Hwok-Aun Lee | Institute of Southeast Asian Studies (original) (raw)

Papers by Hwok-Aun Lee

Research paper thumbnail of Malaysia's Progressive Wage Policy: Looming Questions for the Pilot Project

ISEAS Perspective 2024/48, 2024

Wage stagnation is a perennial problem in Malaysia which the country has addressed primarily thro... more Wage stagnation is a perennial problem in Malaysia which the country has addressed primarily through enforcing the minimum wage. The Progressive Wage Policy (PWP) piloted in June-September 2024 will introduce multiple wage floors above minimum wage and help employers pay Malaysian workers PWP-determined wages. Malaysia’s PWP is modelled after Singapore’s Progressive Wage Model (PWM). Both set wage floors corresponding with occupations, skills and training. Whereas Singapore enforces mandatory compliance and a proportional wage credit, Malaysia will start with a voluntary scheme with fixed amounts of wage subsidy. Promoting wage increases above the mandated minimum is a timely policy priority, and the top-down mechanism might help compensate for weak labour bargaining power. Nonetheless, Malaysia’s approach faces questions on how it will: credibly set multiple wage floors and account for cost-of-living variations; effectively raise productivity and enable employers to be self-reliant; establish an enforcement framework and manage the ramifications of exclusive application to Malaysians; adequately facilitate worker representation in governance structures. The piloting phase must subject the above to rigorous scrutiny before deciding to institutionalise the progressive wage policy. At the same time, Malaysia should consider wage policies that account for geographic cost-of-living differentials and maintain focus on the structural causes of weak labour bargaining power.

Research paper thumbnail of Can Malaysia Eliminate Forced Labour by 2030?

Can Malaysia Eliminate Forced Labour by 2030?

Research paper thumbnail of Unemployment among Malaysia’s Youth: Structural Trends and Current Challenges

• Youth unemployment poses pressing challenges for Malaysia. Structural problems deriving from ed... more • Youth unemployment poses pressing challenges for Malaysia. Structural problems deriving from education quality deficiencies, skills mismatch, and low-quality jobs have stressed labour markets in recent years-and are compounded by imminent recession. • The labour force participation of youth-aged 15-24 years-steadily increased over the past decade. While overall a positive trend, some specific developments should raise concern: 15-19 year-olds are much more likely to choose work over upper-and post-secondary education in Sabah, the state with the country's highest poverty rate; among ethnic groups, labour force participation of Indian young adults has dropped slightly. • Unemployment has been rising among 20-24 year-olds, particularly in urban areas, and remains persistently high among 15-19 year-olds. Male youth unemployment is notably high in Sabah, while female youth unemployment is high in most regions. Unemployment has also risen to alarmingly high levels in the young Indian labour force. • Youth will disproportionately bear the brunt of adverse effects from Covid-19. Young Malaysians are more vulnerable to employment loss in the face of tenuous job growth, coupled with a focus on worker retention which constrains new recruitment, and the increasing share of self-employed with minimal resources to absorb the downturn. • The weight of empirical evidence, on balance, underscores the need for Malaysia's labour markets-and education and training systems-to work better for the country's youth.

Research paper thumbnail of Counting Migrant Workers in Malaysia: A Needlessly Persisting Conundrum

 While foreign labour management is a top policy priority in Malaysia, the number of foreign wor... more  While foreign labour management is a top policy priority in Malaysia, the number of foreign workers in the country is a perennial mystery.  The official estimate of total foreign workers dropped from 6.7 million in late 2014 to 3.8 million in 2016. However, the Labour Force Survey (LFS) reports that the number of foreign workers, encompassing both documented and undocumented ones, increased from 1.8 million in 2013 to 2.2 million in 2016.  The LFS is the authoritative reference on the Malaysian workforce but undercounts foreign labour. Other sources such as the National Employment Returns usefully report the share of local and foreign workers within establishments.  Combining the respective strengths of the LFS and the NER, we estimate a minimum number of foreign workers of about 3.85 million. Given the clear undercounting in these datasets, the actual total must be significantly higher, possibly around 5.5 million.  It is imperative, and possible, for the Malaysian government to provide credible estimates of the number of foreign workers. Increasing clarity and veracity in this most basic information will enhance public discourse and policy making.

Research paper thumbnail of Mixed Signals: Malaysia’s 2018 Federal Budget and Education

 Malaysia's 2018 Federal Budget allocates copious funds for education.  Under the banner of the... more  Malaysia's 2018 Federal Budget allocates copious funds for education.  Under the banner of the TN50-National Transformation 2050an upcoming development blueprint, the budget supports efforts to adapt to the digital economy and finances school upgrading. However, the overall transformational thrust remains unclear; the TN50 brand largely co-opts existing programmes rather than launches new initiatives.  The budget speech generously allocates funding to support the Technical and Vocational Education and Training (TVET) Master Plan and its plans to centralize, under the Ministry of Human Resources (MoHR), the current disparate system. Follow-through will be crucial, but difficult, as signaled by the speech's promotion of technical institutions not under the MoHR's jurisdiction.  On education financing, the speech highlights infrastructure spending, giving scant attention to quality of schooling.  Higher education receives a boost, in contrast to severe cuts in recent years, but it remains to be seen whether this funds injection marks a policy revision or is merely stopgap relief.

Research paper thumbnail of Population, human capital and development: the Malaysia experience/Cheong Kee Cheok, Goh Kim Leng, Abdillah Noh, Kuppusamy Singaraveloo and Lee Hwok Aun

Like other countries in East and Southeast Asia, Malaysia has undergone a rapid demographic trans... more Like other countries in East and Southeast Asia, Malaysia has undergone a rapid demographic transition to low fertility. This has meant a growing share of the economically active population that will eventually peak as ageing becomes more pronounced. The potential increase in the labor force has been undermined by both rising enrollment in upper secondary and tertiary education, as well as by many females remaining outside the labor force. Together with high economic growth, this has created a shortage of labor. Immigrant labor, both legal and illegal, has stepped in to fill the gap but entrenched a low labor cost model. Breaking out of this requires strengthening the country's human capital base. While generous government expenditure and liberalization of the education sector has resulted in significant gains in numbers enrolled, several factors have had a negative effect on education quality. Unless reversed, this deterioration has long-term implications for the country's development.

Research paper thumbnail of Affirmative Action in Malaysia and South Africa: Contrasting Structures, Continuing Pursuits

Journal of Asian and African Studies, 2015

This paper examines affirmative action in Malaysia and South Africa, two regimes that favor major... more This paper examines affirmative action in Malaysia and South Africa, two regimes that favor majorities. Malaysia’s highly centralized and discretionary programme is in contrasts with South Africa’s more democratized, decentralized and statutory structure. With regard to affirmative action outcomes, both countries have made quantitative gains in increasing representation of Bumiputeras in Malaysia and blacks in South Africa, in tertiary education and high-level occupations. However, there is also evidence to suggest continuing, primarily qualitative, shortfalls, in terms of graduate capability, dependence on public sector employment, and persistent difficulty in cultivating private enterprise. The results reported here emphasize the importance of implementing affirmative action effectively in education, while exercising restraint in employment and enterprise development.

