MEMORANDUM OF UNDERSTANDING BETWEEN Barisan Nasional AND Hindraf For The Establishment of a Joint Program of Socio-Economic Interventions For The Advancement of Malaysian Indians Version 1 18 April 2013 : he vga se P Ry{BN & HINDRAF: Memorandum of Understanding Dated: 18 April 2013 THIS MEMORANDUM OF UNDERSTANDING (MOU) is made this 18th day of April 2013, BETWEEN ~ BARISAN NASIONAL, a coalition of political parties in Malaysia representing the people (hereinafter referred to as “BN"”) of one part, whose expression shall where the context so permits include its successors-in-title and permitted assigns of the other part, AND PERSATUAN HINDRAF MALAYSIA, a non-governmental organization representing Malaysian Indians (hereinafter referred to as “Hindraf”) of one part, whose expression shall where the context so permits include its successors-in-title and permitted assigns of the other part. BN and HINDRAF, in: + Recognizing that there has occurred a transition of the vast majority of Malaysian Indians from plantation estates to towns and cities over a period lasting approximately 4 decades, and, © Recognizing that this was not directly and adequately addressed by Government policy and implementation, and, * Now desiring to correct the chronic socio-economic problems that have resulted in ‘a comprehensive and permanent manner, and, ‘* Noting that the BN Government has already launched many specific programs and allocated significant funds to address many key challenges faced by Malaysian Indians since 2009, and, * Desiring to expand this approach in a comprehensive set of socio-economic interventions based on the Hindraf “S Year Blueprint to bring the marginalized and Poor Indians into the mainstream of development” and based on the vision and commitments made in the Barisan Nasional Manifesto 2013, and, * Recognizing that the program of intervention based on a focused and targeted approach with commensurate commitment of Government resources serves the national interest as well as the interest of Malaysian Indians. 2of 16{BN & HINDRAF: Memorandum of Understanding Dated: 18 Apel 2013, Hereby resolves to reach the following Agreement: sction One: The ral Aj 1m of mic I jons for the nt of Malaysian India ‘© The basis for this agreement is the document titled “BN and Hindraf’s 5-Year Blueprint to Bring the Indian Poor into the Mainstream of National Development” as outlined in Appendix A (hereinafter referred to as “the Blueprint”). © This document sets out proposals that are premised on solutions being comprehensive and permanent for the problems addressed. ‘© The solutions delivered will target the underlying and interlocking causes of endemic and sustained poverty as well as other ills faced by the Malaysian Indian poor. * The solutions will be delivered in a focused and targeted manner through a one-stop organization architecture. * Preliminary studies and planning conducted by an Expert Steering Committee (hereinafter referred to as the “ESC”) will precede the implementation of all Solutions. The Blueprint proposals contained in Appendix A will be confirmed, strengthened and suitably modified by these studies, while keeping within the confines of budgetary allocations outlined. ‘* The ESC will primarily comprise human development experts and shall consist of 2 representatives of BN, 2 representatives of Hindraf and a Chairman appointed by the Prime Minister and who is acceptable to BN and Hindraf. = This space is intentionally left blank -{BN & HINDRAF: Memorandum of Understanding Dated: 18 Apri 2013 the Mainstream of National Development © This is a document developed by BN and Hindraf after discussions and negotiations based on the original version of Hindraf’s “5-Year Blueprint To Bring The Indian Poor Into The Mainstream Of National Development” and based on BN’s targeted efforts since 2009 to uplift the Indian community as well as the commitments made in BN’s Manifesto 2013. ‘* The Blueprint document targets 4 main areas as detailed in Appendix A. These 4 areas are: 1. _ Uplifting Displaced Estate Workers 2. Addressing Statelessness among the Indian Poor 3. __ Increasing Educational Opportunities from Pre-school to University 4, Increasing Employment and Business Opportunities © The Blueprint document lays out specific proposals and approaches to be adopted with regards to each of the above 4 areas. Section Three: Architecture for Delivery of BN and Hindraf’s 5-Year Blueprint’s Proposals * Anew Unit (hereinafter referred to as the “New Unit”) shall be established within the Prime Minister’s Department chartered to expressly implement the Blueprint, and to which full executive authority will be devolved and budgets allocated to carry ‘out the charter in an effective and expeditious manner. © The New Unit will be fully accountable for the delivery of the Blueprint targets and will contract services and act as monitor and supervisor, as needed, to execute its charter from all related Government bodies. * The New Unit shall, as required, engage specialists and consultants for the studies and research to be conducted, who will be co-opted into the various implementation teams within this New Unit. = This space is intentionally left blank -{BN & HINDRAF: Memorandum of Understanding Dated: 18 Apr 2013 Section Four: Resolution of Differences © Any differences that may arise in the process of the implementation of the Blueprint shall be brought to an Arbitration Committee for resolution. . This Arbitration Committee