DEVELOPMENT PLAN AND
VISION
THE CONCEPT OF DEVELOPMENT
Social Development
Comfortable life
Economic Development
Increase in national or per capita or the monthly income of
a citizen
Attitude Development
Attitude change is the foundation to achieve economic
changes
NATIONAL DEVELOPMENT OBJECTIVE
To achieve economic growth and social
changes through solidarity and
integration of the people.
Education
Communication and transportation facilities
Clinics and hospitals
water supply
Electricity
Many others
1
NATIONAL DEVELOPMENT POLICY
Before Independence
Divide and Rule Policy
Economic Dualism
Traditional Economy versus Urban Economy
East Coast vs West Coast
After Independence
New Economic Policy
National Development Policy
National Vision Policy
Regardless whatever the theme or policy given, the ultimate objective is the
same, that is, to create national unity through socio-economic development.
Before Independence
British: Development only concentrate on economic
activities (nothing for welfare).
Economic activities based on ethnic groups: Chinese in
tin mining, Indian in rubber estates, Malays in
agriculture.
Development: Mining and urban areas only.
Malays lived in villages (low pay), Indian lived in estates
(low pay), Chinese in town. Chinese get to enjoy the
facilities provided by British.
Before Independence
British introduced RIDA (Rural Industrial Development
Authority) to eradicate poverty among rural Malays,
but not actively promoted because of Emergency
period (1948-1960).
West Coast more developed compared to East Coast
because the location is difficult to access and is not
rich with tin.
2
After Independence
First phase (1956 – 1970)
Agricultural development and diversify economic activities so all races
and improve their standard of living
Second Phase ( 1971-1990)
The New Economic Policy
Eradicating of poverty and restructure the society
Third Phase (1991-2000)
The National Development Policy
The important of human Resource Development and its role to eradicate
the poverty and restructure the society and ensure a balance
distribution of economy.
Fourth Phase (2001- 2010)
The National Vision Policy
K-economy and Knowledge based society
the strategies to achieve the vision 2020 where all races from all states
enjoy the benefits of economy through infusion of knowledge.
Fifth Phase (2011- 2015)
the continuation of the national agenda to realise
Vision 2020 and become an advanced and high income
nation.
Phase 1
Five Year National Development Plans
First Malayan Plan (1956-1960)
Second Malayan Plan (1961-1965)
First Malaysian Plan (1966-1970)
3
PHASE 1
1955 -1970
Focus
Rural development
Improve living standard of the rural society provide facilities
for infrastructure
(education, health, water, electricity supply)
Increase efforts to eradicate the economic imbalance
between sectors territories
PHASE 1
Strategy
RIDA (economic development)
FELDA (Land Development)
Ministry of Rural Development (infrastructure, agriculture,
mind development)
MARA (credit and technical assistance)
Red Book Plan – planning and observation system
Government agencies: FAMA (agricultural marketing),
FIDA (industrial development, MARDI (agricultural
research), Agricultural Bank (credit assistance and
advisory services)
NEW ECONOMIC POLICY
Also known as Outline Perspective Plan 1 (OPP1)
Five Year National Development Plans
Second Malaysian Plan (1971-1975)
Third Malaysian Plan (1976-1980)
Fourth Malaysian Plan (1981-1985)
Fifth Malaysian Plan (1986-1990)
4
NEW ECONOMIC POLICY
Ultimate Objective:
National Unity
2 strategies:
Eradicate Poverty
Restructure Society
Strategies to eradicate poverty
Modernize rural sector & more social facilities
(increase manufacturing capacity and income of the poor)
Expand employment opportunities regardless of ethnic group
(Encourage participation in high productivity such as business,
industries and services)
Agencies involved: UDA (business development), PERNAS (human
resource and business development), more on FELDA, FELCRA.
Modernize agriculture: rubber and palm oil (replanting); double
cropping paddy
Agencies involved: LPN (fishery), PORIM (agricultural research
development) etc
RED BOOK II: improve efficiency of planning, implementation,
administration
Strategies to restructure society
Raise the people’s ownership in private sector by 30% total equity –
UDA, PNB and ASN
Build a business society among the Bumiputeras
Developed areas that have remained backward but high in potential
Enhance education opportunities
*** Privatization and Incorporated Policies
5
FELDA
• Federal Land Development Authority, better
known as FELDA is the foremost land
development agency in Malaysia. FELDA was
established on 1st July 1956.
