NEP cultivated culture of dependency, say Nazir Razak and Musa Hitam

Former CIMB Group chairman Nazir Razak and ex-deputy prime minister Musa Hitam have criticized the New Economic Policy (NEP), introduced in 1971. They argue that the NEP has fostered a culture of dependency and pampered the Malays.

Former CIMB Group chairman Nazir Razak stated that the NEP was only intended to last for two decades, and even its architect, Dr Ismail Abdul Rahman, called it a "20-year handicap." He warned that if the NEP remains in effect for too long, it will deeply embed a "tongkat culture" that becomes entrenched.

Razak believes the NEP should be reviewed, shifting the focus towards education and professional development. He criticized the policy for emphasizing the distribution of shares and ownership, which created a culture of rent-seeking. He also questioned the practice of awarding contracts to Bumiputera businesses, asserting that politicians choose the recipients to avoid competition among Bumiputeras, thus weakening these businesses.

Musa Hitam, who served as deputy prime minister from 1981 to 1986, agreed that the NEP led to a culture of reliance on government assistance. He described the policy as having made Malays "too pampered," as they become dependent on government aid. Hitam acknowledged that the NEP benefited not only Malays but also the country, but added that it also fostered a sense of insecurity. People worry about receiving nothing, yet even when they receive assistance, they constantly demand more.