shall be made up of; Anoted Academic in the field of Socio-Economic Development; A noted Legal Practitioner; A noted Developmental Expert; AHindraf Appointee; and, ABN Appointee. yaene ‘© The specific details of each committee member of the Arbitration Committee and their terms of reference as well as other relevant details shall be determined at the appropriate juncture on the basis of consensus between BN and Hindraf. * The Arbitration Committee's decisions will be final and binding and cannot be further contested. ~ This space is left intentionally blank -‘BW & HINDRAF: Memorandum of Understanding Dated: 18 Apri 2013 ‘This MOU shall be effective upon the signature of the Barisan Nasional representative and the Hindraf representative. Barisan Nasional (BN) and HINDRAF indicate their agreement with this MOU by thelr signatures below. ignatures & Dats Date: AND ymy for Hindraf) ADI. = This space is left intentionally blank -[BN 8 HINDRAF: Memorandum of Understanding Dated: 18 Apr 2013 Appendix A BN and Hindraf’s 5-Year Blueprint To Bring the Malaysian Indian Poor into the Mainstream of National Development This document lays out the specific Government interventions necessary for the improvement of the socio-economic status of the Malaysian Indian poor over the period of the next S years of the next Parliament assumed to extend from 2013 to 2018, unless otherwise indicated. ‘The interventions cover several key aspects of development. They are comprehensive in their scope and permanent in their impact. They shall also be practical in terms of their implementation. This document will hereinafter be referred to as the “Blueprint”. The Blueprint covers proposals for intervention in 4 major areas as welll as the approach towards realizing the Blueprint proposals. These 4 major areas are: Uplifting Displaced Estate Workers Addressing Statelessness among the Malaysian Indian Poor Increasing Educational Opportunities from Pre-school to University Increasing Employment and Business Opportunities The interventions for each of the 4 major areas above are outlined individually in this document. In order to execute programs in the abovementioned 4 areas, the following shall be. established; 5. _ Adedicated new unit in the Prime Minister's Department, hereinafter referred to as the “New Unit”. 6. position of Head of this New Unit. = This space is left intentionally blank -1N & HINDRAF: Memorandum of Understanding Dated: 18 Apri 2013 UPLIFTING DISPLACED ESTATE WORKERS plifting & Increasing Incomes of Displaced Estate Workers The internal displacement of Malaysian Indian estate workers occurred over a period of several decades. These displaced workers had no option other than to migrate to urban areas and fit into urban communities without any prior preparation or assistance for urban life. They now constitute a significant segment of the new urban poor and underclass and have become indistinguishable in the overall population segment of the ‘Malaysian Indian poor, although they constitute the largest part of this said segment. For the purposes of the Blueprint, ‘Displaced Estate Workers’ shall be considered as synonymous with ‘Low-Income Indian Households’ and shall be defined for the purposes of policy formulation and execution as all Malaysian Indian households, as shall be determined by the ESC, earning less than RM3,000 in 2013 (hereinafter referred to as the “Target Group”). The ESC shall determine what constitutes a household income. Programs to Uplift and Increase Incomes of Displaced Estate Workers: 1. The first step in the establishment of the Displaced Estate Workers program is to establish the optimum program of planning and action for the tasks concerned. 2. This optimum program will be developed by the Expert Steering Committee or ESC. 3. The overall objective of the program will be to double the mean monthly family incomes of all Malaysian indian families earning less than RM3,000, baselined in 2013, by the end of 2020 and to make policy and budget proposals for the implementation of practical and permanent solutions for all said Displaced Estate Workers programs. 4, At the end of the study period, the ESC will submit to the Government a set of policy proposals and the required budgets for a focused and targeted program to uplift and double incomes for Displaced Estate Workers i.e. the Target Group. 5. The Government will provide all necessary resources required by the ESC in order for it to conduct this study and develop the policy proposals. 6. This study is to be completed and the set of policy proposals submitted to the Government by 31 October 2013, and therefore, be ready for implementation by 01 January 2014. 