Thus, PM Najb's move to remove the 30% bumiputra equity requirement in 27 sub-services sector (Computer & Related, Health & Social, Tourism, Transport, Sport & Recreational and Business Services) is commendable and marks a first step towards real economic reform for the country.
Removing the NEP policy and the political agenda behind it is essential. But what is more essential for bloggers/the media and the public to understand is that distribution of human and financial resources based on race is economically most wasteful and greatest disincentive for economic wealth-building (as opposed to wealth hoarding by the privileged few).
Allocating economic resources based on race/class(Marxism)/religion/or any other superficial feature is a guarantee for economic inefficiency and waste. There are huge opportunity costs (RM140 billions or 20% of annual GDP?) that Malaysia's affirmative action policies (as distinct from but not unrelated to cronysm) have incurred.
So Najib's move should spark a fresh wave of analysis why Malaysian policymakers need to recognise the absurdity and stupidity of economic disincentives and to allocate its resources in the market efficient way. Everyone benefits from a bigger pie.