Falling poverty
The most striking success of the two policies was the steep fall in poverty. In 1970, before the NEP, roughly half of all households in Peninsular Malaysia lived below the poverty line. By 1990, at the end of the NEP, the poverty rate had fallen to around one-sixth, and it continued to decline under the NDP through the 1990s. Living standards, access to clean water, electricity, schools and clinics all improved, especially in rural areas.
A new Bumiputera middle class
The policies helped create a growing Bumiputera middle class of professionals, entrepreneurs and managers. Bumiputera ownership of share capital rose sharply from a very low base in 1970, though it fell short of the 30% target set for 1990. Employment was restructured so that Bumiputera were better represented in the modern industrial and services sectors, reducing the old link between race and occupation.
Growth, education and unity
Rapid economic growth, especially in the 1990s under the NDP, expanded jobs and infrastructure. The dramatic expansion of education, from primary schools to universities, widened opportunities across all communities. By spreading prosperity more evenly, the two policies helped ease the ethnic tensions that had erupted in 1969 and strengthened national unity.
Key idea
The NEP and NDP cut poverty dramatically and built a Bumiputera middle class, though the 30% equity goal was not fully achieved by 1990.
Remember
- Poverty fell from about half of households in 1970 to roughly one-sixth by 1990.
- A growing Bumiputera middle class emerged.
- The 30% equity target was not fully met by 1990.
- Education expanded and national unity improved.