Malaysia has been a trade centre for centuries. In the premodern history traded goods were in particular spices, tin and rubber. But the long-term colonial rule and the occupation of the Japanese in World War II didn’t let the economy rise. On the contrary the economy was in a disasterous situation.
But Today Malaysia can be regarded as one of the most successful asian countries which achieved a really effective transition into a modern economy. The most important reason for this change were the consequent policies of the Malaysian government since the 1970s. It was able to integrate the ethnic outsider, the Malay, into the society and economy. Through its development programs it was possible to get rid of the high poverty rate, to built up much more equality in the society and create a well working economy with annual growth rates. Malaysia became a export nation which traded in the last decades mostly textile or rubber products. But in nower days Malaysia also has got a high share of exports in the electronic and high tech branche. Government policy has generally accorded a central role to foreign capital, while at the same time working towards more substantial participation for domestic, especiallybumiputera,capital and enterprise. The current plan “Vision 2020” aims to reach a fully developed industrialized economy in 2020. The first point in the essay is a short background information about the country Malaysia. I continue with the economic history from the premodern history up to the era after the Second World War. The third chapter dicusses the policies of the government; the policies of the transition as well as the contemporary policies. Finally the essay points out the present economic system and why it is so successful.
Table of Contents
1 Introduction
2 The Country
3 History
3.1 The Premodern Economy
3.2 The Time after WorldWar II
4 The New Economic Policy
4.1 National Development Policies from 1970-2000
4.1.1 Reducing Poverty
4.1.2 Economic Growth
4.2 Contemporary Policies
5 Malaysia Today
5.1 Economic Power and Growth
5.2 Business Enviroment
5.3 Supportive Government Policies
5.4 High Education
5.5 Infrastructure
6 Summary
Objectives and Topics
This essay aims to analyze the economic development of Malaysia, exploring how the nation successfully transitioned into a modern, industrialized economy through targeted government policies and structural reforms.
- Economic history from the premodern era to the post-WWII period.
- Implementation and impact of the New Economic Policy (NEP) and National Development Policy (NDP).
- Strategies for poverty reduction and economic growth stimulation.
- Current business environment, including infrastructure and human capital development.
- Analysis of contemporary economic policies and future outlook.
Excerpt from the Book
3.2 The Time after WorldWar II
In the 19th and at the beginning of the 20th century the trade of Malaysia grew about 4-5% every year. However befor the Second World War Malaysia’s economy was almost based on the primary industry sector. The secondary sector was only connected with the primary exports of rubber and tin and some goods like bread or cigarettes for the domestic market.
After the Second World War and its Japanease occupation the British colonial rulers went back and tried to rebuild the export economy. But the desire of indepence was too big. Political tensions continued with the guerilla campaign leaded by the Malaysian Communist Party forced the British occupants out.
The fragmented political landscape made it difficult to built up a new economy – the numerous development programs didn’t work well. The primary production was still the major economic sector. And here was the problem that the investments as in the rubber industry slowed down and the bulk of the existing trees were nearing the end of their economic life. New trees required seven years to mature. The farmers switched to oil palms. Already in the 60s Malaysia supllied 20% of the world demand. With several programs the government tried to support the indigenous farmers.
Summary of Chapters
1 Introduction: This chapter provides an overview of Malaysia's transition from a colonial trade center to a successful modern economy through government-led development programs.
2 The Country: This section details Malaysia's geographical and political background, including its status as a constitutional monarchy and its multi-ethnic population demographics.
3 History: This chapter traces Malaysia's economic evolution from its premodern trade roots to the challenges faced after the Second World War.
4 The New Economic Policy: This chapter examines the specific development policies implemented between 1970 and 2000, aimed at poverty reduction and structural economic transformation.
5 Malaysia Today: This section evaluates the contemporary state of the Malaysian economy, focusing on growth drivers, business environment, education, and infrastructure.
6 Summary: This concluding chapter synthesizes the factors behind Malaysia’s successful economic development and its transition toward a diversified industrial sector.
Keywords
Malaysia, Economic Development, New Economic Policy, Poverty Reduction, Bumiputera, Industrialization, GDP Growth, Foreign Investment, Trade Policy, Vision 2020, Infrastructure, Human Capital, Export, Manufacturing, Economic History
Frequently Asked Questions
What is the primary focus of this work?
The work explores the economic success story of Malaysia, specifically analyzing the policies and structural changes that allowed the country to transition from an agriculture-dependent economy to a modern industrial state.
What are the central themes of the document?
The central themes include the historical context of Malaysian trade, the implementation of the New Economic Policy (NEP), poverty eradication strategies, and the role of government in fostering a competitive business environment.
What is the main objective of the essay?
The main objective is to explain the success of the Malaysian economy by examining the transition period and the government policies that have shaped its current economic system.
Which scientific methodology is applied?
The author utilizes a descriptive historical and economic analysis, gathering data from official development policies, economic reports, and international organizations like the World Bank and WTO.
What is discussed in the main body of the text?
The main body covers the country's background, its premodern and post-WWII economic history, the strategic development policies from 1970–2000, and an assessment of current economic indicators.
Which keywords best characterize the work?
Key terms include Malaysia, Economic Development, New Economic Policy, Industrialization, GDP Growth, and Foreign Investment.
What role did the "bumiputera" play in government policies?
The government integrated the Malay population (bumiputera) into the modern economy through higher education programs and employment support, aiming to reduce social inequality and poverty.
How does the author view the "Vision 2020" plan?
The author identifies "Vision 2020" as the long-term strategic aim of the Malaysian government to transform the nation into a fully developed industrialized economy by the year 2020.
- Quote paper
- Sarah Stolle (Author), 2006, The Success-Story of Malaysia, Munich, GRIN Verlag, https://www.grin.com/document/60559
