New Economic Policy (Malaysia)

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As a result of the bloody unrest on May 13, 1969, a new economic policy was introduced in Malaysia , the so-called Malaysian New Economic Policy (abbreviation: NEP; Malay Dasar Ekonomi Baru), which has also become known as the Bumiputra policy. The aim of this policy is to strengthen the Malay ethnic group, which is inferior in many areas, compared to the Indian and Chinese, in order to reduce the conflicts. This policy still exists today and is the subject of controversial debate. The main content of this policy is:

1. At listed companies, at least 30% of the employees must be Bumiputra.

2. Builders must sell a pre-determined quota to Bumiputra when selling their own houses and grant a price reduction of at least 7%.

3. There are special government bonds that can only be purchased from Bumiputra.

4. Government contracts are often only awarded to Bumiputra. This leads to so-called “Ali-Baba” projects. Ali stands for a Bumiputra company that is only involved in the project on paper and receives a share of the profit. Baba stands for the executing company.

5. Quotas for access to universities. Less qualified Bumiputra get a right to a study place, while other students with higher qualifications are rejected.

6. Bumiputra gives preference to the import of new vehicles. The AP (Approved Permits) required for import are almost exclusively issued to Bumiputra. In the absence of financial opportunities, however, these are often resold. Estimated Market Value: RMB 35,000