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The Potentiality of National Unity in Malaysia Yosuke Ogata.
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Transcript of The Potentiality of National Unity in Malaysia Yosuke Ogata.
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 is national unity still feasible?feasible?
Can ethnic heterogeneity be an advantage to economic growth?
ObjectiveAnalyze 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 citiesIndian- lived on rubber plantations
Historical Background (2)The Japanese Invasion
Japan invades Malaya and British Borneoin 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 PolicyThe 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 1971Owner Amount (million
Malaysian dollars)
Ownership(%)
Bumiputera 168.7 2.6Public 110.9 1.7Non-Bumiputera
2233.2 34.00
Foreigner 4051.3 61.7
The Bumiputera PolicyThe Aim of the Policy
Further economic imbalances between the Bumiputera and non-Bumiputera groups could result to national disaster.
Bumiputera PolicyThe 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 PolicyThe 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
1970 1990
National incidence of poverty
52.4% 17.1%
Share of Bumiputera em-ployment in manufacturing and services
37.5%
51.4%
Gini coefficient 44% 59%Bumiputera to Chinese mean income
0.513 0.445
Real mean income of the bottom 40% of the household
$76 $176
Bumiputera PolicyNew Development Policy
Contents – A broader policy framework which has the overall objective of attaining a balanced development.Achievements – Annual GDP growth of over 7.0% and an overall improvement in most sectors until the start of ’98.
Economic Recession resulted from currency crisis
Results from the Currency Crisis
1994 1995 1996 1997 1998GDP growth(%)
9.3 9.4 8.6 7.5 -7.5
GDP/Person(US$)
3606 4220 4685 4517
3202
Exports(millionUS$)
58652
73865
78312
78519
73070
Imports(millionUS$)
59395
73865
78413
78535
58177
Unemployment
2.9 3.4 3.5 2.7 5.3
The Reconstruction of the EconomyEmphasis 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 supportFor the sake of national unity
IMF support = Reduction of economy
Reduction of economy = Ethnic imbalanceLessons 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)
Other Nations(IMF) The Malaysian Policy
National Stability
National UnityEconomic Growth
National Stability
National Unity
Economic Growth
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 groupsStrong leadership by the administration, particularly its Prime Minister, MahathirHeterogeneous 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.