ECONOMY OF MALAYA BEFORE THE COMING OF FOREIGNERS

1
ECONOMY OF MALAYA BEFORE THE COMING OF FOREIGNERS

• Early settlement- at fertile areas and along
  rivers and coast line
• those areas provided natural economy-
  agriculture and fishery
• ECON. DURING BRITISH
• 1- The British only concentrated to rubber and
  tin industries
• The development of tin
• a- the coming of Chinese
• b- the demand of tin

2

• C- New discoveries
• d- British intervention
• - The development of rubber
• a- HN Ridley contribution
• The coming of Indian
• Demand of rubber
• Government encouragement
• 2- Imbalance distribution of econ. Concentrated
  to
• 1- West peninsula - New Malaya
• 2-West Sabah
• 3-First and second division in Serawak

3

• D- urban areas
• 3- Communication facilities based on economic
  interest
• -road and railways constructed and rivers cleared
• - the rest used conventional way of
  communication
• ECON. AFTER INDEPENDENCE
• Divided into 4
• 1- !st phase - 1956-70
• 2- 2nd phase- OPP1 (NEP 1970-90)
• 3- 3rd phase- OPP2(NDP 1991-2000)
• 4. 4th phase - National Vision policy 2001-2010

4
First phase (1956-1970)

• Plan - economic growth
• - elimination of economic disparity
• - greater employment opportunities
• economic growth - to be the key to achieving the
  other 2 goals.
• Second Phase - 1st outline perspective
  plan(1970-1990)
• -New economic policy (NEP)
• a- reduction and eventual eradication of poverty
  irrespective of race.
• b- restructuring of society

5
Eradication of poverty

• 1- Agricultural development
• A- Modernization and mechanization of farming
  technique
• b- rubber replanting
• c- double cropping
• d- promotion cash crops
• 2- Diversifying the manufacturing -
  bumiputera participation in modern sector
  activities
• generate employment for nations growing work
  force

6
Restructuring the society

• Balance distribution of economy among all races
  and states.
• Expand the share of economy for bumiputra without
  reducing the economic attainment of the other
  groups
• all races participated in all economic sectors

7
The performance of NEP

• Not 100 but improved than before.
• poverty reduced . From 49.3 (70) - 16.7
• New land opened
• various plantation - more production because of
  new technique.
• Infrastructure- health and education, electricity
  and water supply.
• share among bumiputra increased. 2.4 (1970) to
  20(1988)

8
National Development policy

• Replaced NEP and basically similar .
• The main difference between these two major
  policies is found in the emphasis, priority and
  timing.
• NDP maintains the basic strategies of the NEP,
  its new dimensions will be to
• - Shift the focus of the anti-poverty strategy
  towards eradication of hard core poverty while at
  the same time reducing relative poverty

9

• Focus on employment and rapidly development at an
  active Bumiputera Commercial And Industrial
  Community (BCIC) as a more effective strategy to
  increase the meaningful participation of
  Bumiputera in the modern sector of economy.
• Rely more on the private sectors to be involved
  in the restructuring objective by creating
  greater opportunities for its growth.
• Focus on human resource development as a
  fundamental requirement for achieving the
  objectives of growth and distribution

10
Restructuring Society

• To continue efforts at increasing bumiputra
  participation in economic activities.
• To give training and education
• To encourage partnerships between bumi and non
  bumi.
• To encourage more bumi participation in private
  sectors
• Reorganization of share ownership.

11
Eradication of poverty

• More employment opportunities to reduce poverty
  level.
• Education, training and human resource
  development.
• Eradicating of hard core poverty while at the
  same time reducing relative poverty

12
VISION 2020

• 1- To establish a united Malaysian nation or
  bangsa Malaysia
• 2- To establish a confidence Malaysian society.
• 3- To establish a mature democratic society.
• 4- To establish matured, liberal and tolerant
  society
• 5- To establish strong moral and ethical society
• 6- To establish a scientific and progressive
  society.

13

• 7- To establish a fully caring society and caring
  culture.
• 8- Ensuring an economically just society.
• 9- To establish a prosperous society with an
  economy that is fully competitive, dynamic
  ,robust and resilient.

14
NDP and vision 2020

• 1- United nation and economically just society.
• Balanced development to ensure a balance
  distribution of economy to all states and people.
• 2- Competitive, dynamic and rubout economy.
• - Rely more on private sector in manufacturing
  and industrial base.
• 3- Fully caring society.
• -Focus on anti poverty strategy.

15

• 4- Scientific and progressive society.
• The development on advance R D capability and
  high light the need for a critical mass of
  inventors, designers and innovators who are able
  to produce new ideas, product and processes.
• 5- Moral and ethical.
• Stress on human resource development through
  education and training. Therefore we could
  develop a skill, creative and talented people
  with strong religious and ethical values.

16
Racial Unity through economy

• Under NEP and NDP, the government objectives
• -Eradicating of poverty
• -Restructuring the society
• Eradication of poverty
• -eliminate jealousy and dissatisfaction due to
  income gap
• -Balance distribution of economy to all people
  and states in Malaysia
• -Rural development

17

• Town planning- for people at urban areas
• Manufacturing sectors at rural areas- provide job
  opportunity to poor people at rural areas.
• Eradication of poverty- to avoid unstable
  political and social stability.

18
National Vision Policy

• Focus on building a united and competitive
  nation.
• Develop a strong and sustainable econ.

ECONOMY
- generating endogenously- driven growth through
strengthening domestic investment. - developing
indigenous capability. -increasing the dynamism
of the agriculture, manufacturing and services
sectors through infusion knowledge. - addressing
pockets of poverty in remote areas and among
Orang Asli and Bumiputera minorities in Sabah
and Sarawak. - increasing the income and quality
of life of those in the lowest 30 income
category. -reorientation human resource
development to support a knowledge based
society.
19
Objective
- Change growth strategy from input-driven to
knowledge driven - Strengthen socio-economic
stability
Strategies
- sustain macro economy stability - Eradicate
poverty and restructure society - increase growth
through productivity - increase competitiveness
in the primary economic sectors - Extend the
usage of ICT - Strengthen human resource
development - upgrade the quality of life -
Strengthen positive values and attitude.