This study focuses on Malaysia‟s economic development over the span of just over one century, 1900-2005. The historical evolution of the country‟s economy has been investigated by employing economic theories and models, and growth theories have been tested by using historical knowledge and statistical methods. The purpose of this study is to ascertain the direct and indirect consequences of policy making on three key issues: economic growth, structural change and income inequality.
The Impact of the New Economic Policy in MalaysiaJustin Ooi
This document is a 1952 word essay analyzing the impact of Malaysia's New Economic Policy (NEP) introduced in 1971. The NEP aimed to eradicate poverty and restructure Malaysian society. It succeeded in reducing poverty and establishing an urban Malay middle class through policies favoring the Bumiputera population. However, it is argued that the NEP failed to achieve its goal of national unity by dividing society along ethnic lines and creating resentment among non-Bumiputeras. While the NEP helped the economy, it also politicized the ruling party UMNO and led to corruption. In education, the NEP established quotas that favored Bumiputeras and caused distress among non-Bumip
The document summarizes Malaysia's economic development approach which emphasizes public-private collaboration. It discusses how Malaysia transformed from an agriculture-based to an industrial economy through strategic policies and initiatives like industrial clusters. The Economic Planning Unit plays a key role in facilitating long-term development planning in partnership with the private sector to achieve economic and social goals. Privatization of sectors and public-private partnerships were important approaches in development.
The document discusses Malaysia's economic development policies and frameworks from the colonial period to modern times. [1] It outlines key policies and plans such as the New Economic Policy (NEP) introduced in 1970 to address socioeconomic imbalances, the National Development Policy (NDP) of 1991, and Vision 2020 which aimed to make Malaysia a developed nation by 2020. [2] It also summarizes the goals and strategies of these policies in developing the economy, improving living standards, and promoting national unity.
The National Development Policy (NDP) was introduced in 1991 by Prime Minister Mahathir Mohamad to continue the goals of the New Economic Policy (NEP) and transform Malaysia into a developed nation by 2020. The NDP aimed to strengthen national unity, reduce economic and social inequalities, and spur balanced development across all sectors and regions of the country. It led to strong and equitable economic growth during its implementation from 1991 to 2005, achieving annual GDP growth of 6.2% while keeping inflation and unemployment low. The NDP helped improve standards of living for Malaysians through increased access to education, better work opportunities, and advanced infrastructure.
The document discusses Bumiputera socioeconomic policies and equity ownership in Malaysia from 1970 to 2011. It notes that the National Economic Policy (NEP) was introduced in 1970 to address socioeconomic inequalities and increase Bumiputera participation in the economy. While the NEP and subsequent policies made progress towards reducing poverty and increasing Bumiputera equity ownership, the targeted 30% equity level has yet to be achieved. Current efforts through the New Bumiputera Economic Empowerment Council aim to further strengthen Bumiputera human capital, business ownership, and economic participation.
Malaysia’s overall economic policies are we on the right track ?Nurul Zamri
Malaysia has implemented several key economic policies since gaining independence to promote economic growth and social restructuring, including the New Economic Policy, Malaysia Incorporated Policy, and Privatization Policy. The New Economic Policy aimed to eliminate identification of race with economic function and reduce income and wealth inequality, while the Malaysia Incorporated Policy and Privatization Policy increased the role of the private sector and reduced the government's economic presence. Other policies such as human resource development and support for small and medium enterprises also aimed to strengthen Malaysia's workforce and domestic industries. Overall experts assess that Malaysia is on the right track with these policies to achieve developed nation status by 2020, though continued efforts are still needed, particularly in education.
The document provides an overview of Malaysia's economic development plans from British colonization to modern times. It discusses how British policies focused on extracting raw materials and promoted racial divisions. After independence, the New Economic Policy (NEP) aimed to reduce poverty and restructure society. Subsequent plans like the National Development Policy (NDP) and National Vision Policy (NVP) maintained NEP's goals while pursuing balanced development. Vision 2020 articulated a vision for Malaysia to become a developed, united, and prosperous nation by 2020.
The New Economic Policy (NEP) was implemented in Malaysia from 1970-1990 to address racial inequality following 1969 riots. It aimed to reduce poverty, especially among Malays, and restructure society to address wealth distribution. In 1970, 74% of Malays lived below the poverty line compared to 17% of Chinese and 8% of Indians. The NEP succeeded in reducing the national poverty rate from 49.3% in 1970 to 17.1% in 1990, lifting many Malays out of poverty. However, it benefited Malays more than other ethnic groups, failing to adequately address poverty among Indians and other minorities. While the policy was effective in its goals, the government needs to ensure future economic growth benefits all communities.
The Impact of the New Economic Policy in MalaysiaJustin Ooi
This document is a 1952 word essay analyzing the impact of Malaysia's New Economic Policy (NEP) introduced in 1971. The NEP aimed to eradicate poverty and restructure Malaysian society. It succeeded in reducing poverty and establishing an urban Malay middle class through policies favoring the Bumiputera population. However, it is argued that the NEP failed to achieve its goal of national unity by dividing society along ethnic lines and creating resentment among non-Bumiputeras. While the NEP helped the economy, it also politicized the ruling party UMNO and led to corruption. In education, the NEP established quotas that favored Bumiputeras and caused distress among non-Bumip
The document summarizes Malaysia's economic development approach which emphasizes public-private collaboration. It discusses how Malaysia transformed from an agriculture-based to an industrial economy through strategic policies and initiatives like industrial clusters. The Economic Planning Unit plays a key role in facilitating long-term development planning in partnership with the private sector to achieve economic and social goals. Privatization of sectors and public-private partnerships were important approaches in development.
The document discusses Malaysia's economic development policies and frameworks from the colonial period to modern times. [1] It outlines key policies and plans such as the New Economic Policy (NEP) introduced in 1970 to address socioeconomic imbalances, the National Development Policy (NDP) of 1991, and Vision 2020 which aimed to make Malaysia a developed nation by 2020. [2] It also summarizes the goals and strategies of these policies in developing the economy, improving living standards, and promoting national unity.
The National Development Policy (NDP) was introduced in 1991 by Prime Minister Mahathir Mohamad to continue the goals of the New Economic Policy (NEP) and transform Malaysia into a developed nation by 2020. The NDP aimed to strengthen national unity, reduce economic and social inequalities, and spur balanced development across all sectors and regions of the country. It led to strong and equitable economic growth during its implementation from 1991 to 2005, achieving annual GDP growth of 6.2% while keeping inflation and unemployment low. The NDP helped improve standards of living for Malaysians through increased access to education, better work opportunities, and advanced infrastructure.
