ECONOMIC DEVELOPMENT IN THE CONTEXT OF ETHNIC RELATIONS IN MALAYSIA

MODERNISATION PROJECT CONCEPT

PLANNED MODERNISATION

TRANSFORMASTION PROCESS
UNPLANNED

Sambungan.

A process where the objectives, methods and achievement standards are PLANNED determined before a transformation TRANSFORMATION is implemented.

MODERNISATION

MODERNISATION
ECONOMIC DEVELOPMENT

MODERNISATION
POLITICAL DEVELOPMENT

WORLD MODERNISATION HISTORY

EUROPEAN MODERNIZATION FRENCH REVOLUTION & INDUSTRIAL REVOLUTION

WORLD MODERNISATION

Sambungan..

FRENCH REVOLUTION

Transformed Europeans feudal political system

INDUSTRIAL REVOLUTION

Transformed European Economic system

MODENISATION OF NON-EUROPEAN REGIONS

IMPERIALISME Implemented through trades as conducted by BEIC and DEIC. Implemented on selected territories to ensure an uninterrupted supply of raw materials and labour; and Direct market control.

COLONIALISME

Resulted in a huge impact not only to economic aspects but social aspects as well.

Sambungan.

MODERNISATION

A transformation in every planned aspect of life .

ECONOMIC AND POLITICAL DEVELOPMENT IN DEVELOPING NATIONS (Western Europe as the model) An adaptation of Western life that is not accompanied by a continuous tranformation.

WESTERNISATION

MALAYSIAS MODERNISATION

PROJECT

MALAYSIAS MODERNISATION PROJECT

Economic Development Objective Method Measurement standards

MALAYSIAS MODERNISATION PROJECT

Objective Method Measurement standards

Political development he building of one-nation, one-people)

Sambungan..

OBJECTIVES/INTERESTS Developing an industrial society

ECONOMIC DEVELOPMENT

METHOD Technological development Agricultural development Industrialization

ACHIEVEMENT STANDARD GNP measurement (gross national product) Life quality index enhancement chart (poverty and inflation rate)

EcONOMIc component
Through colonization, Malaysias lanscape was transformed to allow the planting of rubber and palm oil trees to meet the needs of European industries. Tin mining industry was also important for the infrastructure development as support for the principal industry.
Railways, roads, and ports were also required to cater to the needs of the import-export industry. Malaysias labour workforce was also unique as there was an ethnic-based division of labour.

MALAYSIAS PREAND POSTINDEPENDENCES ECONOMIC DEVELOPMENT

ETHNIC RELATIONS WITHIN THE CONTEXT OF MALAYSIAS MODENISATION PROJECT

Even though the Malays were the majority demographically and politically, but the Malays and other indigenous peoples were only dominant in underperforming economic sectors . Meanwhile, the Chinese control the developed and high-technology sectors. This is the result of the Britishs divide & rule policy.

This imbalance led to enmity between the races. Hence, economic integration is and it is implemented through development policies such as the Five-year Plan, National Economic Policy, etc. This could lead to the reduction and eradication of economic segregation and imbalance that existed since the colonial era.

FIVE-YEAR DEVELOPMENT PLAN

It was planned and implemented since 1950 to improve the economic standing of the citizens affected by WWII. The earlier development plans initiated by the British are: Development Plan Draft (1950-55) Malayas First Five-year Plan (1956-60)

Malayas Second Five-year Plan(1961-65) was drawn up by Malayas own leaders with the aim of developin the economic infrastructure.

FIVE-YEAR DEVELOPMENT PLAN

Development Plan Draft (1950-55) (1950-1955) Malayas First Five-year Plan Pertama (1956-1960) Malayas Second Five-year Plan (1961-1965) RMK 1 (1966-1970) RMK 2 (1971-1975) RMK 3 (1976-1980) RMK 4 (1981-1985) RMK 5 (1986-1990) RMK 6 (1991-1996) RMK 7 (1996-2000) RMK 8 (2001-2005) RMK 9 (2006-2010)

Sambungan

MALAYAS FIRST FIVE-YEAR PLAN (19561960)

Establishment

of RIDA (changed to MARA

in 1966) LKTP 1956 (change to FELDA in 1971)

MALAYAS SECOND FIVE-YEAR PLAN (1961-1965)

