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 13th 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) Chinese - articled as miners 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.

MALAYSIA’S ECONOMIC BACKGROUND

Malaysia’s economy can be divided into 4 stages:

a) Pre-colonial stage

b) Colonial stage

c) Post-independent stage

d) New stage

MALAYSIA’S ECONOMIC BACKGROUND

Drastic effect of changes in economic structure happened during British’s government.

Introduced trade agriculture such as rubber and palm oil.

Also introduced a new system of management that is agriculture through fields.

MALAYSIA’S 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) 1st Malaya Plan (1956 - 1960) b) 2nd Malaya Plan (1961-1965) c) 1st Malaysia Plan (1966-1970)

MALAYSIA’S 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 GOALPlan / 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.

1st Malaysia Plan 1966 – 1970 Overall development involving all

economic fields.

2nd Malaysia Plan to 5th Malaysia Plan

(OPP 1) (NEP)1971 – 1990

Eradicate poverty. Diversify economic activity.

6th Malaysia Plan to 7th Malaysia Plan

(OPP 2)

1991 – 1995

1996 – 2000

Eradicate poverty of the poorest. Create a bumiputera society that

trades & involves itself with industrialisation.

8th 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 people’s 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 country’s 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. ‘Privatization’ = process of changing 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 nation’s 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 goal’s = was to check and change the country’s industrialization policies and to evaluate again the motivations for investment and the export development policies.

MIP goal’s = 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 women’s involvement &

contribution to the nation’s development. Main objectives = to guarantee equality

between men & women particularly in the country’s development & to integrate women in all developmental sectors.

E.g. = the setting up of Ministry of Women Affair’s.

NAT. WOMEN’S 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 native’s

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