What did the NEP want to achieve?
Its main goal was to eradicate poverty and restructure economy as well as to eliminate the identification of ethnicity with economic function. The first target is first to balance the ratio of the economic ownership. From 2.4:33:63 (Bumiputra, other Malaysians, foreigners) to 30:40:30. This means that to achieve the 30% ownership, there would be a need to significantly increase the ownership of Bumiputra enterprises. Under the Second Malaysian Plan, the ‘expanding pie theory’ was more or less applied. This would mean that while the Bumiputra shares increase, the non-bumiputra shares would not decrease. This would be done so somewhere in 1975 when the government provided incentives and new policies to further expand large-scale manufacturing industries and energy-intensive industries. There were various requirements in the NEP which seek to achieve the 30% bumiputra equity target. One of the mostly heard off would be the 30% share set aside in Initial Public Offerings allocated to
