ABSTRACT
This chapter focuses on student debt as a paradigmatic example of Malaysia's neoliberal turn and its compatibility with the Bumiputera nationalist agenda. I begin by situating the roots of student debt in the context of Malaysia Incorporated Policy, a developmental strategy by former Prime Minister Mahathir Mohamad to redefine state-market relations. As the Prime Minister embarked on privatization and made it clear that his administration wanted to reduce public spending, I chronicle the neoliberal rationale that were used to justify the creation of a massive student loan fund, while also complementing the pro-Bumiputera agenda. In the second part, I show how this strategy not only produces a varying degree of success but also results in some unintended consequences – in particular, student debt can entrap the poor Bumiputera students that the policymakers intended to help. In the third part, I show how these student loan policies have been increasingly challenged by student activists and opposition parties, especially since 2012.
