The New Economic Policy: a Historical Note

This paper is concerned with the historical development of ethnicity-based polices in Malaysia. It begins with an evaluation of British policy first towards Malay rulers, and then towards the other groups in society. This is followed by a discussion of events in the first part of the twentieth century that eventually led to the formulation of the New Economic Policy (NEP) and subsequent related policies. The paper argues that the NEP is a continuation of the pro-Malay policy introduced since the days of British administration. Although it has undoubtedly uplifted the position of many Malays, especially the upper middle class, according to recent official reports, it has not achieved its target. However, there has been a noticeable difference. The NEP has launched Malays into the private sector, produced numerous well-educated Malays who are graduates of some of the finest universities in the world and created Malay millionaires. [PUBLICATION ABSTRACT]