Research paper thumbnail of MALAYSIA'S NEW ECONOMIC POLICY AND AFFIRMATIVE ACTION: A REMEDY IN NEED OF A RETHINK

Handbook on Economics of Discrimination and Affirmative Action, 2023

Malaysia maintains one of the world's most extensive affirmative action regimes, buttressed by th... more Malaysia maintains one of the world's most extensive affirmative action regimes, buttressed by the transformative and iconic New Economic Policy (NEP). Constitutional provisions, political imperatives and socioeconomic conditions gave rise to the establishment of preferential policies in four broad sectors-higher education, employment, enterprise and ownership-favouring the political dominant but economically disadvantaged Bumiputera majority. This chapter elucidates the origins, programmes, outcomes and implications of affirmative action in Malaysia. A brief historical overview explains the language and context of the constitutional authorization of Bumiputera quotas and the modest implementation in the early post-independence years, followed by policy expansion, centralization and intensification from 1971 under the NEP, which was forged in the aftermath of May 13 th , 1969 racial conflagration. The NEP judiciously conceptualized a two-pronged strategy of poverty eradication regardless of race, and "social restructuring" through Bumiputera-targeted affirmative action, as distinct but complementary elements of the ultimate goals of national integration, which entails redressing imbalances and ultimately rolling back overt preferential treatment. However, the NEP lacked a systematic articulation of policy objectives, instruments and outcomes. Malaysia has registered immense progress in facilitating Bumiputera access, participation and upward mobility in the four designated policy sectors. Recent discourses have popularized misguided notions of reform that conflate the NEP's twin elements, and omit attention to the decisive shortfall of affirmative action-its inefficacy in building capability and competitiveness among the Bumiputera beneficiaries, which are requisite for Malaysia to attain the ultimate NEP goals. Malaysia has substantially remedied destabilizing inequalities, but moving forward, must fundamentally rethink affirmative action.

Research paper thumbnail of Decent Work, Wage Growth as National Objective

Where Do We Go Work-wise? Malaysia's Labour Landscape, 2023

This chapter provides an overview of Malaysia’s efforts to foster decent work, assessment of the ... more This chapter provides an overview of Malaysia’s efforts to foster decent
work, assessment of the impacts of the Covid-19 induced recession and
discussion of pertinent legislative and policy shifts in the post-Covid period. Minimum wage was raised in 2022 but the reversion to a single national rate limits the scope of this policy instrument to redress the problem of low salaries, especially for fresh graduates. The Employment Act amendments and proposed legislation for 2023 mark progressive steps towards better work conditions and work-life balance, such as lower hours, extended maternity and paternity leave, flexible options and regulations against forced labour and discrimination. These initial steps must be built upon, with decent work as the guiding principle. Breaking out of a low-wage regime will need continual progress to transition the economy towards quality jobs, good work conditions and high worker productivity. Decent work encompasses multiple dimensions. This chapter will focus our Covid-19 impact assessment on unemployment assistance, job protection, wage growth, and workplace and living conditions that particularly affect migrant workers.1 We will also focus on minimum wage as a primary wage-raising instrument, while discussing policy implications more broadly, especially in light of contemporary and broad-ranging legislative changes.

Research paper thumbnail of Group-Based Redistribution in Malaysia: Polarization, Incoherence, Stasis

Social Inclusion, 2024

Group-based redistribution is extensive and embedded in Malaysia, and has comprehensively transfo... more Group-based redistribution is extensive and embedded in Malaysia, and has comprehensively transformed the country since the introduction of the New Economic Policy (NEP) in 1971. The NEP established a "two-pronged" framework of poverty reduction irrespective of race and social restructuring to redress racial inequalities primarily through preferential programmes targeting the disadvantaged Bumiputera majority. The debate surrounding the NEP has under-appreciated its strengths and augmented its omissions and misconceptions, which in turn have shaped policy discourses and attitudes in two ways. First, there is marked polarization, largely along ethnic lines, with the majority group overwhelmingly predisposed in favour of Bumiputera policy and minority groups generally wary of its continuation. The polarization unduly reduces the debate to monolithic pro-NEP vs anti-NEP dispositions, and constricts the solutions to a false binary question of continuing vs terminating the NEP. Second, a broad but incoherent consensus has consolidated around the notion that "need-based" policies should comprehensively replace "race-based" policies. While "need-based" policies are widely embraced, they emphatically do not constitute a substitute for "race-based" policies, or group-based redistribution more generally. Surveys have captured the ethnic polarization surrounding "Malay privileges," but also show that Malaysians unanimously support universal basic assistance. A systematic policy reformulation with universal basic needs and group-based interventions as enduring and distinct domains might hold out possibilities for new and constructive compromise.

Research paper thumbnail of Labour Policy in Post-Covid-19 Malaysia: Crisis Responses, Structural Reform

Japan Labor Issues vol.7 no.45, 2023

Malaysia’s labour policies and institutions have tended to lag behind international standards and... more Malaysia’s labour policies and institutions have tended to lag behind international standards and the expected attainments of an upper-middle-income country on the cusp of high-income status. Notably, the country has sustained low unemployment rates but real wages also remain persistently low. Recent years have seen both a flourish of change that have advanced the catch-up process―but also exposés of shortcomings,
particularly forced labour conditions, which emphatically show the distances still to cover toward the national aspiration of a high-skilled, high-productivity, high-wage economy offering decent work and quality of life. Malaysia’s passage through Covid-19 and economic shutdown demonstrates the mix of progress and stasis that characterizes the country’s labour policies, with substantial job protection and wage support that mitigated higher unemployment, while forced labour and dismal work and living conditions of migrant workers also came to public prominence. This paper provides an overview of Malaysia’s labour policies, with particular attention to developments of the past decade. I survey the main legislative and policy landmarks, with some discussion of their distinctive
features and limitations. I then consider Covid-19 impacts and policy responses in 2020–2021―with a focus on unemployment and wages―and unpack the forced labour issues, predominantly affecting migrant workers, that simultaneously came to the fore. The paper concludes with discussion of the dynamics of positive change and systemic hurdles, broadening the perspective again to structural features of Malaysia’s labour regime and potential areas of reform.

Research paper thumbnail of Insufficient States: Revisiting the Roles and Resources of Malaysia's Subnational Governments

ISEAS Perspective, 2023

Malaysia’s state governments may appear to be more autonomous and empowered with their elections ... more Malaysia’s state governments may appear to be more autonomous and empowered with their elections taking place outside of the general election cycle. Only three states held elections concurrently with the November 2022 general election; six Peninsular states went to the polls in August 2023. However, the sentimental resonance and political consequence of these elections outweigh the designated roles and material resources of state governments. In 2022, state governments received revenue of RM926 per capita, one-tenth of the federal government’s RM8,969. The constitution vests important roles in land management, social welfare and local government supervision to state governments, but heavily circumscribes them nevertheless. In practice, the states are restricted — notably in the overwhelming role the federal government plays in social welfare and public health, despite these being under joint federal-state jurisdiction. All state governments rely heavily on land-based revenue which arguably induces over-exploitation and commercial ventures that lack transparency. Only Sabah and Sarawak are mandated to collect sales tax. Local governments collect property-based revenue to deliver local services, in a logical structure of functions and circulation of funds. More federal functions should be devolved to the states, particularly in social welfare and public health, and state capacities should be bolstered by statutory expansion of revenue collection, especially through consumption taxes. Reforms are required to empower state governments to be responsive and for subnational governance to be effective.

