National Development Policy

National Development PolicyGROUP 9outlineBEFORE & AFTER INDEPENDENCE 1OPP1 THE NEW ECONOMIC POLICY 3OVERVIEW OF 5 YEAR MALAYSIAN PLANS 2OPP2 NATIONAL DEVELOPMENT POLICY 4OPP3 NATIONAL VISION POLICY 5VISION 2020 6BEFORE & AFTER INDEPENDENCEBy Norhamizah Hazirah - 15647 INTRODUCTIONIn 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 goodsIn 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 unsuccessfulBEFORE INDEPENDENCENo national development policy aimed taking care the welfare of the peopleColonialists open door policyDevelopment was confined only to urban areas

AFTER INDEPENDENCENational Development PolicyPlanning and implementation of economic and social development in Malaysia

Aim:To create national unity through socio-economy developmentDIFFERENCESBefore IndependenceAfter Independence

DEVELOPMENT PLAN IN MALAYSIAPlanPeriod5 Year PlanPre-NEP1956 19701st Malaya Plan2nd Malaya Plan1st Malaysia PlanNEP1971 19902nd Malaysia Plan3rd Malaysia Plan4th Malaysia Plan5th Malaysia PlanNDP1991 20006th Malaysia Plan7th Malaysia PlanNVP2001 - 20108th Malaysia Plan9th Malaysia PlanDEVELOPMENT PHASESOVERVIEW OF 5 YEAR MALAYSIAN PLANS By Nurul Fatiehah - 15592Five Year Malaysia PlanPLANPERIODEMPHASISFMP1956-1960Agricultural productivitySMP1961-1965Rural developmentMP 11966-1970Eradication of povertyMP 21971-1975Socioeconomic balanceMP 31976-1980IndustryMP 41981-1985The private sectorMP 51986-1990Moderate and stable growthMP 61991-1995Balance growthMP 71996-2000Resilience and strength economy MP 82001-2005National unity and harmonyPLANOBJECTIVESSTRATEGYFMPDevelop basic facilities and to diversify agricultural production in rural areas.Provide socio-economic infrastructure:RIDA - economic developmentFELDA - land developmentMinistry of Rural Development - infrastructure developmentJKK - community developmentMARA - credit & technical assistance.

Establish agriculture and farming family support agencies :FAMA - agricultural marketingFIDA - industrial developmentAgricultural Bank - credit assistance & advisory services

Introduce Red Book Plan & Operation Rooms at all levels.SMPImprove service of education, health, waterand electricity supply.MP 1Increase effort to eradicate the economicimbalance between sectors. PLANOBJECTIVESSTRATEGYOPP 1NEP - to create communal unity among Malaysian citizens.Provide more employmentopportunities.Modernize & further activateagricultural production throughrubber & oil palm replanting.Introduce RED BOOK II - to improve effectiveness of planning, implementation, administration & coordination machinery.OPP 2Give new life to expired NEP.Expand & develop the socio-economic by encourage large-scale industrial activities.Give support to non-governmental bodies involved - eradicate proverty.

Encourage investmet to increase productivity.

Increase efficiency through IT.

OPP 3Change growth strategy from input-driven to knowledge driven.Strengthen socio-economic stability.Increase growth through productivity.Extend the usage of ICT.

OPP1 THE NEW ECONOMIC POLICY By Paride Evans - 17771OPP1-The New Economic PolicyHISTORY

OPP1 was unknown in the 70s.NEP was the framework agreed upon and used by the government.By including its component partiesRacial 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

FACTORSTHE NEW ECONOMIC POLICYNEP as framework for a long term plan (1971-1990)It involved four five-year Malaysia plan (MP)

Two main objectives of NEPTo reduce and eradicate poverty regardless of ethnicityTo restructure the society to eliminate community identificationStrategies outlined to eradicate poverty Modernize the living conditions of the lower income groupIncrease the provision of basic facilities and those related to education such as book assistance and scholarships2. Expand employment opportunities for all Malaysian citizensRegardless of ethnicity 3. Encourage participation in sectors of high potential and high productive capacitySuch as business4. Improve further the productivity of the poor.thereby increasing their income

Strategies carried out to restructure society 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 Develop areas that have remained backward but are high in potential.Government implemented and intensified territorial development.

Enhance education opportunities within and outside the countryBy 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

SubjectIncrease or decreaseGross Domestic ProductRM 21,584million (1970) to RM 59,155 million (1990)Per capita IncomeRM 1,109 (1970) to RM 6,180Household poverty rate42.2% (1976) to 19.1% in (1990)Rural poverty rate50.9% (1976) to 29.8% in (1990)Share capita ownership (bumiputera)2.4% (1976) to 20.3% (1990)Inflation Inflation remain at the rate of 4.6%Economic growth 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 - 17024OPP2- National development policy 21991-2000, proclaimed on 28 February 1991National Development CouncilObserving Body to make sure all implementation in line with the objective of NDPDetermining StrategiesImplementing StrategiesEvaluating StrategiesObjectives of opp2Objectives of OPP2 was similar with OPP1, Balanced Development

ObjectivesFocus in OPP2Eradicate PovertyPoorest GroupRelative poverty between and within the ethnic groupRestructuring of SocietyDeveloping a society of bumiputra traders in the corporate and non-corporate sectorEnhance productivity and efficiency of labor and capitalThe positives impact- raise peoples income

The positives impact- raise peoples income

The positives impact- raise peoples income GINI CoeF

The positives impact- raise peoples income

The positives impact- more employment opportunities

Opp3 - national vision policyBy Nuralia Syairah Osman - 15669Basic principle of nvpMAIN COMPONENT OF NVP

VISION 2020By Rukesh - 17172 What is Vision 2020Not a concrete policy, but crusade slogan or mottoTo empower citizens to transform Malaysian into developed nationTargets : 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 20204th Prime Minister Of Malaysia, Tun Dr. Mahathir bin MohamadDuring 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 2020Challenge 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 202030 years (1991-2020)The annual growth must be 7%The Gross Domestic Product (GDP) was only RM115billion in 1990.GDP 2020 will be RM920billion

Current IssuesEconomically challengedThe middle income trapCatching up on technology advancementSocial Scene