The Chinese Dilemma [Ye Lin-Sheng] on medical-site.info *FREE* shipping on qualifying offers. Malaysia is a prosperous, modern Islamic nation in which three . The controversial New Economic Policy (NEP) in Malaysia has been used to marginalise the Chinese community. This article details the NEP's extensive economic, educational and social benefits to the bumiputera (essentially Malay) community on the basis of ethnicity alone, and how. The Chinese Dilemma book. Read 2 reviews from the world's largest community for readers.
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Get this from a library! The Chinese dilemma. [Lin-Sheng Ye]. Chin: The Malaysian Chinese Dilemma few could argue with the aims of the NEP. After all in , the bumiputera (meaning Malay) share of corporate. Citation: Iqbal U () The Chinese Dilemma. View PDF Download PDF The title of this book echoes Dr. Mahathir Mohamad's The Malay Dilemma.
His email is: Jameschin1 gmail. A Report Kuala Lumpur: After all in , the bumiputera meaning Malay share of corporate wealth was around 2. The professions were also dominated by non-Malays: In reality, at the operational level the NEP became all about quotas and massive government intervention on behalf of the bumiputera community.
Quotas were set for all socio-economic activities, with 30 percent the minimum. Thus, for instance, private companies wishing to list on the stock exchange had to set aside 30 percent of initial public offering IPO to bumiputera investors and were required to maintain that 4 proportion after listing. As a result, it happened many times that companies were forced to sell these shares below market value to comply with the mandatory shareholding requirements.
This was by no means all. In other cases, MITI would choose bumiputera investors who would be allocated shares in such ventures. Again, many of these shares were sold at below market value.
Government-linked companies GLCs were also required to give preference to bumiputera businessmen. Under the Industrial Coordination Act ICA , large companies were required to have senior bumiputera executives and at least 30 percent of their employees had to be bumiputera. Where government-generated business was concerned, the story was the same. Approved Permits AP , or licenses to import cars, were only issued to Bumiputera businessmen.
All major government privatisation projects went to Bumiputera interests, as did all government procurement below a certain amount. Malays received preferential treatment in both recruitment and promotion in the public sector and government-linked companies GLCs. Even banks and other financial institutions were ordered to meet loan targets to be given to bumiputera businessmen. Outside the quota system, other undertakings aimed to fast-track bumiputera development. A ministry devoted to entrepreneur development was established for them and billions poured into programmes to train bumiputera entrepreneurs, establish franchise schemes, fund start-up loans and rental subsidies, etc.
Malay businessmen who were awarded these import licenses 6 often immediately sold them to Chinese car dealers for up to RM40, each. The reduction was not due to the unhappiness of the non-Malay community, but rather as a ploy to attract more foreign capital into the stock exchange.
For many years, foreigners had complained about the 30 percent bumiputera quota. One estimate puts the value of APs issued at more than a billion ringgit. Thus it was a great windfall for the lucky few Malay businessmen able to secure these licenses. One recent attempt at blatant racial discrimination, which even surpassed the old 30 percent quota, involved Maybank, the largest bank in Malaysia.
After the circular was exposed, however, the bank 7 was forced to back down. Malaysian Indian Business Association president P. Mageswari, 43, who wanted to apply for a RM50, loan to expand her dry food and spices business was shocked when the SME Bank in Tampoi, near here, imposed all sorts of conditions. The bank is a subsidiary of Bank Pembangunan M Bhd. The most significant benefit of all is the unit trust scheme established by the government for the sole purpose of allowing bumiputera investors to invest in securities, the Amanah Saham Bumiputera ASB scheme.
It has been responsible for the biggest transfer of monetary benefit to the Malay community. Since it is essentially backed by the government, and basically exists as a vehicle to transfer wealth to the Malay community, ASB has paid its investors a remarkable rate of return, as Table 1 over page shows.
For the decade — it has, on average, paid at least 6 percent above the market rate. No other financial instruments around the world can give this kind of return without any risk to their capital, and it would not be possible under normal market conditions. The practice of giving Malays and other bumiputera financial benefits has extended to the private sector as well.
In many projects, it is mandatory to set aside 30 percent of units for bumiputera downloaders. In Kedah, the state government even tried to impose a 50 percent quota for housing projects in 11 Jesudasen, Ethnicity and the Economy: Oxford University Press, The Malaysian Chinese Dilemma Table 1. One prominent Malay academic put it, in no uncertain terms, in To legitimise any figure above 30 percent would naturally take away one of the main arguments for continuing the pro-bumiputera discrimination.
