HISTORY OF SCIENCE &

TECHNOLOGY
1-1 Introduction to Engineering
Contents
Definition of Engineering
Functions of Engineers
Objectives of the course
Definition of Science & Technology

What it means to be an
engineer?
The word engineer is derived from the
Latin word meaning cleverness or a
brilliant idea
Oxford Advance Learners Dictionary
defines an engineer as
A person whose job is designing and
building engines, machines, roads,
bridges etc
What it means to be an
engineer?
An Engineer is one whose principal duty
is to apply mathematical and scientific
knowledge to serve mankind.
Applying knowledge to create practical
devices, structures and processes.
What it means to be an
engineer?
He designs materials, structures,
machines and systems while
considering limitations imposed by
practicality, safety and cost
In contrast: Scientist aims to seek
knowledge.
Engineering
- origins of the word
Practical form of art and a profession,
evolved from the work of builders
thousands of years ago.
Originated probably in the Middle Ages
around 1000-1200 AD
they were mainly builders of civil and
mechanical structures such as buildings,
bridges, roads, mills and war machines
What is Engineering ?
The profession in which a knowledge of
the mathematical and natural sciences
gained by study, experience and
practice is applied with judgement to
develop ways to utilize, economically,
the materials and forces of nature for
the benefit of mankind
- ABET (USA)
What is Engineering ?
Oxford Advance Learners Dictionary
An activity of applying scientific
knowledge to the design, building and
control of machines, roads, bridges,
electrical equipment etc
IEM Definition of Engineering
Share a common heritage of knowledge, skill
and art.
Renders a specialized service.
Involves a confidential relationship between
practitioner-client and/or employer.
Is charged with a substantial degree of public
obligation.
Is bound by a distinctive Ethical Code.
Has learned organizations or societies.
Engineering is..
A profession: it has standards of conduct,
responsibilities, is based on specialized knowledge
and members can attain professional status in well-
defined ways.
An art as well as science: experience and practice is
required.
The application of professional judgment in seeking
optimum solutions.
The utilization of resources: nature, forces, energy,
material, knowledge.
An exercise in optimizing economic cost.
... with rules of conduct
pertaining
Who is permitted to practice?
What are an engineers obligations to his/her
client or employer and his/her colleagues?
What further obligations does an engineer
owe to society?
By what standards shall an engineer be
compensated?
How and by whom shall an engineers
professional conduct be judged?
Functions of Engineers
Engineers act as a leader to technicians,
craftsmen and workers.
Engineers should be familiar with the
skills of his/her subordinates, and in
addition to that, innovate, design, make
decisions and, foresee, identify, assess,
and solve problems.
... in the following areas:
R&D
Design
Construction
Sales
Production
Operations
Management
In various fields of Engineering..
Public Perception
Parents:
high esteem, good job opportunities, well
paid, responsible positions
Public:
poor communications, square, male,
socially inept etc.
Objectives of the course
Learn the social side of engineering
Includes issues like national development,
environment, social and professionalism
This is no less important than your technical
knowledge
In reality engineers are expected to analyse
situations and problems and propose rational
solutions or recommendations
Science & Technology
Science:
Business of seeking knowledge
Technology:
Intelligent organization and manipulation
of materials for useful purposes
ENGINEERING &
DEVELOPMENT
1-2 Development
Contents
Meaning of development
Objectives of development
Economics of development
Indicators of development
Traits among developing countries
What is development? (1)
growth or evolution; stage of
advancement
2 definitions:
relating to the transformation of a society
using economics
What is development? (2)
..... relating to the transformation of
a society:
The transformation of traditional,
low-productivity, subsistence societies
into modern, high-productivity, high-
income nations. Alteration of the
structure of production and
employment from agriculture to
manufacturing & service industries.
What is development? (3)
... from the economics points of view:
Development means the capacity of a
national economy, whose initial economic
condition has been more or less static for a
long time, to generate and sustain an
annual increase in its gross annual product
(GNP) at rates of 5-7% or more.
Alternatively it is the ability of a nation to
expand its output at a rate faster than the
growth rate of its population.
Objectives of development (1)
The key aim of development is to
enable people to lead a better life.
The 3 key aspects of a better life are:
Sustenance: the ability to meet basic needs
food, health, shelter, protection
basic economy activity is to provide as many
people with these


Objectives of development (2)
Self-esteem: to be a person
a sense of worth and self respect
dignity, respect, honor, recognition
not being used as a tool by others for their own
needs.
Freedom from servitude (lack of liberty): to
be able to choose
free from ignorance, misery, other people,
institutions
wealth increases human choice
Objectives of development (3)
The objectives:
To increase the availability and widen the
distribution of life-sustaining goods.
To raise the standard of living. This include
economic needs: higher incomes, more jobs,
material needs, and non-economic needs: better
education, knowledge, spiritual fulfillment.
To expand the range of economic and social
choices.
Indicators of development (1)
To quantify and track the course of
development
3 classes:
Economic indicators
GNP, GDP, PPP
Social indicators
Literacy, health, services
Science and technology level
Patents, trademarks, copyrights
Indicators of development (2)
Gross National Product (GNP)
sum of all goods and services produced by
the factors of production owned by citizens
of a nation.
GNP = GDP - (part of GDP attributable to
non-residents) + (residents contribution to
GDP of other countries)
"income actually earned by nationals."

Indicators of development (3)
Gross Domestic Product (GDP)
sum of all goods and services produced in
the territory of the nation, regardless of
who owns the means of production that
generate the goods or services.
"income within defined geographical
boundaries."

