Rancangan Malaysia Ke-8

1. MALAYSIAN ECONOMY
MPU2113U3
INDIVIDUAL ASSIGNMENT
PREPARED BY:
FATIN NUR ADILAH BINTI AHMAD SULHI
2082019020007
PREPARED FOR:
NORHAYATI BINTI HASHIM
SUBMISSION DATE:
13th JULY 2019

2. i
TABLE OF CONTENTS
INTRODUCTION OF MALAYSIAN PLAN .........................................................................1
INTRODUCTION OF 8TH MALAYSIAN PLAN ..................................................................2
OBJECTIVES OF 8TH MALAYSIAN PLAN........................................................................3
STRATEGIES OF 8TH MALAYSIAN PLAN........................................................................5
ACHIEVEMENT OF 8TH MALAYSIAN PLAN ....................................................................7
REFERENCES ........................................................................................................................8

3. 1
INTRODUCTIONOF MALAYSIAN PLAN
The Malaysian Plan is a five-year Malaysian government development plan. This five-year
plan is a legacy of the British rulership, in Malaya after the Second World War. The five-year
plan commenced with the First Malaya Plan, which it from 1956 to 1960. It was subsequently
linked to the Second Malaya Plan from 1961 to 1965.
After the establishment of Malaysia in 1963, this five-year plan was converted to the Malaysia
Plan (RM) with the First Malaysia Plan from 1966 to 1970. The difference was that of
Malaysia's prior economic planning, the focus for this time and beyond was for the whole of
Malaysia including Sabah and Sarawak.
The government is responsible for reducing poverty among the Malays and balancing
economic development in urban and rural areas. The national development plan is divided
into three stages,namely pre-independence, post-independence planning and New Economic
Policy (EDB) era.
The first stage of planning (pre-independence) includes the Federation of Malaya
Development Framework (1950-1955) and part of the First Malaysia Plan (1956-1960). The
second stage, after independence was the Second Malaysia Plan (1961-1965) and part of the
First Malaysia Plan (1960-1970), after Malaysia was established. The third stage, the National
Development Plan covers planning in the New Economic Policy (DEB) era, the fifth Malaysia
Plan (1986-1990).

4. 2
INTRODUCTIONOF 8TH
MALAYSIAN PLAN
The Eighth Malaysia Plan, covering the period 2001-2005, is the first phase in the
implementation of the Third Outline Perspective Plan (OPP3), 2001- 2010. The OPP3, which
embodies the National Vision Policy (NVP), will chart the development of the nation in the first
decade of the 21st century. The Eighth Plan will incorporate the strategies, programmes and
projects designed to achieve the NVP objectives of sustainable growth and strengthen
economic resilience as well as create a united and equitable society.
During the Eighth Plan period, the Malaysian economy will face greater challenges as a result
of increasing globalization and liberalization as well as the rapid development of technology,
especially information and communications technology (ICT). To enhance the
competitiveness of the economy and strengthen economic resilience, concerted efforts will be
undertaken to improve total factor productivity (TFP) as well as facilitate the development of a
knowledge-based economy. Priority will be accorded to increasing the supply of quality
manpower, enhancing research and development (R&D) efforts and accelerating the
development of growth sectors. Emphasis will also be given to strengthen positive values
among Malaysians and promote a united and equitable society.

5. 3
OBJECTIVESOF 8TH
MALAYSIAN PLAN
There are the objectives of 8th
Malaysian Plan:
 Maintaining Macroeconomic Stability
Ensuring prudent fiscal and monetary policies. During the Eighth Plan period, the
Government will continue its prudent fiscal policy to ensure long-term sustainability
and a manageable debt service ratio. The tax system and its administration will be
further strengthened to generate revenue and promote greater economic efficiency
and productivity. The monetary policy will reinforce the fiscal policy in promoting long-
term sustainable growth. In this context, liquidity will be judiciously managed to
facilitate economic growth without causing inflation. Monetary policy will also ensure
that bank lending will not be a source of instability that could result in asset price
inflation, which ultimately leads to inflationary pressures. A positive real rate of return
on deposits will be maintained to promote savings to support economic growth. In
addition, the bond market will be developed to complement the banking system in
meeting financial requirements, particularly for large infrastructure projects.
 Poverty Eradication and Restructuring of Society
Consolidating poverty eradication programmes. During the Plan period, the thrust of
poverty eradication will be directed towards reducing the incidence of absolute poverty
to 0.5 per cent by 2005. The rapid economic growth that 10 is anticipated during the
Plan period is expected to generate more opportunities for the poor to further increase
their income and move out of poverty. In addition, the Program Pembangunan Rakyat
Termiskin (PPRT) and other anti-poverty programmes will be consolidated under the
Skim Pembangunan Kesejahteraan Rakyat (SPKR). The SPKR will be implemented
as an integrated package encompassing economic, social and physical components,
targeted towards eradicating poverty in areas and among groups with a high incidence
of poverty

