Chapter 1 Section 1-3 PDF

Chapter 1:
Engineering, Technology &

Development
1-3 Engineering & Technology for
Economic Development
Chapter 1: Engineering, Technology and Development
History of Engineering and Technology. Role of engineering and technology as indicators of

development. The contribution of Government in the deployment of engineering
and technology for economic development. New advances in world of engineering and
technology.
Contents
Engineer & development
Malaysian economy indicators
Malaysias competitiveness
OPP1
IMP1
Chapter 1-3 EHM3066 Engineer and Society 2

Engineer & Development
As Engineers, we need to be aware of the development
around us.
Given the importance of Engineers in development, we
will encounter development issues time and again in our
work.
It is important to be aware of how we stand among other
nations, and what the state of affairs are in the
governance of our country.
We must be especially sensitive to science and
technology issues, more so when we will be in the heart
of the MSC.

Government policies and plan
In planning and executing development, the Governments rely on
a number of levels of planning, documentation and policy-making.
Vision 2020 1991 2020
Fourth Outline Perspective Plan 2011 2020
Eleventh Malaysian Plan 2016 2020
Tenth Malaysian Plan 2011 2015
Third Outline Perspective Plan 2001 2010

National Vision Policy
Ninth Malaysian Plan 2006 2010
Eighth Malaysian Plan 2001 2005
Second Outline Perspective Plan 1991 2000
National Development Policy
Industrial Master Plan 2 1996 2005
Seventh Malaysian Plan 1996 2000
Sixth Malaysian Plan 1991 1995
National IT Agenda
First Outline Perspective Plan 1971 1990
New Economic Policy
2nd 5th Malaysian Plans 1971 1990

World Competitiveness
Scoreboard 2015 vs 2016

Malaysian Economy

Malaysian Economy
Diversification of Exports - 1995 vs 2015 (% of Total)

Malaysian Economy
Generation of Mix Electricity - 1995 vs 2015 (% of
Total)

Quality of Life
Quality of Life of Malaysia
Indicator Unit 1990 1995 1996 1997

Population per doctor - US: 420 2,533 2,151 2,056 1,912
Crude birth rate per 1000 Japan: 10 28.4 26.9 26.1 26.0
Crude death rate per 1000 4.7 4.6 4.4 4.3
Infant mortality rate per 1000 Spore: 5 13.0 10.9 9.8 9.7
Life expectancy (male) years Japan: 76 68.9 69.4 68.8 68.8

Life expectancy (female) years Japan: 83 73.5 74.2 73.7 73.5
Telephone subscribers 000s 1,586 3,320 3,684 3,987

Mobile phones 000s 55 700 1,362 1,957
Jaring membership 000s - 0.2 14.4 50.2

Quality of Life

Malaysian economy

Poverty

Poverty

Education
Country Primary Secondary Tertiary
United States 106 97 81
Japan 102 113 41
Singapore 107 70 N/A
Malaysia 93 58 7
Philippines 109 74 26
Thailand 98 38 19
The level of education in Malaysia compared with other

countries can be seen in the table at left. The US clearly holds
an advantage in terms of level of education, especially at
tertiary level. As for Malaysia, we begin to lose out at
secondary level, and are hopelessly behind at tertiary level.
There is a dire need to create a strong education system.

Tertiary graduates relative to population,
2014 (per 1,000 population aged 20-29)
Source: Eurostat (online data

code:educ_uoe_grad05), the UNESCO Institute
for Statistics (UIS) and The World bank
(DataBank)
Pakistan & Singapore not available

Education

Education

World competitiveness
International Institute for Management
Development, Switzerland
Ranks and analyses how a nations
environment sustains the competitiveness
of its firms
49 nations in 286 criteria

Economic performance
macro-economic evaluation of domestic economy
Government efficiency
government policies which are conductive to
competitiveness
Business efficiency
performing in an innovative, profitable, responsible
manner
Infrastructure
technological, scientific and human resources meets
the needs of business

