Maybe Anthony'd like to comment on this? http://www.economist.com/displayStory.cfm?story_id=8362605 ---------------------------snip As the country approaches its 50th birthday, racial and religious tensions are jeopardising its economic and social success
UPROAR is still raging in Malaysia over inflammatory speeches at the annual congress of the ruling United Malays National Organisation (UMNO) in mid-November. One delegate talked of being ready to "bathe in blood" to defend the race and religion of the Malay Muslim majority against the ethnic Chinese and Indian minorities. The education minister, no less, brandished a keris (traditional dagger), only to be urged by another delegate to start using it. The affair has brought into focus Malaysians' worries that, as their country nears its 50th birthday next year, its remarkable economic and social success is at risk from the increasingly separate lives its three main races are living. Last weekend these anxieties were voiced by the crown prince of Perak, one of the country's constituent states. He recalled that in his boyhood the races mixed far more freely; nowadays most children go to single-race schools. The prince regretted that some Malay-majority schools have made girls wear headscarves and even told pupils to avoid non-Malays' homes. Malaysians' spirit of give-and-take, he lamented, had been replaced by the idea that progress was a zero-sum game among the races. Apart from some deadly riots in 1969, the country has so far done remarkably well in handling the awkward racial mix it inherited when the Malaysian peninsula gained independence from Britain in 1957 (Britain's colonies on Borneo joined the union later). The Chinese, now around a quarter of the population, arrived in colonial times to work the country's tin mines. The Indians, now around one-tenth, mainly came to work on plantations. Neither group intended to stay forever but many did. The Malays' fears of being marginalised in their own land grew as the Chinese came to dominate business and the Indians the professions. At independence, a "social contract" was struck in which the Indians and Chinese got citizenship while the indigenous peoples received privileged access to state jobs and education. After the 1969 riots, a far-reaching positive-discrimination policy was introduced, with the aim of increasing the indigenous groups' share of business ownership from just 4% to 30%. Supporters of this policy say it has kept the peace, enabling Malaysia to achieve impressive economic growth. Opponents say it has widened the divide between rich UMNO wheeler-dealers and their less fortunate Malay brethren. UMNO itself, having led the country's development for decades, has become perhaps its greatest handicap. The Malay chauvinism and economic nationalism in its ranks are hobbling progress towards reforming and privatising the big government-linked companies, thereby discouraging both domestic and foreign private investment. The fate of Proton, a carmaker (see article) is emblematic: the government has dithered for months over whether to risk UMNO's ire by selling it to a foreign buyer.
