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.

1. Lesson 5
4. NATIONAL DEVELOPMENT
4.1 Development Plans and Vision
4.2 National policies
Malaysian Studies 2
1

2. Development Plan
And
Vision
2

3. Introduction
• This lesson aims to discuss national development in the context of
socio-economic development and its contribution towards national
unity.
• The country’s main developmental policies, the New Economic Policy
(NEP) – became the first long term plan known as Outline Perspective
Plan 1 (OPP1), second long term plan (OPP2) & Third long term plan
(OPP3)
• Objective of the country’s development ,
– National unity and racial integration.
– Raise the status of the citizens of Malaysia as a nation that is
developed, progressive and harmonious as visualized in Vision
2020.

4. The Concept of Development
Social Development
• Condition or stage where the people are able to and capable
of obtaining the basic needs like food, shelter and clothing.
• Social development brings changes and advancement.
• Can bring social changes, altering a poor, narrow and
inadequate lifestyle to a situation of greater comfort,
convenience and security.
• Basic needs to be complete should include opportunities to
obtain basic service facilities such as health, education, clean
water supply, electricity and transportation.

5. Economic Development ( ED )
• Tied to changes in income.
• Increase in national or per capita income or the
monthly income of a citizen are a sign of ED
• The authorities can use the nation’s money to provide
basic facilities like hospitals, clinics, schools, water
supply and electricity, roads and other public facilities.
• Expansion of social facilities citizens enjoy
peaceful life able to contribute to the nation’s
economic growth

6. Attitude Development
• Development of citizen’s attitude towards development is
crucial.
• Attitude change is one component that needs attention when
discussing national development.
• A citizen with good characteristics will help to develop the
nation.
• Development of manpower that is capable of contributing
fully to the nation’s economic growth.
• Social and economic development will happen slowly if it
lacks support from the people themselves.

7. National Development Objective
• General objective – provide a peaceful life to the citizens.
• Role of government authorities
– Preparation of education facilities
– Communication and transportation facilities
– Water supply
– Electricity
– Technical assistance
– Other infrastructure facilities
• Enhance further the quality of life of the society, whether in urban or
rural area

8. National Development Policy
Before Independence
• There was no national development policy taken to take care of the welfare
of the people under British
• Focused on economic activities
• The colonists’ policies and their economic systems resulted in two
differential development gaps.
• The first is that between urban and rural areas.
• Early efforts by the British to eradicate poverty among rural Malays – RIDA
(Rural Industrial Development Authority ) in 1951 was not actively
promoted.
• Resettlements Programme under the Briggs Scheme were able to
reallocate this ethnic group to a more comfortable area furnished with
minimum basic facilities.

9. • The second development gap is the difference between geographical
areas, between the East Coast and the West Coast.
• The East Coast, was left out in development due to lack of access and
not naturally rich in tin ore.
• focused on profit exploitation and little consideration on student
welfare – enlarged the poverty gap between sectors, areas, and
ethnic groups.
• As a result, efforts for racial unity among Malaysian citizens after
independence faced a difficult beginning.

10. National Development Policy
After Independence
• Main challenge – to develop the economy to benefit the citizens,
narrow the differential development gap, eradicate poverty.
• Known as the Five Year National Development Plan (NDP), released
every 5 years.
• The main agenda in the planning and implementation of economic
and social development for the people of Malaysia.
• Programmed to suit the latest domestic and global challenges by
taking into account achievements and problems of earlier policies.

11. Objective – the peace and prosperity of the people
• 4 main phases – New Economic Policy ( NEP), Outline
Perspective Plan 1,2,3
• Every policy has its own theme and focus – the ultimate
objective is the same, to create national unity through
social-economic development.

12. • Two main objectives of the NEP was
– To reduce and eradicate poverty regardless of ethnicity
– Restructure the society so as to eliminate community
identification through economic sectors.
• Both adjective were aimed at integrating the multiracial society of
Malaysia.
• Some of the strategies outlined to eradicate poverty.
 Modernize the living conditions of the lower income group – both in uran and
rural areas, increase basic facilities and assist in education
 Expand employment opportunities for all Malaysian citizens regardless of race.
 Encourage participation in sectors of high potential and high productive
capacity such as business, industries and services.
 Improve further the productivity of the poor-increase their income.
The New Economic Policy

13. • Poverty would be abolished and indirectly the plural Malaysian society
would be restructured – race identification through economic functions
would no longer exist
• Strategies carried out to restructure society :
1. Raise the people’s ownership in the private sector;
2. Build a business society among the bumiputeras;
3. develop areas that have remained backward but are high in potential;
4. Enhance education opportunities within and outside the country.
• The purpose of this strategy is to increase the ownership of bumiputeras
by at least 30%, and the non-bumiputeras can reach a level of 40%.
• The establishment of UDA and the launching of PNB and Amanah Saham
Nasional were some of the steps to intensify bumiputera involvement
oriented towards the formation of a commercial society.