Research paper thumbnail of Selangor's 2023 State Election: Pakatan-BN's Defense, Perikatan's Breakthrough

ISEAS Perspective 2023/79, 2023

The Pakatan Harapan – Barisan Nasional (PH – BN) pact retained power at Selangor’s 2023 state ele... more The Pakatan Harapan – Barisan Nasional (PH – BN) pact retained power at Selangor’s 2023 state election of 12 August, but saw its seat count drop from 45 to 34. Rival Perikatan Nasional (PN) made major gains, burgeoning from 5 to 22 and depriving PH-BN of a two-thirds majority in the 56-seat assembly. PH maintained incumbency advantages, leveraging its track record, steady administration and social programmes to win 60 per cent of the popular vote. However, PH lost ground in the Malay electorate and suffered a lower turnout of its base; the continuing decline of UMNO curtailed the benefits of PH’s partnership with BN. PN’s popularity has surged; the coalition expectedly dominated in Malay supermajority seats. A coordinated campaign, lavish manifesto and targeted messaging – notably at youths, women, and the Indian community – contributed to its increased share of Selangor votes, from 27.5 per cent in November 2022 to 37.8 per cent nine months later. The PH-BN government has a host of young assemblypersons, and with a fresh mandate for Chief Minister Amirudin Shari’s second term, has strengths to build on. However, PN’s expansion and morale-boosting wins presage a robust opposition and a more competitive political arena. PH’s 2008-2023 era of dominance has ended; the next chapter of Selangor’s politics remains to be written.

Research paper thumbnail of Diversity in Malaysia's Civil Service: From Venting Old Grouses to Seeking New Grounds

ISEAS Perspective 2023/34, 2023

A call for increased minority representation in Malaysia’s civil service recently sparked another... more A call for increased minority representation in Malaysia’s civil service recently sparked another fierce public debate. Ethnic Malays, comprising 57 per cent of Malaysian citizens, account for 78 per cent of federal government staff — and 80 per cent of top decision-making positions. The lack of diversity, and minority groups’ sense of exclusion, are legitimate concerns. However, the debate remains polarised and deadlocked, with proponents of change decrying the problem in absolute terms of Malay “domination”, “racial policy” and discrimination, while opponents intransigently defend the status quo often through invoking “Malay rights”. The government’s muted response to this sensitive topic is understandable. At the same time, promoting diversity in Malaysia’s civil service might be possible with coherent and measured approaches, and critical appraisal of past efforts to increase diversity and current employment practices, including the authorities’ claim that meritocracy already applies in recruitment exercises. Policy dialogues can start by clarifying the underlying principles and practical scope for promoting diversity and by cultivating new grounds for facilitating equitable representation of all groups. Shifting a colossus like Malaysia’s civil service will be difficult, and progress must be slow and incremental for it to be sustained. Nonetheless, such efforts are worthwhile and perhaps even viable — provided the debate dispenses with habitual posturing that detracts from systematic solutions.

Research paper thumbnail of Can Malaysia eliminate forced labour by 2030?

Trends in Southeast Asia 2023 No. 2, 2023

Forced labour, encompassing various types of coercive practices and rights violations, is an entr... more Forced labour, encompassing various types of coercive practices and rights violations, is an entrenched problem in Malaysia. Recent years have seen more decisive and concerted efforts to resolve the problem and repair Malaysia’s damaged reputation, but the country’s forced labour woes escalated amid COVID-19, with exposés and trade embargoes in 2020–21. Most consequentially, the US has imposed withhold release orders (WROs) on major rubber glove manufacturers and palm oil producers. For two consecutive years, 2021–22, Malaysia has occupied the lowest Tier 3 in the US Trafficking in Persons report. In November 2021, the country’s National Action Plan on Forced Labour (NAPFL), formulated through tripartite engagements with the participation of the International Labour Organization, was launched, with the third National Action Plan on Trafficking in Persons (NAPTIP 3.0) operating in tandem.

The NAPFL outlines strategies and integrated measures for eventually eliminating forced labour by 2030, which requires systemic solutions commensurate with the magnitude of underlying problems. Forced labour has persisted despite the official termination of labour outsourcing and increased intergovernmental bilateral initiatives to better manage foreign worker flows. Continual challenges in the labour supply industry and the administrative system, including the problematic overlapping powers of the Ministry of Home Affairs and Ministry of Human Resources, complicate the creation and implementation of a more just, effective and accountable migrant worker system. Government-to-government (G2) agreements, through Memorandum of Understanding, have become the established platform, but are marred by inconsistency and lack of transparency. The new government of Malaysia will need to address deep-seated issues and confront vested interests, domestically and in the labour source countries, to realize the aspiration of eliminating forced labour by 2030.

Research paper thumbnail of Malaysia's GE-15 Manifestos: Wading Through a Flood of Offerings

ISEAS Perspective 2022 No. 113, 2022

Malaysia will hold its 15th General Election (GE-15) on 19 November, at the onset of the monsoon ... more Malaysia will hold its 15th General Election (GE-15) on 19 November, at the onset of the monsoon season. An unprecedented three national coalitions are vying for hearts and minds, six million of whom are new voters. Manifestos of the three national coalitions — Barisan Nasional (BN), Pakatan Harapan (PH) and Perikatan Nasional (PN) — have departed somewhat from GE-14’s overpromise and self-aggrandizement but nevertheless still present a litany of “offerings”. BN is rallying around “Prosperity and Stability”, maintaining its DNA of material bounty, with novel elements and an inclusive posture. PH re-evokes the spirit of change – “We Can!” – with a people-centric and reformist but more cerebral action plan. PN, with its “Concerned, Clean, Stable” clarion call, projects competency and responsiveness – and a counterpoint to BN. On socioeconomic policies, all manifestos tap into voter concerns and insecurities about economic, education, health and climate crises. BN and PN present vast arrays, delivered in a simple checklist format; while PH’s offerings, though also broad, pay more attention to structural solutions. All sides court the youth, East Malaysia, women, rural communities, and low-income households. Notably, only PN explicitly articulates policies for ethnic groups. BN can rely on their base’s tacit assurance that ethnically-targeted policies will be safeguarded, while PH is banking on its all-Malaysia stance, with some indirect outreach to minority groups. Governance and institutional reforms are prominent in all the manifestos. While PH’s plans are the most substantive, BN’s is reticent specifically on anti-corruption measures. The manifestos provide voters with plenty to consider and some insight into each coalition’s policy stances and election strategies.

