To introduce students to the development of entrepreneurship in Malaysia and the various government support and incentives for entrepreneurial activities. To introduce students to Malaysia’s economy and entrepreneurship development history.
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At the end of this chapter, students should be able
to: Gain a better understanding of the historical perspective of entrepreneurial development in Malaysia. Appreciate and analyze past and present Malaysian Government Policy on entrepreneurial development.
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The New Economic Policy (NEP) The National Development Plan (NDP) The National Vision Policy (NVP) The New Economic Model (NEM) Entrepreneurship in Higher Education
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and the rationale of the various government policies on the development of entrepreneurship in Malaysia is a necessary requisite for Malaysians to understand the country’s economic history and challenges, so as to enable them to contribute towards building the nation.
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British in 1957. After independence, Malaysia made impressive progress in social and economic development, but the benefits of this progress were not evenly distributed among the different ethnic groups in Malaysian society.
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which refer to the indigenous people of Malaysia and mainly include Malays, Kadazans, Ibans and a few others, have been left far behind in terms of their economic fortunes and their participation in the modern sector of the economy, particularly in commerce and industry, compared to the Chinese and Indians.
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economic position, despite the country’s independence, has created dissatisfaction among the Bumiputera and sowed the seeds of distrust and discontentment in their relationship with the non-Bumiputera, in particular the Chinese.
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1969, a racial clash erupted between the Malays and the Chinese, killing at least 196 people with over 400 injured. The racial riot of 13 May 1969 served as an eye-opener for many regarding the fragility of Malaysia’s pluralistic society.
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the urgent need to address them, the government through the National Operations Council (NOC) introduced the far reaching reforms of the New Economic Policy (NEP).
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1971 as an ambitious national blueprint for Malaysia’s socio-economic development. The government realized that poverty and racial economic imbalances were the root causes of the unhappiness that had precipitated the 1969 racial riots.
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To redress this and engender unity, the national
ideology or Rukunegara was introduced in 1970 by the newly established Department of National Unity, which called for a rejuvenated Malaysian society with a common value system that would transcend existing ethnic, cultural and socio-economic differences.
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also benefited from the poverty eradication programme as evidenced by their mean monthly household income, increasing from RM394 in 1970 to RM1,582 in 1990 (OPP2, 1991).
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been achieved in terms of employment restructuring of which the proportion of Bumiputera in the professional and technical employment categories has increased from 60.5% in 1990 to 63.8% in 2000.
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introduced in 2001 with the aim of establishing a progressive and prosperous Malaysian Race, where different ethnic groups live in harmony and engage in full and fair participation in the economy, so as to ensure national unity (OPP3, 2001).
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The NVP (OPP3, 2001) had also introduced new policy
directions aimed at: developing Malaysia into a knowledge-based society eliminating poverty in remote areas and among aborigines and Bumiputera minorities in Sabah and Sarawak, as well as increasing the income and raising the quality of life of those in the lowest 30% income category
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nation by the year 2020, whose population enjoys a high quality of life with a high level of income resulting from economic growth that is both inclusive and sustainable (NEAC, March, 2010).
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Malaysia to be market-led, well-governed, regionally integrated, entrepreneurial and innovative. One of the key elements considered crucial to attain these objectives is for the country to have a conducive environment for entrepreneurship development of its people.
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various ministries and agencies, has stepped up efforts and initiatives to encourage and support the growth of Malaysia’s business community and innovative start-ups, including dedicated funding for Small and Medium Enterprises (SMEs); provision of support facilities such as incubators, advisory services and training; as well as special programmes and funding for young entrepreneurs.
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