The document discusses Bumiputera socioeconomic policies and equity ownership in Malaysia from 1970 to 2011. It notes that the National Economic Policy (NEP) was introduced in 1970 to address socioeconomic inequalities and increase Bumiputera participation in the economy. While the NEP and subsequent policies made progress towards reducing poverty and increasing Bumiputera equity ownership, the targeted 30% equity level has yet to be achieved. Current efforts through the New Bumiputera Economic Empowerment Council aim to further strengthen Bumiputera human capital, business ownership, and economic participation.
Malaysia’s overall economic policies are we on the right track ?Nurul Zamri
Malaysia has implemented several key economic policies since gaining independence to promote economic growth and social restructuring, including the New Economic Policy, Malaysia Incorporated Policy, and Privatization Policy. The New Economic Policy aimed to eliminate identification of race with economic function and reduce income and wealth inequality, while the Malaysia Incorporated Policy and Privatization Policy increased the role of the private sector and reduced the government's economic presence. Other policies such as human resource development and support for small and medium enterprises also aimed to strengthen Malaysia's workforce and domestic industries. Overall experts assess that Malaysia is on the right track with these policies to achieve developed nation status by 2020, though continued efforts are still needed, particularly in education.
The document provides an overview of Malaysia's economic development plans from British colonization to modern times. It discusses how British policies focused on extracting raw materials and promoted racial divisions. After independence, the New Economic Policy (NEP) aimed to reduce poverty and restructure society. Subsequent plans like the National Development Policy (NDP) and National Vision Policy (NVP) maintained NEP's goals while pursuing balanced development. Vision 2020 articulated a vision for Malaysia to become a developed, united, and prosperous nation by 2020.
The New Economic Policy (NEP) was implemented in Malaysia from 1970-1990 to address racial inequality following 1969 riots. It aimed to reduce poverty, especially among Malays, and restructure society to address wealth distribution. In 1970, 74% of Malays lived below the poverty line compared to 17% of Chinese and 8% of Indians. The NEP succeeded in reducing the national poverty rate from 49.3% in 1970 to 17.1% in 1990, lifting many Malays out of poverty. However, it benefited Malays more than other ethnic groups, failing to adequately address poverty among Indians and other minorities. While the policy was effective in its goals, the government needs to ensure future economic growth benefits all communities.
This document summarizes the economic development of Malaysia over five phases from independence to the present. It describes the country's location and demographics. Under British rule, the economy focused on exports of rubber, tin, and palm oil. After independence, the government implemented development plans to improve infrastructure and living standards, though ethnic tensions remained. The 1997 Asian Financial Crisis impacted Malaysia significantly but recovery was aided by stimulus packages. Currently, Malaysia has a stable, diversified economy with a declining government role and emphasis on private sector growth.
The document summarizes Chapter 5 of Malaysia's 10th Development Plan, which focuses on developing and retaining a first-world talent base. The plan aims to reform education, raise skills levels, and transform the labor market. It will revamp the education system to improve student outcomes, raise skills through technical/vocational training, and make the labor market more flexible while attracting top talent. The focus is on developing high quality teachers and skills to meet industry needs and transform Malaysia's economy and workforce.
Malaysia is a federal parliamentary democracy with a constitutional monarch located in Southeast Asia. It gained independence from Britain in 1957 and has a population of over 29 million people. The country has experienced strong economic growth in recent decades, transitioning from a commodity-based economy to one focused on manufacturing and services. This development has led to increasing urbanization, privatization, and integration into the global economy.
The document outlines the New Economic Model (NEM) introduced in Malaysia in 2010. The NEM has two parts and was introduced to transform Malaysia's economy into one with high income and quality growth by 2020. The goals of the NEM are for Malaysia to become a developed, competitive economy where citizens enjoy high quality of life and income through inclusive and sustainable growth. The private sector is meant to be the main driver of economic growth through innovation, while the public sector provides the regulatory framework. Data on inequality and poverty rates show that these have decreased in Malaysia since the introduction of the NEM, suggesting its goals of inclusive growth are being achieved.
The document provides an overview of Malaysia's Eleventh Malaysia Plan from 2016-2020. Some key points:
1) The Plan aims to fulfill Vision 2020's goal of transforming Malaysia into a developed nation by focusing on "anchoring growth on people" and delivering high impact outcomes for both the economy and citizens.
2) Since the 1970s, Malaysia has transformed from a low-income to high middle-income economy, with per capita income increasing over 25 times.
3) The previous Tenth Plan from 2011-2015 achieved strong GDP growth and improved livelihoods, but global challenges remain.
4) The Eleventh Plan outlines six strategic thrusts and six "game changers" to address
This document discusses Malaysia's national economic development policies and plans since independence. It is divided into three main phases: pre-independence planning, post-independence planning, and planning after the New Economic Policy was implemented. Key policies and plans discussed include the First Malaysia Plan (1956-1960), New Economic Policy (NEP, 1971-1975), National Development Policy (NDP, 1991), and National Vision Policy. The goals of these policies and plans were to overcome socioeconomic problems, reduce poverty and socioeconomic imbalances, and transform Malaysia's economy from a traditional to a modern one.
The document outlines Malaysia's Vision 2020, which was introduced in 1990 with the objective of making Malaysia a fully developed nation by 2020. The vision called for Malaysia to become a self-sufficient, industrialized country by 2020 through achieving an annual GDP growth rate of 7% and doubling GDP every 10 years. It also aimed to improve aspects of life such as economic prosperity, education, social well-being, political stability, and national psychology. Challenges to achieving Vision 2020 included establishing a united Malaysian identity and developing a democratic, moral, just, and prosperous society with a competitive economy. Subsequent government programs like 1Malaysia, the Government Transformation Program, and Economic Transformation Program aimed to advance progress towards the goals of Vision 2020
Development of sri lanka in South Asian contextJ Wanniarachchi
Sri Lanka is still a developing country. We have to learn lot from other Asian Countries who are already in great development. so through this presentation it compared the economic situation of Sri Lanka with Malaysia. And imply what are the lessons that we can gain from Malaysian economy.
The document summarizes Malaysia's New Economic Model (NEM) framework, which was introduced in 2010 to transform Malaysia's economy from being dependent on agriculture and commodities to a knowledge-based, high-income economy as outlined in Vision 2020. The NEM has four pillars including the Economic Transformation Programme focused on 12 national key economic areas. It aims to double per capita income by 2020 and create an inclusive, sustainable economy led by the private sector and supported by public sector infrastructure and policies.