Research paper thumbnail of Malaysia's New Economic Policy: Fifty Years of Polarization and Impasse

Southeast Asian Studies, 2022

The New Economic Policy has transformed Malaysia since 1971. Pro-Bumiputera affirmative action ha... more The New Economic Policy has transformed Malaysia since 1971. Pro-Bumiputera affirmative action has been intensively pursued and continuously faced pushback. This paper revisits three key junctures in the NEP's fifty-year history that heightened policy debates-and the ensuing persistent polarization and stalemate in policy discourses. First, at its inception in the early 1970s, despite substantial clarity in its two-pronged poverty alleviation and social restructuring structure, the NEP was marred by gaps and omissions, notably its ambiguity on policy mechanisms and long-term implications, and inordinate emphasis on Bumiputera equity ownership. Broader discourses have imbibed these elements, and they tend to be more selective than systematic in policy critique. Second, during the late 1980s, rousing deliberations on the successor to the NEP settled on a growth-oriented strategy that basically retained the NEP framework and extended ethnicity-driven compromises. Third, since 2010, notions of reform and alternatives to the NEP's affirmative action program have been propagated, which despite bold proclamations again amount to partial and selective-not comprehensive-change. Affirmative action presently drifts along, with minor modifications and incoherent reform rhetoric stemming from conflation of the NEP's two prongs. Breaking out of the prevailing polarization and impasse requires a systematic and constructive rethink.

Research paper thumbnail of Social Justice and Affirmative Action in Malaysia: The New Economic Policy After 50 Years

Asian Economic Policy Review, 2022

Malaysia's New Economic Policy (NEP), promulgated in 1971, established a two-pronged national soc... more Malaysia's New Economic Policy (NEP), promulgated in 1971, established a two-pronged national social justice agenda of poverty reduction, and social restructuring or pro-Bumiputera affirmative action. This distinction of these policy objectives must be appreciated, but various misconceptions, especially regarding affirmative action, have resulted in polarization and stalemate after fifty years of the NEP. Social justice and affirmative action must be conceptualized and evaluated with clarity and rigor, with policy objectives, mechanisms and outcomes aligned. Malaysia needs to systematically formulate a new social justice paradigm, building on the NEP and anchored on the principles of equality and fairness. In the affirmative action sphere, this framework must focus on developing capability and competitiveness, and balance identity, need and merit in the allocation of opportunity.

Research paper thumbnail of Malaysia's Bumiputera Development Action 2030: Maintaining Focus, Moderating Ambition

ISEAS Perspective 2022 / 51, 2022

Malaysia’s Bumiputera Development Action 2030 (known by its Malay acronym TPB2030) is a major blu... more Malaysia’s Bumiputera Development Action 2030 (known by its Malay acronym TPB2030) is a major blueprint. Its genesis can be traced to Pakatan Harapan’s rule; its continuity across changes in Prime Ministers reflects the embeddedness of Bumiputera policies. TPB2030 largely maintains the focus of the Bumiputera Economic Transformation
programme, its predecessor, on cultivating dynamic and competitive enterprise. These are justifiably high priorities in Bumiputera development, and also areas of acute underachievement. The blueprint brings added focus and structure compared to preceding efforts, with targeted sectors, more integrated support, and high-powered oversight. Gaps in the
formulation of policy targets and funding, however, need to be addressed. More fundamentally, TPB2030’s sweeping ambition – conflated with the expansive Shared Prosperity Vision 2030 – departs from its specific scope and may detract from policy coherence and efficacy. Median income of urban Bumiputera households is on par with urban Indian households. Disparities in well-being have diminished as a justification for Bumiputera development policies, underscoring the imperative of
TPB2030’s focus on disparities in participation and capacity. Policy design and evaluation programmes must resolutely and rigorously maintain focus
on TPB2030’s primary mission of developing Bumiputera enterprise. Malaysia must monitor progress and draw lessons, not just for Bumiputera policies but also for broader group-targeted policies based on ethnicity and gender.

Research paper thumbnail of The New Economic Policy Beyond Fifty: Assessing its Strengths and Weaknesses to Chart a Cohesive Malaysian Society

IDEAS Policy Paper No. 73, 2021

The New Economic Policy’s 50th anniversary in 2021 provides an opportunity to reflect on its achi... more The New Economic Policy’s 50th anniversary in 2021 provides an opportunity to reflect on its achievements and shortfalls, and imagine boldly into the future. Undoubtedly, Malaysia has been transformed by the NEP at all levels and aspects. Its presence has been far reaching, enduring beyond the original timeframe of 1971-1990, and its legacy will continue into the foreseeable future. The debates surrounding the NEP tend to be polarising and often reach a stalemate; however, a more constructive engagement is possible through re-appreciating the NEP’s strengths and examining its weaknesses/omissions, grappling with its policy discourses as well as with its popular but misguided perspectives. This paper suggests that by doing all these, we can ultimately recraft the NEP to forge a cohesive and inclusive Malaysian society.

Research paper thumbnail of Malaysia's Progressive Wage Policy: Looming Questions for the Pilot Project

ISEAS Perspective 2024/48, 2024

Wage stagnation is a perennial problem in Malaysia which the country has addressed primarily thro... more Wage stagnation is a perennial problem in Malaysia which the country has addressed primarily through enforcing the minimum wage. The Progressive Wage Policy (PWP) piloted in June-September 2024 will introduce multiple wage floors above minimum wage and help employers pay Malaysian workers PWP-determined wages. Malaysia’s PWP is modelled after Singapore’s Progressive Wage Model (PWM). Both set wage floors corresponding with occupations, skills and training. Whereas Singapore enforces mandatory compliance and a proportional wage credit, Malaysia will start with a voluntary scheme with fixed amounts of wage subsidy. Promoting wage increases above the mandated minimum is a timely policy priority, and the top-down mechanism might help compensate for weak labour bargaining power. Nonetheless, Malaysia’s approach faces questions on how it will: credibly set multiple wage floors and account for cost-of-living variations; effectively raise productivity and enable employers to be self-reliant; establish an enforcement framework and manage the ramifications of exclusive application to Malaysians; adequately facilitate worker representation in governance structures. The piloting phase must subject the above to rigorous scrutiny before deciding to institutionalise the progressive wage policy. At the same time, Malaysia should consider wage policies that account for geographic cost-of-living differentials and maintain focus on the structural causes of weak labour bargaining power.

Research paper thumbnail of Can Malaysia Eliminate Forced Labour by 2030?

Can Malaysia Eliminate Forced Labour by 2030?

Research paper thumbnail of Unemployment among Malaysia’s Youth: Structural Trends and Current Challenges

• Youth unemployment poses pressing challenges for Malaysia. Structural problems deriving from ed... more • Youth unemployment poses pressing challenges for Malaysia. Structural problems deriving from education quality deficiencies, skills mismatch, and low-quality jobs have stressed labour markets in recent years-and are compounded by imminent recession. • The labour force participation of youth-aged 15-24 years-steadily increased over the past decade. While overall a positive trend, some specific developments should raise concern: 15-19 year-olds are much more likely to choose work over upper-and post-secondary education in Sabah, the state with the country's highest poverty rate; among ethnic groups, labour force participation of Indian young adults has dropped slightly. • Unemployment has been rising among 20-24 year-olds, particularly in urban areas, and remains persistently high among 15-19 year-olds. Male youth unemployment is notably high in Sabah, while female youth unemployment is high in most regions. Unemployment has also risen to alarmingly high levels in the young Indian labour force. • Youth will disproportionately bear the brunt of adverse effects from Covid-19. Young Malaysians are more vulnerable to employment loss in the face of tenuous job growth, coupled with a focus on worker retention which constrains new recruitment, and the increasing share of self-employed with minimal resources to absorb the downturn. • The weight of empirical evidence, on balance, underscores the need for Malaysia's labour markets-and education and training systems-to work better for the country's youth.

