MALAYSIAN STUDIES

NATION DEVELOPMENT

ECONOMIC BACKGROUND &
NATIONAL POLICIES
NATIONAL
INTEGRATION
! Integration is the biggest problem.
! Differences between the races can create
tensions & jeopardize the safety of the
country.
! The 13
th
May 1969 Event is viewed by a
lot as the peak of manifestation of national
integration problems.
! Riots between races caused tension.
! Since then, Government has given priority
to national integration in the policies
executed.
NATIONAL
INTEGRATION
! Integration problems have started since
the British colonization period.
! Divided & ruled policies to split races
according to space & functions.
! Space = 3 major races placed in 3
different places.
a) Malays - in rural areas such as the
villages (kampung).
b) Chinese tin mines and commerce
development.
c) Indians - in rubber estates.
NATIONAL
INTEGRATION
! Functions = functions of each race.
a) Malays - allowed to be involved in peasantry
activities especially traditional agriculture
and fishing.
b) Chi nese - ar t i cl ed as mi ner s and
businessman.
c) Indians - were seen as estate laborers.
! Differences in space & functions cause the 3
main races to split and have a minimum
contact.
! After the 13 May 1969 Events, serious effort
has been taken to achieve the objective.
MALAYSIAS ECONOMIC
BACKGROUND
! Malaysias economy can be divided into 4
stages:
a) Pre-colonial stage
b) Colonial stage
c) Post-independent stage
d) New stage
MALAYSIAS ECONOMIC
BACKGROUND
! Drastic effect of changes in economic
structure happened during Britishs
government.
! Introduced trade agriculture such as rubber
and palm oil.
! Also introduced a new system of
management that is agriculture through
fields.
MALAYSIAS ECONOMIC
BACKGROUND
! The era of post-independence was the era of
change because the country was run by the
government who is governed by the local leaders.
! Few economic developmental plans between
1956 - 1970 were introduced:
a) 1
st
Malaya Plan (1956 - 1960)
b) 2
nd
Malaya Plan (1961-1965)
c) 1
st
Malaysia Plan (1966-1970)
MALAYSIAS ECONOMIC
BACKGROUND
! Drastic changes in development occurred after
the May 13, 1969 incident.
! The New Economic Policy (NEP) was
introduced between 1971 until 1990, in line with
2nd Malaysia Plan to 5th Malaysia Plan.
! This period was also named as the First Outline
Perspective Plan (OPP 1).
ECONOMIC POLICY GOAL
Plan / Policy Period Goal / Objectives
Malaya Plan 1 1956 1960
" Lessen the gap of poverty.
" Diversify economic activity.
Malaya Plan 2 1961 1965
" Emphasis to overall development
management.
1
st
Malaysia Plan 1966 1970
" Overall development involving all
economic fields.
2
nd
Malaysia Plan
to 5
th
Malaysia Plan
(OPP 1) (NEP)
1971 1990
" Eradicate poverty.
" Diversify economic activity.
6
th
Malaysia Plan to
7
th
Malaysia Plan
(OPP 2)
1991 1995
1996 2000
" Eradicate poverty of the poorest.
" Create a bumiputera society that
trades & involves itself with
industrialisation.
8
th
Malaysia Plan
(OPP 3)
2001 2010
" Eradicate poverty.
" Diversify economic activity.
NEW ECONOMIC POLICY (NEP)
! Was launched in 1970.
! Covered a duration of 20 years until 1990 by making 4
Malaysian Plans as channel to achieve.
! The main objective is to achieve national integration.
! 2 main strategies were outlined:
a) to eradicate poverty among the people without taking
into account the race;
b) restructuring the society to eradicate racial
identification through economic function.
! Job opportunities were created through industrial
sector development and opening of new lands.
! Increased peoples income through development of
rural areas, education, training & infrastructure
facilities.
! Federal Association of Agriculture Marketing (FAMA)
& Malaysian Agriculture Research Development
Institute (MARDI) etc. were hastened to increase
efforts to help farmers to increase their income /
earnings.
NEP ERADICATE POVERTY
! To narrow down the differential gap in the sharing
of the countrys wealth.
! Government has outlined that by 1990 the
Bumiputeras should control 30% of the share
ownership, whereas non-Bumiputeras controls
40% & 30% were allocated to the foreign share
holders.
! Amanah Saham Nasional & Amanah Saham
MARA was introduced in 1981.
! Opening of new plan lands were done.
NEP RESTURCTURE SOCIETY
! Introduced in 1983.
! Pri vat i zat i on = process of changi ng
government service or industry to private sectors.