This slide will show to public how Malaysian Economic growth trend and what sector contribute to that trend. This slide also will tell to public the percentage of FDI that Malaysia received untill 2010. The resources of this information came from Director (Macroeconomics)
Economic Planning Unit
Malaysian Prime Minister‘s Department.
The document outlines Malaysia's Second Outline Perspective Plan (NDP) and National Development Policy (NDP) from 2001-2010. The NDP aims to eradicate poverty and achieve an economically, socially, spiritually and psychologically balanced society through strategies like reducing and eventually eradicating poverty, especially among hard-core poor communities, and accelerating restructuring of Malaysian society including emphasis on Bumiputera economic development. The National Vision Policy (NVP) comprises five year development plans from the 8th to 9th Malaysian Plans with objectives of national integration and eradicating poverty.
The document compares the economies of Singapore and Malaysia and analyzes their strategies and challenges over time. It discusses:
1. Singapore achieved rapid economic growth through strategic government policies that attracted foreign investment, developed infrastructure, and mobilized human capital.
2. Malaysia transitioned from an export-based economy focused on raw materials like tin and rubber to industrialization in the late 20th century. It aimed to diversify its economy and reduce dependence on commodity exports.
3. Both countries face ongoing challenges in maintaining competitiveness against rising economies like China and India, and in addressing issues like aging populations and low birth rates. They continue investing in high-tech industries and developing skilled workforces.
This document discusses Malaysia's national development plans and vision. It provides details on:
- The New Economic Policy (NEP) which aimed to eradicate poverty and restructure society, and the subsequent long term development plans (OPP1, OPP2, OPP3) which continued the NEP's goals.
- Vision 2020 which outlined nine challenges including creating a united, democratic, moral, and prosperous society with a competitive economy.
- National development policies after independence including the NEP, National Agriculture Policy, and National Privatization Policy, which aimed to reduce inequality and stimulate economic growth for poverty reduction and national unity.
The document summarizes Malaysia's development plans from 1971 to 2000. The New Economic Policy (NEP) from 1971-1990 aimed to eliminate poverty and restructure society to address racial imbalances through equitable growth and government participation in the economy. The National Development Policy (NDP) from 1991-2000 continued the NEP's goals with a focus on balanced development, human capital formation, and greater private sector involvement. Both plans achieved increased GDP, reduced poverty, and greater Bumiputera participation in the economy.
The document summarizes several economic policies implemented by the Malaysian government from 1970 to 2010, including the New Economic Policy (NEP), National Development Policy (NDP), National Vision Policy (NVP), National Incorporation Policy, National Privatization Policy, and National Industrialization Policy. The main goals of these policies were to reduce poverty, restructure society, promote balanced development, build an equitable and competitive economy, and transform Malaysia into an industrialized nation.
The document outlines a new economic model for Malaysia to transform the country into a developed nation by 2020. It discusses Malaysia's current economic position and challenges, including mediocre growth, low private investment, and exports that generate low value-added. The goals of the new model are for Malaysia to achieve high-income status with quality of life through inclusive and sustainable growth. The model will require bold policy reforms and strategic initiatives to reshape incentives and drive the country towards its objectives.
L7 issues of national concern ( 5.1, 5.2 & 5.3 )gunavathy suppiah
- Malaysia plays an active role in regional and international organizations to promote cooperation on issues like trade, environment, and development. It is a founding member of ASEAN and works to advance the goals of economic growth, social progress, and cultural development in Southeast Asia.
- Domestically, Malaysia implements policies and programs to protect the environment and conserve natural resources while still pursuing economic development. This includes educating the public and private sector on environmental issues and enforcing laws to manage pollution and ensure sustainable use of resources.
- As an Islamic nation, Malaysia also participates in the Organization of Islamic Countries to strengthen relationships with other Muslim-majority states around the world.
The document provides a general overview of the economy in Sri Lanka from the time of Independence in 1948 to the Present era in terms of policy changes, the general affect on different regime changes on the economy and how they have molded the present situation in Sri Lanka in a macro economic perspective.
The document discusses Malaysia's national education policy and national culture policy.
1) The national education policy was established in 1957 to replace the colonial education system and create a system suited for an independent nation. It aims to unite students of different races and provide a trained workforce.
2) The national culture policy aims to develop a unified Malaysian identity and culture by incorporating elements of the original Malay culture along with suitable aspects of other cultures like Chinese and Indian, while upholding Islam as the official religion.
Malaysia has a population of over 28 million people from three main ethnic groups - Malay, Chinese, and Indian. The economy was traditionally based on commodities like tin and rubber but diversified after independence. Affirmative action policies aimed to boost the Malay population's share of the economy but caused tensions. Malaysia was impacted by the Asian Financial Crisis in 1997-1998 and the Global Financial Crisis in 2008-2009, but implemented reforms and stimulus packages to recover. Current economic policies under Najib Razak aim to reduce subsidies, boost private investment, and further liberalize the economy while maintaining ethnic harmony.
Inequality, Economic Growth and Developmenttutor2u
The document discusses inequality, economic growth, and development. It covers several topics: Kuznets and income inequality; real income growth in the USA and top income shares; a global perspective on inequality between 1988-2008 showing rising incomes for the middle class in China and India. It also discusses the root causes of inequality like less progressive tax systems and market failures in education and housing. Strategies to reduce inequality include investing in education, pursuing inclusive pro-poor growth policies, and microfinance. Overall, the document examines inequality from various economic perspectives and proposes approaches to promote shared prosperity across populations.
population growth and economic developmenttalha butt
This document is a summary of a group project submitted by 6 students to their professor on the topic of population growth and economic development. It discusses 3 learning objectives: 1) the relationship between population growth and income growth, 2) Thomas Malthus' prediction of a "Malthusian trap", and 3) the demographic transition in developed vs developing countries. It provides figures and explanations of concepts like the Malthusian trap, the demographic transition, and how income levels affect population growth rates.
This document summarizes the economic development of Malaysia over five phases from independence to the present. It describes the country's location and demographics. Under British rule, the economy focused on exports of rubber, tin, and palm oil. After independence, the government implemented development plans to improve infrastructure and living standards, though ethnic tensions remained. The 1997 Asian Financial Crisis impacted Malaysia significantly but recovery was aided by stimulus packages. Currently, Malaysia has a stable, diversified economy with a declining government role and emphasis on private sector growth.
The document summarizes Chapter 5 of Malaysia's 10th Development Plan, which focuses on developing and retaining a first-world talent base. The plan aims to reform education, raise skills levels, and transform the labor market. It will revamp the education system to improve student outcomes, raise skills through technical/vocational training, and make the labor market more flexible while attracting top talent. The focus is on developing high quality teachers and skills to meet industry needs and transform Malaysia's economy and workforce.
