Lesson 5

4. NATIONAL DEVELOPMENT

4.1 Development Plans and Vision

4.2 National policies

Malaysian Studies 2

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Development Plan And

Vision

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Introduction

• This lesson aims to discuss national development in the context of socio-economic development and its contribution towards national unity.

• The country’s main developmental policies, the New Economic Policy (NEP) – became the first long term plan known as Outline Perspective Plan 1 (OPP1), second long term plan (OPP2) & Third long term plan (OPP3)

• Objective of the country’s development , – National unity and racial integration. – Raise the status of the citizens of Malaysia as a nation that is

developed, progressive and harmonious as visualized in Vision 2020.

The Concept of Development

Social Development

• Condition or stage where the people are able to and capable of obtaining the basic needs like food, shelter and clothing.

• Social development brings changes and advancement.

• Can bring social changes, altering a poor, narrow and inadequate lifestyle to a situation of greater comfort, convenience and security.

• Basic needs to be complete should include opportunities to obtain basic service facilities such as health, education, clean water supply, electricity and transportation.

Economic Development ( ED )

• Tied to changes in income.

• Increase in national or per capita income or the monthly income of a citizen are a sign of ED

• The authorities can use the nation’s money to provide basic facilities like hospitals, clinics, schools, water supply and electricity, roads and other public facilities.

• Expansion of social facilities citizens enjoy peaceful life able to contribute to the nation’s economic growth

Attitude Development

• Development of citizen’s attitude towards development is crucial.

• Attitude change is one component that needs attention when discussing national development.

• A citizen with good characteristics will help to develop the nation.

• Development of manpower that is capable of contributing fully to the nation’s economic growth.

• Social and economic development will happen slowly if it lacks support from the people themselves.

National Development Objective

• General objective – provide a peaceful life to the citizens.

• Role of government authorities – Preparation of education facilities– Communication and transportation facilities– Water supply – Electricity– Technical assistance– Other infrastructure facilities

• Enhance further the quality of life of the society, whether in urban or rural area

National Development PolicyBefore Independence

• There was no national development policy taken to take care of the welfare of the people under British

• Focused on economic activities• The colonists’ policies and their economic systems resulted in two

differential development gaps. • The first is that between urban and rural areas.• Early efforts by the British to eradicate poverty among rural Malays – RIDA

(Rural Industrial Development Authority ) in 1951 was not actively promoted.

• Resettlements Programme under the Briggs Scheme were able to reallocate this ethnic group to a more comfortable area furnished with minimum basic facilities.

• The second development gap is the difference between geographical areas, between the East Coast and the West Coast.

• The East Coast, was left out in development due to lack of access and not naturally rich in tin ore.

• focused on profit exploitation and little consideration on student welfare – enlarged the poverty gap between sectors, areas, and ethnic groups.

• As a result, efforts for racial unity among Malaysian citizens after independence faced a difficult beginning.

National Development Policy

After Independence

• Main challenge – to develop the economy to benefit the citizens, narrow the differential development gap, eradicate poverty.

• Known as the Five Year National Development Plan (NDP), released every 5 years.

• The main agenda in the planning and implementation of economic and social development for the people of Malaysia.

• Programmed to suit the latest domestic and global challenges by taking into account achievements and problems of earlier policies.

Objective – the peace and prosperity of the people

• 4 main phases – New Economic Policy ( NEP), Outline Perspective Plan 1,2,3

• Every policy has its own theme and focus – the ultimate objective is the same, to create national unity through social-economic development.

• Two main objectives of the NEP was – To reduce and eradicate poverty regardless of ethnicity– Restructure the society so as to eliminate community identification

through economic sectors.

• Both adjective were aimed at integrating the multiracial society of Malaysia.

• Some of the strategies outlined to eradicate poverty. Modernize the living conditions of the lower income group – both in uran and

rural areas, increase basic facilities and assist in education Expand employment opportunities for all Malaysian citizens regardless of race. Encourage participation in sectors of high potential and high productive capacity

such as business, industries and services. Improve further the productivity of the poor-increase their income.

The New Economic Policy

• Poverty would be abolished and indirectly the plural Malaysian society would be restructured – race identification through economic functions would no longer exist

• Strategies carried out to restructure society :1. Raise the people’s ownership in the private sector;2. Build a business society among the bumiputeras;3. develop areas that have remained backward but are high in potential;4. Enhance education opportunities within and outside the country.

