Malaysia

SINCE THE INDEPENDENCE of Malaysia in 1957, the government has focused on a strategy for rural development. However, the economic imbalance among the major races of the country was substantial and this led to racial unrest in 1969. The government then formulated a long-term economic strategy that emphasized growth with equity, with the ultimate objective of creating national unity in the multiethnic country.

As part of the implementation of the development plans, the Malaysian government put a number of policies into effect, and poverty eradication was one of the main objectives. Various Malaysian governments have always expressed support for the antipoverty cause, as revealed by a series of pronouncements on antipoverty policies and programs. The first plan was the New Economic Policy (NEP), which was implemented over a 20year period, 1971–90. The National Vision Plan followed from 1990 to 2020. During implementation of the NEP, the emphasis was on the eradication of poverty among the general population, irrespective of ethnic origin, and the restructuring of society to eliminate the polarization of economic functions along racial lines. These factors were of immediate concern at the time because of the economic situation inherited from the colonial period. The eradication of poverty was implemented through the development of the rural and agricultural sector as well as the industrial sector. The restructuring of society was to be achieved through increased participation of minorities in the corporate sector. Modernization of services was also promoted to bring about better quality of life.

The National Development Policy (NDP) (1991–2000) emphasized the creation of national unity through similar objectives. The development of the rural and agricultural sector was still made an important national agenda through the modernization and commercialization of agriculture. The services sector was further modernized, while increasing private-sector participation in the economy was encouraged through the privatization of several key government-owed entities.

The National Vision Plan, launched by former Prime Minister Mahathir Mohammad, continues to carry on the objectives of previous development policies, but also emphasizes policies pertaining to achieving higher economic resilience and growth, raising quality of life through poverty eradication, increasing competitiveness, building a competent and skilled workforce, and creating long-term sustainable development. In other words, the main objectives of development plans in Malaysia were to promote an equitable society by eradicating poverty and reducing imbalances among and within ethnic groups as well as regions.

Through these efforts, Malaysia introduced a model of economic development and poverty eradication. The implementation of the development plans resulted in enlarging the economic “pie,” and then emphasized economic balance among the major races of the country. Malaysia had a head start in terms of human capital and has widened its lead over other developing economies. Malaysian governments built on this base by focusing on educational spending in the lower grades, initially by providing universal primary education.

The Malaysian model of poverty eradication was based on human-resources development. This was done by fighting illiteracy and unemployment. At 93 percent, Malaysia's literacy rate is one of the highest in the world. Also, over 95 percent of all 7-year-olds are enrolled [Page 671]in public schools. Development programs were directed toward the enhancement of education, health, and housing for the lower-income groups.

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