In , Najib Razak, the new Prime Minister, publicly acknowledged what was already widely known about the 30 percent mandatory bumiputera share in equities: Centre for Public Policy Studies, XV, no. The rest had been sold off for instant 14 profit. Outside financial and business spheres, right from the start of the NEP the government began to push for higher bumiputera participation all areas, again in many cases above the official 30 percent quota.
This can be seen clearly in the civil service and in higher education. As one 15 credible report about the Malaysian civil service put it: The present Malaysian civil service is predominantly Malay; the higher the service group, the higher its domination by Malays.
All other racial groups, including non-Malay Bumiputeras, are under-represented in varying degrees. Before the NEP, there was considerable non-Malay application and recruitment into the service.
This led to a more racially balanced representation in the civil service in the late 60s. In , the federal civil service was The intake of Malays accelerated with the start of the NEP. The one-million strong civil services in Malaysia, like most civil services in developing countries, play a crucial role in the socio-economic development of the country.
They implement government policies and, as such, their biases are felt immediately by the polity. With the Malaysian civil service dominated by Malays, especially at the top, a strong push to promote Malay interests has resulted, so that anyone coming into contact with government, administrative services and government- related agencies is liable to experience a strong pro-Malay bias in their dealings. It also means that government policies overwhelmingly reflect the concerns and thinking of the Malay community since there are few avenues for non-Malays to put forward their views within the civil service.
Where public universities were concerned, they were instructed that their intake should be roughly based on the population profile, which meant a ratio of 55 percent bumiputera to 45 percent non-bumiputera.
In reality, the bumiputera intake was much 17 higher than 55 percent, soaring as high as 75 percent. This immediately set off protests from the Malay community, which culminated two years later, in , with the Higher Education Minister declaring: This institution quickly became the largest university in Malaysia, with fourteen branches throughout the country.
It currently has more than , students. When the Malay chief minister of Selangor suggested that UITM should admit 10 percent non-bumiputera students, in order to expose Malay students to other ethnic groups, the university management helped the students organise mass demonstrations in opposition.
One student banner 19 insisted: Monash Asia Institute, The Malaysian Chinese Dilemma a Malay leader should voice out something under Article , and I am giving this opinion as a professional … for the good of the country and not only for Bumiputeras … Abdul Khalid as a leader should think before making such a statement and not betray 20 his own race.
Non-bumiputera students were required to undertake the STPM, while the one-year 21 matriculation classes were reserved for bumiputera. Table 1. Professionals1 by Ethnic Group, to Notes 1. Professionals are identified as architects, accountants, engineers, dentists, doctors, veterinary surgeons, surveyors and lawyers. Maznah Mohamad, Ethnicity and Inequality in Malaysia: A Retrospect and a Rethinking, Centre for Research on Inequality, Human Security and Ethnicity CRISE Working Paper 9 February Along with the intake of more Malay students into tertiary institutions is the use of race and political affiliation as the primary criteria for the recruitment and promotion of academic staff.
By and large, his wish appears to be reality: As a result of these manipulations, within a decade the academic standards of Malaysian universities had dropped across the board. Needless to day, this led directly to a 23 decline in the standard of graduates from public tertiary institutions. Even so, this quota has never been met as most Chinese and Indian students did not want to study in an institution that promoted racism.
The bumiputera share of the professions in was only 4. The Chinese dropped by one-sixth, while Indians almost vanished, falling from one in ten to fewer than one in fifty. If NEP social engineering afforded far greater social mobility to the bumiputera population across the board, for middle class Indians it was a disaster. Bumiputera or UMNOputera?
If the NEP in practice was, as we have seen, often little more than a racist system favouring rent-seeking behaviour and crony capitalism, another persistent criticism is equally damning: This was especially obvious during the privatisation phase of the Mahatir government in the s and s.
Daim refers to the former Malaysian Finance Minister Daim Zainuddin who was a key figure during the privatization phase of the Mahathir regime. Such patronage could not guarantee commercial success later, however. When it began to make massive loses and was close to insolvency, the government bought it back at the same 25 privatized price. That UMNO, the main party in power, wants like all other political parties to reward its supporters is hardly unusual.
But because NEP benefits are based on ethnic criteria, those Malays with capital, education and skills naturally tend to benefit more than poor and marginalised Malays. Thus it has been estimated that the top 20 percent of the Malay population benefited proportionally much more than the bottom 80 percent. This is revealed in Malaysia's Gini coefficient.
The Gini coefficient, which measure income disparity between richest and the poorest, has been rising in Malaysia. The higher the number, the greater is the disparity. For Bumiputera, the Gini coefficient rose from 26 0. Another clear piece of evidence is that although more than two million Bumiputera invested in ASB unit trusts, the vast majority had invested RM or less. A tiny 1. Although officially all Bumiputera are eligible for the NEP benefits, in reality, non- Malay Bumiputera, especially the non-Muslim indigenous groups in Sabah and Sarawak, have not really profited.
