Umno Youth chief Khairy Jamaluddin defended the controversial decision by the federal government to retain the 30 percent bumiputera equity target in the recent 10th Malaysia Plan during a forum yesterday evening.

While admitting it is to comfort "some people", he nevertheless stressed that Prime Minister Najib Abdul Razak has noticed the leakages and weaknesses in the old affirmative action programmes and is prepared to make bold reforms.

NONE "The reformist school is what I and the prime minister belong to", said the young leader, while differentiating themselves from the orthodox school in the debate on affirmative action.

"My view is that the 10th Malaysia Plan has already recognised that the target does not really make sense any more. It is there just to comfort some people," said Khairy ( left ).

"More importantly, the new approach that will be put in place will include merit-based, market-friendly, transparent and fair criteria. If it is strictly adhered to, you might see the development of a really sustainable and competitive bumiputera community."

He also pointed out that the five-year plan has already laid out many programmes to assist the bottom 40 percent of families, irrespective of race.

Khairy was speaking at the 10th Malaysia Plan forum organised by UCSI university in Kuala Lumpur yesterday evening.

Pua: target will only spoil the plan

However, DAP chief economist Tony Pua, who spoke at the same forum, didn't share his view.

He argued that the government decision to retain the bumiputera target will only continue to benefit those Malays with political connections and not the poor Malays who need assistance.

NONE "We actually don't have a problem for Malays to achieve 30 percent wealth, but by setting a 30 percent equity target, this has changed the dynamic of affirmative action," said Pua ( second from left ).

"What happens is that when you go by race as the target, the people who are more connected and able to compete by themselves will get the benefit of these affirmative actions."

He also pointed out that the 30 percent equity target will mean the government will give out more projects to those who are well-connected.

A good example will be the new mass rapid transit system (MRT), where Gamuda and MMC Corporation Bhd have submitted a proposal even before the announcement by Najib last week.

Worries about balanced employment

However, both Khairy and Pua expressed anxiety about one portion of the 10th Malaysia Plan that might lead to a quota in employment.

NONE According to Pua, the requirement for the companies and investors who get government contracts and special incentives to achieve a "balanced employment target" might be open for abuse by certain officers.

"It could be a well-intended phrase by policymakers, but we need a quota in employment," he said.

"This makes me very worried as besides the 30 percent corporate equity quota for bumiputeras, you will have 30 percent for property and 30 percent for jobs also."

Khairy agreed with Pua's view, adding that he was also surprised when he read another line in the 10MP plan that required a company to report on its employees' racial and gender composition.

The forum attracted around 60 people, mainly young professionals and students. The chief executive of Institute of Democracy and Economic Affairs (Ideas), Wan Saiful Wan Jan was also on the panel.