First Outline Perspective Plan
A long-term plan, in effect from 1971 to 1990.
Based on the objectives of the NEP (1970).
Four Malaysian Plans were implemented (2nd
through 5th) during that period.
The function of OPP1 is to: define the socio-
economic framework for development, setting
of major targets with respect to growth and
distribution, outlining of policies, strategies
and programmes.
New Economic Policy (1)
Aims to eradicate poverty and restructure the society
to attain national unity and to foster nation-building.
Poverty is a serious problem in many Third World
countries; just 30 years ago, the mean household
income in Malaysia (1970) was only $264 per month,
while 27 per cent of households earning below $100
per month (1970).
Employment restructuring is implemented to balance
ethnic participation in the economy; the target is that
within a generation, the Bumiputera would own and
manage at least 30% of the total commercial and
industrial activities of the economy.
New Economic Policy (2)
Targets of NEP
Rapid economic expansion is targeted, with real GDP to grow at
8% p.a.
Reduction in unemployment rate to reach almost full employment.
Stimulus to come from strong private and public investment.
Stimulus of growing comes from strong export growth. (7.1%

p.a.) For manufactured products, a share of 38.1% in 1990
targeted, while imports is to slow down at 5.2% p.a. through
import substitution.
Increase in national savings to 16.5%, to create a strong
domestic financing source.
Finally, to maintain a healthy balance of payments, and to
modernize and diversify the economy.
Performance (1)
Results
In the 1970s growth was at 7.5% p.a., while the 1980s
growth was at 5.9% p.a. (6.7% average)
Real GDP increased 3-fold from RM21.5b to RM79.1b
Per capita GNP increased 2-fold from RM1,937 to RM4,268

(pop. growth 2.5% p.a.)
Inflation rate was a manageably low 4.6% 3%
Exports growth of 9.2% p.a. exceeded target of 7.1% p.a.
Unemployment was 6% in 1990
There was a high level of savings (30.3% GNP in 1990, x2

of target), but the concentration of funds is in the
Government and large corporations.

Performance (2)
Socioeconomic Progress
There was a significant reduction in income
imbalances, both ethnic and geographical.
The average monthly income grew from
RM264 to RM1,163 (four-fold increase.) US960
There was a significant reduction in the
incidence of poverty.
Bumiputera ownership increased from 2.4%
to 20.3% (short of target.)
OPP1 & Recession (1)
The 1985-86 recession necessitated a number of
policy adjustments during the 1980s:
Adjustments in order to become more self-reliant
and resilient.
There is an urgent need to achieve growth with
long-term stability and sustainability. Solutions in
this respect include:
expansion of domestic activities, efficient
management of the economy, consolidation and
concentration of development efforts, raising
productivity and competitiveness, improving
utilization of resources.
OPP1 & Recession (2)
Curtailment of external borrowing.
Reduction of the size and role of the public
sector. The private sector is to provide the
leading role and dynamism in the economy.
Privatization of government services to another
avenue for increasing private sector participation.
Industrial Master Plan (IMP) (1985)
More emphasis is placed on R&D activities.

First Industrial Master Plan (1)
IMP1 was conceived to take place in the
period from 1986 to1995.
It has 3 broad objectives, namely:
rapid expansion of the economy through
accelerated growth of the manufacturing sector,
optimum and efficient utilization of natural
resources through value-added manufacturing
activities, and
to lay the foundation for the development of
indigenous technology capability. aboriginal

Industries created during IMP1 are chiefly assembly
based manufacturing concerns.
Sectors which were identified for intensification
include:
rubber, palm oil, wood, foodstuff, chemical, non-
ferrous metals, electric and electronics, transport,
machines, ferrous metals, textile and clothing.
Thanks for the formation of a number of Free Trade
Zones (FTZ), the electronics industry became the
most rapidly expanding sector of the manufacturing
industry, at the cost of the development of
indigenous technology capability.
Chapter 213 EHM3066 Engineer and Society 29
IMP1 IMP1 Actual IMP2
Forecast (1995) Forecast
1. GDP (% growth) 6.4 7.8 8.0
2. Manufacturing value-added (% growth) 8.8 13.5 9.6
3. Share of (2) to GDP (%) 23.9 33.1 38.4 (2005)
4. Growth of manufacturing exports (%) 9.4 28.6 16.0
5. Growth of manufacturing employment (%) 6.8 8.9 3.5
6. Total manufacturing employment (millions) 1.5 2.0 2.8
Progress of the Industrial Sector during IMP1
Chapter 213 EHM3066 Engineer and Society 30

