Transcript The Potentiality of National Unity in Malaysia

The Potentiality of National Unity
in Malaysia
Yosuke Ogata
Proposition
In spite of the economic recession, due to the
currency crisis,
is national unity still feasible?
Can ethnic heterogeneity be an advantage to economic
growth?
Objective
Analyze the feasibility of national unity in
Malaysia.
To make a future reference in national unity
and economical development for other
ethnically populated countries.
Historical Background(1)
The Forming of an Heterogeneous Nation
Bumiputeras “sons of the soil”
Malay
- lived near the coastlines of Malaysia
Non-Bumiputeras – Brought in as mine and rubber
plantation workers
Chinese
- lived in the cities
Indian
- lived on rubber plantations
Historical Background (2)
The Japanese Invasion
Japan invades Malaya and British Borneo
in 1941 (just after the Japan-China War)
The brutalizing of Chinese
The presentation of supremacy to Malays
Confliction in the ethnic relations
Historical Background(3)
May 13, 1969
Communal tensions + confrontations with
Indonesia
Economic recession and rise of anxiety in
Malays(Bumiputera)
Coalition(Malay party) loses majority vote
Bumiputera Policy
The Need for a New Policy (1)
Chart 1
Poverty by Ethnic groups in 1971
Ethnic group
Poverty (%)
Mean household income
Malay
64.8
172.00
Chinese
26.0
394.00
Indian
39.2
304.00
Others
44.8
813.00
Bumiputera Policy
The Need for a New Policy(2)
Ownership in the Corporate Sector in 1971
Owner Amount
(million Malaysian
dollars)
Ownership(%)
Bumiputera
168.7
2.6
Public
110.9
1.7
Non-Bumiputera
2233.2
34.00
Foreigner
4051.3
61.7
The Bumiputera Policy
The Aim of the Policy
Further economic imbalances between the
Bumiputera and non-Bumiputera groups
could result to national disaster.
Bumiputera Policy
The eradication of poverty regardless of race, to
eliminate the identification of occupation with race.
The economic elevation of the Bumiputera
Bumiputera Policy
The Contents of the Policy
An ambitious affirmative action program
||
Legal priority in Bumiputeras’ economic
participation.
No doubt an unequal policy between ethnic
groups
Bumiputera Policy
The Non-Bumiputeras’ Reasons for Approval
Avoidance of another ethnic conflict leading to a
national breakdown.
The acknowledgement of the
benefit from the policy
For the policy to operate, the non-Bumiputeras’
technology and work skills were essential.
Bumiputera Policy
The New Economic Policy
Contents- A more concrete policy of the
Bumiputera Policy
Achievements - Improvements in income,
living standards.Reduction of poverty and
higher Bumiputera employment. Improved
income distribution without adversely
affecting growth.
Bumiputera Policy
Achievements of the NEP
National incidence of poverty
Share of Bumiputera employment in manufacturing and
services
Gini coefficient
Bumiputera to Chinese mean
income
Real mean income of the
bottom 40% of the household
1970
1990
52.4%
17.1%
37.5%
51.4%
44%
0.513
59%
0.445
$76
$176
Bumiputera Policy
New Development Policy
Contents – A broader policy framework
which has the overall objective of attaining a
balanced development.
Achievements – Annual GDP growth of over
7.0% and an overall improvement in most
sectors until the start of ’98.
Economic Recession resulted from currency crisis
Results from the Currency Crisis
1994
GDP
9.3
growth(%)
GDP/Person
3606
(US$)
Exports(million 58652
US$)
Imports(million 59395
US$)
Unemployment 2.9
1998
-7.5
1995
1996
1997
9.4
8.6
7.5
4220
4685
4517
73865
78312
78519 73070
73865
78413
78535 58177
3.4
3.5
2.7
3202
5.3
The Reconstruction of the Economy
Emphasis on Domestic Economic Conditions
National Economic Recovery Plan(Aug.’98)
Exchange control measures(Sep.’98)
Restructuring of the financial sector(Oct.’98)
Rebuilding of economy without support from
the IMF
The Reconstruction of the Economy
For the Sake of Unity
The reasons for turning down IMF support
For the sake of national unity
IMF support = Reduction of economy
Reduction of economy = Ethnic imbalance
Lessons learned from Indonesia and Thai
The Reconstruction of the Economy
The National Economic Recovery Plan
“Plan for Action”
•
Stabilizing the ringgit
•
Restoring market confidence
•
Maintaining financial market stability
•
Strengthening economic fundamentals
Conclusion(1)
Possibility of National Unity in Malaysia
||
The trend of the economy
This can be stated from the time
The Bumiputera Policy started
Conclusion(2)
National Stability
National Stability
National Unity
National Unity
Economic
Growth
Other Nations(IMF)
Economic Growth
The Malaysian Policy
Conclusion(2)
The goal for economic growth and national
unity(pertaining to multi-cultured nations) is
the stabilization of the nation.
The Malaysian Policy has chosen the fastest,
but also the most risk taking road in
forming a stable nation.
Conclusion(3)
Reasons for the Risk Taking Policy
The necessity to combine economic growth
and national unity as one policy(Bumiputera
Policy)
Necessity- the over imbalanced economic
gap between ethnic groups
Conclusion(4)
Reason for the success of the Bumiputera
policy
Economic foundation built from the
Chinese ethnic groups
Strong leadership by the administration,
particularly its Prime Minister, Mahathir
Heterogeneous Ethnic Society ?
Conclusion(5)
Is an ethnically heterogeneous society an
advantage to economic development?
Though historical statistics show the odds, the
answers are yet to be clear. In future years we may
learn that affirmative action programs like those of
the Malaysian policies is the key to changing ethnic
heterogeneous from a liability to an asset for
economical growth.