NATIONAL

DEVELOPMENT
POLICY
GROUP 9

OUTLINE
1

BEFORE & AFTER INDEPENDENCE

OVERVIEW OF 5 YEAR MALAYSIAN PLANS

OPP1 THE NEW ECONOMIC POLICY

OPP2 NATIONAL DEVELOPMENT POLICY

OPP3 NATIONAL VISION POLICY

VISION 2020

BEFORE &
AFTER
INDEPENDENCE
By Norhamizah Hazirah - 15647

INTRODUCTION
In the colonial period, Malaya was involved in
production and processing of rubber and tin
for export in return for imports of essential
food and manufactured goods
In the year of independence (1957-1960), the
economy was still heavily dependent on rubber
and tin exports.
Attempt to industrialize (1960s) was started
with the implementation of import-substitution
policy, which was quite unsuccessful

BEFORE INDEPENDENCE
No national development policy aimed
taking care the welfare of the people
Colonialists open door policy
Development was confined only to urban
areas

AFTER INDEPENDENCE
National Development Policy
Planning and implementation of economic and
social development in Malaysia

Aim:
To create national unity
through socio-economy
development

DIFFERENCES
Before Independence

After Independence

DEVELOPMENT PLAN IN MALAYSIA

Plan

Period

5 Year Plan

Pre-NEP

1956 1970

1st Malaya Plan

2nd Malaya Plan
1st Malaysia Plan

NEP

1971 1990

2nd Malaysia Plan

3rd Malaysia Plan
4th Malaysia Plan
5th Malaysia Plan

NDP

1991 2000

6th Malaysia Plan

7th Malaysia Plan

NVP

2001 - 2010

8th Malaysia Plan

9th Malaysia Plan

DEVELOPMENT PHASES

Outline
Perspectiv
e Plan 1
(OPP1)
New
Economy
Policy
(NEP)

Outline
Perspectiv
e Plan 2
(OPP2)

Outline
Perspecti
ve Plan 3
(OPP3)

OVERVIEW OF 5
YEAR
MALAYSIAN
PLANS

By Nurul Fatiehah - 15592

FIVE YEAR MALAYSIA

PLAN
PLAN

PERIOD

EMPHASIS

FMP

1956-1960

Agricultural productivity

SMP

1961-1965

Rural development

MP 1

1966-1970

Eradication of poverty

MP 2

1971-1975

Socioeconomic balance

MP 3

1976-1980

Industry

MP 4

1981-1985

The private sector

MP 5

1986-1990

Moderate and stable growth

MP 6

1991-1995

Balance growth

MP 7

1996-2000

Resilience and strength

economy

MP 8

2001-2005

National unity and harmony

PLAN

OBJECTIVES

FMP

Develop basic facilities

and to diversify
agricultural production in
rural areas.

SMP

MP 1

Improve service of
education, health, water
and electricity supply.

Increase effort to
eradicate the economic
imbalance between
sectors.

STRATEGY

Provide socio-economic infrastructure:

RIDA - economic development
FELDA - land development
Ministry of Rural Development
- infrastructure development
JKK - community development
MARA - credit & technical
assistance.
Establish agriculture and farming
family support agencies :
FAMA - agricultural marketing
FIDA - industrial development
Agricultural Bank - credit
assistance & advisory services
Introduce Red Book Plan & Operation
Rooms at all levels.

PLAN

OBJECTIVES

STRATEGY

NEP - to create
communal unity among
Malaysian citizens.

OPP 1

OPP 2

OPP 3

Give new life to

expired NEP.
Expand & develop the
socio-economic by
encourage large-scale
industrial activities.

Change growth
strategy from inputdriven to knowledge
driven.
Strengthen socioeconomic stability.

Provide more employment

opportunities.
Modernize & further activate
agricultural production through
rubber & oil palm replanting.
Introduce RED BOOK II - to improve
effectiveness of planning,
implementation, administration &
coordination machinery.

Give support to non-governmental

bodies involved - eradicate
proverty.

Encourage investmet to increase

productivity.

Increase efficiency through IT.

Increase growth through productivity.

Extend the usage of ICT.

OPP1 THE
NEW
ECONOMIC
POLICY

By Paride Evans - 17771

OPP1-THE NEW ECONOMIC

POLICY
HISTORY
OPP1 was unknown in the 70s.
NEP was the framework agreed upon and used by
the government.
By including its component parties
Racial integration through national economy
Through NEP, the country, government and
citizens had a common goal
National economy could be improved and results
will be commonly enjoyed

FACTORS
THE NEW ECONOMIC POLICY
NEP as framework for a long term plan (1971-1990)
It involved four five-year Malaysia plan (MP)
Two main objectives of NEP
1. To reduce and eradicate poverty regardless of ethnicity
2. To restructure the society to eliminate community

identification

STRATEGIES OUTLINED
TO ERADICATE POVERTY
1.

Modernize the living conditions of the lower income group

Increase the provision of basic facilities and those related to

education such as book assistance and scholarships

2. Expand employment opportunities for all Malaysian citizens
Regardless of ethnicity

3. Encourage participation in sectors of high potential and high

productive capacity
Such as business

4.

Improve further the productivity of the poor.

thereby increasing their income

STRATEGIES CARRIED OUT TO

RESTRUCTURE SOCIETY
1.

Raise the peoples ownership in private sectors.

By increasing the ownership of Bumiputeras.