Transformation of the
Malaysian Economy
Exported Items 1970 Percentage 1996 Percentage
Rubber 33.4 1.4
Tin 19.6 0.3
Forestry 16.3 2.8
Oil and gas 3.9 6.1
Palm oil 5.1 4.2
Manufactured goods 11.9 81.0
Others 9.8 4.1
Total value of exports (RM billion) 5.2 197.7
Diversification of Exports (1970-1996)
The country is has entered a critical phase where we must develop significant
indigenous science and technology capability, through
the efforts of our scientists and engineers.
Failing to do so will only aggrandize our dependence on the developed nations
for the latest knowledge and technology.
The country may still post a healthy manufacturing surplus but
it will also incur a burdensome deficit in the service sector.
Transformation of the
Malaysian Economy

Engineering, Technology &
Development
1-3 Development in Malaysia II

Engineering, Technology and Development
History of Engineering and Technology. Role of engineering and technology as indicators of

development. The contribution of Government in the deployment of engineering
and technology for economic development. New advances in world of engineering and
technology.
Contents
NDP and OPP2
NVP and OPP3
IMP2
National IT Agenda
RM8
RM9
RM10
RM11
1991-2020
Vision 2020
OPP3 /NVP
OPP2/NDP OPP4
RM9
RM8
RM10
RM6 RM7
National IT
Agenda
IMP2

Government policies and plan
Vision 2020 1991 2020
Fourth Outline Perspective Plan 2011-2020
Tenth Malaysian Plan 2011-2015
Third Outline Perspective Plan 2001 2010

Ninth Malaysian Plan 2006 2010

Eighth Malaysian Plan 2001 2005
Second Outline Perspective Plan 1991 2000
National Development Policy
Seventh Malaysian Plan 1996 2000
Sixth Malaysian Plan 1991 1995
National IT Agenda
First Outline Perspective Plan 1971 1990
New Economic Policy
2nd 5th Malaysian Plans 1971 1990

NDP & OPP2
National Development Policy (NDP) continues
the basic strategy of NEP
eradication of poverty
restructuring of society
NDP emphasis on balanced development
2nd Outline Perspective Plan (OPP2) has the
NDP as its underlying strategy
OPP2 sets the pace to enable Malaysia to
become a fully developed nation by 2020

OPP2: focal points
Eradication of hard-core poverty basic need
Development of Bumiputera
Commercial and Industrial Community
Private sector in restructuring of society
Human resource development

Industrial Master Plan 2
(IMP2)
1996-2005
Manufacturing Plus-plus Strategy
Value-added industry
Productivity-driven growth
Cluster-based Industrial Development

Manufacturing ++
Value-added industry
Design & Basic Distribution &

Prototyping Processes Logistics
Research & Product Conventional

Development Development Assembly Marketing
+ Manufacturing +

Manufacturing ++
Increase productivity
Product Assem bly &

R & D Design Production Distribution M arketing

5 strategic trust of IMP2
Global orientation
Enhancing competitiveness
Improving economic foundation
Nurturing Malaysian-owned
manufacturers
Information-intensive and knowledge-
driven processes

National IT Agenda
December 1996, National IT Council
Utilisation of information and
communication technology (ICT)
-> information society -> knowledge
society -> value-based knowledge
society

Knowledge Value-based
Information Knowledge
Society Society Society

K-economy?
Acquisition, production, distribution and
utilisation of knowledge and information in all
socio-economic activities
R&D
Software development
Information technology
Pharmaceuticals
Biotechnology
Finance

National ICT Vision

NVP & OPP3
NEP & NDP
3rd Outline Perspective Plan (OPP3) has
the NVP as its underlying strategy
Building a resilient and competitive nation

New policies
Knowledge-based society
Generating endogenously-driven growth
Eradicating pockets of poverty in remote
areas
30% Bumiputera equity ownership by 2010
Increasing Bumiputera participation in
leading sectors of the economy
RM 8 (1)
"The Eighth Malaysia Plan charts the next steps that
we,as a nation, will to take be towards becoming a
united and fully developed nation in our own mould by
the year 2020. In formulating this plan we considered
the progress achieved, took stock of our current position
as well as the considerable challenges ahead. The
strategies and programmes presented are aimed at
putting the nation on a stronger footing and to more
resilient and competitive..........Prime Minister
Malaysia"

