Teaching PowerPoint Slides - Chapter 2

22
Economic Development
Policies
LEARNING OUTCOMES
After reading this chapter, you should be able to:

Discuss the colonization policies adopted by the
British in Malaya and Borneo, and explain their impact
on society and the economy
Discuss the main national development agendas,
focusing on objectives, strategies, thrusts and
achievements
Discuss supplementary development agendas,
focusing on objectives, strategies, thrusts and
achievements
MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2018 1–3
British Colonization Policies in
Malaya and Borneo
 Land Law: Torrens land law. The first Torrens

statute in Malaya was the Selangor Registration
of Titles Regulation (1891).
 Labour Policy: Chinese and Indian labour
 Infrastructure Development: Railway
 Financing: Joint Colonial Fund (JCF)
 Education and the Divide and Rule Policy:
English education

Impact of British Colonization
 Positive:
– Railway construction. This development
invigorated the progress in regions around
affected areas.
– The United Kingdom also made its mark in the
region by establishing the rule of law. Many
existing statutes and application of justice are the
result of centuries of British influence.

(cont.)
 Negative:
– Deliberate attempt by colonial authorities to keep
the Malays, Chinese and Indians in Malaya
separate not only in terms of geography, but also
in terms of employment pattern, meant that there
were disparate living standards based on
ethnicities.
– Since the country gained its independence from
centuries of British rule, income inequality
increased due to distortions under British rule.

(cont.)
– High poverty rate. According to a report by the

Performance Management and Delivery Unit
(PEMANDU), over 50% of the population was
living below the national poverty line income in
1960.
– Heavily dependent on the foreign sector.
Industrialization in the west fuelled demand for
natural resources such as rubber and tin.
– There was an inherent regional inequality in
Malaysia in the wake of British imperialism.
Malaysia’s Economic
Development Policies

New Economic Policy (1971–
1990)
 The overriding objective of NEP is to achieve

national unity. Economic progress of a nation, in
part, depends on social stability.

NEP Achievements and
Limitations
 Achievements:
– In 1970, per capita income was RM6,421. By the end of
the NEP implementation, per capita income was
RM14,607.
– By the end of its implementation, the government had
been successful in slashing poverty incidence beyond
the targets set.
– The percentage of Bumiputera as professional and
technical workers, administrative and managerial
workers, as well as production workers have increased.

NEP Achievements and
Limitations (cont.)
– Employment in the primary sector declined from

1970 to 1990 while employment in the secondary
and tertiary sectors increased.
– Upward trend from 1970 to 1990 in life expectancy.
 Limitations:
– Employment of Bumiputera in modern sector
– Bumiputera equity ownership

National Development Policy
(1991–2000)
 National Development Policy (NDP) document

maintained that its main objective was national
unity. Additionally, the two-pronged strategies
stipulated in NEP were also reiterated in NDP.

National Development Policy
(1991–2000) (cont.)

National Vision Policy (2001–
2010)

National Vision Policy (2001–
2010) (cont.)

Knowledge-economy

Multimedia Super Corridor
 Multimedia Super Corridor (MSC) is a 50 km by

15 km wide geographical area which stretches
from Putrajaya to the Kuala Lumpur city centre,
designated to be Malaysia’s hub of business
entities in the ICT industries.

(cont.)

(cont.)
 Flagship Applications

Vision 2020

Vision 2020 (cont.)

New Economic Model (2011–
2020)
 Malaysia
seems to
face
difficulty in
achieving
a high-
income
economy
status.

New Economic Model (2011–
2020) (cont.)

Privatization
 Privatization in the context of this text is defined

as the transfer of activities or functions from the
public sector to private enterprises.
 This in turn may involve transfer of assets,
personnel or management responsibility.
 In 1991, the Privatization Masterplan was released
to consolidate privatization exercises in various
industries from telecommunications, construction
and shipping to postal services, to name a few.

Privatization (cont.)
 Arguments for Privatization:

– Increase production efficiency
– Increase economic growth
– Benefits consumers in terms of the quality of
goods and services received
– Alleviate government’s constraints on its
administration, finances and human resources
– Government may also benefit from privatization
through technology transfer

Privatization (cont.)
 Arguments against Privatization:

– Protect essential services like healthcare
– Intense privatization exercises therefore would
lead to inflationary pressure in the economy
– Increased inflation in the economy may worsen
income inequality
– Volatile labour market
– Disruptive competition


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22

After reading this chapter, you should be able to:

 Land Law: Torrens land law. The first Torrens

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

– High poverty rate. According to a report by the

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

 The overriding objective of NEP is to achieve

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

– Employment in the primary sector declined from

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

 National Development Policy (NDP) document

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

 Multimedia Super Corridor (MSC) is a 50 km by

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

 Privatization in the context of this text is defined

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

 Arguments for Privatization:

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

 Arguments against Privatization:

MALAYSIAN ECONOMY Unlocking Growth, Sustaining Equity All Rights Reserved

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