y were replaced by the Second Outline Perspective Plan (OPP2) and the National Development Policy (NDP). The NDP, which will run until 2000, sets no new racial quotas but continues to strive for the 30% Bumiputra target established under the NEP. In contrast with the NEP, however, the NDP sets no time frame for achieving this target, but states that a review of the Bumiputra policy will be conducted in 2000. The NDP, as it now stands, continues the fairly liberal equity requirements in certain economic sectors established in the 1980s, although new proposals have been recently made to tighten the restrictions on foreign investment once again.
The main purposes of the NEP, and the NDP, were to reduce the poverty prevalent among the Malaysians and to restructure Malaysian society so as to eliminate the identification of economic function with race. Since 1970, the poverty rate in Malaysia has been reduced from 49% to somewhere between 43% (estimate of private organization) and 18% (official government estimate). Much of this reduction is probably due to economic growth and increased productivity. The second purpose, an increase in Bumiputra economic participation and corporate ownership, has been more successful, with many now complaining that Bumiputra individuals and corporations are overrepresented in many economic sectors. In fact, the emigration rate of non-Bumiputra Malaysians has abruptly risen in recent years as many feel that there are few economic opportunities for non-Bumiputras.
Foreign investment in Malaysia is monitored by the Foreign Investment Committee (FIC), which must approve many transactions involving foreign individuals or companies. The FIC established Guidelines concerning acquisitions, takeovers, and mergers during the 1970s, in order to inform foreign investors of Malaysia's foreign investment policy and to assist in the restructuring of Malaysian society. As will be discussed below, these guidelin...