Indicators of development (4)
When is GDP > GNP?
When substantial portions of the local
economy are foreign-owned
income earned within a country goes to
foreigners
GDP may look healthy but GNP may well
be anemic (lacking force)
this is undesirable since control is ceded
to foreigners
Indicators of development (5)
A comparison of GNP per capita
exaggerated by the use of official foreign-
exchange rates (normally expressed in USD)
does not reflect the relative domestic
purchasing power of different currencies
Country GNP per
capita rank
GNP per capita
(USD)
Income disparity
(Japan : Ethiopia = 344, in 1994 it was 266)
Japan 2 37,850
United Kingdom 15 20,710
Malaysia 35 4,680
China 81 860
Indicators of development (6)
Purchasing Power Parity (PPP)
a measure of the relative purchasing power of
a country's currency
defined as the number of units of a foreign
countrys currency required to purchase the
identical quantity of goods/services in the local
market as $1 would buy in the United States
Machinery, food, tobacco, rent, fuel, education
PPP exchange rate is used instead to calculate
GDP/GNP
Indicators of development (7)
Using PPP
nominal: use fixed exchange rate
real: use PPP
Indicators of development (8)
Social indicators
Literacy - level of adult literacy, student
enrollment
Health - life expectancy, infant mortality
rate, density of doctors
Services - telephone lines
Indicators of development (9)
Science and technology indicators
patents
trademarks
copyrights
Developing countries (1)
Low Standards of Living
Low Levels of Productivity
High Rates of Population Growth &
Dependency Burdens
High Levels of Unemployment.
Imperfect Markets and Incomplete
Information
Dependence on Agricultural Production and
Commodity Exports
Developing countries (2)
Dominance, Dependence and Vulnerability
in International Relations
Weak Science & Technology development
Malaysia as Developing Country
Rich in local natural resources.
Skilled local labor.
Good infrastructures and services
Healthy climate for local and foreign
investments.
Good support and incentives for business.
Strategic location in the Asia Pacific rim.
Politically stable.
Summary
What is development?
- transformation of a society & economic point of view.
Objectives of development.
- 3 key aspects of a better life (sustenance, self-esteem, freedom).
Economics of development.
- Traditional, Political and Developmental
Indicators of Development.
- Economics(GNP, GDP, PPP), Social (literacy, health, services), Science & Tech
(patents, trademarks, copyrights).
Traits (distinguishing feature) among Developing
Countries especially Malaysia
ENGINEERING &
DEVELOPMENT
1-3 Science, Technology
& Development
Contents
The role of science & technology
Indicators of science & technology
Types of R&D
The role of science &
technology
Technology:
ability or
knowledge
labour
raw material
capital equipment
products:quality
and quantity
Better technology - higher efficiency
Technology innovation
3 kinds of innovation
Innovation as an applied science:
discoveries stimulate technical people to new applications.
Innovation as a social process:
a response to economic and political forces. Most of the time,
innovation is the result of much more than the efforts of a
single individual, hence the 'social' idea.
Innovation by individual genius:
innovation which is the result of a single individual or a single
significant idea or creation.

Indicators of Science & Technology (1)
Science & technology statistics from UNESCO: World
Science Report
Statistics on intellectual property are published by the
World Intellectual Property Organization.
Indicators of science and technology include:
Human Resource
Number of scientists & engineers per million population.
Funding
Annual R&D funding, percent of GNP expended for R&D, per
capita expenditure for R&D
Intellectual Property
Patents applied for, patents granted, marks (as in trademarks),
industrial designs, copyrights
Indicators of Science & Technology (2)
Country Persons engaged in R&D Expenditure for R&D
Year Scientists & engineers
per million population
Percent of
GNP
Per capita expenditure
(in national currency)
Japan 1994 6 309 2.9 108 929
United States 1993 3 732 2.5 656
Russian
Federation
1995 3 520 0.7 82 442
Germany 1993 2 843 2.4 949
Singapore 1995 2 728 1.1 484
Korea 1994 2 636 2.8 177 159
United Kingdom 1993 2 417 2.2 239
China 1995 350 0.5 24
India 1994 149 0.8 74
Philippines 1992 157 0.2 46
Thailand 1995 119 0.1 89
Malaysia 1992 87 0.4 29
Indonesia 1995 - 0.1 2 156
Burundi 1989 32 0.3 100
Rwanda 1995 24 0.0 13
Science & Technology Development Statistics [UNESCO]
Indicators of Science & Technology (3)
The top countries all have R&D expenditure of
over 2% of their GNP.
Note the number of persons engaged in R&D per
million populations, esp.. between Malaysia and
Singapore.
Note that most South East Asian countries
(except for Singapore) all have comparable
statistics, and are way behind.

Indicators of Science & Technology (4)
Region / Country Percent World
Share, 1995
1995
(base 1990 = 100)
Western Europe 35.8 109
Central and Eastern Europe 2.0 83
CIS 4.0 56
North America 38.4 96
Latin America 1.6 117
Arab States 0.7 93
Sub-Saharan Africa 0.8 81
Japan and NICs 10.1 119
China 1.6 138
India and Central Asia 2.1 97
South-East Asia 0.1 99
Oceania 2.8 106
World Total 100.0 100
Scientific
Output
Measured in
Publications
[World
Science
Report 1998]

Indicators of Science & Technology (5)
The table at shows the scientific output
of various regions, based on
publications in 2500 of the most cited
(influential) scientific journals. This
indicator also has influence on higher
education and technical expertise.
Types of R&D (1)
R&D is one way of acquiring technology
Others:
technology transfer
reverse engineering
industrial espionage
Types of R&D (2)
Scientists and engineers principally
perform R&D. There are 2 types of R&D,
namely:
Fundamental research,
e.g. elementary particles research.
Applied research, e.g. product development.
Types of R&D (3)
Mass Production

For very high volume goods. The product is developed,
tooling produced and manufacturing starts. The
product is then marketed. E.g. Coca-Cola.