14. • Industrial Coordination Act (1975) – ensure a 30% bumiputera
participation in the industrial sector.
• The Malaysia Incorporated Policy and the Privatization Policy,
launched for – bring together private and government sectors for
further economy growth and provide greater employment
opportunities.
– Indirectly reduce the unemployment rate
– Stimulate bumiputera involvement in the country’s business & industries
• Land development programmes, State Land Development Schemes /
Land Group Programme, Youth Land Programme, Fringe Land
Development Programme – improve underdeveloped areas.
• National Agriculture Policy, ( prior to that, Green Book Plan) – aimed
at increasing agriculture productivity for the smallholding sectors in
the rural areas.

15. • The philosophy of NEP to create national unity and
integration through development with fair distribution has
been successful.
– Generate national economic growth
– Reduced the overall poverty rate
Subject Increase ( or decrease )
Gross Domestic Product (GDP) RM 21,584 million ( 1970) to RM 59,155
(1990 )
Per capita Income RM 1,109 ( 1970 ) to RM 6,180
Household poverty rate 42.2% ( 1976 ) to 19.1% ( 1990 )
Rural poverty rate 50.9% (1976) to 21.8% (1990)
Share capital ownership ( bumiputera ) 2.4% (1976) to 20.3% (1990)
Inflation Remained at the rate of 4.6%
Economic growth 6.0% (60s) to 6.7% (70s – 90s )

16. Vision 2020
Nine challenges of Vision 2020
1. Create a Malaysian nation that is united and with a common
adjective.
2. Create a society that is free, peaceful and advanced, confident
of it’s own capabilities, successfully proud and strong in facing
problems.
3. Create and develop a democratic society that is matured and
practices a shared philosophy.
4. Create a moral and ethical society with strong religious and
spiritual values.

17. 5. Create a society that is tolerant and liberal and free to
practice it’s own customs, culture and religions.
6. Create a scientific and progressive society that is forward-
looking and farsighted and is thus able to contribute to
improving civilization based on science and technology.
7. Create a caring society and practices a caring culture.
8. Create a society that is fair in the distribution of national
wealth regardless of race.
9. Create a prosperous society with a competitive economy.

18. Conclusion
• Development policies that were promoted through Five Year Development Plans –
had the purpose of correcting the imbalance in development based on sector,
territory and community.
• NEP aimed at – reducing and eliminate poverty regardless of age, restructure
Malaysia’s plural society ( wipe out race identification according to economic
functions )
• NEP covered OPP1, then OPP2 and OPP3 continued the NEP’s with specific
emphasis and focus.
• The efforts were in line with Vision 2020 – producing a Malaysian nation that is
developed, progressive, scientific and united.
• Initial move to alter the status of our country – from a developing country to a
balanced developed nation, economically, physically and socially.
• In the context of Malaysia, participation of all races is crucial to contribute to
national development.

19. Malaysia’s
Main
Policies
19

20. Economy – Based Policy
A. National Agriculture Policy
• The National Agriculture Policy (NAP) was planned and implemented
to transform the agricultural sector into more modern,
commercialized to increase country’s export commodities.
• Aims to raise the income of farmers, those who live in the rural areas.
• To create a society of entrepreneurs and businessmen among farmers
and fishermen.
• Two approaches were introduced, the agro-forestry approach and the
product-based approach.
– Agro-forestry approach – focused at integrating forestry with agriculture.
– Product-based approach – encourages the production of quality agriculture
products according to consumers’ need and taste

21. B. National Privatisation Policy
• Transfers government sector functions and activities to the private sector.
• Indicates that the Government was ready to reduce and give up a number of
government activities in the country to the private sector for implementation –
raise productivity quality and administrative efficiency.
• The implementation of the Privatization Policy was necessary – bring effective
management to improve economic performance and services – resulting in
higher rate of growth in the national economy
• The policy was hoped to create high demand for management expertise and
increase opportunities for bumiputeras business.
• The policy is also necessary to control the size of public sector and balance the
government’s financial stability.
• Privatization is effective because it has successfully reduced the burden
government administration especially in terms of staff and financial
responsibility.

