Paper short abstract:

The Development of ethnic business in plural society always becomes a contentious issue and is dependent on the outcome of political contestation among different ethnic groups. The dominant ethnic group will resort to state intervention in order to control the economic resources in the country.

Paper long abstract:

Malaysia is a plural society that attained its independence in 1957. The colonization process had left the three main ethnic groups in the country achieved different level economic accomplishment. The politic of power sharing practiced since its independence had failed to address the problem of economic imbalance between different ethnic groups. The outburst of a racial riot in 1969 had impacted upon the political structure of this nation. The ascendance of an ethnic-hegemonic state initiated by UMNO has provided a solution to this economic imbalance. Consequently, the political elites of UMNO have applied state intervention to address the economic predicament of the Malays. This policy of affirmative action is realized through the efforts of Government Linked Companies(GLCs). However, this endeavor has encroached upon the economic interest of the Chinese community.This paper aims to examine the relationship between GLCs and Chinese business groups as well as how it impacted the Chinese business.