Process Production:
For a moderately large number of units, but not mass-
produced. The product is first developed, then
marketed with only prototypes or a small number of
units produced. Orders will be produced as required.
E.g. Supercomputers.
Types of R&D (4)
Unit Production:
For a very small number of units. The product is
requested by the market, which might call for a
competitive tender. It goes through R&D next,
commonly with the client and vendor cooperating.
A small number of custom units are produced. E.g.
Space Shuttle
Types of R&D (5)
R&D can be very costly, and may not produce
immediate return from capital invested.
R&D expenditure of advanced developed nations
are in the range of 2 to 3 percent of their GNP,
while that of developing countries are in the
range of 0.1% to 0.5%.
It is clear that developing countries need to
invest in R&D, and they also have to make sure
that their investment bears fruit.
ENGINEERING &
DEVELOPMENT
1-4 Development in Malaysia
Contents
Engineer & development
Malaysian economy indicators
Malaysias competitiveness
OPP1 (First Outline Perspective Plan)
IMP1 (First Industrial Master Plan)


Engineer & development
As Engineers, we need to be aware of the development
around us.
Given the importance of Engineers in development, we
will encounter development issues time and again in our
work.
It is important to be aware of how we stand among other
nations, and what the state of affairs are in the
governance of our country.
We must be especially sensitive to science and
technology issues, more so when we will be in the heart
of the MSC.
Government policies and plan
In planning and executing development, the Governments rely on
a number of levels of planning, documentation and policy-making.
Vision 2020 1991 2020
Fourth Outline Perspective Plan
Tenth Malaysian Plan
2011-2020
2011-2015

Third Outline Perspective Plan
National Vision Policy

2001 2010


Ninth Malaysian Plan
Eighth Malaysian Plan
2006 2010
2001 2005
Second Outline Perspective Plan 1991 2000
National Development Policy
Industrial Master Plan 2 1996 2005
Seventh Malaysian Plan 1996 2000
Sixth Malaysian Plan 1991 1995
National IT Agenda
First Outline Perspective Plan 1971 1990
New Economic Policy
Industrial Master Plan 1 1986 1995
2
nd
5
th
Malaysian Plans 1971 1990

Malaysian economy
1997 1998 1999 2000
2
RM,
billion
%
growth
RM,
billion
%
growth
RM,
billion
%
growth
RM,
billion
%
growth
GDP
1
196.7 7.3 182.2 -7.4 192.8 5.8 207.3 7.5
Exports
220.9 12.1 286.6 29.7 321.2 12.1 NA NA
Imports
220.9 12.0 228.1 3.3 248.9 9.1 NA NA
Per capita GNP (US$)
4,376 3,093 3,238 3,390
CPI (annual growth)
2.7 5.3 2.8 1.8
Agriculture, forestry &
fishing
3
18.0 0.7 17.4 -3.3 18.1 3.8 18.2 1.8
Manufacturing
3
58.8 10.1 50.9 -13.4 57.8 13.5 67.6 17.0
Construction
3
9.5 10.6 7.3 -23.0 6.9 -5.6 7.1 3.1
Services
3
102.2 9.9 101.5 -0.7 104.8 3.3 110.0 5.0
Merchandise account
balance
10.3 69.2 86.5 74.3
Service account balance
-22.8 -22.3 -32.1 -37.1
Unemployment (%)
2.4 3.2 3.0 2.9
Stock market
capitalization
375.8 374.5 552.7 488.8
Poverty
Incidence of poverty (%
of households)
1970 1984 1990 1995 1997 1999
Overall 49.3 20.7 17.1 9.6 6.8 7.5
Rural 58.7 27.3 21.8 16.1 11.8 12.4
Urban 21.3 8.5 7.5 4.1 2.4 3.4
Quality of Life
Indicator Unit 1990 1995 1996 1997
Population per doctor - US: 420 2,533 2,151 2,056 1,912
Crude birth rate per 1000 Japan: 10 28.4 26.9 26.1 26.0
Crude death rate per 1000 4.7 4.6 4.4 4.3
Infant mortality rate per 1000 Spore: 5 13.0 10.9 9.8 9.7
Life expectancy (male) years Japan: 76 68.9 69.4 68.8 68.8
Life expectancy (female) years Japan: 83 73.5 74.2 73.7 73.5
Telephone subscribers 000s 1,586 3,320 3,684 3,987
Mobile phones 000s 55 700 1,362 1,957
Jaring membership 000s - 0.2 14.4 50.2
Quality of Life of Malaysia
Education
Country
Primary Secondary Tertiary
United States 106 97 81
Japan 102 113 41
Singapore 107 70 N/A
Malaysia 93 58 7
Philippines 109 74 26
Thailand 98 38 19
The level of education in Malaysia compared with other
countries can be seen in the table at left. The US clearly holds
an advantage in terms of level of education, especially at
tertiary level. As for Malaysia, we begin to lose out at
secondary level, and are hopelessly behind at tertiary level.
There is a dire need to create a strong education system.
World competitiveness(1)
International Institute for Management
Development, Switzerland
Ranks and analyses how a nations
environment sustains the
competitiveness of its firms
49 nations in 286 criteria