Research paper thumbnail of Counting Migrant Workers in Malaysia: A Needlessly Persisting Conundrum

 While foreign labour management is a top policy priority in Malaysia, the number of foreign wor... more  While foreign labour management is a top policy priority in Malaysia, the number of foreign workers in the country is a perennial mystery.  The official estimate of total foreign workers dropped from 6.7 million in late 2014 to 3.8 million in 2016. However, the Labour Force Survey (LFS) reports that the number of foreign workers, encompassing both documented and undocumented ones, increased from 1.8 million in 2013 to 2.2 million in 2016.  The LFS is the authoritative reference on the Malaysian workforce but undercounts foreign labour. Other sources such as the National Employment Returns usefully report the share of local and foreign workers within establishments.  Combining the respective strengths of the LFS and the NER, we estimate a minimum number of foreign workers of about 3.85 million. Given the clear undercounting in these datasets, the actual total must be significantly higher, possibly around 5.5 million.  It is imperative, and possible, for the Malaysian government to provide credible estimates of the number of foreign workers. Increasing clarity and veracity in this most basic information will enhance public discourse and policy making.

Research paper thumbnail of Mixed Signals: Malaysia’s 2018 Federal Budget and Education

 Malaysia's 2018 Federal Budget allocates copious funds for education.  Under the banner of the... more  Malaysia's 2018 Federal Budget allocates copious funds for education.  Under the banner of the TN50-National Transformation 2050an upcoming development blueprint, the budget supports efforts to adapt to the digital economy and finances school upgrading. However, the overall transformational thrust remains unclear; the TN50 brand largely co-opts existing programmes rather than launches new initiatives.  The budget speech generously allocates funding to support the Technical and Vocational Education and Training (TVET) Master Plan and its plans to centralize, under the Ministry of Human Resources (MoHR), the current disparate system. Follow-through will be crucial, but difficult, as signaled by the speech's promotion of technical institutions not under the MoHR's jurisdiction.  On education financing, the speech highlights infrastructure spending, giving scant attention to quality of schooling.  Higher education receives a boost, in contrast to severe cuts in recent years, but it remains to be seen whether this funds injection marks a policy revision or is merely stopgap relief.

Research paper thumbnail of Population, human capital and development: the Malaysia experience/Cheong Kee Cheok, Goh Kim Leng, Abdillah Noh, Kuppusamy Singaraveloo and Lee Hwok Aun

Like other countries in East and Southeast Asia, Malaysia has undergone a rapid demographic trans... more Like other countries in East and Southeast Asia, Malaysia has undergone a rapid demographic transition to low fertility. This has meant a growing share of the economically active population that will eventually peak as ageing becomes more pronounced. The potential increase in the labor force has been undermined by both rising enrollment in upper secondary and tertiary education, as well as by many females remaining outside the labor force. Together with high economic growth, this has created a shortage of labor. Immigrant labor, both legal and illegal, has stepped in to fill the gap but entrenched a low labor cost model. Breaking out of this requires strengthening the country's human capital base. While generous government expenditure and liberalization of the education sector has resulted in significant gains in numbers enrolled, several factors have had a negative effect on education quality. Unless reversed, this deterioration has long-term implications for the country's development.

Research paper thumbnail of Affirmative Action in Malaysia and South Africa: Contrasting Structures, Continuing Pursuits

Journal of Asian and African Studies, 2015

This paper examines affirmative action in Malaysia and South Africa, two regimes that favor major... more This paper examines affirmative action in Malaysia and South Africa, two regimes that favor majorities. Malaysia’s highly centralized and discretionary programme is in contrasts with South Africa’s more democratized, decentralized and statutory structure. With regard to affirmative action outcomes, both countries have made quantitative gains in increasing representation of Bumiputeras in Malaysia and blacks in South Africa, in tertiary education and high-level occupations. However, there is also evidence to suggest continuing, primarily qualitative, shortfalls, in terms of graduate capability, dependence on public sector employment, and persistent difficulty in cultivating private enterprise. The results reported here emphasize the importance of implementing affirmative action effectively in education, while exercising restraint in employment and enterprise development.

Research paper thumbnail of MALAYSIA'S NEW ECONOMIC POLICY AND AFFIRMATIVE ACTION: A REMEDY IN NEED OF A RETHINK

Handbook on Economics of Discrimination and Affirmative Action, 2023

Malaysia maintains one of the world's most extensive affirmative action regimes, buttressed by th... more Malaysia maintains one of the world's most extensive affirmative action regimes, buttressed by the transformative and iconic New Economic Policy (NEP). Constitutional provisions, political imperatives and socioeconomic conditions gave rise to the establishment of preferential policies in four broad sectors-higher education, employment, enterprise and ownership-favouring the political dominant but economically disadvantaged Bumiputera majority. This chapter elucidates the origins, programmes, outcomes and implications of affirmative action in Malaysia. A brief historical overview explains the language and context of the constitutional authorization of Bumiputera quotas and the modest implementation in the early post-independence years, followed by policy expansion, centralization and intensification from 1971 under the NEP, which was forged in the aftermath of May 13 th , 1969 racial conflagration. The NEP judiciously conceptualized a two-pronged strategy of poverty eradication regardless of race, and "social restructuring" through Bumiputera-targeted affirmative action, as distinct but complementary elements of the ultimate goals of national integration, which entails redressing imbalances and ultimately rolling back overt preferential treatment. However, the NEP lacked a systematic articulation of policy objectives, instruments and outcomes. Malaysia has registered immense progress in facilitating Bumiputera access, participation and upward mobility in the four designated policy sectors. Recent discourses have popularized misguided notions of reform that conflate the NEP's twin elements, and omit attention to the decisive shortfall of affirmative action-its inefficacy in building capability and competitiveness among the Bumiputera beneficiaries, which are requisite for Malaysia to attain the ultimate NEP goals. Malaysia has substantially remedied destabilizing inequalities, but moving forward, must fundamentally rethink affirmative action.

Research paper thumbnail of Decent Work, Wage Growth as National Objective

Where Do We Go Work-wise? Malaysia's Labour Landscape, 2023

This chapter provides an overview of Malaysia’s efforts to foster decent work, assessment of the ... more This chapter provides an overview of Malaysia’s efforts to foster decent
work, assessment of the impacts of the Covid-19 induced recession and
discussion of pertinent legislative and policy shifts in the post-Covid period. Minimum wage was raised in 2022 but the reversion to a single national rate limits the scope of this policy instrument to redress the problem of low salaries, especially for fresh graduates. The Employment Act amendments and proposed legislation for 2023 mark progressive steps towards better work conditions and work-life balance, such as lower hours, extended maternity and paternity leave, flexible options and regulations against forced labour and discrimination. These initial steps must be built upon, with decent work as the guiding principle. Breaking out of a low-wage regime will need continual progress to transition the economy towards quality jobs, good work conditions and high worker productivity. Decent work encompasses multiple dimensions. This chapter will focus our Covid-19 impact assessment on unemployment assistance, job protection, wage growth, and workplace and living conditions that particularly affect migrant workers.1 We will also focus on minimum wage as a primary wage-raising instrument, while discussing policy implications more broadly, especially in light of contemporary and broad-ranging legislative changes.

