To the non-Malaysian readers of my blog,there's something I like to introduce to all of you and that's called the New Economic Policy or in short,NEP.It is an ambitious and controversial socio- economic restructuring affirmative action program launched by the Malaysian government in 1971.It (the NEP) has actually been replaced by the New Development Policies in 1990 but still retain most of NEP's policies.To Malaysians in general,the NEP is no stranger as we have seen many heated and controversial debates regarding the whole matter and the non-Bumiputeras feel that the way the policies have been implemented making them as second-class citizens.(Bumiputera can be translated literally as the "sons of the earth"). So,what about the NEP then?
Well,while the intention of NEP is very good as it aims to distribute the wealth of Malaysia evenly to her people,however as it is executed by people,it is bound to have flaws and making errors here and there.
For further reading on NEP,please read the following articles I've provided through these links:
*New Economic Policy
*How about property liberalisation?
*The Star's online blog
Anyway,what I'd like to highlight is the property sector.As part of the NEP's policy,Bumiputras are entitled to 5-15% discount from the overall price of one particular property while the non-Bumiputras have to pay full.This move should not be seen as a bad move as it is to ensure that the people can have access to affordable housing is commendable and efforts to bridge the gap of property ownership between races promotes racial harmony.
However,the part that I'd like to share with all of you regarding this particular matter is that the discount is then extended to the luxury property.
It creates feeling of unfairness and also potential conflict as a non-bumiputra buying a
property worth RM250,000 is not entitled to any discount but a bumiputra buying a property
worth RM1million is given a discount of at least RM50,000, which is 20 per cent value of the
property costing RM250,000.-Chua Tee Yong
I believe this is one of the obvious flaws as the policy is to reduce the gap and distribute the wealth evenly and it should be noted as well that any bumiputra that is able to afford such a property,mainly ones that are RM200,000 and above give us a clear indication that these bumis are already able to compete with the non-Bumis.It is those Bumis that are still unable to support themselves properly,ones that have very low income and based on my recent interview with a villager from a village located at Sungai Besar,Selangor-the villager actually earn roughly around RM 200 a month.These are the groups that need help.How can the government achieve its objective of creating competitive bumiputras if this continue?
There was this one time I was looking at a brochure of the prices of houses and there even show a house worth RM 1 million plus that comes with 5-15% discount for the bumis.Rm 1 million?Do you get what I mean?
I also would like to suggest to the government to abolish the discount given to Bumiputra property buyers for property priced above RM200,000 per unit. I believe the discount is irrelevant for upmarket properties as Bumiputras who are considering purchasing such properties are wealthy enough to own them without depending on a discounted price. It should not be seen as not inline with the NEP as the objectives of the NEP is to eradicate poverty and to restructure society. Wealthy Bumiputras should no longer qualify for these privileges under the NEP which is supposed to be given to the poor section of Bumiputras. As the former's wealth is on par with non-Bumiputras, therefore they do not require the privileges under the NEP. By doing away with the discount offered to Bumiputras for upmarket properties, it would help boost the property sector and also to counter the allegation that the NEP is no longer keeping inline with its objectives but rather evolved to benefit only certain races, regardless whether the beneficiaries are poor or rich. This can also be used to dismiss the claim that the NEP is benefiting the rich Bumiputra more than the poor, thus moderating the gap between the rich and poor Bumiputras.-the star online blog.
Well,with the country's independance day just around the corner (only two months away),the Malaysians in particular should really be freed of the old mentality of this is my land,not yours.If we are still stuck with such thoughts,then dream away of the survival of Malaysia.
Regards,
Mr. Clive
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