World competitiveness(2)
Economic performance
macro-economic evaluation of domestic economy
Government efficiency
government policies which are conductive to
competitiveness
Business efficiency
performing in an innovative, profitable, responsible
manner
Infrastructure
technological, scientific and human resources meets
the needs of business
First Outline Perspective Plan
A long-term plan, in effect from 1971 to 1990.
Based on the objectives of the NEP (1970).
Four Malaysian Plans were implemented (2nd
through 5th) during that period.
The function of OPP1 is to: define the socio-
economic framework for development, setting
of major targets with respect to growth and
distribution, outlining of policies, strategies
and programmes
New Economic Policy (1)
Aims to eradicate poverty and restructure the society
to attain national unity and to foster nation-building.
Poverty is a serious problem in many Third World
countries; just 30 years ago, the mean household
income in Malaysia (1970) was only $264 per month,
while 27 per cent of households earning below $100
per month (1970).
Employment restructuring is implemented to balance
ethnic participation in the economy; the target is that
within a generation, the Bumiputera would own and
manage at least 30% of the total commercial and
industrial activities of the economy.
New Economic Policy (2)
Targets of NEP
Rapid economic expansion is targeted, with real GDP to grow at
8% p.a.
Reduction in unemployment rate to reach almost full employment.
Stimulus to come from strong private and public investment.
Stimulus of growing comes from strong export growth. (7.1%
p.a.) For manufactured products, a share of 38.1% in 1990
targeted, while imports is to slow down at 5.2% p.a. through
import substitution.
Increase in national savings to 16.5%, to create a strong
domestic financing source.
Finally, to maintain a healthy balance of payments, and to
modernize and diversify the economy.
Performance (1)
Results
In the 1970s growth was at 7.5% p.a., while the 1980s
growth was at 5.9% p.a. (6.7% average)
Real GDP increased 3-fold from RM21.5b to RM79.1b
Per capita GNP increased 2-fold from RM1,937 to RM4,268
(pop. growth 2.5% p.a.)
Inflation rate was a manageably low 4.6%
Exports growth of 9.2% p.a. exceeded target of 7.1% p.a.
Unemployment was 6% in 1990
There was a high level of savings (30.3% GNP in 1990, x2
of target), but the concentration of funds is in the
Government and large corporations.
Performance (2)
Socioeconomic Progress
There was a significant reduction in income
imbalances, both ethnic and geographical.
The average monthly income grew from
RM264 to RM1,163 (four-fold increase.)
There was a significant reduction in the
incidence of poverty.
Bumiputera ownership increased from 2.4%
to 20.3% (short of target.)
OPP1 & Recession (1)
The 1985-86 recession necessitated a number of
policy adjustments during the 1980s:
Adjustments in order to become more self-reliant
and resilient.
There is an urgent need to achieve growth with
long-term stability and sustainability. Solutions in
this respect include:
expansion of domestic activities, efficient
management of the economy, consolidation and
concentration of development efforts, raising
productivity and competitiveness, improving
utilization of resources.
OPP1 & Recession (2)
Curtailment of external borrowing.
Reduction of the size and role of the public
sector. The private sector is to provide the
leading role and dynamism in the economy.
Privatization of government services to another
avenue for increasing private sector participation.
Industrial Master Plan (IMP) (1985)
More emphasis is placed on R&D activities.
First Industrial Master Plan (1)
IMP1 was conceived to take place in the
period from 1986 to1995.
It has 3 broad objectives, namely:
rapid expansion of the economy through
accelerated growth of the manufacturing sector,
optimum and efficient utilization of natural
resources through value-added manufacturing
activities, and
to lay the foundation for the development of
indigenous technology capability.
First Industrial Master Plan (2)
Industries created during IMP1 are chiefly assembly
based manufacturing concerns.
Sectors which were identified for intensification
include:
rubber, palm oil, wood, foodstuff, chemical, non-
ferrous metals, electric and electronics, transport,
machines, ferrous metals, textile and clothing.
Thanks for the formation of a number of Free Trade
Zones (FTZ), the electronics industry became the
most rapidly expanding sector of the manufacturing
industry, at the cost of the development of
indigenous technology capability.
First Industrial Master Plan (3)
IMP1
Forecast
IMP1 Actual
(1995)
IMP2
Forecast
1. GDP (% growth) 6.4 7.8 8.0
2. Manufacturing value-added (% growth) 8.8 13.5 9.6
3. Share of (2) to GDP (%) 23.9 33.1 38.4 (2005)
4. Growth of manufacturing exports (%) 9.4 28.6 16.0
5. Growth of manufacturing employment (%) 6.8 8.9 3.5
6. Total manufacturing employment (millions) 1.5 2.0 2.8
Progress of the Industrial Sector during IMP1
Transformation of the
Malaysian Economy
Exported Items 1970 Percentage 1996 Percentage
Rubber 33.4 1.4
Tin 19.6 0.3
Forestry 16.3 2.8
Oil and gas 3.9 6.1
Palm oil 5.1 4.2
Manufactured goods 11.9 81.0
Others 9.8 4.1
Total value of exports (RM billion) 5.2 197.7
Diversification of Exports (1970-1996)
The country is has entered a critical phase where we must develop significant
indigenous science and technology capability, through
the efforts of our scientists and engineers.
Failing to do so will only aggrandize our dependence on the developed
nations for the latest knowledge and technology.
The country may still post a healthy manufacturing surplus but
it will also incur a burdensome deficit in the service sector.
ENGINEERING &
DEVELOPMENT
1-5 Development in Malaysia II
Contents
NDP and OPP2
NVP and OPP3
IMP2
National IT Agenda
RM8
RM9

1991-2020
Vision 2020
OPP2/NDP
OPP3
RM6 RM7
RM10
IMP2
National IT
Agenda
/NVP
RM9
RM8
OPP4
Government policies and plan
Vision 2020 1991 2020
Fourth Outline Perspective Plan
Tenth Malaysian Plan
2011-2020
2011-2015

Third Outline Perspective Plan
National Vision Policy

2001 2010


Ninth Malaysian Plan
Eighth Malaysian Plan
2006 2010
2001 2005
Second Outline Perspective Plan 1991 2000
National Development Policy
Industrial Master Plan 2 1996 2005
Seventh Malaysian Plan 1996 2000
Sixth Malaysian Plan 1991 1995
National IT Agenda
First Outline Perspective Plan 1971 1990
New Economic Policy
Industrial Master Plan 1 1986 1995
2
nd
5
th
Malaysian Plans 1971 1990

NDP & OPP2
National Development Policy (NDP) continues
the basic strategy of NEP
eradication of poverty
restructuring of society
NDP emphasis on balanced development
2nd Outline Perspective Plan (OPP2) has the
NDP as its underlying strategy
OPP2 sets the pace to enable Malaysia to
become a fully developed nation by 2020
OPP2: focal points
Eradication of hard-core poverty
Development of Bumiputera
Commercial and Industrial Community
Private sector in restructuring of society
Human resource development
Industrial Master Plan 2
(IMP2)
1996-2005
The Second Industrial Master Plan (IMP2)
essentially charts the policies and strategies
aimed at transforming the manufacturing sector
into a resilient, broad based and internationally
competitive sector.
This is to be achieved through strengthening
backward and forward industrial linkages,
enhancing value-added activities and increasing
productivity.
Industrial Master Plan 2
(IMP2)
Two strategies formed the framework for
industrial development under IMP2
Manufacturing Plus-plus Strategy
Value-added industry
Productivity-driven growth
Cluster-based Industrial Development
Industrial Master Plan 2
(IMP2)
The Manufacturing Plus-plus strategy was an
integrated approach of moving up the value chain,
from the lower-end towards higher value-added
activities such as research and development (R&D),
product design, and distribution and marketing.
Manufacturing Plus-plus also involved shifting the
entire value chain upwards through productivity
growth with the use of advance technology such as
automation and robotisation
Manufacturing ++
Value-added industry
Research &
Development
Product
Development
Design &
Prototyping
Basic
Processes
Conventional
Assembly
Marketing
+ + Manufacturing
Distribution &
Logistics
Manufacturing ++
Assembly &
Production
Marketing Distribution
Product
Design
R & D

