The NEP's Impact: Malay Advancement vs Indian Decline - Entrenched Privilege, and the Fading Voice of a Community

The New Economic Policy (NEP), implemented in 1971 as a response to the racial riots of 1969, aimed to redress economic imbalances and uplift the Bumiputera community in Malaysia. While successful in many respects, the NEP also had far-reaching and unintended consequences for other ethnic groups, particularly the Indian community. 

This has led to a growing disparity between the progress made by the Malays and the challenges faced by the Indians, drawing stark parallels with the apartheid system of South Africa and resulting in a gradual erosion of the Indian community's political voice.

Malay Advancement: A Success Story

• Poverty Reduction: The NEP successfully addressed poverty among Malays, with their poverty rate decreasing from 64.8% in 1970 to 7.2% in 2022. This remarkable progress can be attributed to various affirmative action policies implemented under the NEP, including preferential access to education, employment, and business opportunities. [Department of Statistics Malaysia, 2023]
• Educational Opportunities: Access to higher education dramatically improved, with Malay enrollment in public universities rising from 40.3% in 1970 to over 70% by the 2000s. This was facilitated by quota systems and scholarships specifically designed to promote Malay educational attainment. [Gomez, 1999]
• Economic Empowerment: The NEP actively promoted Malay participation in the economy through measures such as mandatory Bumiputera equity ownership in businesses and preferential access to government contracts. Consequently, Bumiputera equity ownership in the corporate sector rose from a meager 2.4% in 1970 to nearly 20% in 2011. [Economic Planning Unit, 2011]
• Rise of the Middle Class: The NEP's various socioeconomic interventions fostered the growth of a strong Malay middle class, contributing to social stability and economic growth. [Shamsul, 2004]

Indian Decline: A Parallel with Apartheid

While the Malays experienced unprecedented progress, the Indian community faced a starkly different reality, reminiscent of the systemic discrimination under apartheid:

• Persistent Poverty: Although poverty rates among Indians also decreased, they remain disproportionately higher than other groups. In 2022, the Indian poverty rate stood at 4.8%, significantly higher than the national average of 5.6%. This reflects the deep-seated socioeconomic challenges faced by the Indian community, despite decades of economic growth. [Department of Statistics Malaysia, 2023]
• Educational Barriers: Despite the NEP's focus on education, quota systems in public universities restricted Indian access to higher education, perpetuating a cycle of disadvantage. In 1970, Indians constituted 10.6% of the population but only held 2.5% of places in public universities. By 1995, this had only marginally improved to 5%, demonstrating the limited progress made in addressing this inequality. [Anbalakan, 2003]
• Economic Exclusion: The Indian share in the civil service fell drastically, from 22% in 1957 to 5% in 1970. Additionally, their share of corporate equity ownership remained stagnant at around 1% in 1990, despite the NEP's implementation. This decline in economic participation underscores the systemic barriers faced by Indians in accessing key sectors of the economy. [Gomez, 1999; Jomo, 1990]
• Brain Drain and Social Disintegration: The lack of opportunities at home resulted in a significant brain drain among Indians. The departure of skilled professionals further weakened the community's economic base and eroded its middle class, leading to social disintegration and a sense of marginalization. [Narayanan, 2006] Furthermore, the displacement of Indians from their traditional occupations in the plantation sector due to economic restructuring exacerbated their economic vulnerability.

NEP: The Sacred Cow and Entrenched Privilege

Over time, the NEP has become deeply intertwined with the concept of Malay special rights enshrined in Article 153 of the Constitution. This fusion has transformed the NEP from a temporary affirmative action program into a seemingly permanent fixture of Malaysian society, creating a "sacred cow" that cannot be questioned or reformed without facing accusations of challenging Malay rights and privileges. [Case, 2004]

This entrenchment has led to a self-perpetuating cycle where policies favoring one race continue to be implemented and expanded, even as the original socioeconomic goals of the NEP have been largely achieved. This has fostered a sense of entitlement among some Malays and created a system where benefits are often distributed based on ethnicity rather than need or merit.

Cronyism and Misplaced Priorities

While the NEP aimed to uplift the entire Malay community, its implementation has been marred by cronyism and corruption. A select group of well-connected individuals and businesses have disproportionately benefited from the policy, further exacerbating socioeconomic disparities within the Malay community itself. [Gomez & Jomo, 1997]

Token Gestures and a Dwindling Voice

While the government has made some efforts to address the concerns of the Indian community, such as the establishment of the Malaysian Indian Blueprint (MIB) and the Socioeconomic Development of the Indian Community Unit (SEDIC), these initiatives have often been criticized as being insufficient and superficial, lacking the necessary political will and resources to bring about meaningful change. [Saravanamuttu, 2018]

The plight of the Indian community is further compounded by their shrinking population. Faced with economic hardships and uncertain prospects, many Indians are opting to have fewer children or migrate. The issue of statelessness, stemming from a lack of awareness or bureaucratic hurdles, has also left a significant number of Indians unregistered, further diminishing their demographic representation. Gerrymandering and the increasing focus on Islamisation have also marginalized their political voice and fueled concerns about their future in Malaysia.

