Additional affirmative action

Mahathir, who had been a strong supporter of affirmative action for the Malays since the late 1960s, expounded upon his views in his book The Malay Dilemma while in political exile. The book argued that stronger measures were needed to improve the Malays' economic lot. [18] It also contended that the Malays were the "definitive" people and thus "rightful owners" of Malaysia, which also entitled them to their privileges. [19] Mahathir was rehabilitated under the second Prime Minister, Tun Abdul Razak, and was appointed as the Deputy of the third Prime Minister, Tun Hussein Onn. When Hussein Onn resigned, Mahathir became Prime Minister. [20]

During Mahathir's tenure as Prime Minister, the NEP, after its expiry, was replaced by the National Development Policy (NDP), that sought to create a Malay class of entrepreneurs and business tycoons. [17] [21] However, allegations of corruption and nepotism plagued Mahathir's administration, and Mahathir's goal of creating a new class of Malay tycoons was criticised for ignoring the rural Malays, who comprised the majority of the Malay population. [22] Under Mahathir, quotas for entry into public universities were enforced, with some universities such as Universiti Teknologi MARA (UiTM) admitting only Bumiputra students. [23] [24] In 1998, then Education Minister Najib Tun Razak (son of Tun Abdul Razak who implemented the NEP) stated that without quotas, only 5% of undergraduates in public universities would be Malays. Najib argued this justified the need for the continuance of quotas. [25]

These policies also mandate that publicly-listed companies must set aside 30% of equity for Bumiputras; discounts that must be provided for automobile and real estate purchases; a set amount of lots set aside for Bumiputras in housing projects; companies submitting bids for government projects be Bumiputra-owned and that Approved Permits (APs) for importing automobiles be preferentially given to Bumiputras. [26] The equity in the publicly-listed companies is disbursed by the Trade Ministry, and sold to selected Bumiputras at substantial discounts. However, the recipients frequently sell their stake in the companies immediately. [27] The policies continued the Bumiputra advantage in higher education. In practice, however, most of these privileges went to Malays, and non-Malay Bumiputras, like the Orang Asli or aboriginal peoples, did not appear to have benefited much from Article 153 or policies such as the NEP. [28]