Mahathir's business-first focus failed the Bumiputeras, says economist

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Edmund Terrence Gomez says the turning point came when Mahathir shifted the focus from education to the development of Bumiputeras in the private sector. FMTNews Economy

September 27, 2020 9:00 AM

Calling this the major turning point from the initial success of affirmative action, Gomez said: “Dr M was a prime minister who was deeply enamoured by business. He decided that all affirmative action should focus far more attention on developing a Bumiputera business community.” Gomez was responding to a new study on affirmative action policies by economist Lee Hwok-Aun, who suggested that, beyond acquiring qualifications, Bumiputeras are still lagging behind in labour market mobility and educational achievements.

“He came in at a time when there was a global financial crisis. When he became PM, he looked into the state of the Malaysian economy and he consulted with many people to find out the issues. And his conclusion was, as he announced, no more affirmative action. It made the headlines.” He attributed this lack of business confidence to the fact that affirmative action had become a policy that was widely captured by political elites. “For example, in the case of Umno, it had moved from being a party mainly comprising teachers to a party that became well-known for having a lot of business people.”Gomez also pointed to the 40 years of affirmative action not having fully realised its objective.

 

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No he made millionaires to manage income disparity

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