6. 4
 Enhancing Competitiveness in Key Sectors
Industrialization for the future. During the Eighth Plan period, competition among
countries will intensify with economies competing for investments, production and
markets. Besides the increase in competition, challenges brought about by rapid
advances in technology will influence industrial development. To meet these
challenges and sustain the growth momentum in the manufacturing sector, the
strategic thrust will be to develop industries capable of meeting the high expectations
of consumers. In addition, strategic alliances with foreign companies will be forged to
enhance competitiveness and increase opportunities abroad.
 Expanding the Usage of Information and Communications Technology
ICT has a strategic role in accelerating the economic growth process by increasing the
efficiency and productivity of all sectors in the economy. Efforts will be made to
accelerate the implementation of ICT-related programmes and projects nationwide
during the Plan period. Towards this end, the diffusion and usage of ICT within and
across sectors will be further expanded. A conducive institutional, regulatory and
legislative environment to support the development of ICT and its related activities will
be provided.

7. 5
STRATEGIES OF 8TH
MALAYSIAN PLAN
Policies and strategies during the Eighth Plan period will focus on achieving sustained growth
with resilience. The RMKe-8 thrust is transforming the strategy of growth from input-driven
strategies to knowledge-driven strategies. The transition to this strategy is important in an
effort to increase the growth potential of output, speeding up changes in the structure of the
manufacturing and services sectors as well as intensifying the agriculture sector and
strengthening socio-economic stability through equitable distribution of wealth and national
income.
The 8MP will focus more on private sector initiatives while the public sector will provide
`conducive institutional policy framework as well as quality services to assist in the
development of the private sector. In order to enhance the country's competitiveness, special
emphasis will be given to increase productivity and efficiency through human resource
development, increased R & D activities and the use of latest technologies, particularly ICT.
The key strategies that will be implemented during the Plan period to address the challenges
faced by the country are as follows:
 Continue with robust macroeconomic management and ensure prudent monetary and
fiscal policies and enhance the development of a knowledge-based economy;
 Strengthen and coordinate distribution programs and strategies to ensure balanced
participation among and between ethnic groups and income groups and regions;
 Improve productivity growth through the strengthening of knowledge, skills and
expertise of workers and strengthening R & D and science and technology (S & T);
 Enhance the competitiveness and resilience of the economy by accelerating the
transition of key economic sectors to more efficient production processes and higher
value-added activities;
 Expand the use of ICT in all sectors of the economy for
 Accelerate the growth process;

8. 6
 Strengthen human resource base to ensure supply
 Human resources with high level of knowledge, technical skills and high thinking skills;
 Implement a comprehensive and integrated approach to addressing natural resources
and the environment to sustain sustainable development;
 Improve the quality of life through increased access to
 Social services as well as develop the theatrical aspects of life;
 Intensify efforts to nurture and inculcate positive values and pristine qualities among
the people through the education system, social and religious organizations and the
media.

9. 7
ACHIEVEMENT OF 8TH
MALAYSIAN PLAN
During the review period, infrastructure and utility projects continued to contribute to economic
growth through linkages and spillover benefits. Section of the Second East-West Link Road
and the Pos Blau - Kampung Kuala Betis section of the Simpang Pulai - Gua Musang - Kuala
Berang Road enhanced the development of new areas. Accessibility to the new airports at
Tawau and Bintulu was improved with the upgrading of the access roads. In addition, two
privatised road projects were completed, namely, the New North Klang Straits Bypass and the
Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT Highway) Package A & B. The
New North Klang Straits Bypass provided an alternative access road to the North Port, Port
Klang, while the completion of the SPRINT Highway Package A & B provided a better linkage
between Damansara and the western part of Kuala Lumpur.
The economy also became more broad-based with increased contribution to growth arising
from promoted services sectors and the gradual shift into high technology and knowledge-
intensive manufacturing. The agriculture sector witnessed renewed vitality from improved
primary commodity prices as well as further 5 expansion in food crops,fisheries and livestock.
Initiatives to improve corporate governance, and restructure the corporate and financial
sectors were also on track. Significant achievements were made in human resource
development, particularly in improving the quality of the labour force. In addition, satisfactory
progress was made towards achieving the socio-economic objectives, especially in terms of
reducing the incidence of poverty, increasing the number of Bumiputera professionals and
enterprises as well as providing better housing and basic amenities to the low-income group.
The quality of education and training will be raised by improving teaching and learning
materials, and increasingly adopting a student-centred approach. A rating system will be
developed to enable public institutions of higher learning to assess their own programmes.
Efforts will also be taken to streamline the 19 qualifications offered by public and private
education and training institutions. To make the education system less examination-oriented,
the evaluation of the overall performance of students will also include school-based
assessment.

10. 8
REFERENCES
1. https://www.pmo.gov.my/dokumenattached/RMK/RMK8_MTR.pdf
2. http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan017502.pdf
3. https://www.pmo.gov.my/dokumenattached/RMK/RM8.pdf