Malaysia is a federal parliamentary democracy with a constitutional monarch located in Southeast Asia. It gained independence from Britain in 1957 and has a population of over 29 million people. The country has experienced strong economic growth in recent decades, transitioning from a commodity-based economy to one focused on manufacturing and services. This development has led to increasing urbanization, privatization, and integration into the global economy.
The document outlines the New Economic Model (NEM) introduced in Malaysia in 2010. The NEM has two parts and was introduced to transform Malaysia's economy into one with high income and quality growth by 2020. The goals of the NEM are for Malaysia to become a developed, competitive economy where citizens enjoy high quality of life and income through inclusive and sustainable growth. The private sector is meant to be the main driver of economic growth through innovation, while the public sector provides the regulatory framework. Data on inequality and poverty rates show that these have decreased in Malaysia since the introduction of the NEM, suggesting its goals of inclusive growth are being achieved.
The document provides an overview of Malaysia's Eleventh Malaysia Plan from 2016-2020. Some key points:
1) The Plan aims to fulfill Vision 2020's goal of transforming Malaysia into a developed nation by focusing on "anchoring growth on people" and delivering high impact outcomes for both the economy and citizens.
2) Since the 1970s, Malaysia has transformed from a low-income to high middle-income economy, with per capita income increasing over 25 times.
3) The previous Tenth Plan from 2011-2015 achieved strong GDP growth and improved livelihoods, but global challenges remain.
4) The Eleventh Plan outlines six strategic thrusts and six "game changers" to address
This document discusses Malaysia's national economic development policies and plans since independence. It is divided into three main phases: pre-independence planning, post-independence planning, and planning after the New Economic Policy was implemented. Key policies and plans discussed include the First Malaysia Plan (1956-1960), New Economic Policy (NEP, 1971-1975), National Development Policy (NDP, 1991), and National Vision Policy. The goals of these policies and plans were to overcome socioeconomic problems, reduce poverty and socioeconomic imbalances, and transform Malaysia's economy from a traditional to a modern one.
The document outlines Malaysia's Vision 2020, which was introduced in 1990 with the objective of making Malaysia a fully developed nation by 2020. The vision called for Malaysia to become a self-sufficient, industrialized country by 2020 through achieving an annual GDP growth rate of 7% and doubling GDP every 10 years. It also aimed to improve aspects of life such as economic prosperity, education, social well-being, political stability, and national psychology. Challenges to achieving Vision 2020 included establishing a united Malaysian identity and developing a democratic, moral, just, and prosperous society with a competitive economy. Subsequent government programs like 1Malaysia, the Government Transformation Program, and Economic Transformation Program aimed to advance progress towards the goals of Vision 2020
Development of sri lanka in South Asian contextJ Wanniarachchi
Sri Lanka is still a developing country. We have to learn lot from other Asian Countries who are already in great development. so through this presentation it compared the economic situation of Sri Lanka with Malaysia. And imply what are the lessons that we can gain from Malaysian economy.
The document summarizes Malaysia's New Economic Model (NEM) framework, which was introduced in 2010 to transform Malaysia's economy from being dependent on agriculture and commodities to a knowledge-based, high-income economy as outlined in Vision 2020. The NEM has four pillars including the Economic Transformation Programme focused on 12 national key economic areas. It aims to double per capita income by 2020 and create an inclusive, sustainable economy led by the private sector and supported by public sector infrastructure and policies.
This slide will show to public how Malaysian Economic growth trend and what sector contribute to that trend. This slide also will tell to public the percentage of FDI that Malaysia received untill 2010. The resources of this information came from Director (Macroeconomics)
Economic Planning Unit
Malaysian Prime Minister‘s Department.
The document outlines Malaysia's Second Outline Perspective Plan (NDP) and National Development Policy (NDP) from 2001-2010. The NDP aims to eradicate poverty and achieve an economically, socially, spiritually and psychologically balanced society through strategies like reducing and eventually eradicating poverty, especially among hard-core poor communities, and accelerating restructuring of Malaysian society including emphasis on Bumiputera economic development. The National Vision Policy (NVP) comprises five year development plans from the 8th to 9th Malaysian Plans with objectives of national integration and eradicating poverty.
The document compares the economies of Singapore and Malaysia and analyzes their strategies and challenges over time. It discusses:
1. Singapore achieved rapid economic growth through strategic government policies that attracted foreign investment, developed infrastructure, and mobilized human capital.
2. Malaysia transitioned from an export-based economy focused on raw materials like tin and rubber to industrialization in the late 20th century. It aimed to diversify its economy and reduce dependence on commodity exports.
3. Both countries face ongoing challenges in maintaining competitiveness against rising economies like China and India, and in addressing issues like aging populations and low birth rates. They continue investing in high-tech industries and developing skilled workforces.
This document discusses Malaysia's national development plans and vision. It provides details on:
- The New Economic Policy (NEP) which aimed to eradicate poverty and restructure society, and the subsequent long term development plans (OPP1, OPP2, OPP3) which continued the NEP's goals.
- Vision 2020 which outlined nine challenges including creating a united, democratic, moral, and prosperous society with a competitive economy.
- National development policies after independence including the NEP, National Agriculture Policy, and National Privatization Policy, which aimed to reduce inequality and stimulate economic growth for poverty reduction and national unity.
The document summarizes Malaysia's development plans from 1971 to 2000. The New Economic Policy (NEP) from 1971-1990 aimed to eliminate poverty and restructure society to address racial imbalances through equitable growth and government participation in the economy. The National Development Policy (NDP) from 1991-2000 continued the NEP's goals with a focus on balanced development, human capital formation, and greater private sector involvement. Both plans achieved increased GDP, reduced poverty, and greater Bumiputera participation in the economy.
The document summarizes several economic policies implemented by the Malaysian government from 1970 to 2010, including the New Economic Policy (NEP), National Development Policy (NDP), National Vision Policy (NVP), National Incorporation Policy, National Privatization Policy, and National Industrialization Policy. The main goals of these policies were to reduce poverty, restructure society, promote balanced development, build an equitable and competitive economy, and transform Malaysia into an industrialized nation.
The document outlines a new economic model for Malaysia to transform the country into a developed nation by 2020. It discusses Malaysia's current economic position and challenges, including mediocre growth, low private investment, and exports that generate low value-added. The goals of the new model are for Malaysia to achieve high-income status with quality of life through inclusive and sustainable growth. The model will require bold policy reforms and strategic initiatives to reshape incentives and drive the country towards its objectives.
