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PART II: The unheard story behind the New Economic Policy

In Part Two of this special six-part series, TAN SRI RAMON V. NAVARATNAM dishes on the abuses of the NEP, and how it has divided even the members of the ruling party.

We take a look at the struggles of our government towards a more equitable Malaysia, and explore the differing perspectives of Malaysian politicos.

Approved Permits

One of the biggest and most embarrassing abuses of the NEP has been the way that Approved Permits (APs) for importing motor vehicles were issued to Bumiputeras and, mostly, to a few UMNO members. Tun Dr Mahathir opened the can of worms when he raised the issue of the rising number of APs, which he believed had seriously eroded the sales and progress and future of the national car, the Proton.

Apparently 66,277 “franchise� and 15,079 “open� APs had been given out. Worse still, the bulk of them were reportedly released to the so-called “AP Kings�, namely Tan Sri Nasimuddin S.M. Amin (9,220) as well as Datuk Syed Azman Syed Ibrahim and Dato’ Mohd Haniff Abdul Aziz (15,759) in 2005. The former prime minister then asked for the public release of the full list of APs.

At first, Dato’ Seri Rafidah Aziz, the minister responsible, had replied that the issue of APs was a confidential matter and that the lists were never released before, referring to the period of 22 years of Tun Dr. Mahathir’s tenure as prime minister. Then she announced that one of Mahathir’s sons had received APs, too. All this must have upset Mahathir, and calls were made by the Deputy Minister of Information, Datuk Zainuddin Maidin, among others, for Rafidah to withdraw her critical remarks and even to apologise. But she defied these calls.

However, at the UMNO General Assembly she had to give a report on the APs. Amid all this pressure, she broke down and cried publicly. The delegates were not moved or impressed and some even shouted her down. But true to her form, she gave a stout defence of her policies and actions. The Tun’s response when he returned from abroad after the UMNO General Meeting was that Rafidah had misled the UMNO Assembly. The former prime minister then asked for the complete and up-to-date list of APs.

Prime Minister Dato’ Seri Abdullah Badawi, then on an official visit to Johannesburg, South Africa, ordered Rafidah to make public the full AP list. He was reported to have said, “In keeping the list from the public, we create a negative perception. That is not right.�

Thus the second list came out on 28 July 2005. But it was about the same as the earlier list, with some inconsequential changes which included updating. However, as Tun Dr. Mahathir later pointed out, the quarrel was not between him and Rafidah, but that not enough had been done by Rafidah to protect the national car Proton when she allowed 9.6 percent of the total number of passenger and commercial vehicles produced in the country as the basis for the number of imported cars.

Concern, reassurance, and hope over the NEP

The recent UMNO General Assembly (2005) was a watershed for the 9th Malaysia Plan and Vision 2020. The Wanita UMNO and UMNO Youth leaders, Dato’ Seri Rafidah Aziz and Dato’ Hishammuddin bin Tun Hussein Onn respectively had earlier called for a review of subsidies and the re-introduction of the NEP.

These calls appeared to contradict the government’s policies to reduce subsidies and to lower protection for Bumiputeras, both of which have been so prevalent under the NEP and the NDP since 1970. These urgings also appeared to be in conflict with the government’s policies to promote greater domestic and international competition and globalisation.

As our deputy prime minister had well pointed out, the goals were to also go “global� and to become “Towering Malays and Malaysians.� Fortunately, Puteri UMNO leader Noraini Ahmad boldly stated, “Malays cannot be complacent, be they Ali Babas or sleeping partners or shareholders only in name. They must be dominant, relevant and regain their past glory.�

These diverse views have raised serious concerns and doubts about the future direction of the Malaysian economy, especially for most non-Malays. Are there some deep disagreements and contradictions between the policy of gradually introducing more meritocracy, and that of perpetual protection in striving to attain industrialised status by 2020? What signals are we giving to non-Malay domestic investors and especially to foreign investors?

Thank goodness Prime Minister Dato’ Seri Abdullah put the record straight in his reassuring and strategic speeches at the UMNO General Assembly. The prime minister also categorically stated in his UMNO speech, “I will not lose faith. As long as there is life in my body, I will seek strength from the Almighty to continue my battle against corruption.� He added that the opportunities given (to the Malays) were abused, instead of being used to expand business or enhance capacity that would have ensured continued and lasting success.

After all, the NEP was never withdrawn. Most non-Malays support the NEP but do not support the abuses and wastage which, as our prime minister has stressed, undermine the very spirit of the NEP.

I have felt disappointed and depressed at the distorted implementation of the NEP for a long time. Now I am elated that our prime minister wants to bring back the NEP to its right path towards the achievement of Vision 2020.

We all need to strongly support the prime minister and all other enlightened leaders in implementing the NEP as envisaged in its original tenets - in a fair and equitable manner for the benefit of all Malaysians, especially the poor and the underprivileged, regardless of race.

In his closing remarks, the prime minister made a statesman’s statement: “We will be fair to all Malaysians. We will not take away the rights of any race. We have never done it and never will.�

I believe that the prime minister means that Chinese and Indian Malaysians will not be denied their legitimate privileges and opportunities as loyal Malaysians: to develop a united, stable, and prosperous Malaysia.

All true Malaysians would want to sincerely wish Prime Minister Dato’ Seri Abdullah every success, and hope that all the pledges to remove the abuses in the implementation of the NEP will be fully effected in the formulation and execution of the 9th Malaysia Plan.

To be continued in Part Three…
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Tan Sri Navaratnam was directly involved in the formulation of many major public policies during his distinguished career in the civil service, from the New Economic Policy in 1970 to the preparation of annual budgets and economic plans. He retired from the government in 1989.

Since then he has continued to serve in the National Economic Consultative Council and the National Economic Action Council working groups, as well as other non-governmental agencies like Transparency International Malaysia, of which he is president.

The articles he shares with theCICAK are from his latest book, Quo Vadis: Where to, Malaysia?. The book addresses these hard issues and provides solutions for the challenging management of our nation. Click here to learn more about him, and Where to, Malaysia?

He is on the judging panel for theCICAK’s “Write It!” Competition 2006.