Nazir Razak, Musa Hitam say NEP fostered ‘tongkat culture’ among Malays

Former CIMB Group chairman Tan Sri Nazir Razak and former deputy prime minister Tun Musa Hitam have criticised the New Economic Policy (NEP) for fostering a culture of dependency among Malays and placing excessive emphasis on ownership and government assistance. During a forum titled "Remembering Tun Abdul Razak: Architect of Malaysia’s Development and Nation Building", both made their remarks about the NEP at an event discussing whether it should be reviewed, replaced or remodelled.

Nazir argued that the NEP was initially meant to last only 20 years and questioned its continued existence, citing the former deputy prime minister Tun Dr Ismail Abdul Rahman's description of it as a 20-year "handicap". He stated that if the NEP continues for too long, it will result in the "tongkat culture" becoming deeply embedded, referring to a culture of rent-seeking and reliance on government assistance.

The former CIMB chairman expressed concern about the NEP's focus on the distribution of shares and ownership, stating that it led to the emergence of "Ali Babas" and a lack of competition among Bumiputera businesses. He also questioned the practice of awarding contracts to Bumiputera businesses, suggesting that politicians' preference for choosing recipients over encouraging competition had weakened these businesses.

Musa, who served as deputy prime minister from 1981 to 1986, echoed these concerns, stating that the NEP had made Malays overly reliant on government assistance. He criticized the policy for fostering a sense of insecurity among recipients, who continue to feel that the assistance provided is insufficient and continue to demand more. Musa acknowledged that the NEP had benefited Malays and the country as a whole, but believed that it had also created a dependency on government aid that has outlived its intended purpose.