Editing Bumiputera (Malaysia) (section)

==Contentious policy==
Certain but not all pro-bumiputera policies exist as [[affirmative action]] for bumiputera, for NEP is racial-based and not deprivation-based. For instance, all bumiputera, regardless of their financial standing, are entitled 7 percent discount on houses or property, including luxurious units; whilst a low-income non-bumiputra receives no such financial assistance. Other preferential policies include quotas for the following: admission to government educational institutions, qualification for public scholarships, marking of universities exam papers, special bumiputera-only classes prior to university's end of term exams, for positions in government, and ownership of businesses. Most of the policies were established in the [[Malaysian New Economic Policy]] (NEP) period. Many policies focus on trying to achieve a bumiputerashare of corporate equity, comprising at least 30% of the total. [[Ismail Abdul Rahman]] proposed this target after the government was unable to agree on a suitable policy goal.<ref name="ismail bio 1"/>

In a report titled 2012 Investment Climate Statement – Malaysia published by the Bureau of Economic and Business Affairs (US Department of State), under the heading "Ethnic Preferences", part of a paragraph describes the reality of the bumiputera policy as follows: "Many of the preference policies are opaque, with details of implementation largely left to the various ministries and civil servants within those ministries. Policies and practices vary greatly. Some practices are explicit and contained in law or regulation, while others are informal, leaving much ambiguity for potential investors. The civil service itself is subject to bumiputera hiring preferences. The NEM [New Economic Model] proposes reforming ethnic preferences in business ownership and social safety net programs. Some conservative bumiputera groups have voiced strong opposition to any significant changes to the extensive preferences."<ref>{{cite web|url=https://2009-2017.state.gov/e/eb/rls/othr/ics/2012/191191.htm |title=Malaysia |publisher=State.gov |access-date=6 February 2014}}</ref>

Examples of such policies include:
* Companies listed on the [[Kuala Lumpur Stock Exchange]] (''Bursa Saham Kuala Lumpur'') used to adhere to a 30% bumiputera ownership of equity to satisfy [[Stock exchange|listing requirements]]. Foreign companies that operate in Malaysia also had to adhere to this requirement. This policy was canceled in 2009.<ref>{{Cite web|url=http://www.theedgemarkets.com/article/scrapped-%E2%80%94-30-bumi-equity-rule|title=Scrapped – 30% bumi equity rule|date=1 July 2009|website=The Edge Markets}}</ref>
* For a limited period, a certain percentage of new housing in any development had to be sold to bumiputera. Housing developers are required to provide a minimum 7% discount to bumiputera buyers of these lots. This is required regardless of the income level of the potential buyer. Remaining unsold houses after a given time period are allowed to be sold to non-bumiputera if the developer proves attempts have been made to fulfil the requirement. There is no bumiputera discount on existing housing.{{citation needed|date=July 2012}}
* A basket of government-run (and profit-guaranteed) [[mutual fund]]s are available for purchase by bumiputera only. The ''Amanah Saham Nasional'' (ASN) has return rates approximately 3 to 5 times that of local commercial banks.{{citation needed|date=July 2012}}
* Many government-tendered projects require that companies submitting tenders be bumiputera owned. This requirement has led to non-bumiputera teaming up with bumiputera companies to obtain projects, in a practice known as "[[Ali Baba (Malaysia)|Ali Baba]]". Ali, the bumiputera, is included solely to satisfy this requirement, and Baba (the non-bumiputera) pays Ali a certain sum in exchange.{{citation needed|date=July 2012}}
* Projects were earmarked for bumiputera contractors to enable them to gain expertise in various fields.{{citation needed|date=July 2012}}
* Approved Permits (APs) for automobiles preferentially allow bumiputera to import vehicles. Automotive companies wishing to bring in cars need to have an AP to do so. APs were originally created to allow bumiputera participation in the automotive industry, since they were issued to companies with at least 70% bumiputera ownership. In 2004, ''The Edge'' (a business newspaper) estimated that APs were worth approximately RM 35,000 each. They also estimated that the late [[Tan Sri SM Nasimuddin SM Amin|Nasimuddin Amin]], the former chairman of the ''[[Naza]]'' group, received 6,387 in 2003, making him the largest single recipient of APs. More than 12,200 APs were issued in 2003. In addition to APs, foreign car marquees are required to pay between 140% and 300% import duty.{{citation needed|date=July 2012}}

As a result of these policies, many bumiputera with good connections quickly became millionaires. According to [[Rafidah Aziz]], former Minister of Trade and Industry, the policy was to create "Towering Malays". In 2005 she gave a speech that stated: "If there are young Malay entrepreneurs whose companies are successful, then we appreciate their success, we want Towering Malays of glokal (global and local) standard". She also said that the policy of Approved Permits (APs) had produced many bumiputera entrepreneurs in the automotive industry.<ref>{{Cite web|url=http://web5.bernama.com/events/umno2005/news.php|archive-url=https://archive.today/20070810220021/http://web5.bernama.com/events/umno2005/news.php?id=146744&lang=en|url-status=dead|title=UMNO|access-date=11 July 2008|archive-date=10 August 2007}}</ref>

Since 2000, the government has discussed phasing out certain affirmative action programs and reinstating "[[meritocracy]]". In 2003 it began the system of "Malaysian model meritocracy" for university admission. Admission to public universities was not based upon a common examination such as the [[SAT]] or [[Advanced Level (UK)|A-Levels]], but rather upon a two parallel systems of either a one-year matriculation course or a two-year STPM ([[Malaysian Higher School Certificate]]) programme. Bumiputera compose an overwhelming majority of entrants to the matriculation programme. It is a commonly-held belief that the public university entry requirements are easier for matriculation students and disproportionately difficult for STPM students.{{citation needed|date=July 2012}}

Quotas also exist for Public Services Department (JPA) scholarships, full scholarships offered to students to study in leading universities worldwide. These scholarships are given on the basis of SPM ([[Sijil Pelajaran Malaysia]], the equivalent of [[O-Level]]s) results, ethnic group, and certain quotas. The JPA scholars are sent to selected pre-university programmes offered by the government – from there, they apply to universities.{{citation needed|date=July 2012}}