1/8/2026 IT'S TIME FOR MALAYSIAN TO RECONSTRUCT ...

The Hard Facts:

Malaysia is a multi-racial - multi-religious nation. The natives - the Malays, Dayak, Kedazan Dusun etc formed at least 70 per cents of the population. Socio-economically the nation is

structured by the T20:M40:B40 income profile whereby 20% of the total Elite population earned more than RM100K monthly, 40% are the Middle Class earning RM20-100K monthly and the balance 40% Low Income earned less than RM20K monthly. But there is an issue with regard to this income structure, it doesn't reflect actual Malaysian real socio-economic standing. Based on 2025 Khazanah Research Institute (KRI), the T30, M50 and B20 is the real much practical structure. Today the B20 are those really having great difficulty in meeting their basic needs. The M50, some are still having hard time to meet their needs. In a simple words, in today dynamic sense, the Government must admitted that the present socio-economic situation is placing 50-70% of our population a very dire socio-economic position. Their income is not the reflection of their true socio-economic harmony. In relative term, majority of the Malaysian are wearing both torn and good shoes. This is now reflected into our present political and social instability.

(2)    The World Bank had criticised on how we had been very conservative in addressing our income inequality measurement in 2019. Anwar indeed then had pushed Mahathir to defer from those conservative approach, which Mahathir defied. But now Anwar is the PM yet he seem to be forgetful of his very critic. By the way, the World Bank now having this very interesting view about Malaysian Income inequality: "Malaysia has made significant progress in economic growth and poverty reduction, but inequality remains a challenge. The country is on a path to achieve high-income status by 2028-2030. However, due to current inequality levels, less than half of all Malaysians are projected to have incomes above the high-income threshold by then. To ensure a more inclusive economy, the government must implement comprehensive policies to reduce inequality and enhance economic mobility. This includes boosting productivity, prioritizing quality education and skills training, and investing in human capital development from an early age. Strengthening social protection by increasing spending, improving targeting, and reducing fragmentation is also crucial. Furthermore, financing inclusive investments by expanding health and education investments and creating more fiscal space for equity-enhancing initiatives is essential"

(3)     It must also be admitted, prior to independence of Malaya, Sabah and Sarawak from the British and before the formation of Malaysia, 90-95% of the regions wealth were in the hands of the British. When independent was achieved, it was the inspiration of the natives to gain at least 30% if not 70% of the wealth. But due to lack of knowledges and experiences, the British wealth were not equitably distributed as expected. I would say almost all of the British wealth were acquired by the migrant Chinese and Indians whom then were the British business and industrial associates. As I always said, not only the migrants were British business long associates, accordingly these people inherited 5,000 - 7,000 years of civilization of their motherland - the Yang Tze and Indus. In term of business dealing, definitely they were far ahead of the Malays.

"Loke Yew

During the British colonial period in Malaya, Chinese immigrants significantly contributed to the economy and development of the region. Notable figures like Loke Yew were among the wealthiest Chinese, playing a crucial role in the growth of Kuala Lumpur and contributing to the establishment of Victoria Institution. The Chinese community, particularly from Fujian, played a vital role in the tin and rubber industries, which were essential to the economy during this time. Their efforts laid the foundation for modern Malaysia, with many descendants continuing their contributions to the nation's development and philanthropy". 

(3)    Loke Yew is one of them. Yap Ah Low was another. There are many more pioneering figures in Johore, Selangor, Penang and Perak. While these Chinese and Indians played their game smartly ie in strong association with the British, the Malays whom before the British were traders and industrialist in their own ways, they were against the British colonialism So much so, they got eliminated and pushed aside. This historical fact, everybody must understand and recognized.

(4)    Due to such, since independent, the Malays in particular had put on their struggles to get what they as the majority deserved. Hereon I'll be using the term the Malays to represent the 

natives since the Malays formed at least 70% of the natives. As such in 1972, the New Economic Policy, NEP was established as the mean to engineer the native socio-economic well-being fast tract attainment. The Malays didn't take Nationalization or Malayanization as their choice. Indeed by all means, the Malays is having the right to ignore the British interest upon their independent. As a sovereign state, the Malays can do as they wish. But, they chosen to work to the democratic approach ie progressively building the Malays capacities within the overall national interest. NEP kept the multi-racial interest of the nation. Even the Mahathir's Vision 2020 working to mold Malaysia within our very multi-cultural values and needs. 

My Predicament:

The past UMNO + MCA + MIC + Gerakan + Sabah + Sarawak, really united for the good of

the young nation. There were some missed construction in 1957- 69 which led to May 13, 1969 mishap. But then we reconciled and consolidated and as the result, we progressed well from 1972 to 1998. The establishment of the NEP generated lots of employment opportunities especially among the Malays. Employment generation was the tenet tool to improve the young nation well-being then. Razak modernized the agriculture sector. He opened up and expanded and structured the public sector. Similarly, he opened up lots of industrial development. He pushed hard for the Malays educational development. Then came Mahathir with his more aggressive educational, industrial and privatization push. Malaysia  was transformed from sleepy state into one of the Asian Economic Tiger in the 1990s. Both the NEP and Mahathir policies gave the Chinese and Indians into much better economic gains.