RM 8 Review (2)
BRIEF OVERVIEW OF THE EIGHTH
MALAYSIA PLAN, 2001-2005
At the onset of the Eighth Plan, global economic growth
slowed due to a decelerating United States of America
economy and dampened global electronics demand,
exacerbated by the attacks of September 11, 2001.
Overall economic performance remained sluggish until
the second half of 2003, weighed down by the invasion
of Iraq and the regional outbreak of Severe Acute
Respiratory Syndrome (SARS).
Global growth thereafter was relatively firm despite
escalation in crude oil prices from the second half of
2004.
*Excerpt from Box 1-1 RM 9

RM 8 Review (3)
The Malaysian economy managed to sustain growth
during the Eighth Plan period due to stronger
macroeconomic fundamentals and increased resilience
following the lessons learnt from the Asian financial crisis.
Achievements include:
4.5 per cent per annum real gross domestic product (GDP) growth,
slightly above the revised target rate;
increase in GNP per capita in current prices of 5.7 per cent per annum to
RM17,687 in 2005;
broad-based growth, with nearly all sectors equalling or surpassing their
revised growth targets;
strong exports, resulting in a 61.4 per cent growth of the trade surplus,
and
* Excerpt from Box 1-1 RM 9

RM 8 Review (4)
Achievements (cont.)
The doubling of the balance of payments surplus and
the volume of international reserves;

Low inflation, averaging 1.8 per cent for the entire
Eighth Plan period;

Low unemployment of 3.5 per cent by the end of
2005;
Greater progression to higher value added activities in
key economic sectors;

Improvement of the business environment including
increased supply of skilled labour, higher physical

infrastructure capacity and better investment
incentives.
RM 8 Review (5)
The steady economic growth enabled the achievement of
several socio-economic objectives:
overall poverty declined from 8.5 per cent (1999) to 5.7 per cent
(2004);
hardcore poverty declined from 1.9 per cent (1999) to 1.2 per cent
(2004);
mean household income increased 5.6 per cent per annum on
average, exceeding real GDP growth;
inter-ethnic income disparities narrowed;
all the Millennium Development Goals were achieved ahead of the
2015 target with the exception of the reversal of HIV/AIDS;
provision of housing, medical services and basic amenities
improved significantly; and
rural-urban income disparity, however, continued to widen.

The Ninth Malaysian Plan (RM 9)
Together Towards Excellence, Glory and Distinction

The nation is embarking upon a new phase of development
towards realising its aspiration of becoming a developed nation by
2020. This next 15-year phase will be guided by the National
Mission, a policy and implementation framework aimed at obtaining
greater performance and impact from the countrys collective
developmental initiatives.
The Ninth Malaysia Plan represents the first five-year blueprint of

the National Mission, outlining the policies and key programmes
aimed at fulfilling the Missions thrusts and objectives for the
2006-2010 period.
*excerpt from RM 9

RM 9 Key Highlights
Organized according to the five thrusts of the National Mission
THRUST 1: TO MOVE THE ECONOMY UP THE VALUE CHAIN

THRUST 2: TO RAISE THE CAPACITY FOR KNOWLEDGE AND
INNOVATION & NURTURE FIRST CLASS MENTALITY
THRUST 3: TO ADDRESS PERSISTENT SOCIO-ECONOMIC
INEQUALITIES CONSTRUCTIVELY AND
PRODUCTIVELY
THRUST 4: TO IMPROVE THE STANDARD AND SUSTAINABILITY
OF QUALITY OF LIFE
THRUST 5: TO STRENGTHEN THE INSTITUTIONAL AND
IMPLEMENTATION CAPACITY

SUMMARY OF THE NINTH
MALAYSIA PLAN, 2006-2010
Initiatives to enhance national competitiveness and
resilience will continue to be given high priority,
given the changing domestic and global economic
landscape.
Efforts to close inter- and intra-ethnic socio-economic

disparities will be intensified, with measures that
focus more accurately on target groups.
All development initiatives during the Ninth Plan

period will be guided by the universal principles of
Islam Hadhari.

