As the ruling United Malays National Organisation converts Malaysia into a one-party state, many Malays too are getting restive. Days before the HRAF took to streets, a coalition of opposition political parties and non-government organisations rallied in thousands in Kuala Lumpur demanding electoral reform and political change.

Meanwhile, the former deputy prime minister Anwar Ibrahim, who was the designated successor of Malaysia’ strong man Mahathir Mohammed until the UMNO hounded him out, has openly criticised Kuala Lumpur’s treatment of its minorities.

Malaysia’s free trade talks with the US, European Union, Australia and New Zealand have run into rough weather, as these countries protest Kuala Lumpur’s policy of discouraging non-Malays — including foreigners — from bidding on Government contracts.

The Bhumiputra policy might have had some justification when Malaysia was a low income country and the Malays were at the bottom of the social pile. Some Malay economists have argued that if Malaysia wants to rise above the ranks of a middle income nations, it must end racial discrimination.

At a time when the intellectual and entrepreneurial talents of Chinese and Indian minorities are in great demand around the world, Malaysia is hurting itself by treating them badly. As it loses economic competitiveness amidst the rise of China and India, Malaysia will have no option but to rethink its Bhumiputra policy. Kuala Lumpur has already promised to make exceptions in some special economic zones. As in apartheid South Africa, so in Malaysia, the economic costs of racial discrimination might be a more effective driver of positive change than mere outrage from India and the rest of the world.

... contd.