Increase productivity
Industrial Master Plan 2
(IMP2)
The Cluster-based Industrial Development strategy
focused on the development of competitive industry
clusters through the integration of
Industries
Suppliers
Supporting industries
Requisite infrastructure and
Institutions.
Example automobile industry, MSC
5 strategic trust of IMP2
Strengthening global orientation
Enhancing competitiveness through cluster
development
Improving economic foundation
Nurturing Malaysian-owned brand
manufacturers
Adopting information-intensive and
knowledge driven processes.
National IT Agenda
Launched in 1996 by National IT Council
It provides the foundation and framework for the
utilisation of information and communication
technology (ICT) to transform Malaysia into a
developed nation in our own mould consistent
with Vision 2020.
National IT Agenda
The NITA vision is to utilise ICT to transform
all of Malaysian society into an information
society, then to a knowledge society and
finally to a value-based knowledge society
Utilisation of ICT -> information society ->
knowledge society -> value-based knowledge
society

National IT Agenda
NITA focuses on the development of people,
infrastructure and applications
to create value
to provide equity
to provide access to all Malaysians, and
to qualitatively transform our society into a value-
based knowledge society by the year 2020
K-economy?
Acquisition, production, distribution and
utilisation of knowledge and information in all
socio-economic activities
R & D
Software development
Information technology
Pharmaceuticals
Biotechnology
Finance
National IT framework
NVP & OPP3
National Vision Policy
NEP & NDP
3rd Outline Perspective Plan (OPP3) has
the NVP as its underlying strategy
Building a resilient and competitive
nation
New policies
To create knowledge-based society
generating endogenously-driven growth (i.e.
growing within)
eradicating pockets of poverty in remote
areas
30% Bumiputera equity ownership by 2010
increasing Bumiputera participation in leading
sectors of the economy

RM 8 (1)
2001-2005
"The Eighth Malaysia Plan charts the next steps that
we, as a nation, will to take be towards becoming a
united and fully developed nation in our own mould
by the year 2020. In formulating this plan we
considered the progress achieved, took stock of our
current position as well as the considerable
challenges ahead. The strategies and programmes
presented are aimed at putting the nation on a
stronger footing and to more resilient and
competitive..........Prime Minister Malaysia"
RM 8 Review (2)

BRIEF OVERVIEW OF THE EIGHTH
MALAYSIA PLAN, 2001-2005
At the onset of the Eighth Plan, global economic
growth slowed due to a decelerating United States of
America economy and dampened global electronics
demand, exacerbated by the attacks of September
11, 2001
Overall economic performance remained sluggish
until the second half of 2003, weighed down by the
invasion of Iraq and the regional outbreak of Severe
Acute Respiratory Syndrome (SARS)
Global growth thereafter was relatively firm despite
escalation in crude oil prices from the second half of
2004
*Excerpt from Box 1-1 RM 9
RM 8 Review (3)
The Malaysian economy managed to sustain growth
during the Eighth Plan period due to stronger
macroeconomic fundamentals and increased
resilience following the lessons learnt from the Asian
financial crisis.
Achievements include:
4.5 per cent per annum real gross domestic product (GDP)
growth, slightly above the revised target rate;
increase in GNP per capita in current prices of 5.7 per cent per
annum to RM17,687 in 2005
broad-based growth, with nearly all sectors equalling or surpassing
their revised growth targets;
strong exports, resulting in a 61.4 per cent growth of the trade
surplus, and
* Excerpt from Box 1-1 RM 9

RM 8 Review (4)
Achievements (cont.)
the doubling of the balance of payments surplus and the
volume of international reserves;
low inflation, averaging 1.8 per cent for the entire Eighth
Plan period;
low unemployment of 3.5 per cent by the end of 2005;
greater progression to higher value added activities in
key economic sectors;
improvement of the business environment including
increased supply of skilled labour, higher physical
infrastructure capacity and better investment incentives.


*Excerpt from Box 1-1 RM 9
RM 8 Review (5)
The steady economic growth enabled the achievement of
several socio-economic objectives:
overall poverty declined from 8.5 per cent (1999) to 5.7 per cent
(2004);
hardcore poverty declined from 1.9 per cent (1999) to 1.2 per cent
(2004);
mean household income increased 5.6 per cent per annum on
average, exceeding real GDP growth;
inter-ethnic income disparities narrowed;
all the Millennium Development Goals were achieved ahead of the
2015 target with the exception of the reversal of HIV/AIDS;
provision of housing, medical services and basic amenities
improved significantly; and
rural-urban income disparity, however, continued to widen.

The Ninth Malaysian Plan (RM 9)

2006 - 2010
The nation is embarking upon a new phase of development
towards realising its aspiration of becoming a developed nation by
2020. This next 15-year phase will be guided by the National
Mission, a policy and implementation framework aimed at obtaining
greater performance and impact from the countrys collective
developmental initiatives.