Sambungan

RM-1 (1966-1970): Focused on import-replacement industry. Founded FELDA, FELCRA, MARDI, MIDA. RMK-2 (1971-1975): Concentrated on the efforts to overcome the economic disparity between sectors and ethnic to achieve economic and political stability. During this period, the transition from importreplacement industry to export-orientation industry began taking place. DEB, KEJORA, DARA, PERNAS, UDA, RISDA, LPP

Sambungan RMK-3 (1976-80): Continued with the industrial policy planned during RMK-2. DEB continued KETENGAH, KESEDAR

RMK-4 (1981-1985), RMK-5 (1986-1990) dan RMK-6 (1991-1995): Development plan that concentrated on technology-based industry that was more advanced, and the privatization policy. In 1979, PNB was founded to manage the Skim Amanah Saham Nasional investment (introduced in 1981).

Sambungan.

RMK- 7(1996-2000) dan RMK-8 (2001-2005): Focused on K-economy industry.

RMK-9 (2006-2010): Focused on the development of economy, social, human capital and agricultural projects.

NATIONAL POLICIES: AGRICULTURE, INDUSTRIAL AND K-ECONOMY

Even though economic development has changed much towards industrialization in the 1960s and 1970s, but the agriculture sector was still important. In line with the agricultural development policy, a few agencies like FELDA, FELCRA, and MARA were set up with the aims to develop the sector and eradicate rural poverty.

In the 1980s and 1990s, the industrial sector was given more priority, and a few policies were enacted like The Look-East and Privatization policies.
In line with the worlds economic development, a few strategies were arranged to improve ICT-based technology and the K-economy.

AGRICULTURAL POLICY
The government formed a number of development agencies to provide facilities for farmers, such as: 1. MARDI (Institut Penyelidikan & Kemajuan Pertanian Msia) 2. Agricultural department : produce seeds & soil suitability, new technology development. 3. Farmers Association Agency: provide the facilities in supplying fertilizers, insecticides, machineries, etc.

Sambungan

FAMA (Lembaga Pemasaran Pertanian Persekutuan): handle the marketing of produce. 5. Bank Pertanian: provide credit facilities for agriculture projects. 6. Fisheries and Animals Department: provide advice for animal and fish farming.
4.

HEAVY-INDUSTRIES POLICY
The objective of this policy is to reduce Malaysias dependency on foreign countries in supplying machineries for local use.

Indirectly, it would create support industries like IKS and industrial processes. Increase private sectors participation in developing the nation.

Cont

Special organisation founded to steer this policy, that is Perbadanan Industri Berat Malaysia Berhad (HICOM) in 1980.
Among HICOMs major projects: PROTON Kedah Cement Sdn.Bhd. and Perak-Mahjung Cement that produce and provide cements. PERWAJA

PRIVATISATION POLICY (1983)

Reduce financial burden and aid DEBs achievement. The bumiputera have more opportunities to be involved in the industrial sector.

5 reasons the policy was introduced:

1.

Reduce the governments financial burden & administration.

2. 3. 4. 5.

Increase competency and productivity. Boost investment and private entrepreneur. Reduce the number and size of the public sector. Aid in the achieving DEBs targets

NATIONAL AUTOMOBILE INDUSTRY

Through the High-Industry Policy.
Consistent with the Look East Policy. HICOMs establishment: Collaboration with Mitsubishi co of Japan

Transfer of technology and expertise that include

the Malays.

ECONOMICS MAJOR ISSUES

ECONOMICS MAJOR ISSUES

1.

Development & distribution

An imbalanced development and distribution such as the gap between the west and east coast & the urban and rural areas. Spread of wealth and income are imbalanced between social classes and ethnic groups.

ISU-ISU EKONOMI.

2. Equality & Special Privileges

Perkara 153: The Malays and indigenous peoples special priviliges. Perkara 8: Everyone is equal under the jurisdiction of the law. Perkara 8 (2):except as stated otherwise by the Constitution.

3. Equity share

Did not reach the DEBs goal.

ISLAMIC APPROACH IN ECONOMIC DEVELOPMENT

INSTITUTIONS AND ISLAMIC ECONOMY SYSTEM IN MALAYSIA

Islamic Banking system To generate capital Well-received by Muslims and non-Muslims alike. Attracted the interest from international corporations.
Islamic Insurance system Social guarantee Garnered profit Increased Islamic investment