MCA is the second BN partner to tick off Umno for alleged racist remarks by its delegates during the recently concluded Umno annual general assembly.

MCA education bureau chief Chong Sin Woon said calls at the Umno AGM to review the conversion of the National Higher Education Fund Corporation (PTPTN) loan to scholarship for first class honours graduates as it mostly benefit the non-bumiputera was a "potentially racist remark not in line with BN's ideologies".

NONE In a statement today, he also rubbished Umno delegates' claims that merit-based policies only benefit non-bumiputeras.

"These are not only baseless, but will fuel potentially racial sentiments and unrest, especially among the younger generation.

"Meritocracy and education are two of the eight core values of the 1Malaysia ideology put forth by Prime Minister Najib Adul Razak," he said.

Chong said PTPTN statistics showed 16,051 first class degree graduates of all races have benefited from the scholarship conversion between Oct 2012 and Jan 2013

"Rewarding students who work hard to obtain distinctions shows the society's support in nurturing the younger generation via education, and appreciation of local talents.

NONE "A rejection of the meritocracy policy, especially in education will affect young people of all races who are qualified for an opportunity to pursue their dreams," he said.

Chong said it was essential that the government continue to pursue meritocracy and eliminate conservatism in the formulation of education policies.

On Friday, Penang Gerakan secretary Oh Tong Keong ( right ) had called for Umno Bukit Mertajam division chief Musa Sheikh Fadzir to be sacked for calling "1Malaysia" to be replaced with "1Melayu".

Musa was defiant in his response yesterday and refused to apologise.