In Malaysia, the NEP itself has given rise to a new ethnic-Malay middle class, but critics point out that it has also spawned a culture of corruption, cronyism and ethnic discrimination. Intra-ethnic and regional disparities have also widened. With the advent of neo-liberal policies in the late 1980s and 1990s, its effectiveness as a tool for wealth redistribution has been widely questioned.
Critics argue that the NEP has instead been used to promote the interests of the rich and entrench the ruling United Malays National Organization, whose politicians are loath to compromise on it. Not surprisingly, non-Malays who feel that the NEP discriminates against them would also like to see the back of this policy, and in general tend to welcome greater economic liberalization.
One Indian-Malaysian medical specialist who complained about discrimination in education and government jobs observed that middle-class non-Malays are caught between the status quo and full-blown liberalization.
"Where do we go from here? Only the multinational companies can provide the job opportunities for our children who are capable and brilliant," he remarked.
Economist Charles Santiago of the Kuala Lumpur-based Monitoring Globalization think-tank noted, "Non-Malays are so tired of the discrimination against them that many of them would support an FTA.
"But they have to keep in mind the larger implications of an FTA, which means that whether you are a Chinese, Malay or Kadazan [an ethnic groups indigenous to Sabah state] businessman or woman, you will face stiff competition from [transnational corporations] who are technologically superior," he warned. "It will be a takeover of our businesses in the long run."
He pointed out that the promises made by the EU in other countries it has free-trade deals with, such as Mexico, have not materialized. In the case of the EU-Mexico FTA that took effect in 2000, one report pointed out that Mexico's trade deficit ballooned from $9.4 billion in 2000 to $16.9 billion in 2006.
"There is a hidden agenda here," said Santiago. "They [EU officials] are in effect saying, 'You guys open up your economy so that our European investors can take over your market.'"
- Asia Time -