Inequality in Malaysia rooted in failure of education policy

If, as I wrote previously, income and housing reflect inequality in the country today, then education has helped to reproduce it — again and again.

Access to education in Malaysia is not the problem — we can have our children begin schooling as early as six, or even younger. The real challenges lie in the quality of teaching, the relevance of the curriculum, and the choice of medium of instruction.

Since the late 1990s, the expansion of tahfiz and other non-standard religious schooling pathways has created a parallel system, often operating outside the national curriculum and with limited emphasis on STEM or technical skills, not to mention using untrained and unqualified teachers.

Religious education has its place. But allowing these parallel systems to expand without integration into the national framework has been a huge policy failure, resulting in societal deficits.

Today, the consequences are visible.

A large segment of students, largely from lower-income Bumiputera families, enters the workforce without the skills required for a modern economy.

Their options are constrained not by choice, but by design.

This is not a failure of individuals. It is a failure of our education policy, compounded by political indecision, a tendency toward analysis-paralysis, as well as an unjustified and prolonged fear of political backlash.

At a critical moment at the turn of this century, the government had the opportunity to regulate and integrate these institutions. That opportunity was not taken.

The legacy of decisions made during the era of Dr Mahathir Mohamad continues to shape outcomes today.

Ignoring this reality does not make it disappear.

Jobs and mobility: a system that cannot scale

These structural weaknesses carry directly into the labour market.

Graduate underemployment remains a persistent issue, with many diploma and degree holders working in roles that do not match their qualifications.

Employers frequently cite gaps in critical thinking, technical capability and job readiness.

Although Bumiputeras remain heavily represented in the public sector, which employs around 1.7 million people, this model and approach is no longer sustainable as a primary pathway for upward mobility.

The more decent, productive and well-paid jobs are found in the private sector, particularly in high-growth industries that reward skills, networks and exposure. However, these positions are beyond the reach of the current education systems and pathways.

Resetting the system

If inequality, particularly among the B40 and lower M40, is to be addressed meaningfully, the next generation of political leaders must move beyond defending legacy policies.

They must be willing to reset them.

First, shift from race-based to needs-based policies. Assistance should prioritise the bottom 40% across all communities to ensure it reaches those who genuinely need it.

Second, overhaul how opportunities are allocated. Scholarships, government contracts, and GLC-linked programmes must be transparently awarded based on merit and clear socio-economic criteria.

Third, rebuild education around skills. Strengthening TVET, STEM and entrepreneurship must take precedence over pathways that limit employability.

Fourth, expand access to financing. Without more inclusive lending models, entrepreneurship will remain confined to those with existing capital and political connections.

Fifth, reduce structural barriers to enterprise. Streamlining regulations and dismantling monopolistic practices are essential to enable fair competition.

Sixth, invest beyond Klang Valley. Transport and connectivity are not luxuries, they are prerequisites for economic participation and should be standardised across all regions.

Finally, redefine the role of the state. The government must act as an enabler, not a dominant market participant. It should get out of businesses. Madani Mart would not exist if price controls had been more effective and efficient.

The government cannot be both player and referee in the same arena.

A test of political courage

The New Economic Policy was shaped by the realities of the 1970s. Malaysia today is a very different country.

Continuing to recycle old frameworks without confronting their failures risks deepening the very inequalities they were meant to resolve.

The responsibility now lies with a new generation of political leaders.

If they are serious about governing the country, then they must be equally serious about reform.

They must be willing to confront the policies that have failed, and take decisive action to correct them. This includes restructuring or even dismantling institutions that no longer serve their purpose.

Not rebranding. Not repackaging.

Reform.

Inequality is no longer a peripheral issue. It is central to Malaysia’s economic future, social and political stability.

The new political grouping must have the political courage to deliver it.

The author can be reached at: [email protected].

The views expressed are those of the writer and do not necessarily reflect those of FMT.