Bumiputera (Malaysia)

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Bumiputera or bumiputra (

The term is derived from the

The concept of a bumiputra ethnic group in Malaysia was coined by Abdul Razak Hussein. It recognised the "special position" of the Malays provided in the Constitution of Malaysia, in particular Article 153. However, the constitution does not use the term bumiputra; it defines only "Malay" and "aboriginal peoples" (Article 160(2)),^[5] "natives" of Sarawak (161A(6)(a)),^[6] and "natives" of Sabah (Article 161A(6) (b)).^[6] Definitions of bumiputra in public use vary among different institutions, organisations, and government departments and agencies.

In the parliamentary debate of November 13, 1965, the Prime Minister, Tunku Abdul Rahman, was asked by Dr Lim Chong Eu if there is a "legal and constitutional definition of the term "Bumiputera", and whether the children of Malaysian citizens who were born after August 31, 1963, will also be entitled to all the rights of "Bumiputera". To this, Tunku replied: "Mr Speaker, Sir, the term ‘Bumiputera’...has no legal meaning except in so far as to denote the natives of the mainland of Malaya and the natives of the Borneo States". He later qualified that the benefits under Article 153 were for "the natives of Malaysia…who are less advanced and less able to compete with these other Malaysians".^[7]

In the book Buku Panduan Kemasukan ke Institusi Pengajian Tinggi Awam, Program Pengajian Lepasan SPM/Setaraf Sesi Akademik 2007/2008 (Guidebook for entry into public higher learning institutions for SPM/equivalent graduates for academic year 2007/2008), the Malaysian Higher Education Ministry defined bumiputra as follows, depending on the region of origin of the individual applicant:^[8]

1. Peninsular Malaysia
   • "If one of the parents is Muslim Malay/Orang Asli^[9] as stated in Article 160 (2) Federal Constitution of Malaysia; thus the child is considered as a Bumiputra"
2. Sabah
   • "If the child was born in Sabah or the father was domiciled in Sabah at the time of birth, and one of the parents is an indigenous native of Sabah as stated in Article 161A (6)(b) Federal Constitution of Malaysia, the child is considered as a Bumiputra"
3. Sarawak
   • "If both of the parents are indigenous natives of Sarawak as stated in Article 161A (6)(a) Federal Constitution of Malaysia; thus their child is considered as a Bumiputra"

In addition to the interpretation given above, a broader definition of bumiputra include groups such as

At the time of Malaya's independence from British colonial rule in 1957, the population included many first- or second-generation immigrants who had come to fill manpower needs as indentured labourers, among rich Chinese merchants and settlers who brought their wealth and investment into Malaysia.

Chinese immigrants, who typically settled in urban areas, played a significant role in the commercial sector after the Indians left the country to return to India, much of the commercial sector was taken over by wealthy Chinese merchants. The

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 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

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."^[13] In 1970, however, one member of the Cabinet said that Malay special rights would remain for "hundreds of years to come."^[14]

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.^{[citation needed]}

Former

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.^[15]

In July 2017, Prime Minister

Certain but not all pro-bumiputra policies exist as affirmative action for bumiputras, for NEP is racial-based and not deprivation-based. For instance, all bumiputra, regardless of their financial standing, are entitled 7 percent discount on houses or property, including luxurious units; whilst a low-income non-bumiputra receives no such financial assistance. Other preferential policies include quotas for the following: admission to government educational institutions, qualification for public scholarships, marking of universities exam papers, special bumiputras-only classes prior to university's end of term exams, for positions in government, and ownership of businesses. Most of the policies were established in the Malaysian New Economic Policy (NEP) period. Many policies focus on trying to achieve a bumiputra share of corporate equity, comprising at least 30% of the total. Ismail Abdul Rahman proposed this target after the government was unable to agree on a suitable policy goal.^[13]

In a report titled 2012 Investment Climate Statement – Malaysia published by the Bureau of Economic and Business Affairs (US Department of State), under the heading "Ethnic Preferences", part of a paragraph succinctly describes the reality of such bumiputra policy as follows: "Many of the preference policies are opaque, with details of implementation largely left to the various ministries and civil servants within those ministries. Policies and practices vary greatly. Some practices are explicit and contained in law or regulation, while others are informal, leaving much ambiguity for potential investors. The civil service itself is subject to Bumiputra hiring preferences. The NEM [New Economic Model] proposes reforming ethnic preferences in business ownership and social safety net programs. Some conservative Bumiputra groups have voiced strong opposition to any significant changes to the extensive preferences."^[17]