Research paper thumbnail of Group-Based Redistribution in Malaysia: Polarization, Incoherence, Stasis

Social Inclusion, 2024

Group-based redistribution is extensive and embedded in Malaysia, and has comprehensively transfo... more Group-based redistribution is extensive and embedded in Malaysia, and has comprehensively transformed the country since the introduction of the New Economic Policy (NEP) in 1971. The NEP established a "two-pronged" framework of poverty reduction irrespective of race and social restructuring to redress racial inequalities primarily through preferential programmes targeting the disadvantaged Bumiputera majority. The debate surrounding the NEP has under-appreciated its strengths and augmented its omissions and misconceptions, which in turn have shaped policy discourses and attitudes in two ways. First, there is marked polarization, largely along ethnic lines, with the majority group overwhelmingly predisposed in favour of Bumiputera policy and minority groups generally wary of its continuation. The polarization unduly reduces the debate to monolithic pro-NEP vs anti-NEP dispositions, and constricts the solutions to a false binary question of continuing vs terminating the NEP. Second, a broad but incoherent consensus has consolidated around the notion that "need-based" policies should comprehensively replace "race-based" policies. While "need-based" policies are widely embraced, they emphatically do not constitute a substitute for "race-based" policies, or group-based redistribution more generally. Surveys have captured the ethnic polarization surrounding "Malay privileges," but also show that Malaysians unanimously support universal basic assistance. A systematic policy reformulation with universal basic needs and group-based interventions as enduring and distinct domains might hold out possibilities for new and constructive compromise.

Research paper thumbnail of Labour Policy in Post-Covid-19 Malaysia: Crisis Responses, Structural Reform

Japan Labor Issues vol.7 no.45, 2023

Malaysia’s labour policies and institutions have tended to lag behind international standards and... more Malaysia’s labour policies and institutions have tended to lag behind international standards and the expected attainments of an upper-middle-income country on the cusp of high-income status. Notably, the country has sustained low unemployment rates but real wages also remain persistently low. Recent years have seen both a flourish of change that have advanced the catch-up process―but also exposés of shortcomings,
particularly forced labour conditions, which emphatically show the distances still to cover toward the national aspiration of a high-skilled, high-productivity, high-wage economy offering decent work and quality of life. Malaysia’s passage through Covid-19 and economic shutdown demonstrates the mix of progress and stasis that characterizes the country’s labour policies, with substantial job protection and wage support that mitigated higher unemployment, while forced labour and dismal work and living conditions of migrant workers also came to public prominence. This paper provides an overview of Malaysia’s labour policies, with particular attention to developments of the past decade. I survey the main legislative and policy landmarks, with some discussion of their distinctive
features and limitations. I then consider Covid-19 impacts and policy responses in 2020–2021―with a focus on unemployment and wages―and unpack the forced labour issues, predominantly affecting migrant workers, that simultaneously came to the fore. The paper concludes with discussion of the dynamics of positive change and systemic hurdles, broadening the perspective again to structural features of Malaysia’s labour regime and potential areas of reform.

Research paper thumbnail of Insufficient States: Revisiting the Roles and Resources of Malaysia's Subnational Governments

ISEAS Perspective, 2023

Malaysia’s state governments may appear to be more autonomous and empowered with their elections ... more Malaysia’s state governments may appear to be more autonomous and empowered with their elections taking place outside of the general election cycle. Only three states held elections concurrently with the November 2022 general election; six Peninsular states went to the polls in August 2023. However, the sentimental resonance and political consequence of these elections outweigh the designated roles and material resources of state governments. In 2022, state governments received revenue of RM926 per capita, one-tenth of the federal government’s RM8,969. The constitution vests important roles in land management, social welfare and local government supervision to state governments, but heavily circumscribes them nevertheless. In practice, the states are restricted — notably in the overwhelming role the federal government plays in social welfare and public health, despite these being under joint federal-state jurisdiction. All state governments rely heavily on land-based revenue which arguably induces over-exploitation and commercial ventures that lack transparency. Only Sabah and Sarawak are mandated to collect sales tax. Local governments collect property-based revenue to deliver local services, in a logical structure of functions and circulation of funds. More federal functions should be devolved to the states, particularly in social welfare and public health, and state capacities should be bolstered by statutory expansion of revenue collection, especially through consumption taxes. Reforms are required to empower state governments to be responsive and for subnational governance to be effective.

Research paper thumbnail of Selangor's 2023 State Election: Pakatan-BN's Defense, Perikatan's Breakthrough

ISEAS Perspective 2023/79, 2023

The Pakatan Harapan – Barisan Nasional (PH – BN) pact retained power at Selangor’s 2023 state ele... more The Pakatan Harapan – Barisan Nasional (PH – BN) pact retained power at Selangor’s 2023 state election of 12 August, but saw its seat count drop from 45 to 34. Rival Perikatan Nasional (PN) made major gains, burgeoning from 5 to 22 and depriving PH-BN of a two-thirds majority in the 56-seat assembly. PH maintained incumbency advantages, leveraging its track record, steady administration and social programmes to win 60 per cent of the popular vote. However, PH lost ground in the Malay electorate and suffered a lower turnout of its base; the continuing decline of UMNO curtailed the benefits of PH’s partnership with BN. PN’s popularity has surged; the coalition expectedly dominated in Malay supermajority seats. A coordinated campaign, lavish manifesto and targeted messaging – notably at youths, women, and the Indian community – contributed to its increased share of Selangor votes, from 27.5 per cent in November 2022 to 37.8 per cent nine months later. The PH-BN government has a host of young assemblypersons, and with a fresh mandate for Chief Minister Amirudin Shari’s second term, has strengths to build on. However, PN’s expansion and morale-boosting wins presage a robust opposition and a more competitive political arena. PH’s 2008-2023 era of dominance has ended; the next chapter of Selangor’s politics remains to be written.

Research paper thumbnail of Diversity in Malaysia's Civil Service: From Venting Old Grouses to Seeking New Grounds

ISEAS Perspective 2023/34, 2023

A call for increased minority representation in Malaysia’s civil service recently sparked another... more A call for increased minority representation in Malaysia’s civil service recently sparked another fierce public debate. Ethnic Malays, comprising 57 per cent of Malaysian citizens, account for 78 per cent of federal government staff — and 80 per cent of top decision-making positions. The lack of diversity, and minority groups’ sense of exclusion, are legitimate concerns. However, the debate remains polarised and deadlocked, with proponents of change decrying the problem in absolute terms of Malay “domination”, “racial policy” and discrimination, while opponents intransigently defend the status quo often through invoking “Malay rights”. The government’s muted response to this sensitive topic is understandable. At the same time, promoting diversity in Malaysia’s civil service might be possible with coherent and measured approaches, and critical appraisal of past efforts to increase diversity and current employment practices, including the authorities’ claim that meritocracy already applies in recruitment exercises. Policy dialogues can start by clarifying the underlying principles and practical scope for promoting diversity and by cultivating new grounds for facilitating equitable representation of all groups. Shifting a colossus like Malaysia’s civil service will be difficult, and progress must be slow and incremental for it to be sustained. Nonetheless, such efforts are worthwhile and perhaps even viable — provided the debate dispenses with habitual posturing that detracts from systematic solutions.

