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Promotion wise, OMS should be faster than LMS because there are no grades between the ranks for the former.
PSC scholarship still exist, these scholar will be given more choice about moving between the different Ministries in their career.
When it comes to Malay issue, you have to trust the old man. He had been working with those Malays for years and backstabbed many times. If you are an non-believer, you are the "enemy". It should be the non-believer's honour that the Muslims would even talk to you.