Examples of such policies include:

• Companies listed on the
  Kuala Lumpur Stock Exchange (Bursa Saham Kuala Lumpur) used to adhere to a 30% bumiputra ownership of equity to satisfy listing requirements. Foreign companies that operate in Malaysia also must adhere to this requirement. This policy was canceled in 2009.^[18]
• For a limited period, a certain percentage of new housing in any development has to be sold to bumiputra owners. Housing developers are required to provide a minimum 7% discount to bumiputra buyers of these lots. This is required regardless of the income level of the potential buyer. Remaining unsold houses after a given time period are allowed to be sold to non-bumiputera if the developer proves attempts have been made to fulfil the requirement. There is no bumiputra discount on existing housing.^[citation needed]
• A basket of government-run (and profit-guaranteed) mutual funds are available for purchase by bumiputra buyers only. The Amanah Saham Nasional (ASN) has return rates approximately 3 to 5 times that of local commercial banks.^{[citation needed]}
• Many government-tendered projects require that companies submitting tenders be bumiputra owned. This requirement has led to non-bumiputras teaming up with bumiputra companies to obtain projects, in a practice known as "
  Ali Baba". Ali, the bumiputra, is included solely to satisfy this requirement, and Baba (the non-bumiputra) pays Ali a certain sum in exchange.^{[citation needed}
  ]
• Projects were earmarked for bumiputra contractors to enable them to gain expertise in various fields.^[citation needed]
• Approved Permits (APs) for automobiles preferentially allow bumiputra to import vehicles. Automotive companies wishing to bring in cars need to have an AP to do so. APs were originally created to allow bumiputra participation in the automotive industry, since they were issued to companies with at least 70% bumiputra ownership. In 2004, The Edge (a business newspaper) estimated that APs were worth approximately RM 35,000 each. They also estimated that the late
  Nasimuddin Amin, the former chairman of the Naza group, received 6,387 in 2003, making him the largest single recipient of APs. More than 12,200 APs were issued in 2003. In addition to APs, foreign car marquees are required to pay between 140% and 300% import duty.^{[citation needed}
  ]

As a result of these policies, many bumiputera with good connections quickly became millionaires. According to Tan Sri Rafidah Aziz, former Minister of Trade and Industry, the policy was to create "Towering Malays". In 2005 she gave a speech that stated: "If there are young Malay entrepreneurs whose companies are successful, then we appreciate their success, we want Towering Malays of glokal (global and local) standard". She also said that the policy of Approved Permits (APs) had produced many bumiputera entrepreneurs in the automotive industry.^[19]

Since 2000, the government has discussed phasing out certain affirmative action programs and reinstating "

Lee closed with "Meanwhile, whenever there is a failure of economic, social and educational policies, you come back and say, oh, these wicked Chinese, Indian and others opposing Malay rights. They don't oppose Malay rights. They, the Malay, have the right as Malaysian citizens to go up to the level of training and education that the more competitive societies, the non-Malay society, has produced. That is what must be done, isn't it? Not to feed them with this obscurantist doctrine that all they have got to do is to get Malay rights for the few special Malays and their problem has been resolved."[21]

Policy apologists and ongoing opposition

At the 2004 annual general assembly of the

Another controversial aspect is that the Orang Asli of peninsular Malaysia are not considered bumiputra under the federal constitution. As their settlement predates that of the Malays, this is considered by many, that bumiputra is about the promotion one religion over another, especially since Orang Asli are much worse off than Muslim Malays. Others argue that the Orang Asli are in fact considered bumiputra.^[24]

On 1 March 2009, Datuk

On 1 February 2015, Swiss academic Tariq Ramadan reflected on how non-Muslims have been treated as second class citizens. He stated, "I'm sorry but some of your fellow citizens in this country who are not Muslims are facing this discrimination, they are facing injustices."^[26]

Present condition of the bumiputra

In 2006, the then Minister of Higher Education, Mustapa Mohamad, stated that he wanted public universities to recruit more non-bumiputra academic staff to "strive for world-class institutions", which may have signaled a move toward less racial discrimination in academia. However this does not affect entry into universities, which is still designed to restrict other races access to higher education in favour of the bumiputra.^[27]

The manufacturing sector is exempted from the Foreign Investment Committee (FIC) Guidelines and the mandatory 30% Bumiputera equity and restrictions in market entry have been removed for all (manufacturing) sub-sectors.^[28]

National identification card system and bumiputera

Malaysia requires citizens to carry a national identification card called

Notes and references