The Ninth Malaysia Plan represents the first five-year blueprint of
the National Mission, outlining the policies and key programmes
aimed at fulfilling the Missions thrusts and objectives for the
2006-2010 period.
*excerpt from RM 9

Together Towards Excellence, Glory and Distinction

RM 9 Key Highlights

RM 9 is organized according to the five thrusts of the National
Mission
THRUST 1: TO MOVE THE ECONOMY UP THE VALUE
CHAIN
THRUST 2: TO RAISE THE CAPACITY FOR KNOWLEDGE
AND INNOVATION & NURTURE FIRST CLASS MENTALITY
THRUST 3: TO ADDRESS PERSISTENT SOCIO-ECONOMIC
INEQUALITIES CONSTRUCTIVELY AND PRODUCTIVELY
THRUST 4: TO IMPROVE THE STANDARD AND
SUSTAINABILITY OF QUALITY OF LIFE
THRUST 5: TO STRENGTHEN THE INSTITUTIONAL AND
IMPLEMENTATION CAPACITY


THRUST 1: TO MOVE THE ECONOMY UP
THE VALUE CHAIN
Increasing the Value Added of Manufacturing, Services and
Agriculture
Generating New Sources of Wealth in Technology- and
Knowledge-Intensive Sectors
Enhancing Job Creation
Giving a Lead Role to the Private Sector in Economic
Development
Enhancing the Development of Small and Medium Enterprises
Increasing Public-Private Sector Partnerships
Improving the Business Environment
Inculcating Excellence and a High Performance Culture
Government-Linked Companies Transformation
Enhancing Corporate Governance
Expanding the Market for Malaysian Products and Services
Promoting Outward Investments
Responding Competitively to International Trade Commitments
THRUST 2: TO RAISE THE CAPACITY FOR
KNOWLEDGE AND INNOVATION &
NURTURE FIRST CLASS MENTALITY
Improving the Access to and Quality of the Education System
at All Levels
Making National Schools the School of Choice
Producing Tertiary Institutions of International Standing
Nurturing Top Quality Research and Development, and
Scientific and Innovation Capability
Empowering Women and Youth
Fostering a Society with Strong Values
THRUST 3: TO ADDRESS PERSISTENT
SOCIO-ECONOMIC INEQUALITIES
CONSTRUCTIVELY AND PRODUCTIVELY

Eradicating Poverty
Reducing Income Disparity
Reducing Regional Disparity
Reducing Employment Disparity
Reducing Asset and Wealth Disparity
Developing Competitive Bumiputera Entrepreneurs
Bridging the Digital Divide
Reviewing Past Programmes for Effectiveness
THRUST 4: TO IMPROVE THE STANDARD
& SUSTAINABILITY OF QUALITY OF LIFE
Meeting Housing Needs and Improving Urban Services
Improving Health Care Services
Improving the Transportation System
Improving Sufficiency and Sustainability of Energy
Supply
Enhancing the Water Delivery System
Promoting Environmental Protection and Sustainable
Resource Management
Enhancing the Role of Culture, Arts and Heritage in
Society
Developing Sporting Excellence and a Healthier Lifestyle
THRUST 5: TO STRENGTHEN THE
INSTITUTIONAL AND
IMPLEMENTATION CAPACITY

Promoting Good Governance
Enhancing the Public Service Delivery System
Promoting Development through International
Cooperation

SUMMARY OF THE NINTH
MALAYSIA PLAN, 2006-2010
Initiatives to enhance national competitiveness and
resilience will continue to be given high priority,
given the changing domestic and global economic
landscape

Efforts to close inter- and intra-ethnic socio-economic
disparities will be intensified, with measures that
focus more accurately on target groups.

All development initiatives during the Ninth Plan
period will be guided by the universal principles of
Islam Hadhari

SUMMARY OF THE NINTH
MALAYSIA PLAN cont.
Overall macroeconomic management during the Plan period will
focus on sustaining growth and strengthening the economys
capacity to cushion against downside risks and shocks

The Government will ensure that :-
price pressures remain manageable
an appropriate monetary policy is in effect
the Federal Government operating expenditure is managed
in a prudent and cost-effective manner
a gradual reduction in the Federal Government deficit is
observed without retarding overall growth
and a strong balance of payments and external reserves
position is maintained at all times

RM 9 Conclusions
The Ninth Plan re-examines the policies and strategies that were
put in place, proposes changes in the development approaches,
and introduces new policy initiatives.
As the first step, the achievement of the Ninth Plans policies and
strategies is critical to the realization of the National Mission.
Finally, determined and focused implementation of the Plan will
strengthen the foundation of the country, build upon Malaysias
past achievements, focus the countrys efforts on the five key
thrusts of the National Mission, and ultimately pave the way for
Malaysias smooth progression towards becoming a developed
nation by 2020.

10
th
Malaysia Plan
shifting the economy towards a
high-income economy, with focus on
innovation, creativity and
productivity
10
th
Malaysian Plan on
Development
2011-2015
The key message of 10th MP is that change is critical
if Malaysia is to benefit from the shift of economic
power from the West to Asia
The target: to achieve a high income and developed
nation in just 10 years (by 2020)

