3

Post-Independence: Achievements and Issues

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Our country made impressive progress in social Mean Monthly household income in
and economic development 1970, malay=RM179

However, local people are still poor This leads to dissatisfaction

Income disparity between local people and After general election in 1969,
other ethnics are still high racial riot happened
 The New Economic Policy (cont.)
NEP main objective is to national unity through two-pronged strategy:

Eradicating poverty by raising income level

Accelerating the process of restructuring

Malaysian society
 The Economic Policy (cont.)
Three important aspects to accelerate the process of Malaysian society are:

A B
The restructuring of racial The restructuring of wealth
composition in employment ownership

C D
The creation of Bumiputera
Commercial and Industrial
Community (BCIC)
 Creation of a Malay Commercial and Industrial
Community
Programmes for education and training
Expansion of related facility, special
education programmes and entry quota
were provided under NEP
06
Third element in the strategy
The creation of Malay Commercial and
Industrial Community later known as
Bumiputera Commercial and Industrial
Community (BCIC).

01

New Insurance companies 05 Malay entrepreneurs were nurtured

To have at least 30 percent Malay NEP target within 20 years, Malay would
interest own at least 30 percent of country
02 commercial and industrial sectors.

04
Special Privileges
For Malay businesses and joint ventures
03 Agencies
Mara, PNS, UDA, SEDCs and Credit
Guarantee Corporation (CGC) to
spearhead the government effort.
 NEP Beyond 1990 (Cont.)
The NVP had also introduced new policy directions aimed at:

Achieving effective
Bumiputera participation

Developing Malaysia
into knowledge
based society

Increasing the participation

of Bumiputera in leading
sectors of economy

Eliminating poverty
in remote areas
 New Economic Model (NEM)
The NEM list eight Strategic Reform Initiatives (SRI) in order to bring the country forward. These SRIs are:

Re-energizing Transparent and market

the private sector friendly affirmative action

Building knowledge
Developing quality workforce based infrastructure

Creating competitive
domestic economy Enhancing the
source of growth

Ensuring the
Strengthening of sustainability of growth
the public sector