In their joint paper on wealth distribution, Lim and Gomez noted that an ethnic approach to wealth accumulation and distribution in the country has underpinned national policy making and implementation for over 37 years now. In no other country in the world is there to be found a similar preoccupation as seen in the longevity and wide array of NEP policies.
Lim and Gomez emphasized that the time for objective evaluation of the impact of wealth distribution policies and the relevance of NEP type policies is long overdue. They noted that the question of who are beneficiaries and losers of affirmative action policies, whether the benefits from programs are going to the deserving and needy, and whether there should be a cessation of racially biased programs should be of paramount concern – a point brought home to Malaysians by the recent HINDRAF public rally.
In their analysis of the corporate equity issue which has been a key target in wealth distribution, they pointed out that even on this single issue which has generated so much controversy, there is a serious dearth of objective research and analysis. This lacunae similarly applies to other key prongs of the NEP such as employment restructuring, higher occupational distribution, income disparities, poverty eradication and other aspects of wealth distribution.
Current policy formulation is dominated by government generated data and analysis and heavily skewed by narrow political and ethnic considerations. How credible is the official data and analysis is a cause for grave concern. This concern – the need for professional neutrality, rigor and transparency – and the importance of independent scholarly research and analysis – cannot be under-emphasized. It is perhaps the most important lesson for Malaysian policy makers to address should they be serious about improving outcomes and avoiding missteps on NEP type policies.