to link the shift in educational policy to politics and in
> particular, student activism, will backfire. The idea of 'meritocracy'
> now looks suspiciously like a form of revenge when, in fact, it is a
> laudable goal that all Malaysians should aspire to, without exception.
>
> Nonetheless, the debate about racial quotas has sparked off a welcome
> reassessment of the New Economic Policy (NEP) as a whole.
>
> However, I must first stress that the NEP has overseen a dramatic
> improvement in the Malays' socio-economic standing since its
> introduction in the early 1970s. Its early focus on health care,
> education and rural services made substantial inroads in Malay poverty
> and self-esteem. The emphasis on alleviating income inequality
> produced remarkable changes across the country - with the possible
> exceptions of Sarawak and Sabah.
>
> But the solutions of the past are not necessarily applicable to the
> future. There is growing recognition that the NEP is no longer
> sustainable. Privately, many are concerned that its continued
> existence is endangering the country's economic livelihood and
> undermining racial unity.
>
> More worryingly, there are clear signs that after 30 years of positive
> discrimination under the bumiputra policy, the Malay community has
> succumbed to a culture of entitlement.
>
> Interestingly, none of the three majority Malay parties - Parti Islam
> SeMalaysia, Keadilan and United Malays National Organisation - have
> acceded to demands to relinquish the racial privileges. But global
> economics and mounting international competition will force changes on
> the Malay community. The entire nation is trapped in a two-pronged
> vise.
>
> On the one hand, low-cost producers such as China and India are
> squeezing profit margins across the board. On the other hand, the
> developed nations have retained an unassailable position in the
> industries of the future: services, high technology, entertainment and
> the media.
>
> This leaves Kuala Lumpur, Bangkok and Jakarta as little more than
> dumping grounds for excess capacity and second-rate goods. If we are
> not careful now, we will squander an opportunity to make the nation
> more competitive. If we fail, we may well end up looking back on the
> early 1990s as a 'golden age', a time of undeniable prosperity.
>
> In short, the 1990s will be the equivalent of the 1960s for Latin
> America - a time when Buenos Aires, Caracas and Sao Paulo were
> inundated with foreign bankers and businessmen. It was a period when
> the Latin American middle-class could save money and live decent,
> hard-working lives, a brief lull before the ravages of hyper-inflation
> and authoritarian repression destroyed their security.
>
> The economic realities outside our borders are both unpalatable and
> inescapable. Malaysians cannot insulate themselves. We have to weed
> out key inefficiencies (and I don't just mean Halim Saad).
>
> Sadly, the bumiputra policy is one of these inefficiencies and for
> three reasons. Firstly, globalisation and vastly improved
> communications have meant that economic inefficiencies (however
> marginal) are quickly isolated and exposed. This places extraordinary
> pressure on national governments.
>
> If one country places higher taxes on certain transactions or another
> seeks to limit investment in particular industries, multinational
> corporations (including financial MNCs) learn about the development
> immediately and respond within days. Having altered their strategies
> accordingly, the 'rogue' nation-state is penalised accordingly.
>
> Essentially, MNCs - commanding a severely diminished pool of foreign
> direct investment (FDI)- are able to arbitrage on governmental
> weaknesses. Sadly, arguments citing national interest - such as the
> bumiputra policy - receive scant attention in MNC boardrooms. Profit
> is all important.
>
> China's astounding rise is the second challenge. Already, the might of
> the world's most populous nation is beginning to be felt across the
> globe as the Middle Kingdom absorbs vast amounts of FDI. For example,
> in Hanoi, egg farmers find that their products are being undercut by
> Chinese imports.
>
> China's impact is unstoppable. It should also be remembered that the
> NEP was implemented at a time when China was consumed by the madness
> of the Cultural Revolution. A resurgent and more internationally
> assertive China will inevitably view discriminatory racial policies
> quite differently.
>
> Finally, globalisation means that the best jobs will gravitate to
> communities that offer the most highly qualified and culturally
> versatile manpower. Issues of quality of life, creativity and the rule
> of law will become extremely important factors in a nation's
> competitive make-up.
>
> Malaysia's multiracial population is our greatest asset: our unique
> selling proposition. The nation brings together three of the most
> dynamic and populous linguistic and racial groups in Asia: the
> Chinese, the Indians and the Malays. We are the fulcrum of Asia.
>
> However, Malaysia has been profligate with this in-built advantage.
> Racial quotas have frustrated countless non-bumiputra Malaysians. As a
> result, countries such as Australia and Singapore have benefited from
> our hard-headedness.
>
> In short, we have not done enough to keep our best manpower at home.
> Thousands of highly-educated Malaysians - predominantly non-Malay -
> have gone abroad in search of better opportunities.
>
> In conclusion, the Prime Minister is correct in calling for the
> removal of racial quotas. However, his arguments don't hold water.
> Racial quotas should be dismantled in order to enhance national unity
> and equip Malaysia for the future because no one community can be
> shielded from the harsh realities of global economics.
>
> Financial support and quotas do have a role to play in national
> development. However, such programmes must be directed towards those
> in need of support and assistance. Race-blind, means-tested programmes
> would arrest poverty across the nation.
>
> Moreover, greater emphasis must be placed on the non-Muslim bumiputra
> of Sabah and Sarawak and the Indian communities: they remain the
> forgotten step-children of the Malaysian dream.
>
> There's a real danger that the perpetuation of the bumiputra policy
> will weaken the nation as a whole and exacerbate the 'subsidy
> mentality' that is pervasive in the Malay community. With the economy
> faltering again, the Malay elite on both sides of the political divide
> will have to acknowledge the changing landscape and adapt accordingly.
>
> There's no such thing as a 'free lunch'. In tomorrow's Malaysia, the
> nasi campur comes at a price.
>
> http://business-times.asia1.com.sg
>
>
> **************From Uncle Yap**************
> Berita Malaysia - The Malaysian News & Discussion Group
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