L7 issues of national concern ( 5.1, 5.2 & 5.3 )gunavathy suppiah
- Malaysia plays an active role in regional and international organizations to promote cooperation on issues like trade, environment, and development. It is a founding member of ASEAN and works to advance the goals of economic growth, social progress, and cultural development in Southeast Asia.
- Domestically, Malaysia implements policies and programs to protect the environment and conserve natural resources while still pursuing economic development. This includes educating the public and private sector on environmental issues and enforcing laws to manage pollution and ensure sustainable use of resources.
- As an Islamic nation, Malaysia also participates in the Organization of Islamic Countries to strengthen relationships with other Muslim-majority states around the world.
The document provides a general overview of the economy in Sri Lanka from the time of Independence in 1948 to the Present era in terms of policy changes, the general affect on different regime changes on the economy and how they have molded the present situation in Sri Lanka in a macro economic perspective.
The document discusses Malaysia's national education policy and national culture policy.
1) The national education policy was established in 1957 to replace the colonial education system and create a system suited for an independent nation. It aims to unite students of different races and provide a trained workforce.
2) The national culture policy aims to develop a unified Malaysian identity and culture by incorporating elements of the original Malay culture along with suitable aspects of other cultures like Chinese and Indian, while upholding Islam as the official religion.
Malaysia has a population of over 28 million people from three main ethnic groups - Malay, Chinese, and Indian. The economy was traditionally based on commodities like tin and rubber but diversified after independence. Affirmative action policies aimed to boost the Malay population's share of the economy but caused tensions. Malaysia was impacted by the Asian Financial Crisis in 1997-1998 and the Global Financial Crisis in 2008-2009, but implemented reforms and stimulus packages to recover. Current economic policies under Najib Razak aim to reduce subsidies, boost private investment, and further liberalize the economy while maintaining ethnic harmony.
Inequality, Economic Growth and Developmenttutor2u
The document discusses inequality, economic growth, and development. It covers several topics: Kuznets and income inequality; real income growth in the USA and top income shares; a global perspective on inequality between 1988-2008 showing rising incomes for the middle class in China and India. It also discusses the root causes of inequality like less progressive tax systems and market failures in education and housing. Strategies to reduce inequality include investing in education, pursuing inclusive pro-poor growth policies, and microfinance. Overall, the document examines inequality from various economic perspectives and proposes approaches to promote shared prosperity across populations.
population growth and economic developmenttalha butt
This document is a summary of a group project submitted by 6 students to their professor on the topic of population growth and economic development. It discusses 3 learning objectives: 1) the relationship between population growth and income growth, 2) Thomas Malthus' prediction of a "Malthusian trap", and 3) the demographic transition in developed vs developing countries. It provides figures and explanations of concepts like the Malthusian trap, the demographic transition, and how income levels affect population growth rates.
This document discusses strategies for Malaysian state-owned enterprises (SOEs) to enhance national competitiveness. It outlines three stages of economic development - factor-driven, efficiency-driven, and innovation-driven - and the corresponding weights given to basic requirements, efficiency enhancers, and innovation/sophistication factors. The document also discusses Malaysia's New Economic Model, which aims for high-income status, inclusiveness, sustainability, and improved quality of life by 2020 through strategic reform initiatives. Finally, it examines Sime Darby's transformation journey from a local to a global player and lessons learned around focus, branding, talent, and integration.
Insurance Sector Development & Economic Growth in MalaysiaSofia Naznim
To investigate the link between the insurance sector development and economic growth of Malaysia and to fill a gap in the current finance-growth nexus.
Research Based.
population promote economic developmentyasser poswal
Population growth can promote economic development in three key ways:
1. It increases the size of the labor market and workforce, providing more human capital for economic activity.
2. A larger population creates a larger domestic market for goods and services, attracting more investors.
3. Growing populations increase pressure on societies to innovate and develop new technologies to better serve more people, enhancing productivity over the long run.
The document provides an overview of the economic history of the United States from early Native American societies through the colonial era and independence to modern industrialization. It discusses how the economy progressed from small colonial farming economies to the world's largest industrial powerhouse. Key developments included unified national markets, infrastructure like canals and railroads, industrialization in the North, immigration, and the economic factors that led to the Civil War between the industrial North and agricultural South.
The document provides an overview of Malaysia's current economic condition based on key economic indicators. It summarizes that the economy is facing challenges as unemployment is projected to rise to 4.5% by the end of the year, GDP growth has contracted by 3.9% over the last four quarters, and FDI inflows have decreased significantly. While the business and consumer confidence index has recovered, declining global economic conditions may cause it to fall again. The overall assessment is that Malaysians should brace themselves for a difficult economic environment in the coming months and exercise caution with spending.
This file explains the sole causes but also the sole great solutions for the economic crisis. What is needed, is MORE money. Which can be reached in SIMPLE ways by means of my innovation for our money systems, mentioned and explained in my draft book being uploaded at www.scribd.com/wberendsen. It is the lowest file uploaded there.
The document summarizes India's New Economic Policy of 1991 which aimed to reform the economy and spur development. The key aspects of the reform were liberalization, privatization, and globalization. Liberalization deregulated the economy and freed prices and movement of goods. Privatization reduced the government's role in business and increased private sector participation. Globalization integrated India's economy with the global marketplace through free flow of trade, capital, information and technology between countries. The objectives of the reforms were to modernize industry, attract investment, eliminate controls, and connect India to the world economy while controlling deficits and growing foreign reserves.
Los patrones de medición representan unidades de medida con la mayor exactitud posible y se definen por acuerdos internacionales. Los patrones primarios se encuentran en laboratorios nacionales y representan unidades fundamentales y derivadas, calibrados independientemente mediante mediciones absolutas. Los patrones secundarios se usan en laboratorios industriales y se calibran localmente con patrones de referencia.
The document analyzes economic growth in Darkhan-Uul province from 2000-2017. It finds that GDP grew at an average annual rate of 11.3% over this period, driven primarily by increases in labor productivity rather than employment. The economy transitioned from agriculture to industry and services, with services becoming the largest sector. Labor productivity accounted for over 50% of GDP growth, with the remaining growth from increased employment. Multiple factors influenced growth, including higher labor productivity, more days worked per employee, and increases in population and the labor force.
This document outlines the key periods in Malaysia's economic history:
1. Pre-Independence era from 1800-1957 when Malaysia was a British colony and focused on commodity exports like rubber and tin.
2. Post-Independence period from 1957-1970 when Malaysia adopted policies to diversify its economy and promote industrialization through import substitution and rural development.
