National Development Policy In Economic 665722

NATIONAL DEVELOPMENT POLICY GROUP 9

OUTLINE 1

BEFORE & AFTER INDEPENDENCE

2

OVERVIEW OF 5 YEAR MALAYSIAN PLANS

3

OPP1 – THE NEW ECONOMIC POLICY

4

OPP2 – NATIONAL DEVELOPMENT POLICY

5

OPP3 – NATIONAL VISION POLICY

6

VISION 2020

BEFORE & AFTER INDEPENDENCE By Norhamizah Hazirah - 15647

INTRODUCTION  In the colonial period, Malaya was involved in production and processing of rubber and tin for export in return for imports of essential food and manufactured goods  In the year of independence (1957-1960), the economy was still heavily dependent on rubber and tin exports.  Attempt to industrialize (1960s) was started with the implementation of import-substitution policy, which was quite unsuccessful

BEFORE INDEPENDENCE  No national development policy aimed taking care the welfare of the people  Colonialists’ open door policy  Development was confined only to urban areas

AFTER INDEPENDENCE  National Development Policy  Planning and implementation of economic and social development in Malaysia

Aim: To create national unity through socio-economy development

DIFFERENCES  Before Independence

 After Independence

DEVELOPMENT PLAN IN MALAYSIA Plan

Period

5 Year Plan

Pre-NEP

1956 – 1970

1st Malaya Plan 2nd Malaya Plan 1st Malaysia Plan

NEP

1971 – 1990

2nd Malaysia Plan 3rd Malaysia Plan 4th Malaysia Plan 5th Malaysia Plan

NDP

1991 – 2000

6th Malaysia Plan 7th Malaysia Plan

NVP

2001 - 2010

8th Malaysia Plan 9th Malaysia Plan

DEVELOPMENT PHASES

Outline Perspectiv e Plan 1 (OPP1) New Economy Policy (NEP)

Outline Perspectiv e Plan 2 (OPP2)

Outline Perspecti ve Plan 3 (OPP3)

OVERVIEW OF 5 YEAR MALAYSIAN PLANS

By Nurul Fatiehah - 15592

FIVE YEAR MALAYSIA PLAN PLAN

PERIOD

EMPHASIS

FMP

1956-1960

Agricultural productivity

SMP

1961-1965

Rural development

MP 1

1966-1970

Eradication of poverty

MP 2

1971-1975

Socioeconomic balance

MP 3

1976-1980

Industry

MP 4

1981-1985

The private sector

MP 5

1986-1990

Moderate and stable growth

MP 6

1991-1995

Balance growth

MP 7

1996-2000

Resilience and strength economy

MP 8

2001-2005

National unity and harmony

PLAN

OBJECTIVES

FMP

Develop basic facilities and to diversify agricultural production in rural areas.

SMP

MP 1

Improve service of education, health, water and electricity supply.

Increase effort to eradicate the economic imbalance between sectors.

STRATEGY

Provide socio-economic infrastructure: • RIDA - economic development • FELDA - land development • Ministry of Rural Development - infrastructure development • JKK - community development • MARA - credit & technical assistance. Establish agriculture and farming family agencies : • FAMA - agricultural marketing • FIDA - industrial development • Agricultural Bank - credit assistance & advisory services Introduce Red Book Plan & Operation Rooms at all levels.

PLAN

OBJECTIVES

STRATEGY • •

NEP - to create communal unity among Malaysian citizens.

OPP 1

• OPP 2

•

• OPP 3 •

•

Give new life to expired NEP. Expand & develop the socio-economic by encourage large-scale industrial activities.

Change growth strategy from inputdriven to knowledge driven. Strengthen socioeconomic stability.

• •

Provide more employment opportunities. Modernize & further activate agricultural production through rubber & oil palm replanting. Introduce RED BOOK II - to improve effectiveness of planning, implementation, istration & coordination machinery.

•

Give to non-governmental bodies involved - eradicate proverty.

•

Encourage investmet to increase productivity.

•

Increase efficiency through IT.

Increase growth through productivity. Extend the usage of ICT.

OPP1 – THE NEW ECONOMIC POLICY

By Paride Evans - 17771

OPP1-THE NEW ECONOMIC POLICY HISTORY  OPP1 was unknown in the 70s.  NEP was the framework agreed upon and used by the government.  By including its component parties  Racial integration through national economy  Through NEP, the country, government and citizens had a common goal  National economy could be improved and results will be commonly enjoyed

FACTORS THE NEW ECONOMIC POLICY NEP as framework for a long term plan (1971-1990)  It involved four five-year Malaysia plan (MP) Two main objectives of NEP 1. To reduce and eradicate poverty regardless of ethnicity 2. To restructure the society to eliminate community

identification

STRATEGIES OUTLINED TO ERADICATE POVERTY 1.

Modernize the living conditions of the lower income group

Increase the provision of basic facilities and those related to

education such as book assistance and scholarships 2. Expand employment opportunities for all Malaysian citizens Regardless of ethnicity

3. Encourage participation in sectors of high potential and high productive capacity Such as business

4.

Improve further the productivity of the poor.

thereby increasing their income

STRATEGIES CARRIED OUT TO RESTRUCTURE SOCIETY 1.

Raise the people’s ownership in private sectors.

By increasing the ownership of Bumiputeras.

