When Malaysia achieved independence in 1957, it was not the triumph of one race over another, nor was it a mere transfer of colonial power to local hands. It was, in truth, the result of a moral bargain a carefully crafted social contract between the Malays, who were the original inhabitants and custodians of the land, and the non-Malays, who had made Malaya their home through decades of migration under British rule. This “Merdeka Deal”, as described by Tan Sri Abdul Kadir Shamsuddin in his speech to the Rotary Club of Kuala Lumpur in 1978, was not simply a political compromise, but a solemn agreement to build a just and balanced society in a plural nation.
The Non-Malay Aspiration for Independence
It is often overlooked that the non-Malay communities also desired independence not as a separate nationalism, but as a shared aspiration to belong to a nation they helped build. Many non-Malay leaders, especially within the Alliance Party, recognised that independence without unity would be hollow. Their demand was not merely for economic opportunity, but for recognition as citizens with dignity, contributing partners to nation-building.
Yet, as Tan Sri Abdul Kadir reminded, independence came with responsibilities. He urged non-Malay Malaysians “to do their utmost to keep the bargain”, emphasizing that only through such mutual honouring of the deal could a “just society emerge in the fulness of time.” The question he posed was timeless had the deal the foundation of Malaysia’s nationhood truly been kept?

The Spectre of Minority Nationalism
Dr. Goh Cheng Teik, in his essay “Integration in the Plural Society, The Chinese in Malaysia,” warned against the re-emergence of minority nationalism. His concern was profound that certain political voices were calling for racial unity and communal power struggles that could unravel two decades of progress. He called such revival “utterly self-defeating, even suicidal.”
In the early decades of independence, non-Malay political participation was framed by this delicate balance to secure representation without undermining integration. Yet, as economic disparities persisted and racial rhetoric deepened, the temptation to return to communal politics became strong. Tan Sri Abdul Kadir saw this as a dangerous turn one that could undo the moral foundation of Malaysia’s independence.
The Forgotten “Deal” and Its Consequences
The “Merdeka Deal” was a two-way commitment. The Malays agreed to share political power and extend citizenship to non-Malays, while the non-Malays accepted the special position of the Malays as enshrined in the Constitution. This was not a privilege without purpose it was designed to correct historical imbalances and ensure the survival of a community that had been left economically vulnerable.
But by the late 1960s, as Tan Sri Abdul Kadir pointed out, “the deal had been forgotten.” Economic inequality remained stark, and racial tensions grew. The general election of 1969 became the breaking point. “Nasty statements were made,” he recalled, “manifesting that the deal has been forgotten,” and the tragic riots of May 13 erupted.
It was in this aftermath that the National Operations Council (NOC), in which Tan Sri Abdul Kadir served, was formed to restore order. Some claimed that democracy had died, but he countered democracy, at its essence, means government according to the will of the majority and in that sense, it was very much alive.
The Birth of a New Vision Rukun Negara and NEP
From that crisis, a new national consciousness emerged. The Rukun Negara was proclaimed, articulating Malaysia’s shared values of unity, justice, and loyalty. Alongside it, the New Economic Policy (NEP) was launched with two clear objectives
- To eradicate poverty, regardless of race, so that no Malaysian would be left struggling for basic livelihood.
- To restructure society, to eliminate the identification of race with economic function a transformation meant to bring Malays into modern sectors and government administration, thereby balancing participation in the nation’s growth.
Tan Sri Abdul Kadir defended this policy as an instrument of justice, not discrimination. He reminded his audience that if the NEP was seen as preferential, it must be understood within the context of the Merdeka Deal a necessary correction to create genuine equality and national unity.
A Lesson from Tun Tan Siew Sin
Tan Sri Abdul Kadir concluded his speech with a powerful anecdote after the 1969 riot, Tun Tan Siew Sin, then MCA President, met with members of the Chinese Chamber of Commerce. When asked about rebuilding Kuala Lumpur, he replied, “Would the Malays care if the whole of KL were burnt? If not, why don’t you give them a stake in the city?”
It was a reminder that true peace and progress cannot exist without shared ownership economically, socially, and emotionally. A nation divided in wealth will always remain divided in spirit.
The Continuing Relevance of the Merdeka Deal
Nearly half a century after Tan Sri Abdul Kadir’s speech, his words still echo in Malaysia’s political and social landscape. The question remains Has the deal been kept? The path towards unity has been long, and while progress has been made, the temptation to retreat into communal lines still lingers in our political culture.
The call for non-Malay Malaysians to keep the bargain was not a demand for submission, but a plea for partnership. Likewise, it was a reminder to the Malays that justice cannot flourish without magnanimity. Independence, therefore, was not an end, but a continuing test of trust between communities.
A Shared Stake in Malaysia’s Future
Tan Sri Abdul Kadir’s 1978 speech was not a lecture, but a moral reflection on the fragility of nationhood. It reminded Malaysians that independence was not gifted, but earned through sacrifice and compromise. The Merdeka Deal was the bridge between communities one that must be repaired and reinforced by every generation.
As we look ahead, Malaysians of all backgrounds must return to that foundational spirit that freedom means shared responsibility, and justice means mutual respect. Only when every community, Malay and non-Malay alike, honours both the letter and the spirit of the Merdeka Deal can Malaysia truly achieve what Tan Sri Abdul Kadir envisioned a just society emerging in the fulness of time.

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