Research paper thumbnail of Can Malaysia eliminate forced labour by 2030?

Trends in Southeast Asia 2023 No. 2, 2023

Forced labour, encompassing various types of coercive practices and rights violations, is an entr... more Forced labour, encompassing various types of coercive practices and rights violations, is an entrenched problem in Malaysia. Recent years have seen more decisive and concerted efforts to resolve the problem and repair Malaysia’s damaged reputation, but the country’s forced labour woes escalated amid COVID-19, with exposés and trade embargoes in 2020–21. Most consequentially, the US has imposed withhold release orders (WROs) on major rubber glove manufacturers and palm oil producers. For two consecutive years, 2021–22, Malaysia has occupied the lowest Tier 3 in the US Trafficking in Persons report. In November 2021, the country’s National Action Plan on Forced Labour (NAPFL), formulated through tripartite engagements with the participation of the International Labour Organization, was launched, with the third National Action Plan on Trafficking in Persons (NAPTIP 3.0) operating in tandem.

The NAPFL outlines strategies and integrated measures for eventually eliminating forced labour by 2030, which requires systemic solutions commensurate with the magnitude of underlying problems. Forced labour has persisted despite the official termination of labour outsourcing and increased intergovernmental bilateral initiatives to better manage foreign worker flows. Continual challenges in the labour supply industry and the administrative system, including the problematic overlapping powers of the Ministry of Home Affairs and Ministry of Human Resources, complicate the creation and implementation of a more just, effective and accountable migrant worker system. Government-to-government (G2) agreements, through Memorandum of Understanding, have become the established platform, but are marred by inconsistency and lack of transparency. The new government of Malaysia will need to address deep-seated issues and confront vested interests, domestically and in the labour source countries, to realize the aspiration of eliminating forced labour by 2030.

Research paper thumbnail of Malaysia's GE-15 Manifestos: Wading Through a Flood of Offerings

ISEAS Perspective 2022 No. 113, 2022

Malaysia will hold its 15th General Election (GE-15) on 19 November, at the onset of the monsoon ... more Malaysia will hold its 15th General Election (GE-15) on 19 November, at the onset of the monsoon season. An unprecedented three national coalitions are vying for hearts and minds, six million of whom are new voters. Manifestos of the three national coalitions — Barisan Nasional (BN), Pakatan Harapan (PH) and Perikatan Nasional (PN) — have departed somewhat from GE-14’s overpromise and self-aggrandizement but nevertheless still present a litany of “offerings”. BN is rallying around “Prosperity and Stability”, maintaining its DNA of material bounty, with novel elements and an inclusive posture. PH re-evokes the spirit of change – “We Can!” – with a people-centric and reformist but more cerebral action plan. PN, with its “Concerned, Clean, Stable” clarion call, projects competency and responsiveness – and a counterpoint to BN. On socioeconomic policies, all manifestos tap into voter concerns and insecurities about economic, education, health and climate crises. BN and PN present vast arrays, delivered in a simple checklist format; while PH’s offerings, though also broad, pay more attention to structural solutions. All sides court the youth, East Malaysia, women, rural communities, and low-income households. Notably, only PN explicitly articulates policies for ethnic groups. BN can rely on their base’s tacit assurance that ethnically-targeted policies will be safeguarded, while PH is banking on its all-Malaysia stance, with some indirect outreach to minority groups. Governance and institutional reforms are prominent in all the manifestos. While PH’s plans are the most substantive, BN’s is reticent specifically on anti-corruption measures. The manifestos provide voters with plenty to consider and some insight into each coalition’s policy stances and election strategies.

Research paper thumbnail of Malaysia's New Economic Policy: Fifty Years of Polarization and Impasse

Southeast Asian Studies, 2022

The New Economic Policy has transformed Malaysia since 1971. Pro-Bumiputera affirmative action ha... more The New Economic Policy has transformed Malaysia since 1971. Pro-Bumiputera affirmative action has been intensively pursued and continuously faced pushback. This paper revisits three key junctures in the NEP's fifty-year history that heightened policy debates-and the ensuing persistent polarization and stalemate in policy discourses. First, at its inception in the early 1970s, despite substantial clarity in its two-pronged poverty alleviation and social restructuring structure, the NEP was marred by gaps and omissions, notably its ambiguity on policy mechanisms and long-term implications, and inordinate emphasis on Bumiputera equity ownership. Broader discourses have imbibed these elements, and they tend to be more selective than systematic in policy critique. Second, during the late 1980s, rousing deliberations on the successor to the NEP settled on a growth-oriented strategy that basically retained the NEP framework and extended ethnicity-driven compromises. Third, since 2010, notions of reform and alternatives to the NEP's affirmative action program have been propagated, which despite bold proclamations again amount to partial and selective-not comprehensive-change. Affirmative action presently drifts along, with minor modifications and incoherent reform rhetoric stemming from conflation of the NEP's two prongs. Breaking out of the prevailing polarization and impasse requires a systematic and constructive rethink.

Research paper thumbnail of Social Justice and Affirmative Action in Malaysia: The New Economic Policy After 50 Years

Asian Economic Policy Review, 2022

Malaysia's New Economic Policy (NEP), promulgated in 1971, established a two-pronged national soc... more Malaysia's New Economic Policy (NEP), promulgated in 1971, established a two-pronged national social justice agenda of poverty reduction, and social restructuring or pro-Bumiputera affirmative action. This distinction of these policy objectives must be appreciated, but various misconceptions, especially regarding affirmative action, have resulted in polarization and stalemate after fifty years of the NEP. Social justice and affirmative action must be conceptualized and evaluated with clarity and rigor, with policy objectives, mechanisms and outcomes aligned. Malaysia needs to systematically formulate a new social justice paradigm, building on the NEP and anchored on the principles of equality and fairness. In the affirmative action sphere, this framework must focus on developing capability and competitiveness, and balance identity, need and merit in the allocation of opportunity.

Research paper thumbnail of Malaysia's Bumiputera Development Action 2030: Maintaining Focus, Moderating Ambition

ISEAS Perspective 2022 / 51, 2022

Malaysia’s Bumiputera Development Action 2030 (known by its Malay acronym TPB2030) is a major blu... more Malaysia’s Bumiputera Development Action 2030 (known by its Malay acronym TPB2030) is a major blueprint. Its genesis can be traced to Pakatan Harapan’s rule; its continuity across changes in Prime Ministers reflects the embeddedness of Bumiputera policies. TPB2030 largely maintains the focus of the Bumiputera Economic Transformation
programme, its predecessor, on cultivating dynamic and competitive enterprise. These are justifiably high priorities in Bumiputera development, and also areas of acute underachievement. The blueprint brings added focus and structure compared to preceding efforts, with targeted sectors, more integrated support, and high-powered oversight. Gaps in the
formulation of policy targets and funding, however, need to be addressed. More fundamentally, TPB2030’s sweeping ambition – conflated with the expansive Shared Prosperity Vision 2030 – departs from its specific scope and may detract from policy coherence and efficacy. Median income of urban Bumiputera households is on par with urban Indian households. Disparities in well-being have diminished as a justification for Bumiputera development policies, underscoring the imperative of
TPB2030’s focus on disparities in participation and capacity. Policy design and evaluation programmes must resolutely and rigorously maintain focus
on TPB2030’s primary mission of developing Bumiputera enterprise. Malaysia must monitor progress and draw lessons, not just for Bumiputera policies but also for broader group-targeted policies based on ethnicity and gender.

