2. NEW ECONOMIC POLICY (OPP1)
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ii.
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The New Economic Policy (NEP) was launched
in 1970.
Was planned for the next 20 years until 1990,
with four 5-year Malaysia Plans.
The objectives:
To reduce and eradicate poverty regardless of
ethnicity;
To restructure the society - eliminate community
identification through economic sectors.
Both objectives were aimed at integrating the
multiracial society of Malaysia.
3. •
i.
The strategies outlined to eradicate poverty :
Modernize the living conditions of the lower
income group, by increasing further the provision
of basic facilities;
ii. Expand employment opportunities for all
Malaysian citizens regardless of race;
iii. Encourage participation in sectors of high
productive capacity;
iv. Improve further the productivity of the poor,
thereby increasing their income
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The strategy outlined in the NEP to eradicate
poverty was not directed at any one group.
The NEP target group was the poor, regardless
of age, generation or settlement location.
4. •
The strategies carried out to restructure
society:
i. Raise the people’s ownership in the private
sector;
ii. Build a business society among the
bumiputeras;
iii. Develop areas that have remained
backward but are high in potential;
iv. Enhance education opportunities within
and outside the country.
5. • It cannot be denied that the implementation of
efforts to remove the economic imbalance between
urban and rural sectors was successful.
• What was yet to be achieved was an equitable
distribution of the economic pie.
• However, the inability of the NEP to deliver was not
left unnoticed by the government wanting to create
a nation that was strong and respected.
• Because of that, the government proceeded with
new policies as a continuation of the efforts started
by the NEP in the subsequent Outline Perspective
Plan 2 (OPP2).
6. NATIONAL DEVELOPMENT POLICY (OPP2)
• The purpose of the National Development Policy (NDP) was
to create a fairer and more united Malaysian society.
• This phase covered a period of 10 years (1991 – 2000) and
consisted of two 5-year Malaysian Plans.
• OPP2 was the initial stage of the country’s stride towards
being a developed country as envisaged in Vision 2020.
• The NDP implemented as OPP2 was oriented towards a
balanced development.
• By balanced development is meant one that generates rapid
socio-economic growth followed subsequently by income
distribution.
• Like the NEP that tried to overcome poverty regardless of
race, the OPP2 also nursed the same ambition.
• Clearly expressed in the government document, which
stated that the implementation of the NDP to reduce poverty
took into consideration the needs of all social groups.
7. • The second objective of NEP too was continued under
OPP2.
• The focus would be on developing a society of bumiputera
traders and industrialists in the corporate and noncorporate sector.
• The involvement of the bumiputera community was still low
as compared to other communities.
• Hence, the government’s various efforts to support and
assist these groups through its agencies.
• Government also improved and extended further the social
facilities to be enjoyed by all citizens.
• Active involvement of the private sector contributed to the
development of the nation’s economy by providing
employment opportunities.
• The country’s development policy did not focus only on
national economic growth to become a developed nation but
also comprehensive development that includes quality of
life, social justice and a harmonious life with good values.
8. •
The NDP aims at creating a pattern of development that is
more balanced and which encompasses the following
aspects:
i.
To create optimum balance between economic growth
and apportionment;
ii. To ensure balanced development among the main
economic sectors;
iii. To eliminate social and economic inequality among the
people of Malaysia;
iv. To encourage and strengthen national integration by
reducing the imbalance in economic development;
v. To build a society that is progressive;
vi. To build a disciplined and productive work force;
vii. To make science and technology an important aspect in
socioeconomic planning and development;
viii. To ensure that proper attention is paid to the preservation
of the environment and ecology.
9. NATIONAL VISION POLICY (OPP3)
• National Vision Policy (NVP) is also known as
Outline Perspective Plan 3 (OPP3).
• This plan covers a period of 10 years, starting 2001
to 2010 (Eight and Ninth Malaysia Plan).
• The essence of this long-term plan is still too bring
about a balanced development.
• A balance in development, touches specifically on
development starting from the agricultural sector,
small to medium industries right up to industries
based on high technology and information
technology.
• The thrust of NVP is the creation of an enduring
and competitive Malaysian society.
10. •
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ii.
iii.
iv.
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vi.
vii.
To carry on and popularize the spirit to compete
and to endure, the NVP presented a number of
basic principles:
To build an enduring nation;
To create an equitable society;
To sustain high economic growth;
To improve competitiveness to face the
challenges of globalization and liberalization;
To develop a knowledge-based economy as a
strategic step to increase value added to all
economic sectors;
To stabilize the development of human resource
to produce a productive and knowledgeable work
force;
To continue sustained development of the
environment for the purpose of long term
development.
11. ECONOMY-BASED POLICY
1.
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NATIONAL INCORPORATION POLICY (1983)
Defined as a company that is a joint venture between the
private and public sector.
Group of workers in both sectors play a part in contributing
towards enhancing output to raise the productivity of a
“Malaysian Company” or semi-government body that is
jointly owned.
Was created because on awareness on the part of the
government that there are still a number of important
competitive and opposing matters and issues between the
private and public sector.
Symbolizes the readiness of the government sector to
distribute business opportunities, join or cooperate with
the private or public sector to organise effective services
for the people in integrated manner.
To attain the objective of this policy, private and public
sector cooperation is very important.
12. 2. NATIONAL PRIVATIZATION POLICY
(1983)
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The sale or transfer of control of a company,
agency or an industry that is owned/controlled by
the government to the private sector.
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Outcome:
– TV3
– Port Klang container service
– Telekom Malaysia
– Indah Water
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Reasons:
i. Reduce financial & administration burden
ii. Improve efficiency and productivity
iii. Accelerate economic growth
iv. Reduce the size of public sector and its
involvement in the economy
v. Help to achieve the objectives of the NEP.
13. 1. NATIONAL INDUSTRIALIZATION POLICY
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Aim at making Malaysia an industrial nation
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Industrial development programmes in the 1970s
and early 1980s encountered several
weaknesses:
i. Level of technology was still low;
ii. Exports of Malaysian-made goods largely
involved a handful of industries;
iii. Quality of products was not very satisfactory;
iv. Export industries that were set up lacked valueadded quality.
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ii.
To overcome these weaknesses, the government
conducted 2 major troubleshooting studies in
1983:
National Industrial Policy Study (NIPS)
Industrial Master Plan (IMP)
14. •
NIPS was aimed at re-examining and modifying
existing industrial policies and incentives for
investors.
•
IMP outlined 3 objectives:
i. To use the manufacturing sector as a catalyst for
industrial growth in the country;
ii. To encourage the full use of the country’s natural
resources;
iii. To raise the level of technological research and
development (R&D).
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Outcome:
i. identifying sectors that have high potentials for
economic growth
ii. arrival of foreign investors
