An Analysis of the Bumiputra System
By: @Nihonjin1051
By: @Nihonjin1051
Overview
Malaysia has been viewed as one of the less developed world’s success stories since its independence from Britain in 1957. Its annual GNP growth rate averaged more than 7 percent for over twenty years, and its changes of government, with on exception, have been according to constitutional processes. The country has taken advantage of its rich agricultural and mineral endowments to expand its export base, while more recently the economy has been diversifying into the production of manufactured goods for both the domestic and export market. Naturally, the foreign companies and foreign direct investors.
The major policy initiative was the New Economic Policy- the so called Bumiputra Policy, which was started in 1971. It was initiated to elevate the economic and educational status of the ethnic Malays. The Bumiputra policy was intended to redress imbalances in the educational and economic position of the Malays.Bumiputra was supposed to be implemented only for 20 years and was expected to expire by 1990-1991. Its retention in policy remains a mystery. Its been 23 years its expected expiration.
Background of the Bumiputra Policy
Malaysia’s potential for economic prosperity and for ethnic strife both predate the country’s independence. In the colonial times overseas investors, mainly from the UK but with a smattering from other industrialized countries, were attracted by the rich lodes of tin and other minerals and the good soil and climate for rubber growing. The territory’s commercial development was greatly advanced by Chinese immigrants who had arrived by way of Singapore and spread northward into the Malay Peninsula. The British government limited the right of the Chinese to acquire land and enter the colonial administrative service in an effort to “protect” the ethnic Malays, who were considered lazy and less sophisticated and thus vulnerable to exploitation. The Malay’s economic advancement was further hindered by their preference for remaining in their rural kampangs (villages) and by the fact that as Muslims they had religious prejudice against the charging of interest on loans and, by extension, against financially complex transactions or other “big business”. So this was largely something that was a cultural hindrance in regards to the Chinese who were prevalent in the money lending market, as well as in the overall economic sector of the country.
Reference:
Stoever, W. A. (1985). Malaysia, The Bumiputra Policy, And Foreign Investors: An Evaluation. Studies In Comparative International Development, 20(6), 86.