1-3-2024 (KUALA LUMPUR) Malaysia’s Deputy Prime Minister, Zahid Hamidi, unveiled the new Bumiputera Economic Transformation (TEB) initiative on February 29, asserting that it would benefit all Malaysians, not solely the majority community consisting predominantly of Malays and indigenous groups. The announcement was made during a controversial three-day congress aimed at enhancing Malay participation in the economy, coinciding with declining Malay support for Prime Minister Anwar Ibrahim’s unity government.
“Bumiputera,” which translates to “sons of the soil,” constitutes around 70% of Malaysia’s 34 million population. The TEB initiative aims for socio-economic justice, national prosperity, and well-being for the people, with a focus on fostering synergy between Bumiputera and non-Bumiputera communities.
Zahid emphasized that while the new economic agenda is pro-Bumiputera, the rights of non-Bumiputera would be safeguarded. The TEB includes a national endowment to aid lower-income Bumiputera in accessing education and health services. The government also aims to boost Bumiputera participation in the industrialization of the agricultural sector through initiatives like establishing a Bumiputera land corporation to enhance land ownership.
Prior to the TEB, Malaysia had implemented the New Economic Policy (NEP) for decades, an affirmative action policy initiated in 1969 following race riots. The NEP granted preferential rights to Bumiputera, but critics argued it primarily benefited the ruling elite and well-connected Malays.
Zahid acknowledged that the NEP’s goal of 30% Bumiputera equity ownership in domestic corporations had not been met, standing at 17.2%. The TEB aims to address these challenges and deliver tangible benefits to ordinary Bumiputera.
The congress marked a significant development as non-Malays attended the Bumiputera Economic Congress for the first time. Zahid emphasized inclusivity and called for greater cooperation between Malays and other communities, reassuring non-Malays that they would not be sidelined by the new policy.
The move to include non-Bumiputera was seen as transparent and open, intending to achieve economic harmony. Analysts suggest this inclusivity is crucial for economic development in the current global market volatility. The congress will continue until March 2, addressing ways to boost Malay participation in the economy while maintaining an inclusive approach.
