ECONOMY OF MALAYA BEFORE THE COMING OF FOREIGNERS • Early settlement- at fertile areas and along rivers and coast line • those areas provided “natural economy”- agriculture and fishery • ECON. DURING BRITISH • 1- The British only concentrated to rubber and tin industries • The development of tin • a- the coming of Chinese • b- the demand of tin • C- New discoveries • d- British intervention • - The development of rubber • a- HN Ridley contribution • The coming of Indian • Demand of rubber • Government encouragement • 2- Imbalance distribution of econ. Concentrated to: • 1- West peninsula - New Malaya • 2-West Sabah • 3-First and second division in Serawak • D- urban areas • 3- Communication facilities based on economic interest • -road and railways constructed and rivers clear • - the rest used conventional way of communication • ECON. AFTER INDEPENDENCE • Divided into 4: • 1- !st phase - 1956-70 • 2- 2nd phase- OPP1 (NEP 1970-90) • 3- 3rd phase- OPP2(NDP 1991-2000) First phase (1956-1970) • Plan - economic growth • - elimination of economic disparity • - greater employment opportunities • economic growth - to be the key to achieving the other 2 goals. • Second Phase - 1st outline perspective plan(1970-1990) • -New economic policy (NEP) • a- reduction and eventual eradication of poverty irrespective of race. • b- restructuring of society Eradication of poverty • 1- Agricultural development • A- Modernization and mechanization of farming technique • b- rubber replanting • c- double cropping • d- promotion cash crops • 2- Diversifying the manufacturing - bumiputera participation in modern sector activities • generate employment for nation’s growing work force Restructuring the society • Balance distribution of economy among all races and states. • Expand the share of economy for bumiputra without reducing the economic attainment of the other groups • all races participated in all economic sectors The performance of NEP • Not 100% but improved than before. • poverty reduced . From 49.3 % (70) - 16.7% • New land opened • various plantation - more production because of new technique. • Infrastructure- health and education, electricity and water supply. • share among bumiputra increased. 2.4% (1970) to 20%(1988) National Development policy • Replaced NEP and basically similar . • The main difference between these two major policies is found in the emphasis, priority and timing. • NDP maintains the basic strategies of the NEP, its new dimensions will be to: • - Shift the focus of the anti-poverty strategy towards eradication of hard core poverty while at the same time reducing relative poverty • Focus on employment and rapidly development at an active Bumiputera Commercial And Industrial Community (BCIC) as a more effective strategy to increase the meaningful participation of Bumiputera in the modern sector of economy. • Rely more on the private sectors to be involved in the restructuring objective by creating greater opportunities for its growth. • Focus on human resource development as a fundamental requirement for achieving the objectives of growth and distribution Restructuring Society • To continue efforts at increasing bumiputra participation in economic activities. • To give training and education • To encourage partnerships between bumi and non bumi. • To encourage more bumi participation in private sectors • Reorganization of share ownership. Eradication of poverty • More employment opportunities to reduce poverty level. • Education, training and human resource development. • Eradicating of hard core poverty while at the same time reducing relative poverty VISION 2020 • 1- To establish a united Malaysian nation or “bangsa Malaysia” • 2- To establish a confidence Malaysian society. • 3- To establish a mature democratic society. • 4- To establish matured, liberal and tolerant society • 5- To establish strong moral and ethical society • 6- To establish a scientific and progressive society. • 7- To establish a fully caring society and caring culture. • 8- Ensuring an economically just society. • 9- To establish a prosperous society with an economy that is fully competitive, dynamic ,robust and resilient. NDP and vision 2020 • 1- United nation and economically just society. • Balanced development to ensure a balance distribution of economy to all states and people. • 2- Competitive, dynamic and rubout economy. • - Rely more on private sector in manufacturing and industrial base. • 3- Fully caring society. • -Focus on anti poverty strategy. • 4- Scientific and progressive society. • The development on advance R & D capability and high light the need for a critical mass of inventors, designers and innovators who are able to produce new ideas, product and processes. • 5- Moral and ethical. • Stress on human resource development through education and training. Therefore we could develop a skill, creative and talented people with strong religious and ethical values. Racial Unity through economy • Under NEP and NDP, the government objectives: • -Eradicating of poverty • -Restructuring the society • Eradication of poverty • -eliminate jealousy and dissatisfaction – due to income gap • -Balance distribution of economy to all people and states in Malaysia • -Rural development • Town planning- for people at urban areas • Manufacturing sectors at rural areas- provide job opportunity to poor people at rural areas. Eradication of poverty- to avoid unstable political and social stability. National Vision Policy • Focus on building a united and competitive nation. • Develop a strong and sustainable econ. ECONOMY - generating endogenously- driven growth through strengthening domestic investment. - developing indigenous capability. -increasing the dynamism of the agriculture, manufacturing and services sectors through infusion knowledge. - addressing pockets of poverty in remote areas and among Orang Asli and Bumiputera minorities in Sabah and Sarawak. - increasing the income and quality of life of those in the lowest 30% income category. -reorientation human resource development to support a knowledge based society. Objective - Change growth strategy from input-driven to knowledge driven - Strengthen socio-economic stability Strategies - sustain macro economy stability - Eradicate poverty and restructure society - increase growth through productivity - increase competitiveness in the primary economic sectors - Extend the usage of ICT - Strengthen human resource development - upgrade the quality of life - Strengthen positive values and attitude.
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