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Flying towards the vision 2020.

Industrialization and the New Economic Policy (NEP)--1970s-90s

The NEP was drafted by the National Action Council in the 1970s with objectives to reduce poverty and restructure society in order to create national unity. Though primarily an agrarian economy, the role of the industry was expanded under the NEP to modernize the agriculture sector and create labor intensive industries. From 1976 to 1980, NEP intended to achieve economic growth by attracting more investments and creating more jobs. In the 1990s the switch from a completely industrialized economy to one where production capacity and international competitiveness was emphasized, Export-Oriented Industrialization (EOI) and Free Trade Zones were set up in regions where production took place with the aim that the goods would be exported. A range of industries also grew as a result.

Vision 2020

During the 1990s, when the NEP was in its phase of transforming Malaysia's economy into an internationally competitive one, Malaysia's Prime Minister Dr. Mahathir Mohammad (from 1981 to 2003) initiated "Vision 2020". The ideology was along the lines of the NEP and nine challenges were set out so that Malaysia could be defined as a fully developed country.

Additions were made to the Vision by Dr. Mahathir Mohammad's able successors Tun Abdullah Ahmad Badawi and Prime Minister Datuk Seri Najib Tun Razak who endorsed human capital development whilst economic regions were established in mid to late 2000s to attract foreign and local investments and raise growth. These regions include Iskandar Economic Region, Northern Corridor Economic Region, Sabah Development Corridor, East Coast Economic Region and Sarawak Corridor of Renewable Energy.

Economic Transformation Plan (FTP): ETP is a part of Vision 2020 and was introduced by Prime Minister Datuk Seri Najib Tun Razak with efforts to boost Malaysia in becoming a high-income developed nation. The ETP has established a set of policy measures which will relax the services sector, boost domestic demand whilst reducing the country's dependence on exports.

The ETP identified 131 entry point projects and 60 business opportunities which require large infrastructure investments. Funds worth MYR 1.4 Trillion are required for the economic spur.

By 2011, combined investment of MYR 106.41 Billion and a GNI of MYR 153.84 Billion along with almost 0.3 Million jobs had been established.

Under Vision 2020, the economy will be changed from one driven by physical capital and low costs into one geared by innovation, efficiency, human capital and entrepreneurship. The private sector will lead the economy with innovation and ingenuity whilst the government would be responsible for public goods, public interest and the regulatory framework. For Vision 2020 to be deemed successful, Malaysia has to maintain an annual growth rate of 8 percent for the remaining years. Malaysia has increasingly become globally connected, has developed an integrated economic region and awareness in social, cultural, technological and political spheres has increased. Already a role model for the developing world, Malaysia is all set to achieve its rightful place of standing with the developed nations.

RELATED ARTICLE: "Vision 2020"--Nine Challenges

1. Establish a united Malaysian nation

2. Creating a liberated, secure and developed Malaysian society

3. Fostering and developing a mature democratic society

4. Establishing a fully moral and ethical society

5. Establishing a mature, liberal and tolerant society

6. Establishing a scientific and progressive society

7. Establishing a fully caring society

8. Establishing an economically just society with fair and equitable distribution of wealth of the nation

9. Establishing a prosperous society with an economy that is fully competitive, dynamic, robust and resilient

RELATED ARTICLE: Focus and Targets of ETP

- 12 National Key Economic Areas (NKEAs): Energy, oil, gas, palm oil, financial services, tourism, business services, education, health, communications, infrastructure and agriculture

- GNI per capita: Greater than USD 15,000 by 2020

- Creation of 3.3 Million new jobs

- Monthly average income of the bottom 40 percent of households to reach MYR 2,300 by 2015
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Title Annotation:MALAYSIA / ECONOMY / VISION 2020
Comment:Flying towards the vision 2020.(MALAYSIA / ECONOMY / VISION 2020)
Publication:Economic Review
Geographic Code:9MALA
Date:Jun 1, 2013
Words:649
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