3. The New Era I from 1971-2008 defined by the New Economic Policy aimed at eliminating ethnic economic disparities and restructuring the economy under Bumiputera leadership through policies like privatization and Vision 2020.
4. The New Era II from 2009-2018 focused on the National Transformation Policy and programs like the New Economic Model to
The document outlines an assignment for a term paper on industrial development in Ethiopia. It discusses the historical background of Ethiopian industrial development under successive regimes from the Imperial period to the current EPRDF regime. Key industrial development strategies are summarized for each period, including a focus on import substitution, incentives for foreign investment, and liberalization efforts. The current industrial development strategy and its objectives to create a favorable environment and infrastructure for private sector growth are also mentioned.
This document provides an introduction to macroeconomics. It defines macroeconomics as the study of aggregate economic indicators for an overall economy, such as GDP, unemployment, and inflation. The document distinguishes macroeconomics from microeconomics, which focuses on individual markets and decision-making of consumers and businesses. Finally, it outlines several objectives of macroeconomics policy, including price stability, economic growth, and full employment.
African Lions Author Workshop 2015: Kenya Country Case StudyUNU-WIDER
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1) Kenya experienced strong growth in the 1960s-1970s but saw declining growth in the 1980s-1990s, with recovery in the 2000s driven by policy reforms.
2) Population growth has declined but Kenya remains youthful, presenting both challenges and opportunities for job creation.
3) The labor market has increasingly informalized, with most workers in low-paying informal jobs, though formal wages have risen recently.
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ECON251 INDUSTRY AND TRADE IN ASIA Tutorial 3 [Topic .docxmadlynplamondon
ECON251
INDUSTRY AND TRADE IN ASIA
Tutorial 3 [Topic 6 -8]
SECTION A : DATA ANALYSIS AND CASE STUDY
Question 1 The small successful Economies - Singapore and Hong Kong – A tale of 2 cities
Background 1: The economics model
The Solows Economic Growth model
Y = A LSL KSK
Where
• Y is output or GDP;
• A is Total factor Productivity (TFP);
TFP in general refers to technical improvements that allow for GDP growth without any corresponding
increase in labour or capital.
This could be through any type of improvements in underlying technology, such as an improvement in
production methodology (Howitt and Aghion, 1998) or a decrease in per unit costs (Harberger, 1998).
TFP can also be accrued due to external factors as externalities, economies of scale, and investment-
specific technical change etc
• K and L are capital and labour inputs respectively; and
• SK and SL are the income shares of capital and labour respectively
Background 2 : Brief Introduction to the two jewels of East Asia
Hong Kong and Singapore are similar in many ways .
To begin with the similarities: In the prewar era, both economies were British colonies that served as
entrepot trading ports, with little domestic manufacturing activity. Hong Kong processed trade
between Mainland China and the rest of the world, and Singapore served as a conduit for world
trade with Malaya and Indonesia.
In the postwar era, however, both economies developed large export-dependent domestic
manufacturing sectors. Both economies have passed through a similar set of industries, moving from
textiles, to clothing, to plastics, to electronics, and then, in the 1980s, gradually moving from
manufacturing into banking and financial services. Gross domestic product (GDP) per capita in the
two economies was quite close in 1960, and they have subsequently grown at the same remarkable
rate.
From the political economy perspective, one can note that both economies inherited a fairly
efficient and rational administrative structure. The postwar population of both was composed
primarily of immigrant Chinese from Southern China. Both economies are really small cities, with no
significant agricultural interests, economic or political. Along many dimensions of interest to growth
theorists, the two economies are, however, conveniently dissimilar.
The role of government
While the Hong Kong government has emphasized a policy of laissez faire and state intervention is
primarily on infrastructure development , the Singaporean government has, since the early 1960s,
pursued the accumulation of physical capital via forced national saving and the solicitation of a
veritable deluge of foreign investment.
[Adapted from Young, Alywn, “A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong
and Singapore, January 1992 ]
Abstract 1: Grappling with productivity challenge over the decades, April 24, 2016, ...
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By employing Autoregressive Distributed Lags (ARDL) approach impact of financial sector on economic growth of
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but negative effect on economic growth contrary to our expectations. The study employs the ratio of broad money to
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exchange rate, share on of investment to GDP, proportion of development expenditure to total expenditure and
dummy for structural reforms as control variables during our estimations. Results also suggest non-existence of
causality between financial development and economic growth. Thus the study suggests strengthening data
availability on flow of credit from financial institution to the public is necessary to materialize the effect of financial
sector in Tanzania
Lebanon is socially and economically a liberal country, where service sector of the economy is most developed. The country is considered a “piece of investment and touristic heaven” for neighboring Arabian countries, mainly because of its natural and touristic capital, its developed banking sectors, its hybrid mix of Eastern and Western cultures and its geographic location serving as a transit line for trade between Europe and the Middle East.
In the article the socioeconomic history of Lebanon was discussed by four phases:
1. The period of first independence in 1943-1975
2. The civil war of 1975-1990.
3. Post-war recovery period from 1990-2000
4. Current socioeconomic and political situation 2000-Present
Government Reform: Lesson’s from Korean ExperienceDadang Solihin
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The document discusses economic liberalization in Sri Lanka following the 1977 election. It makes three main points:
1) The new government embarked on a trade liberalization program to stimulate the private sector and attract foreign investment, moving away from import substitution. This aimed to revitalize the economy.
2) In the initial period, economic growth and export expansion increased significantly compared to pre-1977. However, challenges emerged like rising inequality and slowing growth in the mid-1980s.
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Group16-ECON-330-Project For Singapore Macroeconomic.pptxssuser0a47f0
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Macroeconomics deals with the aggregate output, consumption, investment, employment and prices of an entire economy. It analyzes the performance and structure of national, regional and global economies as a whole, rather than individual markets.
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If you want to read it in full, access: https://periodicos.ufam.edu.br/index.php/somanlu/article/view/7742/5431
Happy reading to all!
Dr. Alejandro Diaz-Bautista, Korea Mexico Economy Presentation, University of...Economist
“Competitiveness and Economic Growth. An Analysis of Mexico and Korea.” Crecimiento Económico y Competitividad. Un Análisis de México y Corea.
Dr. Alejandro Díaz-Bautista
Professor of Economics and Researcher at
El Colegio de la Frontera Norte (COLEF)
Profesor Investigador del Colef. Miembro del SNI Conacyt.
adiazbau@hotmail.com
Prepared for the Conference at the Faculty of Economics, University of Colima, April 29-30, 2010. Colima, Colima, Mexico.
