The failure to take off: the case of Bahagian Penyelarasan dan Pembangunan Bumiputera Pulau Pinang

Abstract

The implementation of the New Economic Policy (NEP) ushered in an era of greater state-­intervention in the Malaysian economy on behalf of the Bumiputera. However, while the state has devoted a considerable amount of resources, and set up numerous agencies to elevate the socioeconomic standing of the Bumiputera, compared to other Malaysian ethnic groups they still lag behind in terms of household income and economic equity. Indeed, the 2012 Malaysian Household Income and Basic Amenities Survey Report revealed that the median household income for Bumiputera was lower than that of the Chinese and Indian populations, as too was, their average household annual income growth rate between 2009 and 2012. Utilising the case study method, this study analyses the modus operandi of Bahagian Penyelarasan dan Pembangunan Bumiputera Pulau Pinang, a Bumiputera Implementing Agency that was established with the aim of improving the socioeconomic standing of Penang’s Bumiputera population. The study suggests that the absence of economic calculation and bureaucratic incentive to exaggerate achievements are among the factors that have led to the failure of state-­led development for Penang Bumiputera.