• The purpose of this strategy is to increase the ownership of bumiputeras by at least 30%, and the non-bumiputeras can reach a level of 40%.

• The establishment of UDA and the launching of PNB and Amanah Saham Nasional were some of the steps to intensify bumiputera involvement oriented towards the formation of a commercial society.

• Industrial Coordination Act (1975) – ensure a 30% bumiputera participation in the industrial sector.

• The Malaysia Incorporated Policy and the Privatization Policy, launched for – bring together private and government sectors for further economy growth and provide greater employment opportunities.– Indirectly reduce the unemployment rate – Stimulate bumiputera involvement in the country’s business & industries

• Land development programmes, State Land Development Schemes / Land Group Programme, Youth Land Programme, Fringe Land Development Programme – improve underdeveloped areas.

• National Agriculture Policy, ( prior to that, Green Book Plan) – aimed at increasing agriculture productivity for the smallholding sectors in the rural areas.

• The philosophy of NEP to create national unity and integration through development with fair distribution has been successful.– Generate national economic growth– Reduced the overall poverty rate

Subject Increase ( or decrease )

Gross Domestic Product (GDP) RM 21,584 million ( 1970) to RM 59,155 (1990 )

Per capita Income RM 1,109 ( 1970 ) to RM 6,180

Household poverty rate 42.2% ( 1976 ) to 19.1% ( 1990 )

Rural poverty rate 50.9% (1976) to 21.8% (1990)

Share capital ownership ( bumiputera ) 2.4% (1976) to 20.3% (1990)

Inflation Remained at the rate of 4.6%

Economic growth 6.0% (60s) to 6.7% (70s – 90s )

Vision 2020

Nine challenges of Vision 2020

1. Create a Malaysian nation that is united and with a common adjective.

2. Create a society that is free, peaceful and advanced, confident of it’s own capabilities, successfully proud and strong in facing problems.

3. Create and develop a democratic society that is matured and practices a shared philosophy.

4. Create a moral and ethical society with strong religious and spiritual values.

5. Create a society that is tolerant and liberal and free to practice it’s own customs, culture and religions.

6. Create a scientific and progressive society that is forward-looking and farsighted and is thus able to contribute to improving civilization based on science and technology.

7. Create a caring society and practices a caring culture.

8. Create a society that is fair in the distribution of national wealth regardless of race.

9. Create a prosperous society with a competitive economy.

Conclusion • Development policies that were promoted through Five Year Development Plans – had

the purpose of correcting the imbalance in development based on sector, territory and community.

• NEP aimed at – reducing and eliminate poverty regardless of age, restructure Malaysia’s plural society ( wipe out race identification according to economic functions )

• NEP covered OPP1, then OPP2 and OPP3 continued the NEP’s with specific emphasis and focus.

• The efforts were in line with Vision 2020 – producing a Malaysian nation that is developed, progressive, scientific and united.

• Initial move to alter the status of our country – from a developing country to a balanced developed nation, economically, physically and socially.

• In the context of Malaysia, participation of all races is crucial to contribute to national development.

Malaysia’s Main

Policies

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Economy – Based Policy

A. National Agriculture Policy

• The National Agriculture Policy (NAP) was planned and implemented to transform the agricultural sector into more modern, commercialized to increase country’s export commodities.

• Aims to raise the income of farmers, those who live in the rural areas.• To create a society of entrepreneurs and businessmen among farmers

and fishermen.• Two approaches were introduced, the agro-forestry approach and the

product-based approach.– Agro-forestry approach – focused at integrating forestry with agriculture.– Product-based approach – encourages the production of quality agriculture

products according to consumers’ need and taste

B. National Privatisation Policy

• Transfers government sector functions and activities to the private sector.

• Indicates that the Government was ready to reduce and give up a number of government activities in the country to the private sector for implementation – raise productivity quality and administrative efficiency.

• The implementation of the Privatization Policy was necessary – bring effective management to improve economic performance and services – resulting in higher rate of growth in the national economy

• The policy was hoped to create high demand for management expertise and increase opportunities for bumiputeras business.

• The policy is also necessary to control the size of public sector and balance the government’s financial stability.

• Privatization is effective because it has successfully reduced the burden government administration especially in terms of staff and financial responsibility.

C. National Development Policy (NDP)

• NDP was introduced to replace NEP for the realization of Vision 2020.

• Provided continuity of NEP – restructuring society• Government has implemented a few approaches

– Education and training, competitiveness in the international arena and involve the participation of all races in Vision 2020 to achieve the status of a developed country.

