You are on page 1of 8

What are the goals of the NEM?

The plan is intended to replace the New Economic Policy (NEP). The primary vision is to transform Malaysia into a competitive, knowledge-based, innovative and eco-efficient economy that will drive the country towards economic prosperity. To be a developed and competitive economy whose people enjoy a high quality of life and a high level of income resulting from growth that is both inclusive and sustainable. To shift affirmative action from being ethnically-based to being needbased hence becoming more competitive, market and investor friendly.

Stimulate economic growth by improving worker productivity across all sectors of society, in part through an improved system of affirmative action, with an eye towards sustainability.

GOAL OF THE NEW ECONOMIC MODEL

High Income

Inclusiveness

Sustainability

1) High Income
At the time of the plan's unveiling in 2010, per capita annual income in Malaysia stood at 23,100 Malaysian ringgit, approximately $7,000 in US currency; the plan's stated goal is to reach RM49,500 (US$15,000).

Creating a high income nation will mean higher wages throughout the economy as growth is derived not from capital, but from greater productivity. Expecting investment and competition for the best talent through paying higher wages.

Target - RM49,500 (US$15,000).

2) Sustainability
Malaysia will be joining the ranks of the high-income economies, but not at all costs.

The growth process needs to be sustainable.


Sustainable growth augments the wealth of current generations in a way that does not come at the expense of future generations. Pursuing growth that deplete resources and displace communities will have dire consequences for future generations. Its not enough to just earn better but the people must also live better

Inclusiveness
Key prerequisite for fostering a sense of belonging and engagement in the NEM. This is in line with the spirit of cooperation so that every single Malaysian will feel that he or she is part and parcel of taking part in this journey towards transforming Malaysia and realizing their fullest potential. to be inclusive means that the policies must be fair and equitable, it must take care of not only the business interest but also, the emphasis is also on the 40 per cent of the lower income group.

Inclusiveness will enable all communities to contribute to and share in the wealth of the country.

Most important part, all races will contribute to ensure Malaysia become a high-income nation by 2020.

13-8