Bumiputera (Malaysia) - History

History

At the time of Malaya's independence from the British in 1957, the population included many first or second-generation immigrants who had come to fill colonial manpower needs as indentured labourers. Chinese entrepreneurs, who typically settled in urban areas, played a significant role in the commercial sector. The Communities Liaison Committee (CLC), comprising leading politicians from different racial backgrounds, supported the promotion of economic equality for the Malays, conditional on political equality for the non-Malays. CLC member E.E.C. Thuraisingham later said, "I and others believed that the backward Malays should be given a better deal. Malays should be assisted to attain parity with non-Malays to forge a united Malayan Nation of equals."

As a result, Article 153 of the Constitution states that,

It shall be the responsibility of the Yang di-Pertuan Agong to safeguard the special position of the Malays and natives of any of the States of Sabah and Sarawak and the legitimate interests of other communities in accordance with the provisions of this Article.

Article 160 defines a Malay as being one who "professes the religion of Islam, habitually speaks the Malay language, conforms to Malay customs and is the child of at least one parent who was born within the Federation of Malaysia before independence of Malaya on 31 August 1957, or the issue (off-spring) of such a person."

Article 8 of the Constitution, states that all Malaysian citizens shall be equal under the law, and "Except as expressly authorised by this Constitution, there shall be no discrimination against citizens on the ground only of religion, race, descent or place of birth in any law or in the appointment to any office or employment under a public authority or in the administration of any law relating to the acquisition, holding or disposition of property or the establishing or carrying on of any trade, business, profession, vocation or employment." Article 153 itself expressly forbids particular forms of discrimination; clause 5 states that "All persons of whatever race in the same grade in the service of the Federation shall, subject to the terms and conditions of their employment, be treated impartially," while clause 9 states: "Nothing in this Article shall empower Parliament to restrict business or trade solely for the purpose of reservations for Malays."

The term of the Bumiputras' special position has been disputed. The Reid Commission, which drafted the Constitution, initially proposed that Article 153 expire after 15 years unless renewed by Parliament. This qualification was struck from the final draft. After the 13 May Incident in 1969, representatives within the government argued over whether the special position of the bumiputras ought to have a sunset clause.

Ismail Abdul Rahman argued that "the question be left to the Malays themselves because ... as more and more Malays became educated and gained self-confidence, they themselves would do away with this 'special position'." Ismail believed the special position was "a slur on the ability of the Malays." In 1970, however, one member of the Cabinet said that Malay special rights would remain for "hundreds of years to come."

In the 1970s, the government implemented the New Economic Policy (NEP), designed to be a more aggressive form of affirmative action for the Bumiputra than Article 153. Article 153 provides specifically for the use of quotas in the granting of scholarships, positions in the civil service, and business licences, as well as native reservations of land. Policies under the rubric of the NEP include subsidies for real estate purchases, quotas for public equity shares, and general subsidies to Bumiputra businesses.

Former Prime Minister Abdullah Ahmad Badawi and his predecessor Dr. Mahathir bin Mohamad have both suggested that Malays should depend less on government assistance. Many observers believe full abolition of bumiputra privileges is unlikely, especially in view of the constitutional issues involved, although successive administrations since Mahathir have attempted to reform the system of government aid for the bumiputra. Some bumiputra groups believe further affirmative action is necessary.

Parliament began to use the term bumiputra in 1965. Following debate of the act to create the Majlis Amanah Rakyat (MARA), the government founded an agency to preserve bumiputra interests.