7. The policy proposals and the recommended budgets of the ESC are binding on the Government and must be implemented in toto.BN & HINORAF: Memorandum of Understanding Dated: 18 Apel 2013, 1.2-Displaced Estate Workers Housing Progr: This proposal is to establish a housing program for Displaced Estare Workers’ families earning less than RM 3,000 per month, i.e. the Target Group, in 2013. Program to Provide Housing for Displaced Estate Workers (Target Group): a The specific purpose of this housing program is to provide adequate resettlement for the displacement that has occurred and to rebuild communities that have been separated given the large-scale displacement that has ‘occurred over decades. ‘This program targets the provision of 100,000 houses for 100,000 households derived from the Target Group by 2018. This housing program will, in its design, avoid the creation of new urban slums. ‘This housing program will ensure that all houses provided in this regard meet National Housing standards. These 100,000 houses shall be affordable to the Target Group and the ESC shall recommend the outline of the subsidy scheme for this program in this respect. ‘The socio-cultural needs of Displaced Estate Workers (Target Group) including places ‘of worship, burial grounds, community halls and playgrounds shall also be provided for as part of the infrastructure in each such housing project to rebuild socio-cultural systems that may otherwise be lost. The housing projects will be located throughout the country in areas with a high density of the Target Group. The New Unit to be established will work with the current Government agencies and istries responsible for the delivery of housing to ensure compliance with the requirements set up above. - This space is left intentionally blank -{aN & HINDRAF: Memorandum of Understanding Dated: 18 Apri 2013 ining ing Displaced Estate Worker Youth This shall be a massive new effort to rebuild Indian youth and draw them into higher value adding vocations as well as to simultaneously draw them away from crime. This program shall also give them the wherewithal to progress with more productive life opportunities. Programs to Retrain & Reskill Displaced Estate Worker Youth: 1 This program will provide training opportunities in the various skills required withit the expanding Malaysian economy. This program will provide easy and attractive placements with pre-requisite preparations and appropriate financial support to draw youth from the Displaced Estate Workers (Target Group) into 176 GIATMARA Centres and 78 Community Colleges as well as other skills training institutes across the country. ‘A specific program will be designed to make this an attractive and practical program. in order to ensure that the objectives of rebuilding the lives of youths from the Target Group are attained. Existing programs shall only be adopted under this initiative if these said programs are deemed effective in terms of the specific set of circumstances relating to youth within the Target Group. Where existing programs are not effective in this regard, new programs shall be developed at skills training institutes. Appropriate and adequate authority shall be provided to the New Unit established in the Prime Minister's Department to redesign selected programs, as per recommendations of the ESC, at Giatmara Centres and Community Colleges, After retraining and reskilling programs are concluded, placement services will subsequently be provided for jobs and internships in Government and in Government linked companies or GLCs. Support will also be provided to start small businesses wherever this avenue for advancement is an integral outcome of the respective skills training program. ‘Anew division shall be setup, within the New Unit, to provide support to newly retrained and reskilled Malaysian Indian entrepreneurs based on the Government's existing TEKUN program. Alternatively, the existing TEKUN program itself can be extended and operate in conjunction with the said new division to provide the resources required to start new businesses. - This space is left intentionally blank - Page 10 of 16{BN & HINDRAF: Memorandum of Understanding Dated: 18 Apr 2013 8 Acommunications unit shall be set up expressly for the purpose of promoting the programs offered to youth from the Displaced Estate Workers (Target Group). Within this initiative, special counsellors shall also be appointed by the head of the ‘New Unit to supervise and monitor the progress of the Target Group youth. 9. Abudget of RM100 million shall be allocated over a 5-year period to the New Unit, for the purposes of this program as outlined here. 4-Displaced Estate Worker Places of Worship and Burial Grounds Programs to Address Challenges relating to Displaced Estate Worker Places of Worship and Burial Grounds: 1. Asubcommittee shall be setup by the head of the New Unit and will work under the Purview of the ESC, to conduct a detailed audit on Hindu temples, shrines and burial grounds throughout Malaysia and subsequently, to develop detailed proposals to totally eliminate the problems surrounding the locations of Hindu temples, shrines and burial grounds. 2. The main objective of this program is to ensure that there shall be no more Hindu temples, shrines and burial grounds located on land other than which has been gazetted for their specific purpose by 2018. 3. An official Government recognized Council of Hinduism & Hindu Temples comprising ious elders shall be set up by the head of the New Unit, with the approval of the Prime Minister, whose task it will be to develop guidelines for the streamlining and resolution of the various complex issues relating to Hindu religious practices. This Council will be answerable to the head of the New Unit and the Prime Minister. ~ This space is left intentionally blank -BN & HINDRAF: Memorandum of Understanding Dated: 18 Apri 2003 2: ADDRESSING STATELESSNESS AMONG THE MALAYSIAN INDIAN POOR Programs to Address Statelessness Among the Malaysian Indian Poor: 1. Identify all Stateless ethnic indians as well as ethnic Indians without Birth Certificates, Blue Identification Cards and those with Red Identification Cards 2. Develop Common Sense and transparent proposals to address the problems of Malaysian Indians who claim to have