Analysts: Get bumiputra to fight in open economy

PETALING JAYA: To improve the economic state of bumiputra, they should be encouraged to fight in the open economy and not be coddled by raced-based initiatives, say experts.

Tan Sri Dr Kamal Salih, a senior adviser and adjunct professor at the Asia-Europe Institute of Universiti Malaya, said with bumiputra forming most of the population, there was no need to target them as a separate group in the government’s affirmative actions to better their economy.

“When we have race-based policies, there is a tendency to abuse them and create a dependency syndrome,” he said in reaction to the 11th Malaysia Plan mid-term review presented by Prime Minister Tun Dr Mahathir Mohamad in Parliament.

Under the 11th Plan, enhancing the Bumiputra Economic Commu­nity (BEC) is a strategy for further inclusiveness towards an equitable society.

Dr Kamal also pointed out that having race-based policies to create a BEC would lead to more leakages.

“We are now talking about global economics and having such policies will send the wrong signals to foreign investors and non-bumiputra stakeholders that there is no level playing field,” he added.

Urging bumiputras to fight in the open economy, he said: “They should not be mollycoddled by race-based initiatives. Only then will a strong BEC come into formation.”

He said rather than race-based policies, there was an urgent need to close the wage gap between the rich and the poor.

According to the mid-term review report, 73% of bumiputra households owned a residential unit in 2016, with the government aiming for at least 75% by 2020.

In 2017, there was 61.4% bumiputra participation in skilled occupations. The government hopes to see at least 11% annual growth in bumiputra corporate equity ownership by 2020; in 2015, the figure was 4.2%.

“What we need,” said Dr Kamal, “is to create more SMEs (small and medium enterprises) and make it simpler to register companies and for them to get capitals.

“As most bumiputras are wage earners, there is a need to invest in more technology and look at higher wages,” he added.

Datuk Akbar Ali, a former senator and former deputy director-general of the Department of Statistics also called for a level playing field for everyone.

“We should not emphasise bumiputras as if they are all poor. Before we go on about meritocracy and competitiveness, we should first have a level playing field (for all races),” he said.

To enhance inclusive development and the well-being of the bumiputras, Dr Akbar said it was urgent to revisit the wage and labour policies.

“Seventy percent of bumiputras are wage earners. We have to re-orientate the rich-biased and urban-biased policies such as the tens of billions spent on the LRT and be more rural-based,” he said, adding that most bumiputras were in rural areas.

He also urged the government to narrow the wage gap, which has widened since 2009, before focusing on the BEC.