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Economic policy, growth and inequality in Malaysia (1900-2005)
1. Economic Policy, Growth and Inequality in Malaysia
A Historical Analysis 1900-2005
Tin Htoo Naing
QHA 050001
Asia-Europe Institute
University of Malaya
2. A historical focus on Malaysia’s economic development over the span of one century, 1900-
2005.
A comparative analysis of the growth performance and socio-economic structure under the
different policy regimes over a century.
A historical Analysis to ascertain the direct and indirect consequences of government
policymaking on two key issues: economic growth and structural change, and spatial and
social inequality.
Introduction
3. Objectives
To investigate the historical evolution of the country’s economy by employing economic theories and
models, and test growth and development theories by using historical knowledge and statistical
methods.
Three major tasks
(1) Reconstructing GDP estimates for the colonial period 1900-1939
(2) Analysing policy regimes, economic growth, and structural change
(3) Interpreting the sources of socio-economic development, regional specialization and social
stratification.
4. Research Methodologies:
(1) Employing System of National Accounts;
(2) Running regression and model testing;
(3) Examining SWOT (strength, weakness, opportunity and thread) of government policies
in regards with regional specialisations and social stratification.
Significance of the Study:
1. Geographical coverage of Malaya - In this study, geographical coverage of Malaya
refers only to the entity of Malaya proper which is currently the major part of Modern
Malaysia.
2. Historical GDP estimates by the production approach, Malaya, 1900-1939 - The
study has introduced a new database of Colonial GDP by industrial origins at constant
term.
3. A full-length study over the 20th century - This study develops a systematic
quantitative analysis of the vital questions concerning the socioeconomic growth
performance in the long-term based on the new time series dataset of Malaysia
pertaining over one hundred years, 1900-2005.
5. Literature Review
There are only a handful of studies on economic history of Malaysia covering the whole span of British
rule and the post independence years due to the complete absence of long-run economic statistics such
as national income accounts for the period prior to the World War II (Raja Nazrin 2000: 1).
There are examples of comparative work on historical national accounts using SNA from other countries
which can illuminate the long-term growth performance and cyclical experience e.g. Stone 1972,
Maddison 1995, 2001 and 2003; Hjerppe 1996; van Zanden 1997, S.Sivasubramonian 2000, Tirthankar
2004.
In 2000, a new historical national accounts was constructed by Raja Nazrin and available as a pioneer
work on GDP estimates by the expenditure approach for the pre-WW II period 1895-1939. However,
there is no single work available for GDP estimates by the output approach and income approach for
the period prior to 1947.
Among the other notable works on the Malayan/Malaysian economy, Economic Development of
Modern Malaya by Lim Chong Yah (1967) would be the best-known attempt to cover the economy as a
whole over a long period, roughly from 1874 to 1963. In this work, the geographic coverage of Malaya
was somewhat different since a clear distinction between Malaya and Singapore was not made.
Drabble’s (2000) standard economic history offers a fairly descriptive narrative of the emergence of
modernization in the country. It has been an informative assemblage of what actually happened along
the path of economic success. However, it has also been criticized for lacking of attempt a systematic
explanation of the Malaysian historical experience utilizing economic theory.
A pioneer work by Raja Nazrin (2000) has been a masterpiece in this field since the work covers the
whole span of the 20th century and analysed the Malaysian history from economic growth perspectives
by applying historical national accounting system and econometric analytical tools.
6. Literature Review (Cont’d)
Some other specialist studies on the whole economy but covering relatively shorter period are: “the
Economy of Malaya‟ by Silcock (1963); “The Political Economy of Independent Malaya” by Silcock and
Fisk (1963); “Aspects of Malayan Economic Development, 1900-1940” by Kinney (1975); “the Japanese
Occupation of Malaya, 1941-1945” by Kratoska (1997); “Malaysia Development Pattern and Policy 1947-
1971” by Rao (1950) and; “Economic Growth and Developments in West Malaysia, 1947-1970” by David
Lim (1974).
In the post-independence period, particularly since 1970, there are voluminous studies on every single
aspect at both macro and micro levels, including outstanding works on economic growth and
development issues, which are too numerous to list comprehensively. Some of the well-researched
works for instance are: Further Readings on Malaysian Economic Development by David Lim (1983);
Impact of the New Economic Policy on Malaysian Economy by Paul Chan Tuck Hoong and Kenzo Horii
(1986); The Malaysian Economy in Transition by Ambrin Buang (eds.) (1990); Growth and Structural
Change in the Malaysian Economy by K.S. Jomo (1990); Issues in Malaysian Development by Sulaiman
Mahbob (1992); Malaysian Development Experience: Changes and Challenges by NIPA (1994); Malaysia’s
Economic Success by Ataul Huq Pramanik (1994); The Changing Phases of Malaysian Economy by
Okposin et al. (1999); The Malaysian Journey: Progress in Diversity by Frank-Jürgen Richter and Thang D.
Nguyen (ed.) (2004); Where to Malaysia? Can we achieve Vision 2020 on time? by Ramon V. Navaratnam
(2006).
In this research, intensive use is made of statistics obtained from colonial documents, departmental
accounts, production censuses and employment statistics from national and regional bodies. The
conceptual framework encompasses proximate growth accounting, as used by economists, and analysis
of the deeper causal role of institutions and policies which characterizes analytical economic history of
Malaysia.
7. Key research questions
1. How has the history of colonial policymaking affected long-term economic outcomes?; do
historical structures have long-lasting effects and, if so, how long these effects last?; which
specific legacies of the colonial period are responsible for contemporary outcomes?
2. What are the patterns of economic growth and structural change in the Malayan/Malaysian
economy during the twentieth century?; did the stages of growth and policy paradigms of
Malaysia follow the stylized pattern of advanced countries adapted in growth literature? How
and to what extent have sectoral growths affected GDP in both long and short term under
different regimes?
3. How do we account for two major structural features of the Malayan/Malaysian economy?: a)
the divergent character of regional development, marked by significant spatial unevenness with
a resultant ‘core’ and ‘periphery’ pattern of development; b) the ethnicisation of both the
division of labour and the emerging class structure as occupation came to be closely associated
with ‘race’.