(2)    Unfortunately as I see it, all these pushes had trapped especially the Malays into Wage-Earning Employment. The graphic below clearly shown that 61.6% of our households are wage earners. I would believe about 80-90% of those are the Malays. They indeed fall under the Consumer Sector. In general, wage earning sector had helped to drastically changed the socio-economic well-being of the people, nonetheless over time, such had broaden and deepen the income gap among the races and demographic classes. These group of the population are very socio-economically risk adverse. They are now the most volatile sector 

of the population especially in our current Anwar very unwise economic management. My believe, Anwar and DAP idealism political illusion will drag Malaysia into a very long term economic difficulties. The income gaps will be much broaden within and intra-racial. Chances for income improvement among the Lower M50 and B20 will be very slim while cost of living will shot up at much faster rate. People purchasing power will be very much reducing. As the World Bank correctly pointed out, the nation will gain High Income state status by 2028-2030, yet the people are economically worst off - the dwindling rakyat-negara wealth balancing. As a multi-racial and religious nation, Anwar economic management style will create a social chaotic and stress and these are now glaring. 

The Lessons:

First Anwar was alluded by the IMF and the World Bank economic and financial idealism

illusion. Both IMF and World Bank are governed by the concept of ideal market, economic free will or flows. To them let the market forces work to their free will. Indeed Anwar two years serving at the World Bank and then giving lectures at the Washington University had made Anwar ego to fly high. His ego built up was to prove to Mahathir that he could do better. I believe Anwar is having Inferiority Complex to the extend he shown his superiority complex and an escapism of his inferiority complex. My said predicament is based on Anwar godfather syndrome - in the young student days, he depend on the naive youths, then he lean to PAS and later in 1981 onto Mahathir (UMNO). In 1998 onward he was very much the IMF and or World Bank boy. Even today he used DAP as his stronghold. 

(2)    Nonetheless, definitely I would guess, those World Bank official must had belittling Mahathir a lot and Anwar must had buy in. Anwar's affinity to the IMF and or the World Bank was and is due to his inner greed for popularity and power envy. So much so, there was nothing right to whatever Mahathir did, and the surely IMF loves this. There were things that Mahathir did were not to the IMF and World Bank interest. Mahathir political grip onto Malaysia must be banished. To kill Mahathir was to brand him as corrupted, cronyism and nepotism.  Indeed those worked and Mahathir need to surrender to Abdullah Badawi which proven nothing to Mahathir. The aftermath of the Asian Financial crisis in 1997 and then the prolong economic distress due to Anwar's and World Bank prescription on how to handle those problems were the factors that made Malaysian were so impressed with Anwar Reformasi Movement then.

(3)    Alongside came DAP idealism. Malaysia for Malaysia. Everybody must be treated equal. Meritocracy-based not racial selective-based.  Mahathir practiced equitable treatment not equal treatment in his socio-economic policies direction and pririties. Mahathir equity weighing was 70:30 working to the NEP objectives. Mahathir looked at the Malays as the majority disadvantages, so they need to be given more helps and opportunities. To some extend, Mahathir did things to "his very own thinking - My Way". Mahathir bulldozed things through, fast and hard - privatization (even Musa Hitam and Rezaleigh objected), all those mega projects and all those economic policies which against the IMF and World Bank norms - NEP was the main critic (even by Jomo Kawe Sundram). Mahathir played deaf and iron fist to all those critic and objections, and he got Daim Zainuddin, Sanusi Junid, Rafidah Aziz and Samy Vellu and some others as his trojan horses. As such Mahathir was branded as autocracy and Maha Firaun by the DAP. 

(4)    Despite so, be it during Razak (NEP) and Mahathir (WW2020) times, indeed the Chinese and Indian businesses prospered better and bigger than the Malays. The Malays catchup was slow-steady and limited to certain sectors. I gauged, the national wealth cake had restructured to some extend that the Malays equity had climbed to 20% while the Chinese-Indian reduced in term of percentage but not in term of volumes. The cake had grown bigger

and the distribution had structured to move slowly toward the Malays. The Malays gain doesn't make the Chinese and Indian worst off. They did better indeed. Look at all those list of Malaysian billionaires, only Syed Mokthar is outstanding among the Malays and he is one out of the 15. In term of giant corporation, again apart from Syed Mokthar, no other Malays had matched his statue, but there are many among the Chinese and Indian. I believe then Mahathir and Najib realised on this issue, so much so Malaysian moved toward internationalized her economies. Khazanah was formed to spearhead the broadening of the Malaysian investment. More GLC and GLIC were established and the rakyat were facilitated to invest direct and indirectly. The nation and rakyat wealth sharing were done on a much broader and strategic 

(5)    Malaysia is rich in term of her socio-economic management experiences. We had gone through the leap and bound of the global economic dances, and we managed to swim through steadily. From the 1963 to 2024, Malaysia had practiced social-capitalism. In the 1060s to 1970s, we were people centered. As the global economic changed fast, we adopted "controlled capitalism". We even innovated into some economic instruments unique to our needs. The GLC and GLIC were instrumented not only to expand the nation wealth, but providing direct and indirect opportunities for the rakyat to participate in feasible investments and ventures. Come 2024 to this day, under Anwar, his IMF liberal economic philosophy facilitation, opening the Malaysian economic environments to align to the IMF standard and intervention, neutralizing our very NEP spirit, though the negative impacts are yet obvious, nonetheless the pinches are emerging fast. Malaysians are to pay for the prices endured by Anwar's economic liberalization moves.

(6)    Malaysian had the experiences to benefit from both social-capitalism economic management of 1970-2018 - Razak-Najib, then Anwar's liberal economic standing, we should be able to see which of the two had brought Malaysia from worst to better and from better back to relative worst. From 1970 to 2018 at least, Malaysian had progressively socio-economically improving yet from 2024 to this day, we are going to face though socio-economic challenges ahead. 

Potential Solutions: .... In Shaa Allah to be continue