In Malaysia, the pursuit of socio-economic equity, especially for the Bumiputera, aims for more than policy reform; it seeks to balance inclusivity with prosperity, informed by diverse philosophies. Despite their majority, Bumiputera's economic status has not met the New Economic Policy's expectations, even 67 years post-independence and 59 years after the inaugural Kongres Ekonomi Bumiputera (KEB). This highlights the necessity for a paradigm shift towards enlarging the economic "pie," ensuring national prosperity and unity. The reliance on constitutional mandates, specifically Article 153, while significant, underscores the need for approaches that transcend legal obligations, advocating for broader economic empowerment and societal cohesion.
DOSM's 2022 report reveals Bumiputera make up 70.1% of Malaysia's population, with 7.9% living in absolute poverty, notably higher than the Chinese (1.9%) and Indians (5.4%). Hardcore poverty affects 0.3% of Bumiputera, compared to nearly none among Chinese, and 0.1% of Indians. Bumiputera's average household income is RM7,599, lower than Chinese (RM10,656) and Indian (RM8,950) households. Despite overall improvements since 1970, Bumiputera remain economically behind, highlighting the need for innovative solutions beyond traditional quotas, emphasizing equity and justice for shared prosperity.
The enduring economic disparities in Malaysia, especially among the Bumiputera, despite long-standing affirmative action, highlight the need for more refined empowerment strategies. Moving beyond traditional benchmarks such as the 30% equity ownership goal—which remains unmet—requires a revaluation of their adequacy in truly representing Bumiputera socio-economic status. This situation calls for innovative policy interventions focused on education and skill development, aimed at truly bridging the gap and creating an equitable landscape. With the Kongres Ekonomi Bumiputera (KEB) 2024 on the horizon, there is an opportunity to transform these policies from mere constitutional entitlements into meaningful mechanisms for real socio-economic advancement.
In Malaysia, nearly half of the population resides in economically disparate regions like Terengganu and Sarawak, contrasting sharply with the wealthier Kuala Lumpur and Selangor, which together account for 62% of national GDP. This divide is most evident in rural areas, home to about 90% of the rural Bumiputera population, who encounter significant challenges in accessing quality education and economic opportunities. The rural Bumiputera, with an average household income of RM7,599, face a stark income gap compared to urban counterparts. Coupled with a 7.9% absolute poverty rate among Bumiputera, these conditions underscore an urgent need for targeted development interventions to address these disparities and foster equitable growth.
Malaysia's path to bridging economic disparities involves a holistic approach, incorporating infrastructure development, educational enhancement, and support for local industries. This strategy acknowledges the unique potential within communities, providing them with essential tools, skills, and opportunities for success in a competitive global market. Such efforts aim for inclusive growth by unlocking the untapped potential in rural areas, leading to a more equitable and thriving future for all Malaysians. This mission goes beyond economic objectives, reflecting a deep moral commitment to ensuring widespread participation in and benefits from national prosperity.
Despite having lower household incomes—with averages of RM4,773 for Bumiputera, compared to RM6,350 for Chinese and RM5,546 for Indian households—Bumiputera’s collective monthly expenditure reaches an impressive RM109 billion. This spending discrepancy between Bumiputera and other communities raises critical questions about the dynamics of Malaysia's economy. It emphasizes the Bumiputera's vital contribution as consumers, despite their relatively lower income levels, suggesting a revaluation of economic success metrics beyond mere equity ownership.
Addressing this requires more than traditional approaches; it necessitates expanding the economic "pie" to ensure broader, more inclusive growth. The Kongres Ekonomi Bumiputera (KEB) initiatives aim not to slice the existing economic pie into smaller pieces but to enlarge and enrich the economy for all stakeholders. By focusing on elevating the Bumiputera's participation and contribution to the economy, Malaysia can unlock greater prosperity, ensuring that the benefits of growth are more evenly distributed. This approach not only promotes fairness and equity but also strengthens the overall economic fabric of the nation, creating a more resilient and dynamic economy that benefits every Malaysian.
The governance reform at MARA, marked by the introduction of the 3P principles—participation, ownership, and mastery (penyertaan, pemilikan dan penguasaan) —heralds a new chapter in empowering Malaysia's Bumiputera community. This innovative approach emphasizes active engagement in economic activities (participation), fostering a sense of autonomy and entrepreneurial spirit (ownership), and pursuing excellence in skills and knowledge for competitive advantage (mastery). These principles are designed to elevate the economic stature of the Bumiputera within Malaysia and on the global stage, aligning with the nation's aspirations for inclusive growth and sustainability.
Looking ahead, the expansion of these principles into practice involves integrating Bumiputera enterprises into high-growth sectors such as digital innovation, green technology, and advanced manufacturing.
The Kongres Ekonomi Bumiputera (KEB) acts as a catalyst in this journey, providing a platform to showcase and accelerate the progress made through these reforms. It embodies the collective aspiration for a future where the Bumiputera community not only thrives but also significantly contributes to a dynamic, inclusive Malaysian economy. This convergence of MARA’s reformative strategies with the KEB’s goals underscores a unified commitment to elevating the socio-economic status of the Bumiputera, ensuring their growth is integral to Malaysia's broader economic success story.
The Kongres Ekonomi Bumiputera (KEB) underscores Malaysia's commitment to broadening economic prosperity, aiming to enhance the nation's wealth spectrum, not just redistributing resources. It champions inclusivity and equity, focusing on uplifting every segment of the Malaysian community. By fostering a dynamic, inclusive economy, the BEC envisions a future where prosperity is accessible to all, highlighting the interconnectedness of all Malaysians in achieving sustainable growth and unity, and illustrating a future driven by shared success and collective advancement.
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Datuk Dr Asyraf Wajdi Dusuki is the Chairperson of Majlis Amanah Rakyat (Mara) and Secretary-General of UMNO
** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.
AWANI Columnist
Sun Mar 03 2024
The Kongres Ekonomi Bumiputera (KEB) underscores Malaysia's commitment to broadening economic prosperity, aiming to enhance the nation's wealth spectrum, writes Mara Chairperson, Datuk Dr Asyraf Wajdi Dusuki. File pic by BERNAMA
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