2. Build a business society among the Bumiputeras. Industrial Coordination act (1975) were ed during the NEP. The Malaysian Incorporated policy and the privatization policy

was launched to bring together private and government sectors. This aspect was said to have caused the incident that broke out

on may 13.

STRATEGIES CARRIED OUT TO RESTRUCTURE SOCIETY 3.

Develop areas that have remained backward but are high in potential.

Government implemented and intensified territorial development.

1.

Enhance education opportunities within and outside the country

By providing scholarships

DIFFERENCES AND CHALLENGESS  NEP succeeded curbing racial violence from erupting again as

it did in 1969

 National unity and integration through development with fair

distribution has been fruitful

 Although there were still communities that could not afford to

enjoy the basic facilities the overall poverty rate among the people was reduced.

TABLE OF SUMMARY OF THE INCREASED IMPROVEMENT IN ECONOMIC GROWTH AND NATIONAL DEVELOPMENT THROUGHOUT THE NEP PERIOD.   Indicators of Economic Growth and National Development

Subject

Increase or decrease

Gross Domestic Product

RM 21,584million (1970) to RM 59,155 million (1990) RM 1,109 (1970) to RM 6,180 42.2% (1976) to 19.1% in (1990) 50.9% (1976) to 29.8% in (1990) 2.4% (1976) to 20.3% (1990)

Per capita Income Household poverty rate Rural poverty rate Share capita ownership (bumiputera) Inflation Economic growth

Inflation remain at the rate of 4.6% 6.0% (in the 60s) to 6.7% (70s to 90s)

RESULTS  The implementation to remove the economic imbalance

between urban and rural sectors was successful.  An equitable distribution of the economic pie was yet to be

achieved  Challenges and globalization issues was directly or indirectly

linked to economic growth and national unity  Because of not being able to achieve all that was planned for

OPP1 the government carried on with new policies as a continuation of the earnest efforts started by NEP in the subsequent OPP2

OPP2 – NATIONAL DEVELOPMENT POLICY By Ilyas Nurhadi - 17024

OPP2- NATIONAL DEVELOPMENT POLICY 2  1991-2000, proclaimed on 28 February 1991  National Development Council  Observing Body to make sure all implementation in

line with the objective of NDP  Determining Strategies  Implementing Strategies  Evaluating Strategies

OBJECTIVES OF OPP2  Objectives of OPP2 was similar with OPP1, Balanced Development

Objectives Eradicate Poverty

Restructuring of Society

Focus in OPP2 •Poorest Group •Relative poverty between and within the ethnic group •Developing a society of bumiputra traders in the corporate and non-corporate sector Enhance productivity and efficiency of labor and capital

THE POSITIVES IMPACTRAISE PEOPLE’S INCOME

THE POSITIVES IMPACTRAISE PEOPLE’S INCOME

THE POSITIVES IMPACTRAISE PEOPLE’S INCOME GINI COEF

THE POSITIVES IMPACTRAISE PEOPLE’S INCOME

THE POSITIVES IMPACT- MORE EMPLOYMENT OPPORTUNITIES

OPP3 NATIONAL VISION POLICY By Nuralia Syairah Osman - 15669

Launched by Dato’ Seri Dr Mahathir Mohamad

Known as National Vision Policy (NVP)

Agricultural sector (small to medium industries)

Another long term plan 2001-2010

K-economy

BASIC PRINCIPLE OF NVP To build an enduring nation To create an equitable society To sustain high economic growth To improve competitiveness to face the challenges To develop knowledge-based economy To stabilize the development of human resources To continue sustained development of the environment

MAIN COMPONENT OF NVP Unity & People As Resilienc Potential e Of Resources PeopleImproving Economic Situation And Structure Of Malaysian Society

VISION 2020 By Rukesh - 17172

WHAT IS VISION 2020  Not a concrete policy, but crusade slogan or motto  To empower citizens to transform Malaysian into developed nation  Targets : Diversity of races, religion, cultural background customs and

eastern values

: Economics : Increase income per capita : Become industrialized or modern country : Well being of society

WHO INTRODUCED VISION 2020  4th Prime Minister Of Malaysia, Tun

Dr. Mahathir bin Mohamad

 During the tabling of 6th Malaysia

Plan in 1991.

 6th & 7th Malaysia Plan are

considered as the gateway and the fist 10 years of Vision 2020.

THE NINE CHALLENGES OF VISION 2020

Challenge 1: Establishing a united Malaysian nation made up of one Bangsa Malaysia (Malaysian Race). Challenge 2: Creating a psychologically liberated, secure and developed Malaysian society. Challenge 3: Fostering and developing a mature democratic society. Challenge 4: Establishing a fully moral and ethical society. Challenge 5: Establishing a matured liberal and tolerant society. Challenge 6: Establishing a scientific and progressive society. Challenge 7: Establishing a fully caring society. Challenge 8: Ensuring an economically just society, in which there is a fair and equitable distribution of the wealth of the nation. Challenge 9: Establishing a prosperous society with an economy that is fully competitive, dynamic, robust and resilient.

TIME FRAME TO ACHIEVE VISION 2020  30 years (1991-2020)  The annual growth must be 7%  The

Gross

Domestic

Product

RM115billion in 1990.  GDP 2020 will be RM920billion

(GDP)

was

only

CURRENT ISSUES  Economically challenged  The middle income trap  Catching up on technology advancement  Social Scene