22. C. National Development Policy (NDP)
• NDP was introduced to replace NEP for the realization of Vision
2020.
• Provided continuity of NEP – restructuring society
• Government has implemented a few approaches
– Education and training, competitiveness in the international arena and involve
the participation of all races in Vision 2020 to achieve the status of a
developed country.
– Poverty rate was reduced to 7-8% by 2000, - ( 19.1% in 1990 )
– Unemployment rate expected to fall to 4% in 2000.
– Corrected the imbalance in development in Sabah and Sarawak.
• Social restructuring was one of the government’s approaches in NDP
– Build up a trading and industrial society - in the manufacturing and service
sector.
– Ensure Bumiputeras received equitable share of careers in new field such as
professions, management and technical.

23. D. National Industrialization Policy (NIP)
• The NIP – raise organizational productivity, employee’s skills and to
encourage entrepreneurs to work together to develop the nation.
• NIP was needed because there were rapid growth, high and continued
demand for industrial goods and growing future labour needs in the
country
• Starting from 80s, government has encouraged the development of
heavy industries that would equip the people with high technological
skills.
• The government launched two important studies in 1983,
 The Malaysian Industrial Policy Study ( MIPS ) - to assess and to amend existing
industrial policies and to review investment incentives and export promotion
policies.
 The Industrial Master Plan ( IMP ) - to formulate general industrial
development objectives besides determining the strategies for small sectors
with potential.

24. Socially – Based Policies
A. National Integration Policy
• In Malaysia, unity is tied to polarization.
• Polarization exist because of different background, religion and
values.
• Two approaches were implemented :
– Encouragement Approach – gives importance to social activities, in urban
and rural areas, organizes concept of neighbourlines, Rukun Tetangga, Unity
classes and so on.
– Preventive Approach – implemented through the cooperation of civil
servants for tracking the social relations ambience among the people.
Educational institutions including schools are agents to promote unity
among students of different races.

25. B. National Cultural Policy (NCP)
• Implemented in 1971
• The formation of culture needs close and careful planning so that
a Malaysian was of life gets enhanced.
• Three principles underline the NCP
– Its core should be culture of the people of this region
– Suitable elements of other cultures should be accepted to become the
elements of the national culture
– Islam is an important element because it is the official religion of the
country
• The NCP is significant to unite the multi-racial population. – can be
made a guide for building and sustaining the country’s positive
identity internationally.

26. C. National Women’s Policy
• The participation of women in various government programmes
cannot be denied especially in health, education, textile
electronics, manufacturing and agriculture.
• Government implemented National Advisory Council on
Integration of Women in Development ( NACIWID) in 1976. The
National Women’s Policy (NWP) was drawn up in 1989.
• Reflects the government’s commitment to the development of
women.
• National Council for Women’s Organizations (NCWO) came up
with action plans for Woman’s Day on 20th August 1991.
• Objective of NWP – to further strengthen institutions,
organizations and voluntary bodies
– Consultations, regulations, national and international level programmes,
on-going training, increased monetary aid, reinforce women’s funds and a
better quality of life especially in the rural areas.

27. Era of Science and Technology
National Science and Technology Policy
Objective
i. Develop efficiency using science and technology
ii. Create a society that is innovative and farsighted
iii. Able to adjust, innovate and raise technological investment
iv. Create a dynamic and diversified manufacture-base industrial
sector
v. Develop local technological capacity in selection and consultation.

28. Education Reforms : Aim and Processes
A. National Education Policy
• Produce an united and disciplined society and to fulfill the need for a
trained work force to develop the country.
• Education was given priority in national development to prepare an
educated, skilful, and highly motivated work force as well as to produce
people who are responsible, united, disciplined, balanced, harmonious
and contribute to national prosperity.
• The NEP in line with New Economic Policy managed to eliminate the
practice of associating employment with race in the public and private
sectors.
• Emphasis was laid on the NEP to help the NDP to eliminate poverty and to
restructure society.

29. B. Educational Reforms
• Government recognized and strengthen further the national system
of education - due to socio-economic changes, rapid changes in
political areas, rapid growth in Science and Technology
• To suit the education need of the future and to produce a work
force that has the quality, capability and skill to handle more
complex challenges.
• Malaysian society is to be developed spiritually and physically
equipped to endure the many challenges of globalization, has to be
ready to change mindset in facing current challenges of a globalized
world.
• Updating the curriculum are some of the efforts implemented by
the government to face future universal problem.

30. C. Smart School
• Emphasized efforts to build a young generation complete with current
education and capable of facing future challenges.
• Malaysian society could understand the focus of smart school is to
produce young dynamic Malaysians in line with world education
development but adapted to the norms and values of the Malaysian
way of life.
• Increased involvement of information technology, environment,
teacher, pupil, evaluation and effective management suited to the
latest era in education.
• Innovations make for quality, effectiveness, comfort, and interst in the
education environment.
• Showcase Malaysia as a centre of excellence for world standard
education in this region.