– Poverty rate was reduced to 7-8% by 2000, - ( 19.1% in 1990 )– Unemployment rate expected to fall to 4% in 2000.– Corrected the imbalance in development in Sabah and Sarawak.

• Social restructuring was one of the government’s approaches in NDP– Build up a trading and industrial society - in the manufacturing and service

sector.– Ensure Bumiputeras received equitable share of careers in new field such as

professions, management and technical.

D. National Industrialization Policy (NIP)

• The NIP – raise organizational productivity, employee’s skills and to encourage entrepreneurs to work together to develop the nation.

• NIP was needed because there were rapid growth, high and continued demand for industrial goods and growing future labour needs in the country

• Starting from 80s, government has encouraged the development of heavy industries that would equip the people with high technological skills.

• The government launched two important studies in 1983, The Malaysian Industrial Policy Study ( MIPS ) - to assess and to amend existing

industrial policies and to review investment incentives and export promotion policies. The Industrial Master Plan ( IMP ) - to formulate general industrial development

objectives besides determining the strategies for small sectors with potential.

Socially – Based Policies

A. National Integration Policy

• In Malaysia, unity is tied to polarization.• Polarization exist because of different background, religion and

values.• Two approaches were implemented :

– Encouragement Approach – gives importance to social activities, in urban and rural areas, organizes concept of neighbourlines, Rukun Tetangga, Unity classes and so on.

– Preventive Approach – implemented through the cooperation of civil servants for tracking the social relations ambience among the people. Educational institutions including schools are agents to promote unity among students of different races.

B. National Cultural Policy (NCP)

• Implemented in 1971 • The formation of culture needs close and careful planning so that

a Malaysian was of life gets enhanced. • Three principles underline the NCP

– Its core should be culture of the people of this region– Suitable elements of other cultures should be accepted to become the

elements of the national culture– Islam is an important element because it is the official religion of the

country• The NCP is significant to unite the multi-racial population. – can be

made a guide for building and sustaining the country’s positive identity internationally.

C. National Women’s Policy

• The participation of women in various government programmes cannot be denied especially in health, education, textile electronics, manufacturing and agriculture.

• Government implemented National Advisory Council on Integration of Women in Development ( NACIWID) in 1976. The National Women’s Policy (NWP) was drawn up in 1989.

• Reflects the government’s commitment to the development of women.

• National Council for Women’s Organizations (NCWO) came up with action plans for Woman’s Day on 20th August 1991.

• Objective of NWP – to further strengthen institutions, organizations and voluntary bodies– Consultations, regulations, national and international level programmes,

on-going training, increased monetary aid, reinforce women’s funds and a better quality of life especially in the rural areas.

Era of Science and Technology

National Science and Technology Policy

Objective

i. Develop efficiency using science and technologyii. Create a society that is innovative and farsighted iii. Able to adjust, innovate and raise technological investmentiv. Create a dynamic and diversified manufacture-base industrial

sectorv. Develop local technological capacity in selection and consultation.

Education Reforms : Aim and Processes

A. National Education Policy

• Produce an united and disciplined society and to fulfill the need for a trained work force to develop the country.

• Education was given priority in national development to prepare an educated, skilful, and highly motivated work force as well as to produce people who are responsible, united, disciplined, balanced, harmonious and contribute to national prosperity.

• The NEP in line with New Economic Policy managed to eliminate the practice of associating employment with race in the public and private sectors.

• Emphasis was laid on the NEP to help the NDP to eliminate poverty and to restructure society.

B. Educational Reforms• Government recognized and strengthen further the national system

of education - due to socio-economic changes, rapid changes in political areas, rapid growth in Science and Technology

• To suit the education need of the future and to produce a work force that has the quality, capability and skill to handle more complex challenges.

• Malaysian society is to be developed spiritually and physically equipped to endure the many challenges of globalization, has to be ready to change mindset in facing current challenges of a globalized world.

• Updating the curriculum are some of the efforts implemented by the government to face future universal problem.

C. Smart School

• Emphasized efforts to build a young generation complete with current education and capable of facing future challenges.

• Malaysian society could understand the focus of smart school is to produce young dynamic Malaysians in line with world education development but adapted to the norms and values of the Malaysian way of life.

• Increased involvement of information technology, environment, teacher, pupil, evaluation and effective management suited to the latest era in education.

• Innovations make for quality, effectiveness, comfort, and interst in the education environment.

• Showcase Malaysia as a centre of excellence for world standard education in this region.