2.
There are Malay (Melayu), Chinese, India as
the biggest ethnic in Malaysia.
In 1969, Chinese dominated the trade and
economics sector.
In election 1969, Chinese-dominant party won,
and situation got worse as the Malays felt
threatened by the winning.
Riots happened, 196 killed.
3.
The government then made a policy that
favored the Malays called New Economy
Policy (1970-1990) in order to urbanize the
agricultural and non modern Malays
Malays became the priority in many sectors:
economy, education, social, politics
In exchange, government guaranteed the
security for the Chinese.
Economy of Malaysia grew 5-8% a year
4.
The policy seemed like the institutionalized
version of ethnic difference.
The policy as affirmative action actually
needed a strong government to work out. But
Malaysia did not have it
The policy intensified the conflict rather than
solving it.
5.
The New Economy Policy was replaced by
National Development Policy (1990-2000)
Considered more balanced to benefit society as
a whole.
This policy still encouraged the ownership of
Malays at 30% but also encouraged the
cooperation between Malays and other groups.
6.
It shaped the proportion of the people’s
participation in some sectors.
It created a better opportunity for the Malays, thus
making the economy of the states more dynamic
and pushed them towards liberalization.
The tragedy could be considered as the internal
forces in managing national economies.
Malaysia is one of the state that use state led and
controlled model of economic management, as
they arranged the quota for Malays and other
groups in particular sectors.