The diminishing political influence of the Indian community is evident in their electoral representation. Despite constituting around 7% of the population, Indians hold a disproportionately low number of seats in Parliament. This lack of political representation limits their ability to advocate for their interests and secure policy changes that address their concerns.

The Rise of HINDRAF: A Voice Against Injustice

The cumulative effect of these socioeconomic and political challenges led to the rise of the Hindu Rights Action Force (HINDRAF), a coalition of NGOs that emerged in 2007 to advocate for the rights of the Indian community. HINDRAF organized a massive rally in Kuala Lumpur on November 25, 2007, drawing tens of thousands of participants who demanded an end to discrimination and equal rights for Indians.

Despite the peaceful nature of the protest and the legitimacy of their claims, the government responded with a heavy-handed crackdown, using tear gas and water cannons to disperse the crowd and arresting several HINDRAF leaders under the Internal Security Act (ISA). This suppression of dissent further fueled resentment within the Indian community and highlighted the challenges they faced in seeking redress through conventional political channels.

The Path Forward: Community-Driven Empowerment and National Reconciliation

Given the systemic challenges and the lack of adequate government support, it is imperative for the Indian community to take proactive steps towards self-empowerment and revitalization.

Awareness and Advocacy:

• Education and Outreach: Indian and Hindu organizations need to spearhead awareness campaigns, both within and outside the community, highlighting the socioeconomic disparities and their historical roots. This includes educating the younger generation about their heritage, rights, and the importance of political participation.
• Media and Advocacy: Utilizing various media platforms, including social media, to amplify their voices and advocate for policy changes that promote inclusivity and equal opportunities.

Economic Self-Reliance:

• Supporting Indian Businesses: Promoting and patronizing Indian-owned businesses to create a self-sustaining economic ecosystem within the community.
• Networking and Collaboration: Organizing events and platforms to facilitate networking and collaboration among Indian entrepreneurs and professionals, fostering economic growth and empowerment.
• Philanthropy and Mentorship: Successful Indian business leaders and professionals need to step up and give back to the community through financial support, mentorship programs, and skill development initiatives.

Cultural Revival and Community Building:

• Temples as Community Hubs: Transforming temples into vibrant community centers that offer religious classes, cultural events, and social support services.
• Celebrating Heritage: Organizing festivals, cultural performances, and language classes to instill pride in Indian heritage and identity.
• Welfare Organizations: Supporting and strengthening welfare organizations that provide essential services and uplift the community, particularly focusing on those with tax benefits and transparent financial management.

National Reconciliation and Policy Reform:

• Open Dialogue and Honest Conversations: Encouraging open and honest dialogue among all ethnic groups to address historical grievances, promote understanding, and build trust.
• Need-Based Affirmative Action: Shifting the focus of affirmative action policies from race-based to need-based criteria, ensuring that assistance reaches those who genuinely require it, regardless of ethnicity.
• Meritocracy and Transparency: Emphasizing meritocracy and transparency in education, employment, and business opportunities to create a level playing field for all Malaysians.
• Political Reform: Addressing gerrymandering and electoral malpractices to ensure fair representation for all communities.

Conclusion

The challenges faced by the Indian community in Malaysia are complex and deeply rooted. While government intervention is crucial, it is equally important for the community to take ownership of its future and work towards self-empowerment. 

By fostering awareness, promoting economic self-reliance, and celebrating their rich cultural heritage, the Indian community can overcome the legacy of marginalization and reclaim their rightful place in Malaysian society. 

However, lasting change can only be achieved through national reconciliation and policy reform. It is imperative for Malaysia to move beyond the NEP and embrace a new paradigm that prioritizes inclusivity, meritocracy, and equal opportunities for all citizens, regardless of ethnicity. Only then can Malaysia truly fulfill its potential as a harmonious and prosperous multiracial nation.

### References

* Anbalakan, K. (2003). The new economic policy and further marginalisation of the Indians. Kajian Malaysia, 21(1&2), 119-146.

* Department of Statistics Malaysia. (2023). Household Income & Basic Amenities Survey Report 2022.

* Economic Planning Unit. (2011). New Economic Model Report 2010.

* Gomez, E. T. (1999). Chinese business in Malaysia: Accumulation, accommodation and ascendance. University of Hawaii Press.

* Gomez, E. T., & Jomo, K. S. (1997). Malaysia's political economy: Politics, patronage and profits. Cambridge University Press.

* Jomo, K. S. (1990). Growth and structural change in the Malaysian economy. Macmillan.

* Narayanan, S. (2006). The Malaysian Indian diaspora: A study in marginalisation. Institute of Southeast Asian Studies.

* Saravanamuttu, J. (2018). New bottle, old wine: The Malaysian Indian blueprint and the 'Indian problem'. Journal of Contemporary Asia, 48(3), 382-404.

* Shamsul, A. B. (2004). Nation-state, Identity and Citizenship in Malaysia. In: Leo Suryadinata (ed.), Ethnic Groups and Nation-Building in Southeast Asia, pp. 175-204. Institute of Southeast Asian Studies.