KUALA LUMPUR: Race-based policy does not encourage domestic investments in the country, said Universiti Malaya Political Economy Prof Dr Edmund Terence Gomez.
He said such policies will only worry investors as it has done in the past.
The government should instead come up with policies that inspire and build investors' confidence, he added.
"My argument is that it (the Bumiputera policy) has not been successful in the past. Why should they be now?
"For example, if you look at the top 50 richest Malaysians, there are only two Bumiputera individuals," Edmund said on the sideline of South China Morning Post's China Conference, here, today.
"Since the previous government came up with Bumiputera economic policy, how much domestic investments have they been?" he asked.
Meanwhile, Edmund said the idea to build the third national car is a concern to the people due to small market size and domestic firms not up to scratch on the technical knowledge.
"I would look at it very carefully. The government needs a proper assessment before deciding on it,” he said.
"They should look at the lessons of Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd as well as other issues like market size and technological base," he said.