ABSTRACT
Ethnicity-based preferential policies have long been considered one of the major factors of brain drain in Malaysia. And yet the country has experienced considerable changes in policies and socio-economic conditions since the late 1980s. This chapter considers the extent to which changes in Malaysia have alleviated the adverse effects that preferential policies have on the life-chances of young talented ethnic minorities (non-Malays). A corollary is the extent to which such changes impact upon their decision to remain in Malaysia or to emigrate. The evolution of policies and regulations concerning education and employment is analyzed based on a set of macro-level figures, followed by an attempt to determine the comprehensive impact of policy changes on education and employment based on a quantitative analysis of population census micro-data. It is found that, while preferential policies continue to bring about constraints and create grievances for certain groups of non-Malays, the disadvantage of being an ethnic minority has been alleviated over time. Thus, it can be concluded that ethnicity-based policies regarding the inter-ethnic distribution of opportunities for education and employment cannot be considered the key push factors explaining the decision of young talented Malaysians to leave the country.
