Many prominent economic analysts and businessmen, including banker Nazir Razak, have asked for the removal of quota system under the NEP. It is an anomaly because there was not supposed to be any quota system under the policy aimed at reducing poverty and restructuring economic function to race.
Most of the specialists also agreed the government needs to go beyond both fiscal and monetary policy to address the economic crisis. An effective action must include comprehensive restructuring of the economic and industrial development structure. The Malaysian economy is highly dependent on FDI and the quota system practiced in the guise of NEP is detrimental to both local and foreign investment.
MCA President Ong Tee Keat said it is time for the services sector to be independent of the quota system at his party's event last night.
He said the time had come for a new mindset and to do away with the quota-centric mindset as liberalisation "is knocking at our doorsteps".
He reminded the policy makers, "People are talking about the New Economic Policy, the 30 per cent quota in non-Bumiputera companies at this juncture but it is important to take note of the change in the global scenario."
"We are signatories of the World Trade Organisation and the Asean framework on liberalisation in services sector and we are in the midst of liberalising the sector progressively," he said.
Earlier, UMNO deputy president candidate and Minister of International Trade and Industry Muhyiddin Yassin has called for a review of the NEP. However, he did not give any specific deadline.
For the lack of any reform record to show, the BN should take this opportunity to review any archaic and old socio-economic policies which have not benefited the nation. Any delay in acting does not augur well for the coalition which is losing its appeal by the day.