2. Build a business society among the Bumiputeras.

Industrial Coordination act (1975) were passed during the NEP.
The Malaysian Incorporated policy and the privatization policy

was launched to bring together private and government sectors.

This aspect was said to have caused the incident that broke out

on may 13.

STRATEGIES CARRIED OUT

TO RESTRUCTURE SOCIETY
3.

Develop areas that have remained backward but are high in potential.

Government implemented and intensified territorial development.

1.

Enhance education opportunities within and outside the country

By providing scholarships

DIFFERENCES AND
CHALLENGESS
NEP succeeded curbing racial violence from erupting again as

it did in 1969

National unity and integration through development with fair

distribution has been fruitful

Although there were still communities that could not afford to

enjoy the basic facilities the overall poverty rate among the
people was reduced.

TABLE OF SUMMARY OF THE INCREASED

IMPROVEMENT IN ECONOMIC GROWTH AND NATIONAL
DEVELOPMENT THROUGHOUT THE NEP PERIOD.
Indicators of Economic Growth and National Development

Subject

Increase or decrease

Gross Domestic Product

RM 21,584million (1970) to RM
59,155 million (1990)
RM 1,109 (1970) to RM 6,180
42.2% (1976) to 19.1% in (1990)
50.9% (1976) to 29.8% in (1990)
2.4% (1976) to 20.3% (1990)

Per capita Income

Household poverty rate
Rural poverty rate
Share capita ownership
(bumiputera)
Inflation
Economic growth

Inflation remain at the rate of

4.6%
6.0% (in the 60s) to 6.7% (70s to
90s)

RESULTS
The implementation to remove the economic imbalance

between urban and rural sectors was successful.

An equitable distribution of the economic pie was yet to be

achieved
Challenges and globalization issues was directly or indirectly

linked to economic growth and national unity

Because of not being able to achieve all that was planned for

OPP1 the government carried on with new policies as a

continuation of the earnest efforts started by NEP in the
subsequent OPP2

OPP2 NATIONAL
DEVELOPMENT
POLICY
By Ilyas Nurhadi - 17024

OPP2- NATIONAL
DEVELOPMENT POLICY 2
1991-2000, proclaimed on 28 February 1991
National Development Council
Observing Body to make sure all implementation in

line with the objective of NDP

Determining Strategies
Implementing Strategies
Evaluating Strategies

OBJECTIVES OF OPP2
Objectives of OPP2 was similar with OPP1, Balanced Development

Objectives
Eradicate Poverty

Restructuring of
Society

Focus in OPP2
Poorest Group
Relative poverty between and
within the ethnic group
Developing a society of
bumiputra traders in the
corporate and non-corporate
sector
Enhance productivity and
efficiency of labor and capital

THE POSITIVES IMPACTRAISE PEOPLES INCOME

THE POSITIVES IMPACTRAISE PEOPLES INCOME

THE POSITIVES IMPACTRAISE PEOPLES INCOME

GINI COEF

THE POSITIVES IMPACTRAISE PEOPLES INCOME

THE POSITIVES IMPACT- MORE EMPLOYMENT

OPPORTUNITIES

OPP3 NATIONAL
VISION POLICY
By Nuralia Syairah Osman - 15669

Launched by
Dato Seri Dr
Mahathir
Mohamad

Known as
National
Vision Policy
(NVP)

Agricultural
sector (small
to medium
industries)

Another long
term plan
2001-2010

K-economy

BASIC PRINCIPLE OF NVP

To build an enduring nation
To create an equitable society
To sustain high economic growth
To improve competitiveness to face the challenges
To develop knowledge-based economy
To stabilize the development of human resources
To continue sustained development of the environment

MAIN COMPONENT OF NVP

Unity &
People As
Resilienc
Potential
e Of
Resources
PeopleImproving
Economic
Situation
And
Structure
Of
Malaysian
Society

VISION 2020
By Rukesh - 17172

WHAT IS VISION 2020

Not a concrete policy, but crusade slogan or motto
To empower citizens to transform Malaysian into developed nation
Targets : Diversity of races, religion, cultural background customs and

eastern values

: Economics
: Increase income per capita
: Become industrialized or modern country
: Well being of society

WHO INTRODUCED VISION

2020
4th Prime Minister Of Malaysia, Tun

Dr. Mahathir bin Mohamad

During the tabling of 6th Malaysia

Plan in 1991.

6th & 7th Malaysia Plan are

considered as the gateway and the

fist 10 years of Vision 2020.

THE NINE CHALLENGES OF

VISION 2020

Challenge 1: Establishing a united Malaysian nation made up of one Bangsa

Malaysia (Malaysian Race).
Challenge 2: Creating a psychologically liberated, secure and developed
Malaysian society.
Challenge 3: Fostering and developing a mature democratic society.
Challenge 4: Establishing a fully moral and ethical society.
Challenge 5: Establishing a matured liberal and tolerant society.
Challenge 6: Establishing a scientific and progressive society.
Challenge 7: Establishing a fully caring society.
Challenge 8: Ensuring an economically just society, in which there is a fair
and equitable distribution of the wealth of the nation.
Challenge 9: Establishing a prosperous society with an economy that is fully
competitive, dynamic, robust and resilient.

TIME FRAME TO ACHIEVE

VISION 2020
30 years (1991-2020)
The annual growth must be 7%
The

Gross

Domestic

Product

RM115billion in 1990.
GDP 2020 will be RM920billion

(GDP)

was

only

CURRENT ISSUES
Economically challenged
The middle income trap
Catching up on technology advancement
Social Scene