9. Gross Domestic Product by Industrial Origins, Malaya-1900-1939
Year Primary Sector Secondary Sector Tertiary Sector GDP
1900 76.91 9.10 48.47 134.48
1901 79.45 9.47 51.16 140.08
1902 79.94 8.88 52.72 141.54
1903 84.29 10.15 55.19 149.62
1904 86.74 11.52 55.20 153.47
1905 86.92 13.33 58.41 158.66
1906 86.74 14.52 59.67 160.93
1907 88.84 17.48 62.53 168.85
1908 95.74 17.78 63.53 177.05
1909 95.35 17.32 63.56 176.24
1910 100.17 24.27 64.44 188.87
1911 113.74 24.82 74.87 213.44
1912 135.95 31.13 83.21 250.29
1913 154.21 40.62 91.56 286.39
1914 164.42 36.21 96.24 296.86
1915 193.66 32.44 101.40 327.49
1916 228.21 31.60 103.28 363.09
1917 277.24 39.29 108.14 424.67
1918 257.84 32.44 117.95 408.24
1919 330.51 43.33 126.91 500.75
1920 301.05 43.87 157.91 502.83
1921 279.13 47.27 163.27 489.68
1922 356.05 52.02 165.02 573.09
1923 323.29 51.25 168.72 543.27
1924 296.20 47.68 175.35 519.23
1925 363.23 61.07 189.67 613.97
1926 451.04 74.88 217.89 743.81
1927 417.86 80.66 221.82 720.33
1928 496.07 94.10 247.28 837.44
1929 680.27 111.62 287.05 1,078.95
1930 669.89 101.31 286.02 1,057.22
1931 644.42 99.47 288.04 1,031.93
1932 612.31 90.30 266.47 969.09
1933 658.02 91.80 279.68 1,029.50
1934 704.92 98.02 301.17 1,104.11
1935 609.94 92.42 281.83 984.19
1936 625.52 96.58 302.57 1,024.67
1937 793.53 122.33 345.81 1,261.67
1938 610.98 104.43 330.47 1,045.87
1939 626.41 106.90 355.95 1,089.27
The economy of a nation is seen as a circular flow of goods (and
services) and money. The National Income (or Gross Domestic
Product) can be measured at different points in the flow of goods
and money, for instance, as the sum of the value added in each
sector of the economy (agriculture, industry, services) or, as the
sum of all incomes earned from supplying factors of production
(wages, rent and profits) or, finally as the sum of all expenditures
(consumption and investment).
Therefore, GDP may be derived in three ways (viz. the production
approach, the income approach and the expenditure approach)
or combinations of them (UNHB 1986:1).
To my knowledge, the Malayan GDP was estimated by the
expenditure approach for the period 1895-1939 but no single
work for GDP estimates by the output approach and income
approach is available for the period prior to 1947. In this study,
therefore, an alternative approach, the production (value added)
approach is attempted.
The System of National Accounts (SNA) - a multi-purpose system
designed by the United Nations for economic analysis, growth
modeling and policy-making - will be implemented in this study to
meet international standards and guidelines for comparative
purposes.
Refining methodology itself, particularly concerning measurement
and interpretation, has been another major field of research. By
and large, the outcome of this study provides a new dataset of
historical GDP estimates by industrial origins to serve as a basic
indicator of macroeconomic performance over time.
(1914=100) S$ million
10. Forms of Regime, Philosophy and Policy Making in Malaysia, 1900-2005
11. Economic Performance of Malaysia, 1900-2005
Period Pattern of Growth
1900–1909 Initial stage of economic take-off
1910-1914 Rapid growth brought about by so-called
rubber boom
1915-1918 The World War I years
1919-1929 Rapid economic growth with short-life
economic booms
1930-1933 Economic gloom brought about by the Great
Depression
1934-1940 Economic recovery from the Great depression
1941-1945 Economic collapse under the Japanese
occupation
1946-1950 Short recovery phase from war damage
1951-1960 Economic Stagnation due to political
instability
1961-1970 Moderate Growth coincided with the
foundation of modern Malaysia
1971-1990 Rapid growth with redistributing and
restructuring economy
1991-2005 Fairly Rapid growth with inspiration of
developed economy.
16. Peninsular Malaysia: Mean and Median Incomes, 1970-2004
($ per household per month in Current Prices)
Ethnic Group 1970 1973 1976 1979 1984 1990 1995 1999 2004
Malay Mean 172 242 345 513 852 940 1604 1984 2711
Median 120 163 233 332 581
Chinese Mean 394 534 787 1094 1502 1631 2890 3456 4437
Median 268 343 480 636 1024
Indian Mean 304 408 538 776 1094 1209 2140 2702 3456
Median 194 277 360 522 770
All Ethnic
Groups
Mean 264 362 514 763 1095 1167 2020 2473 3249
Median 166 227 313 449 723
17. Malaysia has successfully transformed itself from a peasant economy to an industrialising economy,
and has advanced core livelihoods from ‘traditional’ patterns to a full integration into capitalist modernity
during the course of the twentieth century.
Its abundant natural resources were the major factors underpinning this economic success, and a
stable political climate and a set of outward-oriented economic policies have helped Malaysia gain
reclassification as a newly industrialized developing economy.
This policy nexus has generally succeeded in maintaining a constructive interaction between the state
and the private sector by adopting proactive business policies and liberal market mechanisms.
The GDP grew eight-fold in the 40 years of colonial period prior to the WW II. The economy grew
about nine-fold in 35 years in the period 1971-2005. The extent of economic fluctuation in the period
before the Second World War was greater than after and the most recent period (1971-2005) has been
seen the highest sustained growth levels.
The economic policies were more concerned with accelerating economic growth at the expense of
growing regional and ethnic inequalities prior to 1970. The sources of inequality in the colonial period
were not only material but also psychological and ideological. Regional and ethnic inequality is rooted in
the colonial period and has not been overcome yet at present due mainly to historical continuity in the
ethos and ethics of each ethnic.
Research Findings
18. During the period 1971-2005, the government interventions under different policy regimes namely
NEP, NDP and NVP has been successful in generating economic growth and development of the economy
and however, in reducing income disparity among ethnic groups and regions has not been satisfied in
general.
Social and cultural value systems – realm of value, behaviour and belief - have powerful positive or
negative effects on inequality. These values together with the initial distribution of assets determined
the extent of inequality while the role of government may be relatively limited and stable.
When the economy reached a certain level of development, the role of government tends to be
larger than it was in the past and becomes progressively more important in dealing with inequality. The
holistic approaches are direct, indirect and integrated mechanisms.
The government’s direct and indirect interventionist approach has not been sufficiently well directed
and implemented to eradicate deep-seated inequalities. The direct or indirect approaches in policy
making, perhaps, reduce inequality to certain extent, but would not be able to optimize it – optimum
inequality refers to that the inequality by natural default, not by synthetic design.
A genuine integrationist approach to development is the only viable solution at the current stage of
development to embed a sustainable economy with the potential for equitable social outcomes.