Regardless how perfect a race car is, it will be inadequate after 20 years. In order to win the first place, the engine must be replaced. It has been 40 years since the New Economic Policy (NEP) was introduced in 1970. The country needs a new economic engine to walk out from the plight.

The New Economic Model (NEM) will be introduced under the above mentioned consideration. However, the policy that aims to promote economic transformation has faced a lot of barriers since it was first mentioned by the Prime Minister when he took the office in April last year. The policy has been opposed by radical conservatives and its announcement date has been postponed from late last year to the end of March this year.

It is reported that the NEM includes eight measures to improve national income. It suggests that subsidies should be removed by stage, racial policies should be gradually abolished and the employment of foreign workers must be restricted. It will be a big step forward for the country if racial policies are abolished. It is also in line with Prime Minister Datuk Seri Najib Tun Razak's "1Malaysia" concept.

However, there may be changes before an official announcement for the policy, particularly with the opposition from UMNO and non-governmental organisations (NGOs). For example, Malay rights group PERKASA insists that the NEP should be continued and it requests to include the racial quota system and Bumiputera equity requirement in the NEM.

Although the Second Finance Minister has denied that the announcement for the NEM will be postponed to June, the Deputy Prime Minister said: "Once the Economic Advisory Council has completed preparing the NEM, it will be unveiled to all. Every Malaysian will be given an opportunity to look at what's being proposed in the NEM. They can discuss with their groups and reflect their views to the government." Could they make it before the end of March?

More interestingly, the Deputy Prime Minister has also given his assurance that the interests of all races will be taken care of and it will be within the framework of Article 153 of the Constitution.

Article 153 of the Constitution preserves the rights of Malays, including Malay's status in the public service sector, facilities in education and training, as well as business permits and licenses. Isn't necessary to amend the Constitution in order to implement the NEM?

Regardless how they oppose to it, from the national interest point of view, we must open up as the national economy has come to a bottleneck or even worse, a backward crisis.

When the country gained its independence in 1957, it was the second prosperous country in Asia after Japan. However, it has now fallen far behind its neighboring countries. The average income for Malaysians is about US$7000, which is five times lower than the everage income for Singaporeans, US$35,000. Malaysia has fallen into the "middle-income trap". Without a transformation, it will be unable to become an advanced country, but may be surpassed by Vietnam and Indonesia, becoming a mediocre country instead.

We can see that racial policies and protectionism have resulted in the outflow of capital and talents. They have also strangled creativity. Therefore, they must be abolished and replaced by efficiency policies.

It is going to be the biggest test for Najib whether a new economic model that complies with the spirit of the times will be implemented. It is also a crucial moment for the country.

Whether UMNO is moving towards pluralism and openness or returning to the conservative castle, we will never know until Najib reveals his hole card. (By LIM SUE GOAN/Translated by SOONG PHUI JEE/Sin Chew Daily)