The United States should abandon Free-Trade Agreement (FTA) negotiations with Malaysia unless the government discontinues its ethnic based affirmation-action policy, said the Hindu American Foundation (HAF).

"Over the past decade, the rights of minorities in Malaysia have eroded as the government shifts from its seemingly secular state to one that is rooted in conservative Islam. Religious freedom is not protected and for non-ethnic Malays does not exist at all," it said.

"The FTA, as currently constituted, would require both foreign and domestic (non-manufacturing) investors to take on ethnic Malay partners (who would hold a minimum 30 percent of share capital).

"As a result, conclusion of the FTA with Malaysia would further the uneven distribution of wealth, thereby leaving the Hindu minority at an increased economic disadvantage," stated the report.

The non-governmental watchdog suggested this in their annual report Hindus in South Asia and the Diaspora: A Survey of Human Rights, which focussed largely on events in the past two years in relation to the now-banned Hindu Rights Action Force (Hindraf).

In their report released last week, HAF listed Malaysia as one of the eight countries in which the Hindu community is consistently violated in term of economic, social and educational opportunities.

The grouses that were highlighted were made in reference to the New Economic Policy (NEP) introduced in 1971 by then Prime Minister Abdul Razak for the advantage Muslim Malay majority.

According to the report, benefits under the NEP such as housing discounts, educational quotas and preference for government jobs as well as requirements of 30 percent bumiputera equity in listed companies, are factors that have increased disadvantage for the Hindu community.

Under increasing pressure

Other key transgressions that were listed were the lack of freedom of religion, the ongoing destruction of temples and the continuing ISA detention of the five Hindraf leaders.

"In recent years, minorities have come under increasing pressure from repressive government policies and increasing Islamisation. In particular, the country's Hindu and ethnic Indian population have faced widespread persecution and human rights abuses.

"Despite being second class citizens, Hindus remained largely silent until 2007, when they began to politically organize and challenge the government's discriminatory practices," said the report referring to the mass protest by Hindraf in 2007.

Among the other recommendation to the US government was to pressure the Malaysian government to protect Hindu temples from 'desecration and destruction' as well as to designated land titles to temple that have existed since before independence in 1957.

The report also suggested that the US restricts "any future appropriations, particularly military and economic assistance, unless the government protects the human rights of its ethnic and religious minorities, repeals the repressive Internal Security Act (ISA) and ends its affirmative-action policies".

"Alternatively, if humanitarian or economic assistance is given, it should be for the benefit of the marginalised and religiously persecuted Hindu minority and accountability for human right should be a condition upon which aid is granted.

The other countries that were also listed were Bangladesh, Bhutan, Fiji, Pakistan, Saudi Arabia, Sri Lanka, and Trinidad and Tobago as well as two states in India, Jammu and Kashmir.