This is summary of a journal from GSTF International Journal on Media & Communications by Khairiah Salwa Mokhtar and its group for the topic of the new economic policy in Malaysia. This journal is written to observe the Malaysia economic policy efficiency and its advantage and drawback of its implementation. It was based from two perspectives that are economic and political effect. All information was collected from vast amount of references from multiple sources. The journal is the product of the analysis of that many references to show the reader the significances of the new economic policy in economic and political sides.

The peace and harmony in Malaysia for their multi-racial society has been the reason for the Chinese and Indian immigrant to come to Malaysia before the Malaysia independence in 1957. This immigrant comes to Malaysia to find wealth and status as they see the opportunity from the peace in Malaysia. The economic structure at that time then divided into three parts where the first part is business activities, agriculture activities and estate activities. The Chinese immigrants favor the business activities and Indian immigrant will involve in estate activities and the rest are done by the indigenous peoples. After the Malaysia independence, the Chinese who has gain nationality held the most wealth than indigenous races which than create a tension between this ethnic. This resulting a racial riot in Mei 1969 which later known as “Tragedi 13 Mei”. This riot is the starting for the development of the New Economic Policy as the solution to stop another riot to occur in the future. The New economic Policy then implemented in 1970 which has two main objectives that are eradicating poverty in the country and reconstruct the Malaysia economic structure.

The New Economic Policy was initiated by the Malaysia’s second Prime Minister, Tun Abdul Razak and then continued by the next prime minister for 20 years. The first objective of this New Economic Policy is achieved by providing many job opportunities and upgrading all public facility such as schools. The second objectives are divided to four sub-objectives which are employment pattern, ownership in corporate sector, the creation of indigenous commercial and industrial community and the establishment of growth centers in the rural areas. The second objective is to reveal other job opportunity other than agriculture activities to indigenous peoples. This ensures the involvement of multiple races to multiple job opportunities. Besides that, this New Economic Policy also provided an education budget for indigenous people to increase their interests in the industries and business areas. For example, the New Economic Policy reserved 30% share in the modern economy sector to indigenous peoples and various quota systems were introduced to help this peoples.