! The goals are:
a) To lessen the financial administrative burden of the
government.
b) To increase efficiency and production.
c) To hasten economical development.
d) To reduce the size and involvement of public sector in
the economy.
e) To help achieve the purpose of NEP.
NAT. PRIVITIZATION POLICY
! The development of the nations industry in 1970s
and early 80s had a few weaknesses such as low
technological level and lack of skilled local labour
force, quality of product is not satisfactory &
concentrated too much on assembly.
! To overcome the problem, government launched 2
main research policy plans in 1983 that is, National
Industrialization Research Policy (NIRP) and Main
Industrialization Plan (MIP).
NAT. INDUSTRIALIZATION
POLICY
! NIPR goals = was to check and change the
countrys industrialization policies and to evaluate
again the motivations for investment and the export
development policies.
! MIP goals = to make the factory sector as a catalyst
of industrial development, encourage full use of
natural resources & increase research and
development (R&D) technology as a basis for
Malaysia to become an industrialized country.
NAT. INDUSTRIALIZATION
POLICY
! Launched by Dr. Mahathir in 17 Jun 1991.
! In line with NEP, OPP 1 & OPP 2.
! Main goal = enable Malaysia to achieve status
of developed country in all aspects; social
justice, value, ethics and moral, quality of life,
political stability, efficiency in government
administration & economic brilliance.
! Differentiates NDP with the NEP.
NAT. DEVELOPMENT POLICY
! Was launched in 25 February 1983 by Dr.
Mahathir.
! According to Dr. Mahathir, a government is well-
known with inefficiency although assisted by
monopoly and government authority elements.
Whereas, the private sector is more efficient and
motivated.
! Main objective = to establish good relationship
between government & private sectors.
MALAYSIA INCORPORATED
POLICY
! Launched by Dr. Mahathir in 8 February 1982.
! Main objective = to increase management &
development performance and to inculcate
moral & ethical values in work.
! Misconception that practices what Japanese &
Korean does.
! Malaysian officers were sent to Japan & Korea
to learn the style & way of management,
working etc.
LOOK-EAST POLICY
! Launched by Dr. Mahathir in 28 February 1991.
! Not a policy but more to developing work performance
in line to achieve developed country status.
! 9 challenges:
1. Establish a united Malaysia with a sense of common &
shared destiny.
2. Create a psychologically liberated, secured &
developed society with faith & confidence.
3. Foster & develop a mature democratic society.
4. Establish a fully moral & ethical society.
VISION 2020
5. Establish a mature, liberal & tolerant society.
6. Establish a scientific & progressive society.
7. Establish a full caring society.
8. Ensuring an economic-just society.
9. Establish a prosperous society.
! Issues = creating Bangsa Malaysia.
! The vision touches NOT only economic &
development issues but formation of
Malaysian identity among the people.
VISION 2020
! Introduced in 1989.
! To encourage womens involvement &
contribution to the nations development.
! Main objectives = to guarantee equality
between men & women particularly in the
countrys development & to integrate women in
all developmental sectors.
! E.g. = the setting up of Ministry of Women
Affairs.
NAT. WOMENS POLICY
! Initiated by Dr. Mahathir in September 1982.
! Malaysia will be able to achieve higher
productivity level if achieves population of 70
million.
! This is mainly due to vast area in Malaysia
covering 514,000 km square feet.
! Increase productivity level, demand & supply
for all products will be higher & therefore
increasing competitiveness.
TOWARDS 70 MILLION
POPULATION POLICY
! Was introduced as an effort to cultivate national
integration.
! Formulated in August 1971.
! 3 main principles:
a) The national culture must be based on the
natives origin culture (Malay & Bumiputera);
b) Appropriate and relevant elements from other
cultures can be combined into the National
Culture.
c) Islam as the main source & reference for all the
culture.
NAT. CULTURAL POLICY
! Norms & values of various ethnic groups which
have been absorbed into the National Culture is
the mutual positive norms and values which
can create association and loyalty to the
country.
! The National Cultural concepts cover National
Language (Malay Language) usage as the
formal language and communication language
among the various ethnic races.
NAT. CULTURAL POLICY
! Initiated in 27 November 1971 through the Kuala
Lumpur Declaration during ASEAN Meeting.
! ZOPFAN = Zone of Peace, Freedom And
Neutrality.
! Main objective = to ensure ASEAN is a peace,
free & neutral region.
! Initiated as ASEAN member countries were
politically unstable at that time: Vietnam War,
political instability in Cambodia & Korean War.
ZOPFAN CONCEPT