# Bumiputera Economic Policy: How the NEP's Restructuring Goal Continues Today

> A descriptive map of the continuity in Bumiputera economic policy goals — from the restructuring objective of the New Economic Policy (1971-1990) to the current PuTERA35 plan (2024-2035) under the MADANI Economy framework.

- Category: economy
- Language: en
- Status: published
- Updated: 2026-07-24
- Canonical: https://negaraku.md/en/economy/bumiputera-economic-policy

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On 19 August 2024, the government launched the Bumiputera Economic Transformation
Plan 2035 (PuTERA35). The plan's name is new, but its core goal — increasing
Bumiputera participation, ownership and control of the economy — is not a new idea.

It continues a thread that began more than half a century ago, with the New
Economic Policy (NEP) in 1971. This page traces that thread: what the stated
official goals were, how they were carried from one policy framework to the
next, and how they are formulated today.

This page is descriptive. It states the documented official goals and targets,
without endorsing or criticising any policy.

## Quick answer: one goal, many frameworks

Since 1971, Bumiputera economic policy has been expressed through several
development frameworks that differ in name but retain one and the same core
goal — restructuring so that Bumiputera economic participation increases and
the identification of race with economic function is reduced.

| Policy framework | Period | Status of the restructuring goal |
| --- | --- | --- |
| New Economic Policy (NEP) | 1971-1990 | Introduced as one of two core objectives |
| National Development Policy (NDP) | 1991-2000 | Retained as a continuation of the NEP |
| National Vision Policy (NVP) | 2001-2010 | Retained within the next long-term framework |
| Subsequent frameworks and policies | 2011-2023 | Bumiputera empowerment goal continued |
| **PuTERA35 (under the MADANI Economy)** | **2024-2035** | **Restated as a dedicated transformation plan** |

The five-year framework that implements this goal in each period is the
[Malaysia Plans](/en/economy/malaysia-plans), while its annual allocations
come through the [Federal Budget](/en/economy/federal-budget).

## The starting point: the New Economic Policy (1971-1990)

The NEP was introduced in 1971 and planned for a 20-year period through to
1990, spanning four Malaysia Plans (RMK2 to RMK5).

Its goals are commonly referred to as **two-pronged**:

1. **Eradicating poverty** by increasing income and employment opportunities
   for all citizens, regardless of race.
2. **Restructuring society** to reduce and eventually eliminate the
   identification of race with economic function.

It is this second goal that connects directly to Bumiputera economic policy.
Among the documented targets under the restructuring goal was raising
Bumiputera equity ownership in the corporate sector to **30 per cent** by
1990, as part of the targeted ownership structure.

The 30 per cent target was a policy target — a stated goal, not a figure
enshrined in the Constitution. Official and academic sources report the
actual achieved figure by 1990 differently, so this page does not state a
single achieved figure; what is certain and undisputed is the target itself,
and the fact that the restructuring goal continued after 1990.

## How the goal was carried forward

When the NEP period ended in 1990, the restructuring goal was not
discontinued — it was carried into the next policy framework.

**The National Development Policy (NDP), 1991-2000** was introduced as a
direct continuation of the NEP. It retained the goals of poverty eradication
and societal restructuring, while placing them within the long-term
aspirational framework of Wawasan 2020 (Vision 2020).

**The National Vision Policy (NVP), 2001-2010** continued the same approach
within the next Long-Term Plan Framework, with continued emphasis on
increasing Bumiputera participation in the economy through human capital
development and restructuring.

Frameworks and policies after 2010 likewise retained the Bumiputera economic
empowerment agenda in various forms, before it was reformulated through the
MADANI Economy framework and the dedicated PuTERA35 plan.

The consistent pattern here is not in the name or instrument — which changes
from time to time — but in the core goal that is retained: increasing
Bumiputera participation, ownership and control of the economy.

## The current formulation: PuTERA35 (2024-2035)

The Bumiputera Economic Transformation Plan 2035 (PuTERA35) is the national
direction framework for developing Bumiputera socioeconomics over the long
term. It was launched on **19 August 2024** and is aligned with the
aspirations of the MADANI Economy framework.

Its structure is organised around **three pillars**:

| Pillar | Focus |
| --- | --- |
| Strengthening the National Economic Pillar | Strengthening the foundations of the Bumiputera economy |
| Reinforcing Governance and Institutional Harmony | Aligning governance and institutions |
| Upholding Social Justice | Social justice in development |

The three pillars are supported by **12 drivers** and **132 initiatives**
(ikhtiar). Implementation is fully monitored by the **Bumiputera Economic
Council (Majlis Ekonomi Bumiputera, MEB)**, chaired by the Prime Minister.