been born and raised in Malaysia but who do not have any documentary evidence whatsoever of their birth and residency 3. Develop policies including those that may allow defined local persons of repute who are given official standing to issue Statutory Declarations conveying their opinion that a said stateless person was indeed born and raised in their locality in Malaysia 4. Develop streamlined and transparent policies to resolve the large problem of all Persons who only hold Red Identification Cards 5. Develop a system that can differentiate legitimate from non-legitimate ci fizenship applications from ethnic indians in Malaysia 6. _ Ensure that the common sense and transparent proposals developed should strictly adhere to the provisions of the Federal Constitution 7. The common sense and transparent proposals developed to address the above issues is to be submitted by the head of the New Unit within 3 months of his nomination to the Prime Minister for his final approval. ~ This space is left intentionally blank - Page 12 0f 16[BN 8 HINDRAF: Memorandum of Understanding Dated: 18 Ape 2013, 3: INCREASING EDUCATIONAL OPPORTUNITIES FROM PRE-SCHOOL TO UNIVERSITY programs to increase educational opportunities from pre-school to university: 1. Allocate adequate funding to relocate, upgrade and build new facilities towards ensuring that all Tamil schools are brought up to the standard of National Schools by 2020 2 Convert all Tamil Schools, that are willing, to be Fully-Aided Government Schools 3, _ Establish special programs of improvement for the performance of the SJK(T)s 4, Reserve 7.5 % of places in courses determined by the ESC for IPTA and other Public Tertiary Institutions and to achieve 7.5% overall admissions in 5 years. 5. _ Reserve 10% of places in Government Polytechnics for Malaysian Indian students as promised by BN 6. _ Reserve 7.5% of places in existing Residential Schools as well as in Government ‘Matriculation and Skills Training Institutes 7. Setup 9 new mixed residential schools with a minimum Malaysian Indian enrolment of 20% 8 Reserve 7.5% of JPA as well as other Federal & State Scholarships for Malaysian Indian students 9. Setup a new scholarship fund amounting to RM25 million annually to fund tertiary ‘studies of Malaysian Indians based on academic excellence and socio-economic need disbursed by the New Unit established in the Prime Minister's Department according to guidelines and criteria set by the ESC. ~ This space is left intentionally blank -ON 6 YENORAF: Memorandum of Understanding Dated: 18 Apt 2018, 4: INCREASING EMPLOYMENT AND BUSINESS OPPORTUNITIES Programs to increase employment and business opportunities: 1. Allocate RMS0O million towards achieving a Malaysian In target of 3% as promised in the BN Manifesto 2013 n equity ownership 2. Develop quotas for Government funded small business loans and micro-credit allocations of up to 7.5% as determined by the ESC Develop quotas for Malaysian Indians in terms of Government licenses and permits of up to 7.5% as determined by the ESC 4. Develop quotas for Malaysian Indians in terms of Government controlled franchises of up to 7.5% as determined by the ESC 5. Develop quotas for Malaysian Indians in terms of Government contracts at Federal, State and Local level of up to 7.5% as determined by the ESC 6. _ Reserve 7.5% of all jobs created and/or required by the Civil Service and Statutory Bodies for Qualified Indians 7. Reserve 7.5% of all jobs created and/or required by GLCs for Qualified Indians ‘Commit an additional RM200 million in TEKUN loan funding reserved for Malaysian Indians over the next 5 years to be disbursed by the New Unit according to guidelines and criteria set by TEKUN and the ESC. 9. Reserve Government microcredit allocations as deter Malaysian Indians yed by the ESC for = This space is left intentionally blank -1N & HINDRAF: Memorandum of Understanding Dated: 18 Apri 2013, 5: ESTABLISHING A DEDICATED NEW UNIT IN THE PRIME MINISTER’S DEPARTMENT ‘The parameters of this New Unit shall be as follows: ae ‘An empowered New Unit established within the Prime Minister's Department chartered to expressly implement BN and Hindraf’s 5-Year Blueprint and to which executive authority will be devolved and budgets allocated to carry out the charter in an effective and expeditious manner program listed in this Appen ‘The express purpose of this new organizational arrangement is to minimize the risks of failure of such a program by maximizing accountability and focus. This New Unit will be totally accountable for the delivery of the Blueprint targets and will contract services and act as monitor and supervisor, as needed, to execute its charter from all the other related Government Ministries. Sectoral divisions will be established within this New Unit to implement the various ESC proposals. All statistics and other information related to the four areas that reside in the various ministries and departments must be made available on request to this New Unit and these statistics and information shall be managed in line with the OSA and other Government rules and regulations thereto. + This space is left intentionally blank -[BN & HINDRAF: Memorandum of Understanding, Dated: 18 April 2013 E 6: POSITION OF HEAD OF THE NEW UNIT ‘The Head of the New Unit shall be: 1. Nominated by Hindraf to the Prime Minister 2. Approved and Appointed by the Prime Minister 3. Reporting directly to the Prime Minister eran eee = This space is left intentionally blank