SUMMARY OF THE NINTH
MALAYSIA PLAN cont.
Overall macroeconomic management during the Plan period will
focus on sustaining growth and strengthening the economys
capacity to cushion against downside risks and shocks.
The Government will ensure that :-

price pressures remain manageable
an appropriate monetary policy is in effect
the Federal Government operating expenditure is managed

in a prudent and cost-effective manner
a gradual reduction in the Federal Government deficit is
observed without retarding overall growth
and a strong balance of payments and external reserves
position is maintained at all times

RM 9 Conclusions
The Ninth Plan re-examines the policies and strategies that were
put in place, proposes changes in the development approaches,
and introduces new policy initiatives.
As the first step, the achievement of the Ninth Plans policies and
strategies is critical to the realization of the National Mission.
Finally, determined and focused implementation of the Plan will
strengthen the foundation of the country, build upon Malaysias
past achievements, focus the countrys efforts on the five key
thrusts of the National Mission, and ultimately pave the way for
Malaysias smooth progression towards becoming a developed
nation by 2020.

10th Malaysia Plan
Shifting the economy towards a

high-income economy, with
focus on innovation, creativity
and productivity.
10th Malaysian Plan on
Development
Unleashing productivity-led growth and
innovation.
Concentrated growth, inclusive
development.
Ensuring equality of opportunities and
safeguarding the vulnerable.
Nurturing, attracting and retaining top
talent.
Key thrust 10th Malaysian Plan
First: Designing Government philosophy and approach to transform
Malaysia using NKRA methodology PEMANDU, 7. Learning and reading and
self improvement self always from time to time no matter what to
make sure a good philosophy and action way to lead Malaysia to a new
era so that thinking level can be going around the world to be a good
examples for other countries to learn from us. National key result areas
Second: Creating a conductive environment for unleashing economic

growth.
Third: Moving towards inclusive socio-economic development.
Fourth: Developing and retaining a first-world talent base. Learning
from first-world country, sending more and higher educated citizens,
postgraduates to share and interact with first-world people with
condition to come back and improve our nation to achieve higher
results.
Fifth: Building an environment that enhances quality of life.

Vision 2020
By the year 2020, Malaysia can be a united
nation, with a confident Malaysian society,
infused by strong moral and ethical values,
living in a society that is democratic, liberal
and tolerant, caring, economically just and
equitable, progressive and prosperous, and in
full possession of an economy that is
competitive, dynamic, robust and resilient.

10th Malaysia Plan Achievement
Malaysias Competitive Performance

10th Malaysia Plan Achievement
Economic Growth by Sectors

http://epu.gov.my/en/rmk/eleventh-malaysia-plan-2016-2020

http://rmk11.epu.gov.my/pdf/11MP-Brochure-BI.pdf
http://epu.gov.my/en/rmk/eleventh-malaysia-plan-2016-2020

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Chapter 1:

Engineering, Technology &

History of Engineering and Technology. Role of engineering and technology as indicators of

Chapter 1-3 EHM3066 Engineer and Society 2

Chapter 1-3 EHM3066 Engineer and Society 3

Third Outline Perspective Plan 2001 2010

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Indicator Unit 1990 1995 1996 1997

Life expectancy (male) years Japan: 76 68.9 69.4 68.8 68.8

Telephone subscribers 000s 1,586 3,320 3,684 3,987

Chapter 1-3 EHM3066 Engineer and Society 9

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The level of education in Malaysia compared with other

Chapter 1-3 EHM3066 Engineer and Society 14

Source: Eurostat (online data

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Stimulus to come from strong private and public investment.

Stimulus of growing comes from strong export growth. (7.1%

Per capita GNP increased 2-fold from RM1,937 to RM4,268

Exports growth of 9.2% p.a. exceeded target of 7.1% p.a.

Unemployment was 6% in 1990

There was a high level of savings (30.3% GNP in 1990, x2

Chapter 1-3 EHM3066 Engineer and Society 24

RM264 to RM1,163 (four-fold increase.) US960

There was a significant reduction in the

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Chapter 213 EHM3066 Engineer and Society 30

Chapter 1-3 EHM3066 Engineer and Society 32

1-3 Development in Malaysia II

History of Engineering and Technology. Role of engineering and technology as indicators of

Chapter 1-3 EHM3066 Engineer and Society 35

Third Outline Perspective Plan 2001 2010

Ninth Malaysian Plan 2006 2010

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Design & Basic Distribution &

Research & Product Conventional

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Product Assem bly &

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