Research paper thumbnail of The New Economic Policy Beyond Fifty: Assessing its Strengths and Weaknesses to Chart a Cohesive Malaysian Society

IDEAS Policy Paper No. 73, 2021

The New Economic Policy’s 50th anniversary in 2021 provides an opportunity to reflect on its achi... more The New Economic Policy’s 50th anniversary in 2021 provides an opportunity to reflect on its achievements and shortfalls, and imagine boldly into the future. Undoubtedly, Malaysia has been transformed by the NEP at all levels and aspects. Its presence has been far reaching, enduring beyond the original timeframe of 1971-1990, and its legacy will continue into the foreseeable future. The debates surrounding the NEP tend to be polarising and often reach a stalemate; however, a more constructive engagement is possible through re-appreciating the NEP’s strengths and examining its weaknesses/omissions, grappling with its policy discourses as well as with its popular but misguided perspectives. This paper suggests that by doing all these, we can ultimately recraft the NEP to forge a cohesive and inclusive Malaysian society.

Research paper thumbnail of Introduction chapter of book "Inequality and exclusion in Southeast Asia: Old fractures, New Frontiers"

Inequality and exclusion in Southeast Asia: Old fractures, New Frontiers, 2021

Inequality is a defining global issue of our times. Southeast Asia stands out in some ways; the 2... more Inequality is a defining global issue of our times. Southeast Asia stands out in some ways; the 2010s have seen most countries in the region reduce income gaps. Nonetheless, inequality levels remain high, especially in the middle-income to high-income countries, and popular disaffection and economic anxiety prevail, even while official statistics may paint more buoyant scenarios. The age-old problem of group-based exclusion in the development process manifests in new ways. This book provides up-to-date overviews of inequality levels and trends, primarily related to income, but also wealth and other socioeconomic variables pertaining to education and health. The country chapters also examine salient themes of inequality, especially structural changes and public policies to redress inequality and exclusion, labour market developments, population groups, regional dynamics, and informal economies. We gain an appreciation for the unique conditions and diverse experiences of each country, and draw comparative insights across the region.

Research paper thumbnail of Inequality & exclusion in Southeast Asia: Old Fractures, New Frontiers (book Introduction)

Inequality & exclusion in Southeast Asia: Old Fractures, New Frontiers, 2021

Inequality is a defining global issue of our times. Southeast Asia stands out in some ways; the 2... more Inequality is a defining global issue of our times. Southeast Asia stands out in some ways; the 2010s have seen most countries in the region reduce income gaps. Nonetheless, inequality levels remain high, especially in the middle-income to high-income countries, and popular disaffection and economic anxiety prevail, even while official statistics may paint more buoyant scenarios. The age-old problem of group-based exclusion in the development process manifests in new ways. This book provides up-to-date overviews of inequality levels and trends, primarily related to income, but also wealth and other socioeconomic variables pertaining to education and health. The country chapters also examine salient themes of inequality, especially structural changes and public policies to redress inequality and exclusion, labour market developments, population groups, regional dynamics, and informal economies. We gain an appreciation for the unique conditions and diverse experiences of each country, and draw comparative insights across the region.

Research paper thumbnail of Inequality and Exclusion in Southeast Asia: Old Fractures, New Frontiers (front material)

Inequality and Exclusion in Southeast Asia: Old Fractures, New Frontiers, 2021

Inequality is a defining global issue of our times. Southeast Asia stands out in some ways; the 2... more Inequality is a defining global issue of our times. Southeast Asia stands out in some ways; the 2010s have seen most countries in the region reduce income gaps. Nonetheless, inequality levels remain high, especially in the middle-income to high-income countries, and popular disaffection and economic anxiety prevail, even while official statistics may paint more buoyant scenarios. The age-old problem of group-based exclusion in the development process manifests in new ways. This book provides up-to-date overviews of inequality levels and trends, primarily related to income, but also wealth and other socioeconomic variables pertaining to education and health. The country chapters also examine salient themes of inequality, especially structural changes and public policies to redress inequality and exclusion, labour market developments, population groups, regional dynamics, and informal economies. We gain an appreciation for the unique conditions and diverse experiences of each country, and draw comparative insights across the region.

Research paper thumbnail of Affirmative Action in Malaysia and South Africa: Preference for Parity

Routledge , 2021

Malaysia and South Africa implement the most extensive affirmative action programmes worldwide. T... more Malaysia and South Africa implement the most extensive affirmative action programmes worldwide. This book explores why and how to effect preferential treatment which has been utilized in the pursuit of inter-ethnic parity, specifically in higher education, high-level occupations, enterprise development and wealth ownership. Through methodical and critical analyses of data on education, workforce and population, the book evaluates the primary objectives of increasing majority representation in education, employment, enterprise and ownership. The book also critically considers questions of the attainments and limitations of ethnic preferential treatment in reducing disparity, the challenges of developing capability and reducing dependency and the scope for policy reforms.

Research paper thumbnail of Social Justice and Affirmative Action in Malaysia: The New Economic Policy After 50 Years

Malaysia's New Economic Policy (NEP), promulgated in 1971, established a two-pronged national soc... more Malaysia's New Economic Policy (NEP), promulgated in 1971, established a two-pronged national social justice agenda of poverty reduction, and social restructuring or pro-Bumiputera affirmative action. This distinction of these policy objectives must be appreciated, but various misconceptions, especially regarding affirmative action, have resulted in polarization and stalemate after fifty years of the NEP. Social justice and affirmative action must be conceptualized and evaluated with clarity and rigor, with policy objectives, mechanisms and outcomes aligned. Malaysia needs to systematically formulate a new social justice paradigm, building on the NEP and anchored on the principles of equality and fairness. In the affirmative action sphere, this framework must focus on developing capability and competitiveness, and balance identity, need and merit in the allocation of opportunity.

Research paper thumbnail of Fifty Years of Malaysia's New Economic Policy: Three Chapters with No Conclusion

ISEAS Economics Working Paper No. 2021 - 07, 2021

The New Economic Policy (NEP) which focused on poverty reduction and social restructuring has tra... more The New Economic Policy (NEP) which focused on poverty reduction and social restructuring has transformed Malaysia since 1971. Pro-Bumiputera affirmative action was intensively pursued and has continuously faced pushback, with heightened debate at key junctures. The NEP was marred by gaps and omissions, notably its ambiguity on policy mechanisms and long-term implications, and inordinate emphasis on Bumiputera equity ownership. Broader discourses have imbibed these elements and tend to be more selective than systematic in policy critique. During the late 1980s, rousing deliberations on the successor to the NEP settled on a growth-oriented strategy that basically retained the NEP framework and extended ethnicity-driven compromises. Since 2010, notions of reform and alternatives to the NEP’s affirmative action programme have been propagated, which despite bold proclamations, again amount to partial and selective – not comprehensive – change. Affirmative action presently drifts along, with minor modifications and incoherent reform rhetoric stemming from conflation of the NEP’s two prongs.