The proposed financial assistance for Indian Malaysians from the Penang state government was long overdue, said state MIC chairperson Dr K Rajapathy.

"They have been largely sidelined from reaping the benefits of economic prosperity enjoyed by the state over the past three decades," he added.

The state government has set up a special fund to provide soft loans with low interests to Indians to kick-start their businesses, further their education at either public or private higher learning institutions or acquire vocational skills, expand their property ownership and increase their economic stake.

Rajapathy said the fund would assist Indian Malaysians from the lower and middle-income groups, to commence businesses, especially in the small and medium industrial sector.

He pointed out that the Socio-Economy and Environment Research Institute (Seri) study carried out between November 1997 and February 1999 on the socio-economic status of Indian Malaysians in the state revealed that the community share in paid-up capital investments was only 0.2 percent.

"Five years on, the state government is yet to start a comprehensive programme to help Indians to increase their share in the state economic cake, improve their academic achievement, increase their economic share, improve their physical, teaching and learning facilities at Tamil schools and upgrade the community's living standard," he said.

"In terms of property ownership, business advancement, job opportunities, career growth and education enhancement, Indians lag far behind others. The unequal distribution of the state wealth should be redressed. The rich must help the poor," he added.

Indian Malaysians make up 150,000 or about 11 percent of the state's 1.3 million population.

However, 90,000 or 60 percent of them are still in the lower income bracket and seven percent is categorised as hardcore poor, making the community the most impoverished ethnic group in the state.

Economic stake

Rajapathy said the proposed fund could assist Indian Malaysians to increase their economic stake and widen their business scopes.

Although other ethnic groups have become richer and own more properties, 27.9 percent of Indian Malaysians in the state are either living in squatters or temporary occupation licence (TOL) land.

Among those who own homes, the majority are low and low-medium flat owners.

Rajapathy pointed out that employment and salary discriminations carried out at all levels, especially in the private sector, had badly affected the livelihood of the present and future Indian Malaysian generations.

He said many Indians do not have the money to pay the deposit for a cheap flat let alone own a home. They are also unable to fund their children's higher education.

In view of this, he called on the state government to immediately draft and implement a comprehensive policy to help the Indian Malaysian community, with the proposed fund as an integral part of it.

"Otherwise, the state would soon have large pool of impoverished people, dominated by Indians. This could trigger serious social problems," he warned.

ATHI VEERANGGAN is malaysiakini 's penang-based stringer.