10
th
Malaysian Plan on
Development
The main problems identified that face Malaysia
today are
Falling private investment
Falling productivity rates
Inefficient use of its resources
Outflow of talent
Lack of a substantial pool of skilled labour
Heavy bureaucracy and
Obsolete affirmative action policies.
The 10MP is targeted at attacking and overcoming
these obstacles
10
th
Malaysian Plan on
Development
Basic strategy:
Unleashing productivity-led growth and innovation
Concentrated growth, inclusive development
Ensuring equality of opportunities and
safeguarding the vulnerable
Nurturing, attracting and retaining top talent
The Government will continue to undertake further
liberalization in an effort to attract Foreign Direct
Investment (FDI) and spur private investment
activities
The manufacturing sector will continue to remain as
one of the leading contributor to growth
Efforts will be intensified to promote the development
of the services sector as the next engine of growth
Focus : Building a resilient economy by
spearheading growth of the private sector
10 ideas/premises
First: Internally driven, externally aware.
Second: Leveraging on our diversity internationally.
Third: Transforming to a high-income nation through
specialisation.
Fourth: Unleashing productivity-led growth and
innovation.
Fifth: Nurturing, attracting and retaining top talent.
Sixth: Ensuring equality of opportunities and
safeguarding the vulnerable.
Seventh: Concentrated growth, inclusive development.
Eighth: Supporting effective and smart partnerships.
Ninth: Valuing our environmental endowments.
Tenth: Government as a competitive corporation.
10 ideas/premises
In a nutshell, the 10MP has targeted a gross
domestic product (GDP) growth of 6% per annum
over the next 5 years
This will be led by the private sector and
underpinned by the services sector.
Gross national income per capita is projected to rise
to USD 12,139 (about RM 40,000) by 2015, from
USD 8,256 in 2010
This represents an increase of 47% over 5 years
10 ideas/premises
In realizing this, the pivotal aim of the 10MP is in re-
energizing the private sector by putting in place a
conducive environment, including facilitating an
economy that will have a more level playing field and
which would rely on greater use of intellectual
capital, skills, innovation and technology
Emphasis will also be placed on drawing in more
foreign direct investment (FDI), especially into small
and medium sized enterprises (SMEs).
10 ideas/premises
Currently SMEs make up 99.2 % of all business in
Malaysia
They contribute 56.4% of total employment and
some 31% to GDP
Thus the government will focus on unlocking the
growth and innovation potential of SMEs creating
domestic, regional and global champions
10 ideas/premises
Key measures that would be taken:
Reducing regulatory costs
Building capacity and capabilities
Supporting an entrepreneurial culture
Enhancing financing and support systems for
SMEs.
Key thrust 10
th
Malaysian Plan
5 key thrusts
First: Creating a conductive environment for
unleashing economic growth
To implement strategies to create an environment
that fosters economic growth with private sector
as main driver
Key thrust 10
th
Malaysian Plan
Second: Transforming government to transform
Malaysia
The role of government will evolve to become an
effective facilitator in the transformation of the
economy and provide quality services to the people
Designing Government philosophy and approach to
transform Malaysia using NKRA (National Key Result
Area) methodology

Key thrust 10
th
Malaysian Plan
Third: Moving towards inclusive socio-economic
development.
To implement measures which will ensure income
and wealth are distributed in equitable manner
Key thrust 10
th
Malaysian Plan
Fourth: Developing and retaining a First-World
talent base.
Key is to promote productivity and innovation-led
growth
Strategies are to develop, attract and retain
quality talent people
Learning from first-world country
Sending more postgraduates to share and interact
with first-world people
These people should return and improve our
nation to achieve higher results

Key thrust 10
th
Malaysian Plan
Fifth: Building an environment that enhances quality
of life
Economic growth will be supplemented by
strategies to raise the quality of life of the people
that commensurate with the countrys higher
income status

Key Highlights of 10
th

Malaysian Plan
Key focus to support economic growth
Creating a private sector led economy
Supporting innovation led growth
Rationalising the role of government in business
Developing SMEs as engine of growth and
innovation
Competing globally
Putting in place world class infrastructure for
growth
Key Highlights of 10
th

Malaysian Plan
To achieve the objective, focus will be on key gowth
engines - the engines of economic growth
There are 12 National Key Economic Areas (NKEA)
It comprises of 11 industry sectors and 1
geographical area

Key Highlights of 10
th

Malaysian Plan
Oil & Gas
To enhance initiatives such as
increasing international market access
enhancing skills training in partnership with industry
and
enhancing linkages in the downstream industries
Further efforts would involve expanding opportunities
in logistics and maritime business activities ,and
strengthening oil and gas related professional
services
Key Highlights of 10
th

Malaysian Plan
Palm Oil and Related Products
Key initiatives include promoting Malaysia as a global
hub for palm oil and preferred destination for foreign
Investments
Also palm oil industrial clusters would be developed
into integrated sites to promote downstream
activities such as bio-fuel, oleo chemicals and etc.
The government also plans to centralize the
procurement of agricultural inputs such as fertilizer
and pesticides to lower input costs for small holders.
Key Highlights of 10
th

Malaysian Plan
Financial Services
Here a new financial sector blueprint will be devised
to articulate strategies to further evolve the
Malaysian financial sector to support and drive the
next phase of Malaysias economic development
Also Malaysias position in Islamic finance would be
enhanced globally via the strengthening of the
Malaysia International Islamic Financial Centre
(MIFC) Initiatives
Key Highlights of 10
th

Malaysian Plan
Wholesale and Retail
The retail and wholesale sectors would be liberalized
to promote investments
Local retailers would also be encouraged towards
consolidation to promote efficiency and economies of
scale
Franchise, direct sales and e-commerce would also
be promoted to achieve its full potential
Key Highlights of 10
th

Malaysian Plan
Tourism
Differentiated strategies would be promoted to cater
for unique and distinctive travel patterns
Tourism products would also be improved through
the creation of focused tourism clusters that will
leverage on existing and iconic tourism products
New tourism products would be developed through
the private sector and public private partnerships
Key Highlights of 10
th

Malaysian Plan
Information and Communication Technology
MSC Malaysia would identify and support the
development of niche areas in software and e-
solutions, creative multimedia, shared services,
outsourcing and as well as e-business
The government will also aggressively promote the
use of ICT in all industries in parallel with the
development of the ICT sector
Education and training will be prioritized to meet the
human resource requirements in this sector
Key Highlights of 10
th

Malaysian Plan
Education
The government would improve the quality of public
higher learning institutions through performance based
funding by expanding the rating system for Malaysian
Higher Education Institution (SETARA) to cover private
universities and college universities, and at faculty level.
A central enrolment system would be introduced in stages
for all students, including international students with
flexible credit accumulation framework
A conducive educational ecosystem would be provided, to
attract students and world leading universities in niche
areas to set up branches in Malaysia.
Key Highlights of 10
th

Malaysian Plan
Electrical & Electronics
Centres of engineering excellence would be
developed by collaborating with industry and
academia
State skill centres and co-founding Masters and PhD
programmes in critical fields would also be promoted
Incentives would be focused on strategic segments of
the value chain, such as design, testing and precision
machining
Key Highlights of 10
th

Malaysian Plan
Business Services
Here the focus will be on further developing
construction related and environmental management
services
A consolidated presence and brand for Malaysian
construction services overseas would be established
Legislation would also be amended to facilitate
commitments made at bilateral, regional and
multilateral levels to liberalize the industry and create
new business opportunities.
Key Highlights of 10
th