Crouch, Government and Society in Malaysia Ithaca: Cornell University Press, , p. September , p. There are several commonly used justifications. This is the official viewpoint and is stated clearly in the NOC report mentioned above. It reaches back to the colonial period, when the British did not encourage Malays to enter the commercial arena, leaving Chinese and Indians with the upper hand at the time of independence.
The often cited statistic is that, in , the Malay share of equity stood at 2 percent, while the Chinese held ten-times as much This situation in turn supposedly led to the race riots. Moreover, as the argument goes, it promotes political stability if the majority race, the Malays, are given a stake in the economy. NEP supporters like to point out that part of the reason for the anti-Chinese riots in Indonesia was the economic dominance of Indonesian Chinese business over pribumi business.
By helping Malays to join the middle class and enjoy a significant share in the economy, they would be less jealous of Chinese and thus less likely to initiate another race riot. Another common justification for NEP policies is that they derive from the constitution and inalienable Malay birthrights. It specifically endows the king with wide-ranging economic and social powers to defend Malay and other bumiputera 29 interests. As it states in part: This constitutional provision derives directly from the concept of Ketuanan Melayu or Malay hegemony or supremacy.
This asserts that Malay people are the Tuan masters of Malaysia and that the country belongs to them. As the Bumiputera or indigenous, their birthright entitles them to special rights, including any special aid from the government for them alone. The non-Malays, no matter how deep their family roots might go, are thus pendatang recent immigrants and only guests in Malaysia. A prime example of such thinking is the political group, the Pertubuhan Pribumi Perkasa Malaysia or Perkasa.
The following news report nicely summarises what Perkasa is 30 about: Malay right-wing group Pertubuhan Pribumi Perkasa today threatened that it would react to the actions of those who chose to question Malay supremacy. President Datuk Ibrahim Ali said that for the sake of "the country, race and religion, I am willing to be detained under the Internal Security Act" should Malay rights be challenged.
The Malay nationalist politician warned non-Malays to behave, if not then Malays would repay in kind. But if they are not, neither will we. If they are kurang ajar ill-mannered , we too can be kurang ajar," said the Pasir Mas MP to cheers from the thousand-strong crowd. Ibrahim as president of Perkasa had last year also called on other races to adapt to the local culture of Malays as they have already been given many rights and freedoms in this country.
Today, he added that those who questioned the issue of the special position of Malays were not acting in the name of justice. The former Umno leader said that in the past, Malays had been reasonable with the colonial masters but that they would not tolerate "our heads being stepped on.
Especially Malays and Islam, do not ever try to play around with these," he threatened. He asserted: That is the premise from which we should start….
There have been moves to question, to set aside and to violate, this contract that have threatened the stability of the system…. The May riots arose out of the challenge to the system agreed upon, out of the non fulfilment of the substance of the contract…. The NEP is the programme, after those riots in , to fulfil the promises of the contract in There is thus no two ways about it: Even after , there must be mechanisms of preservation, protection, and expansion in an evolving system.
The social contract as expounded here by Abdullah is taken to mean a quid pro quo agreement that provides non-Malays with citizenship in return for their recognition of Ketuanan Melayu and the special rights of the Malays.
One recent study suggests that the whole notion of a social contract being made in , during the time of 32 independence, was simply not true historically.
The social contract argument is a post-hoc justification used primarily to reinforce the demand for Ketuanan Melayu. More often than not, all three arguments appear together to justify continued racial discrimination. If all three are properly scrutinised, however, they emerge as self- serving at best and racist at worst. The first argument only has merit if it can be shown that it was the Chinese community that denied the Malays any chance to acquire experience in commerce, when in fact it was a consequence of British colonial rule.
Even then, the British gave Malays, especially the Malay elite, privileged access to the civil service in order to help the British rule. Asking non-Malays to pay a permanent post-independence price for benefiting from something done earlier by the British, with the assistance of the Malay elite, makes little historical or economic sense. The other way of looking at it is to say that the non-Malays have to pay for the historical actions of the British colonial masters. Das, Malay dominance?
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Write a review Rate this item: Preview this item Preview this item. The Chinese dilemma Author: Lin-Sheng Ye Publisher: East West Pub. Subjects Chinese -- Malaysia -- Economic conditions. Chinese -- Foreign countries. Malaysia -- Economic conditions. View all subjects More like this Similar Items. Allow this favorite library to be seen by others Keep this favorite library private.
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