NEP in a simple definition , The New Economic Policy is Malaysia’s socioeconomic affirmative action plan. New Economic Policy (NEP) in Malaysia was initiated and develop in response to massive economic disparities along ethnic lines. It was implemented in 1971 in the aftermath of the 1969 racial riots. The two objectives of NEP are the eradication of poverty for all Malaysians irrespective of race and restructure society to eliminate the identification of race with economic function through rapid expansion of the economy over time. The strategy was to accelerate economic growth , but at the same time will redirect the benefits more to the disadvantages. Malays had been given certain privileges by the British , especially quotas for public scholarships and civil service employment even from the colonial days before Merdeka. The British rules was left behind some remnant effects on the society and economy. At that tme , economic system and geographical location of where people lived and worked were divided among racial lines. Malays were largely place in the traditional agricultural sector where the income was the lowest and poverty was the highest. While , Chinese was concentrated in mining , manufacturing and construction where the income was much higher. Labourers in estates and mining were the Indians. It was clear that the problem of poverty and the economics differences along racial lines was unfavourable to social stability.
In 1970 , at that point of time ; the recorded number of households living in poverty was 49.3%. The top 5% richest households were obtaining 30% of the total income. About 74% were Malay , 17% were Chinese and 8% were Indian , recorded living in poverty. Aim of introduction of NEP was to reduce overall poverty. In terms of restructuring the economy , the target was to increase Bumiputera share of corporate capital from 2.4% to 30% , the share of the Chinese , Indians and others to increase from 34.3% to 40% , while that of foreigners would be reduced from 63.3% to 30%. Its a 30-40-30 ratio of distribution among Bumiputera , other Malaysians and foreigners. It was projected that the Bumiputera share would have to expand at the rapid rate of 30% per annum while the equity shares of Chinese and Indians had to expand by 15.4% per annum. Affirmative action plans like the NEP are very important because the disadvantaged in society must be helped. When one segment of the society is disadvantaged , to have an equal playing field in our economic system will be not be fair. Socioeconomically , nobody should be left behind. This is imperative because history has shown that once there is a segment of society left behind economically , there are greater chances of social unrest.
The Essay on Contributions Of Contract Law To Economic Activities In Society
Contributions of Contract Law to Economic Activities in Society This paper addresses the role of contract law in economic development. Unlike many other papers, its perspective is consequentialist, as it defines, explains, analyzes and evaluates the contributions of contract law to economic activities in society and is aimed to prove the hypothesis that the existence of a formal contract law and ...
Some people think that NEP is still discriminating or causing the disparity among the races. This is something unrelevant as NEP was firstly introduced in 1970 to reduce the gap between races. The NEP is not a policy purposely to discriminate against non-Bumiputera ethic communities or withdraw from them the level of income and wealth they have already gained ; on the contrary , it seeks to ensure that increments in the nation’s wealth and income redound more fully to the bumiputera and not disproportionately to the minority. Based on factual information , the NEP managed to reduce poverty. According to official data , percentage of households living below poverty line across all ethnics groups has been reduced from 49.3% in 1970 to 17.1% in 1990 and in 2009 overall poverty had been reduced ti 3.8%. Another success of NEP that the NEP managed to restructure the economy. Post-NEP , the wealth ownership of the Bumiputera had increased from 2.4% to 19.3% , the share of the Chinese , Indians and other Malaysians was 46.8% , surpassing the target ; while share of foreign ownership was reduced to 33.9%. Bumiputera share had increased slightly to 21.9% , non- Bumiputera share was reduced to 36.7% and the share of foreigners , 41.4% in 2008.
The Term Paper on Zambia National Housing Policy
Since independence in 1964, several attempts have been made to draw up a comprehensive Housing Policy but, until now, no such policy has ever been formulated. The housing policy I am presenting to the nation provides a comprehensive assessment of the housing situation in the country. It also provides a vision for the development of adequate affordable housing for all ‘income groups in the ...
This is much more quitable and sustainable distribution compared to the 2.4 -34.2 -63.3 % ratio pre-NEP. After the NEP in 1990 , tha same time , the number of bumiputera employed in the industrial sector like mining , manucfacturing , construction and utilities also had arose significantly. Bumiputera representation also increased in professional and technical categories and at the administrative and managerial levels. NEP then managed to create a large segment of middle class Bumiputeras. Nowadays , the bumiputera account for a significant percentage of management of professionals. Futhermore , Malaysia was recovered from social unrest caused by poverty and economics imbalances. This shows that NEP has been instrumental in regulating a peaceful tenure in society. The most important thing that NEP played a big part in national Unity. During NEP ,with increased movement of different ethnic groups into various sectors , businesses are no longer exclusive to the membership of certain ethnic groups as they were before. Malaysians of all races now intermingle both economically and socially and the NEP played a big part in this part of Unity.
What is most important in success of NEP that the positive outcome of the introduction of NEP is that communities were saved from poverty. The NEP is one of the reasons why millions of people can now fend for themselves and millions of people had a chance to get education. Our per capital income has grown multiple , seven to eight times since 1970. The NEP is one of the biggest benefits is that is has helped regulate peace and harmony in our society. To a large scope , the NEP is a defining part in making our country what it is today. We are all products of NEP , whether we have received its help or not. For those who think NEP is discriminating among races , those people need to start reading more. Read balanced , informative books on the NEP. It is better to read books written by serious academicians. When we look at the real numbers , we will see the real reasons and bigger picture behind the NEP. For example , many people would be surprised to learn that in 1970 , the Bumiputeras had only 2.4% of the nation wealth.
The Essay on Foreign Policy Countries Country People
Why Things Are Comparative politics is an important aspect of political science in that instead of studying how this country functions, it studies why other countries around the world are the way they are. There must be some medium for finding the differences and similarities between one county and another in order discover what can effect such aspects as economic strength, military strength, and ...
To reunite and rebuild the country after the traumatic experience of 1969 , The NEP was launched as part of an overall strategy of Tun Razak. Its objective of creating prosperity for all Malaysians. Besides its objective , no community would experience a sense of loss and deprivation , it equally stressed the important objective of uplifting the economic status of the Malays , in the line with the spirit and intent of the “Social Bargain” , the Federal Constitution and the RUKUNEGARA.In formulating the policy , the lessons of past policies were valuable. The need and indeed of the policy was designed to shift and integrated the Malays into the main stream of the development of commerce and industry , and prevent from being permanently marginalized in the backwards sectors. The lessons of this experience , as applied to the now more developed Malaysia economy , are under enquiry today.
The policy therefore can only be successful with broad and informed public support. Malaysia enjoyed political and socioeconomics stability since 1969 and to a degree the NEP contributed to this success. The history of implementing the NEP shows , it is possible to reduce extreme inequality while pursuing a policy of maximum economic growth. Tun Razak took the risk without having a precedent case policy to emulate. With NEP , we able to deal with ethic disparities and to move towards a sustainable and balanced nation in diversity.
