poicy development

Course Leader : Mr. Aw Yoke ChengFTF8:

Policy Development Process; NEP, NDP & NVP

Semester: Aug ‘09 UNITAR

Semester: Aug’09 UNITAR 2

IntroductionMalaysia has made significant strides in nation-building, in

developing its economy and in improving the quality of life of its people.

Since Independence, real gross domestic product (GDP) has grown by an average of 6.5 per cent per annum during 1957 to 2005, one of the highest growth rates achieved by sovereign nations of similar age and size.

Within the same period, GDP per capita in current prices grew by 7.0 per cent per annum, which has translated into substantial improvements in the people’s quality of life.

Widespread advances were made in education, health, infrastructure and industry.

A poor, mainly agrarian country has been transformed into a diversified and relatively prosperous nation.

A divided people, with no recent history of self-government, has made way for a united nation, where national identity and national pride have been forged through self-determination and through triumph over great obstacles, guided by the principles of the Rukunegara.


IntroductionThe course of Malaysia’s development was shaped by the

vision, thinking and efforts of many of the country’s great leaders and thinkers, as enshrined in the Constitution and as encapsulated in the three key national policy frameworks that are the New Economic Policy (NEP), 1971-1990, the National Development Policy (NDP), 1991-2000 and the National Vision Policy (NVP), 2001-2010.

Each of these policy frameworks was based on a profound understanding of the needs and challenges of the time, as well as the responses required for the nation.

Equally important, these frameworks captured the collective apirations of the country. These aspirations culminated in the launch of Vision 2020 in 1991, outlining the aim of attaining developed nation status by the year 2020.


IntroductionMalaysia is now at the mid-point in its

journey towards 2020 and is just embarking upon the second 15-year phase.

In many respects, the core NEP, NDP and NVP objectives of national unity, growth and social equity remain.

However, the circumstances and environment in which the country operates have changed significantly.

Semester: Aug’09 UNITAR

Malaysia Economic Policy Framework

LONG-TERM PLANNING

• Vision 2020, 1991-2020• OPP1, 1971-1990• OPP2, 1991-2000• OPP3, 2001-2010



MEDIUM-TERM PLANNING

• Five-year development plans, such as the Eighth Malaysia Plan (2001-2005)• Mid-Term Review (MTR) of the five-year Plans



SHORT-TERM PLANNING

• Annual Budget


PLANNING HORIZON


PLANNING HORIZON

New Economic Policy (NEP)

• To Eradicate Poverty By raising income level, increase employment opportunities irrespective of race; increase productivity; and increase standard of living of low-income group.


PLANNING HORIZON

New Economic Policy (NEP)

• To Restructure the SocietyTo correct economic imbalance; reduce identification of race from economic function with the purpose that Malays and other indigenous groups play full roles in all aspects of economic function.


PLANNING HORIZON

National Development Policy (NDP), 1991-2000

• NDP is the continuation of NEP to promote balanced economic growth; •specifically striking an optimum balance between the goals of economic growth and equity; and •reduce social and economic inequality, ultimately eliminating imbalances within ethnicity.


PLANNING HORIZON

NATIONAL VISION POLICY (NVP), 2001-2010

• Establish a progressive and prosperous Bangsa Malaysia.

• Improving productivity by enhancing the contribution of total factor productivity to reduce the cost of production.


PLANNING HORIZON


• Achieve domestic demand driven growth.

• Reduce import intensity and increase service receipts to maintain balance of payment position.

• Emphasizing manufacturing and servicing sector.


PLANNING HORIZON


• Maintain low rate of inflation and price stability.

• Achieve surplus in public sector account.

• Reasonable domestic savings.


Linkage between NEP, NDP and NVP.Essentially, NEP, NDP and NVP have the same core

policy objectives of the original NEP which was to eradicate poverty irrespective of race and to eliminate the identification of economic function of the races in an environment of rapid economic growth.

The NDP placed greater focus on balanced growth and lesser emphasis on setting targets on ethnic restructuring and income distribution, while NVP emphasizes on national building and Bangsa Malaysia.

In order for Malaysia to incorporate the NVP policy thrust, the key strategies of NEP and the NDP have been revised with new dimensions. Part of the concentration of the new dimension that is set by NVP is for the public sector to be more proactive and efficient, and undertake measures that enhance the competitiveness of the private sector.


There are other policies reorientations in the mid 1980s. Among those are:

National Agriculture Policy (NAP) 1984; Industrial Master Plan (IMP) 1985-1995; Look East Policy • 70 Million Population Policy • Malaysia Incorporated Policy Privatisation


•The development of Malaysian economy, particularly in the context of macroeconomic perspectives, will essentially be to reposition the status of the quality of life and standard of living to reach a level compatible with other developed countries.

•As a result, this has further strengthened the facts that economic growth and higher productivity are crucial keys to success.

poicy development

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