### How progress is measured

PuTERA35 measures progress across the three dimensions at its core —
**Participation, Ownership and Control**. The plan's official portal lists
measurable targets across areas such as skilled employment, equity
ownership, hardcore poverty rate, home ownership and Bumiputera enterprises'
contribution to the economy.

Among the targets stated by the Ministry of Economy:

- **Bumiputera enterprises' contribution to GDP** is targeted to rise from
  **8.1 per cent (2022) to 15 per cent (2035)**.
- **Bumiputera participation and control through GLC and GLIC equity** is
  targeted to rise from **18.7 per cent (2020) to 20 per cent (2035)**.
- **The percentage of Bumiputera graduates in the labour force** is
  targeted to increase to **97 per cent (2035)** compared with 85 per cent
  (2022).

These targets are the documented official goals for the 10-year period
through 2035 — not current achievements.

## Where the Constitution stands

Bumiputera economic policy is often linked to **Article 153 of the Federal
Constitution**, which provides for the responsibility of the Yang
di-Pertuan Agong to safeguard the special position of the Malays and the
natives of Sabah and Sarawak, including the reservation of a reasonable
proportion of positions in the public service, scholarships, and certain
permits and licences.

One important point to understand descriptively: **Article 153 does not set
any percentage**. It is an enabling provision — it permits the reservation
of a proportion, but the actual figure (such as the 30 per cent under the
NEP or PuTERA35's targets) is set through policy and subordinate instruments
below it, not through the Constitution itself.

For a mapping of Bumiputera equity and participation requirements across
specific business instruments — procurement circulars, sector guidelines
and licences — see the related topic *Bumiputera equity requirements* in
the business category.

## Common mistakes

**"Bumiputera economic policy begins and ends with the NEP."** The NEP
(1971-1990) is the starting point of the modern framework, but its
restructuring goal was carried forward through the NDP, the NVP and
subsequent frameworks, all the way to PuTERA35 today.

**"PuTERA35 is legislation."** It is a policy and transformation plan, not
an act. It is implemented through initiatives and monitored by the
Bumiputera Economic Council, not gazetted as law.

**"The 30 per cent figure comes from the Constitution."** No. Article 153
is an enabling provision that does not state a percentage; figures such as
30 per cent (NEP) or 15 per cent of GDP (PuTERA35) are policy targets.

**"PuTERA35's targets are current achievements."** No. Figures such as 15
per cent of GDP contribution by 2035 are end-of-period targets, not today's
position (reported at around 8.1 per cent in 2022).

## What's next

To understand the five-year framework that implements the development goal
in each period — including how it is approved in Parliament — see [Malaysia
Plans](/en/economy/malaysia-plans). For the GDP context and macro indicators
that underlie targets such as Bumiputera contribution to GDP, see [Malaysia
GDP Overview](/en/economy/gdp-overview). For how annual development
allocations are itemised, see [Federal Budget](/en/economy/federal-budget).

The full PuTERA35 documents and targets are available on the Ministry of
Economy's official portal at putera35.ekonomi.gov.my.

This page carries a sensitivity marker and remains a draft until reviewed
and verified by a named human reviewer.

## Sources

- Pelan Transformasi Ekonomi Bumiputera 2035 (PuTERA35) — Pengukuran & Sasaran — https://putera35.ekonomi.gov.my/putera35/pengukuran-dan-sasaran/ (Kementerian Ekonomi)
- PuTERA35 diperkenal, anjakan besar dalam pembangunan Bumiputera — PM — https://teraju.gov.my/putera35-diperkenal-anjakan-besar-dalam-pembangunan-bumiputera/ (TERAJU / Kementerian Ekonomi)
- Pelan Transformasi Ekonomi Bumiputera 2035 (PuTERA35) — https://www.penerangan.gov.my/pelan-transformasi-ekonomi-bumiputera-2035-putera35/ (Jabatan Penerangan Malaysia)
- Pelaksanaan PuTERA35 Dipantau Majlis Ekonomi Bumiputera — Kementerian Ekonomi — https://teraju.gov.my/pelaksanaan-putera35-dipantau-majlis-ekonomi-bumiputera-kementerian-ekonomi/ (TERAJU / Kementerian Ekonomi)
- Agenda penskalaan strategi pacu sumbangan KDNK bumiputera — https://berita.rtm.gov.my/niaga/senarai-berita-niaga/senarai-artikel/agenda-penskalaan-strategi-pacu-sumbangan-kdnk-bumiputera/ (Portal Berita RTM)
- Rancangan Malaysia Terdahulu (Previous Plans) — https://ekonomi.gov.my/en/economic-developments/development-plans/rmk/previous-plans (Kementerian Ekonomi)

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