Goals
The NEP had the stated goal of poverty eradication and economic restructuring so as to eliminate the identification of ethnicity with economic function. The initial target was to move the ratio of economic ownership in Malaysia from a 2.4:33:63 ratio of Bumiputra, Other Malaysian, Foreigner ownership to a 30:40:30 ratio. This was to be done by redistributing the wealth to increase the ownership of enterprise by Bumiputras from the then 2.4% to 30% of the share of national wealth. The 30% target for Bumiputra equity was proposed by Ismail Abdul Rahman after the government was unable to come to a consensus on an appropriate policy goal.
Alongside this redistribution of wealth was the goal of increased economic growth. This economic growth would allow the non-Bumiputra share of the economy to decrease, while permitting the growth of non-Bumiputra business interests in absolute terms. In some quarters, this was referred to as "expanding pie theory": the Bumiputra share of the pie would increase, without reducing the size of the non-Bumiputra slices of the pie. This theory was first enunciated in the Second Malaysia Plan.
In 1975 the government created incentives to expand large-scale manufacturing industries and energy-intensive industries, targeting these industries and building policies around them. The Heavy Industries Corporation of Malaysia (HICOM), for example, was formed in order to assist in the manufacture of pig-iron, aluminium die casting, pulp and paper, steel, cement, motorcycle and heavy engineering. At the same time, export incentives were initiated.
Read more about this topic: Malaysian New Economic Policy
Famous quotes containing the word goals:
“Let us beware of saying there are laws in nature. There are only necessities: there is no one to command, no one to obey, no one to transgress. When you realize there are no goals or objectives, then you realize, too, that there is no chance: for only in a world of objectives does the word “chance” have any meaning.”
—Friedrich Nietzsche (1844–1900)
“Artists have a double relationship towards nature: they are her master and her slave at the same time. They are her slave in so far as they must work with means of this world so as to be understood; her master in so far as they subject these means to their higher goals and make them subservient to them.”
—Johann Wolfgang Von Goethe (1749–1832)
“We cannot discuss the state of our minorities until we first have some sense of what we are, who we are, what our goals are, and what we take life to be. The question is not what we can do now for the hypothetical Mexican, the hypothetical Negro. The question is what we really want out of life, for ourselves, what we think is real.”
—James Baldwin (1924–1987)