• FELDA was established with the purpose to help
the government carried out rural land
development schemes and to uplift the economic
status as well as living standard of the rural
community.
• To date, FELDA has developed approximately
480 new areas totalling 853,313 hectares which
became plantation and settlement areas.
FELDA
• A total of 112,635 people were chosen as settlers
from among the rural poor and landless community.
• Together with their families, they were resettled in
the new settlement. FELDA has uplifted the living
standard of the rural community as well as
narrowing the gap in the quality of the life between
the urban and rural population.
New Economic Policy
• Achievements
Household poverty rate: 42.2% (1976) to 19.1% (1990)
Rural poverty rate: 50.9% (1976) to 21.8% (1990)
Gross Domestic Product: RM21,584million (1970), to
RM59, 155million (1990)
The policy has reduced the economic imbalances
between urban and rural areas. But, not all objectives
achieved, relative poverty still existed. So, continue next
policy.
6
NATIONAL DEVELOPMENT POLICY
Also known as Outline Perspective Plan 2 (OPP2)
Five Year National Development Plans
Sixth Malaysian Plan (1991-1995)
Seventh Malaysian Plan (1996-2000)
NATIONAL DEVELOPMENT POLICY
Focus:
Balanced development
to enhance racial unity so that it could strengthen social
and politic stability.
Vision 2020
Industrial society
Objectives
Eradicate poverty among the poorest
Faster growth of a trading and industrialized Bumiputera
society
Foster development of a united society
NATIONAL DEVELOPMENT POLICY
Implementations
• Completing in the global market - Malaysia must make an initiative
to attract foreign investors and entrepreneurs.
• Vision 2020 - All races in our society are encouraged to utilize our
national resources with their sui generis skills for the development of
country and also for the benefit of all.
• Eradication of poverty - Develop unused lands and giving high
subsidies to farmers to create jobs and to increase their income.
Young people from rural areas are also provided with training to
instill in them the essential knowledge to obtain high-paid jobs that
required substantial skills.
• Rearranging the society - Eradicate the identification of occupation
through one race. Another matter would be to increase the socio-
economic condition of the bumiputera community.
7
National Development Policy
Implementations
Encourage investment by private sectors
Encourage Manufacturing for world market
Develop strong Human Resources for long
term economic growth
Increase efficiency through IT
National Vision Policy
Also known as Outline Perspective Plan 3 (OPP3)
Five Year National Development Plans
Eighth Malaysian Plan (2001 – 2005)
Ninth Malaysian Plan (2006 – 2010)
National Vision Policy
Focus
Balanced Development
Develop a strong and sustainable economy
Vision 2020
Objectives
Change growth strategy from input-driven to knowledge-
driven
Expedite structural changes in the economic sector
Strengthen socio-economic stability
8
National Vision Policy
To create an equitable society (eradicate poverty and restructure
society)
To sustain high economic growth
To improve competitiveness to face the challenges of globalization and
liberalization
Extend use of ICT
To stabilize the development of human resource to continue sustained
development
10th Malaysian Plan (2011-2015)
10 Main Premises
• Internally driven, externally aware.
• Leveraging on our diversity internationally.
• Transforming to a high-income nation through
specialisation.
• Unleashing productivity-led growth and
innovation.
• Nurturing, attracting and retaining top talent.
• Ensuring equality of opportunities and
safeguarding the vulnerable.
• Concentrated growth, inclusive development.
• Supporting effective and smart partnerships.
• Valuing our environmental endowments.
• Government as a competitive corporation.
9
Five Thrusts
• Designing Government philosophy and
approach to transform Malaysia using NKRA
methodology;
• Creating a conducive environment for
unleashing economic growth; Moving towards
inclusive socio-economic development;
• Developing and retaining a first-world talent
base
• Building an environment that enhances quality of
life.
Some info
• The 1Malaysia, People First, Performance Now
philosophy.
• The Government Transformation Programme GTP.
• The Economic Transformation Programme or ETP.
• Through the NKRAs, the Government is determined to
reduce crime, fight corruption, improve student
outcomes, raise living standards of low income
households, improve rural basic infrastructure and urban
public transport.
• Allocation of 230 billion ringgit. 55 per cent (economic),
30 per cent (social), 10 per cent (security) 5 per cent
(general admin.)
10
Glossary
• UDA: Urban Development Authority
• RIDA: Rural Development Authority
• MARA: Majlis Amanah Rakyat
• ASN: Unit Trust
• PNB: Fund Management Company
THE END
11
