Malaysia's prime minister designate Najib Razak said he's prepared to end preferential treatment of the ethnic Malay majority, a campaign pledge the opposition used to inflict record election losses on the ruling coalition in March.
There should be a ``gradual'' removal of the program, initiated in 1971, and still known as the New Economic Policy, Najib said in an interview that airs today on Bloomberg Television.
``If we do not change, the people will change us,'' Najib, 55, said at his office in Putrajaya, outside Kuala Lumpur. ``In the not-too-distant future, we will see all the elements of the New Economic Policy being replaced.'' He didn't say when that might occur.
The system was devised by Najib's father, Abdul Razak, when he was Malaysia's second prime minister to boost the Malays' economic status -- through job allocations, cheaper homes and other benefits -- in a country where ethnic Chinese had long been more prosperous and remain so. About 65 percent of Malaysia's 27 million people are Malay.
Rising dissatisfaction with racial politics contributed to the ruling coalition's poor showing in the elections, which resulted in its smallest majority since Malaysia's independence from Britain in 1957.
By offering to scrap the program, at an unspecified time, and replace it with a needs-based system, Najib is moving closer to the stance of opposition leader Anwar Ibrahim. Anwar, who also supports a system based on economic need, is trying to seize power but said on Oct. 22 he is finding it difficult to woo ruling coalition lawmakers to his side.
Not Ready
Najib is the only contender for the leadership of the United Malays National Organisation, the biggest group in a coalition that includes Chinese and Indian parties. Prime Minister Abdullah Ahmad Badawi plans to step down in March and has named Najib, his deputy, as his successor. Abdullah sped up his planned 2010 exit from the political stage as racial tension increased.
Some analysts expressed doubt that UMNO, as Najib's party is known, is ready to give up a program that helps its members. Karim Raslan, a political consultant based in Kuala Lumpur and Jakarta, said UMNO hasn't fully accepted how much it needs to change.
``I don't see enough frankness in terms of challenges facing the party,'' Karim said. ``Many of the party leaders feel that by replacing Abdullah they will overcome these weaknesses. I have to disagree with them. I don't see many signs of revival.''
Share Benefits
Removing the racial-preference program would bring an end to decades-old inequalities running through the Southeast Asian nation. Chinese and Indians in Malaysia need higher marks to enter universities. Malays also get priority over some government contracts, and when companies sell shares, 30 percent of the stock must be sold to Malays.
``It's a huge challenge,'' Najib said in the interview yesterday. ``There must be this political will and desire to change within UMNO. I don't think we can expect people to look at us in more favorable terms unless we change, unless we rectify our weaknesses.''
Najib is an economics graduate from Nottingham University in the U.K. His family has held top positions in Malaysian politics and business for generations. His father led Malaysia from 1970 to 1976. Najib's cousin is the current education minister. His younger brother, Nazir Razak, runs the country's second-biggest bank, CIMB Group Sdn.
Sex Allegations
Abdullah picked Najib to succeed him despite misgivings by some over controversy surrounding the deputy prime minister.
Najib has denied suggestions, publicized by Anwar, that he is linked to the murder of a Mongolian woman near Kuala Lumpur in 2006, and that he had an affair with the victim. A political analyst who worked for Najib is on trial in Malaysia for abetting two police officers in the murder.
Anwar also has accused Najib of profiting from defense contracts and of being behind criminal charges that the opposition leader had sex with a man. Anwar denies the sex charge, and Najib denies both being involved in bringing the case against his opponent and making money from defense contracts.
``He has to explain all these things that are said about him,'' said Mahathir Mohamad, who stepped down in 2003 after 22 years as Malaysia's premier. ``Unfortunately, we don't have any other candidate. We have no choice but to choose Najib.''
In the interview, Najib called the allegations against him baseless.
``I'm telling you, I wouldn't stay in office a day longer if I knew I am involved in these allegations,'' he said. ``There's no proof, no basis. I can sue people, but it's going to be a tedious process in court.''
Bloomberg
mi1: Great Liar and Populist approach, he is Kampung Baru Najib
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