Malaysian Plan
Private Healthcare
The target is to grow revenue from healthcare by
10% per annum
Thus key strategies to be taken include
Encouraging more private hospitals to seek
accreditation with international healthcare accreditation
bodies
Promoting investment in and utilization of high end
medical technology
Intensifying coordinated and integrated promotional
activities to strengthen the presence of Malaysia
healthcare brand globally.
Key Highlights of 10
th

Malaysian Plan
Agriculture
Consortiums and cooperatives would be set up to
reap the benefits of scale
Reviewing and streamlining current regulation would
also be undertaken to attract greater investment and
participation from private sector
Also innovation based growth and production
processes that utilize modern farm technology and
ICT would be promoted.
Key Highlights of 10
th

Malaysian Plan
Greater Kuala Lumpur
In order to position Greater KL as a world class city,
a combination of economic growth and liveability
strategies would be needed
The Kuala Lumpur International Financial district
would be established as a global financial centre
The Sime Darby Vision Valley would also get the
green light
Also urban public transportation will be transformed
through the mass rapid transit system to ensure
seamless interconnectivity links
Vision 2020
By the year 2020, Malaysia can be a united
nation, with a confident Malaysian society,
infused by strong moral and ethical values,
living in a society that is democratic, liberal
and tolerant, caring, economically just and
equitable, progressive and prosperous, and in
full possession of an economy that is
competitive, dynamic, robust and resilient.
ENGINEERING &
DEVELOPMENT
1-6 Appropriate Technology &
Sustainable Development
Definition
What is sustainable development?
There is a conflict between environment and
development goals
Development that meets the needs of the present
without compromising the ability of future
generations to meet their own needs
- Brundtland Commission, 1987.
What does this mean?
What are the needs of the present?
Definition
The American Society of Civil Engineers -
Sustainable development is a process of change in
which the direction of investment, the orientation of
technology, the allocation of resources, and the
development and functioning of institutions is
directed to meet present needs and aspirations
without endangering the capacity of natural systems
to absorb the effects of human activities, and
without compromising the ability of future
generations to meet their own needs and
aspirations.

What is sustainable
Development?
Thus sustainability consists a set of economic,
environmental and social conditions in which all of
the society has the capacity and opportunity to
maintain and improve its quality of life indefinitely,
without degrading the quality, quantity or availability
of natural resources and ecosystems
SD is the process of converting natural resources
into products and services that are more profitable,
productive and useful while maintaining or
enhancing quality, quantity or availability of
remaining natural resources

What is sustainable
Development?
3 KEY ELEMENTS OF SUSTAINABLE
DEVELOPMENT

It is well recognised that SD comprises 3 essential
aspects:
Economic sustainability
Environmental sustainability
Social sustainability
These 3 aspects are not in isolation but inter-related

What is sustainable
Development?
Economic sustainability
An economically sustainable system must be able
to produce goods and services on a continuous basis
to maintain manageable levels of government debts
to avoid extreme sectoral imbalances which will damage
agricultural or industrial production
Different kinds of capital that make economic production
possible must be maintained
Such as manufactured capital, natural capital, human
capital and social capital
These 4 capitals are complementary to each other
Thus maintenance of all 4 are essential over long term

What is sustainable
Development?
Environmental sustainability
An environmentally sustainable system must
maintain a stable resource base
avoid over-exploitation of renewable resources
not to deplete non-renewable resources
Thus this includes
maintenance of biodiversity
atmospheric stability
other ecosystem functions
Conservation of ecosystems and natural resources is
essential for sustainable economic production and also
fairness between one generation with another
Integrity of ecosystems and diversity of species must be
maintained

What is sustainable
Development?
Social sustainability
A socially sustainable system must achieve fairness in
distribution of resources and opportunity
Must provide adequate social services such as health care,
education
Gender equality
Political accountability and participation
Social equity and provision of basic health and educational
needs and democracy are crucial elements of development

What is sustainable
Development?
These 3 elements create complications on simple definition of
economic development
Question- how to balance different and conflicting objectives?
What if provision of adequate food and water supplies require
change in use of land that will decrease biodiversity, e.g.
building of dams?
What if non-polluting energy sources are more expensive, and
thus increase burdens on the poor?
Which goal will take precedence?

What is sustainable
Development?
Economic growth is required for those who lack essentials
(poor people) and not the rich countries, but it must subject to
global limits
In terms of sustainability- a moderate consumption, together
with strong social institutions (government &NGOs) and a
healthy environment is a better way of life
Sustainability means more than restriction of consumption and
population
It means that choices of goods and technologies must be
designed to fulfill the requirements of ecosystem integrity,
species diversity and social goals
Need to balance and understand all 3 elements for
sustainability

Sustainable Development in
Engineering
SUSTAINABLE DEVELOPMENT IN
ENGINEERING

Energy
The conventional fossil fuels bring 2 problems high
monetary cost and environmental impact
so need to develop non-fossil energy which are renewable
such as solar, wind, water, biomass
However this will require substantial capital resources to
achieve the goal

What is sustainable
Development?
Industry
The global industrial production has increased by 7 times
since 1950
Thus end-of-pipe pollution control is not sufficient
industrial ecology restructure whole industrial sector
based on the objective of reducing emissions (such as
GHG) and reuse of materials at all stages of production
cycle
To achieve the goal needs corporate reform , awareness
of green environment, cooperation between corporation
and government

What is sustainable
Development?
Renewable Resource Systems
World fisheries, forests and water systems are severely
over-stressed
Demands on all systems are ever-increasing thus need to
reform all levels of institutional management
Multilateral and international agreements and also global
funding are needed to conserve natural resources
National resource management must be focused on
conservation and sustainable harvesting
Local community must involve stron
Needs
To address ecologists needs
Efficient use of resources
water, material (metals, plastics, glass,
concrete)
Efficient infrastructures
natural lighting, ventilation, green buildings
Protection & enhancement of quality of life
Healthy environment
Creation of businesses in managing waste
waste management, recycling
To address ecologists needs (cont)
Biodiversity, waste management,
recycling
Use of alternative energy
Proper provision of environmental
education
Review of legal and policy