New economic model malaysia summary. 2021/36 "Malaysia’s New Economic Policy and the 30% Bumiputera Equity Target: Time for a Revisit and a Reset" by Lee Hwok Aun 2022-12-14

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Malaysia is a Southeast Asian country located on the equator, with a population of over 32 million people. It has a diverse economy that is heavily reliant on exports, particularly of electronics, petroleum, and palm oil. In recent years, the Malaysian government has been working to diversify its economy and move away from its reliance on exports.

One key component of this effort has been the development of a new economic model for Malaysia, known as the New Economic Model (NEM). The NEM was unveiled in 2010 by the then-prime minister, Najib Razak, and is intended to transform Malaysia into a high-income economy by 2020.

The NEM is based on the premise that Malaysia's economic growth has been driven largely by external factors, such as rising commodity prices and increasing demand for exports. However, this reliance on external factors is unsustainable in the long term, as it leaves the country vulnerable to global economic downturns and shifts in demand.

To address this issue, the NEM aims to diversify the economy and make it more resilient to external shocks. This includes promoting the development of new industries, such as renewable energy and biotechnology, as well as investing in education and human capital.

One of the key elements of the NEM is the promotion of private sector growth. This includes efforts to create a more business-friendly environment, such as reducing bureaucracy and simplifying regulations. The government is also working to improve infrastructure, such as roads, ports, and airports, to make it easier for businesses to operate.

Another important aspect of the NEM is the emphasis on innovation and technological development. This includes initiatives to encourage research and development, as well as the development of a skilled and educated workforce.

One of the main challenges facing the NEM is the need to balance economic growth with social and environmental concerns. The government has acknowledged the need to address issues such as income inequality and environmental sustainability, and has included these concerns in the NEM.

Overall, the New Economic Model for Malaysia represents an ambitious effort to transform the country's economy and position it for long-term success. While there are certainly challenges ahead, the government's commitment to economic diversification and innovation is a positive step towards building a more resilient and sustainable future for Malaysia.

New Economy Model and tenth Malaysia Plan

new economic model malaysia summary

The NEAC wishes to emphasise that these cross-cutting policy measures would need to be implemented consistently and holistically to ensure that the results envisioned in the 10MP and the EPPs, and ultimately the goals of the NEM, are achievable. Achievement of Vision 2020 must embody the principles of 1Malaysia People First, Performance Now to unite all Malaysians. Bottom-up feedback throughout the process of reform implementation can make a big difference to outcomes in this way. The lack of public transparency in grading of the papers contributed to this criticism. Furthermore, the Government should support efforts to establish Malaysia as a standard-setter in niche areas such as Islamic finance and halal products. Malaysias strategic location will serve to attract investment to build transportation and logistics hubs.

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New Economic Model

new economic model malaysia summary

Sanctions should not be limited to individual staff, but also to whole units or agencies where necessary. Such an ambitious agenda may have seemed rather idealistic 12 months ago. The challenge of this new economic model is how people will apply it. This means building upon existing sectors and maximizing the potential of new ones through innovation. Chapter 4: Which Advantages Do We Have? However an improvement in clean and renewable energy performance will not see a parallel improvement in overall quality of life for all citizens if other aspects of the environment performance are neglected. Find Out How UKEssays.


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New Economic Model

new economic model malaysia summary

EPF will also increase its direct investments in the real economy of Malaysia, as an alternative to market investments - taking positions in healthcare, commodities, property and other long-term investments that match EPF's requirements to protect the real rate of return on its assets. Corporate equity distribution: past trends and future policy. Competition is no longer only between nations but also between cities. While equity ownership should be taken off the pedestal, it remains worthwhile to conduct a more complete and credible mapping exercise. There is little value in pursuing a future based entirely on wealth creation , Pursuing growth that deplete resources and displace communities will have dire consequences for future generations.


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New Economic Model of Malaysia

new economic model malaysia summary

Almost all economies of East Asia are poised to achieve high economic growth in this decade. As oil production slows down and energy demand continues on an upward spiral, how much oil is there in the tank to fuel present and future growth? A portion of GLCs to be divested could be part of a special programme to support bumiputera entrepreneur consortiums through a transparent open tender process. Labour market adjustment must be smooth: the right workers need quickly to find the right jobs; the right jobs must rapidly attract the right workers, including those from abroad. Inclusiveness will enable all communities to contribute to and share in the wealth of the country. Due recognition of rights and responsibilities of business owners rule of law. Positive private sector activity is also a deeply encouraging sign of recovery. Our first priority must be to eradicate poverty, irrespective of race.


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Malaysian New Economic Policy

new economic model malaysia summary

The quality of labour is a function of education and on-the-job skills development. Get t ing the rakyat to dr ive change together Garnering the support of stakeholders and ordinary Malaysians for the NEM is a political process, one best understood by the political leadership. This also includes the emergence of new middle class in social hierarchy who then help reorganize the political structure that favors more to the people than the elites. Helicoptering in external advice without regard to local circumstances generally doesn't work and may lead to paper reforms that copy the form but don't accomplish the function. SRI 1: Re-energising the private sector The private sector needs to step up and assume a heightened profile in the nations transformation. Decision-makingindependence minimises political interference that could jeopardise company performance. Ethnicity, Class and Development Malaysia.

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Malaysia’s New Economic Model Essay Example

new economic model malaysia summary

There is a serious risk that the economy may regress if fundamental changes are not made. The first objective of this New Economic Policy is achieved by providing many job opportunities and upgrading all public facility such as schools. Identify the objectives of the divestment programme. Fundamental of Development Administration. The NEP was more invested in the second prong, having established that racial and ethnic inequalities needed utmost attention in the aftermath of the 13 May 1969 riots. Why do WE NEEd ThE NEM ANd WhAT ArE iTS goAlS? In 2006, a major dispute arose when the Asian Strategic and Leadership Institute ASLI issued a report calculating Bumiputra-held equity at 45% — a stark difference from the official figure of 18. Environmental sustainability will be achieved by rejecting the traditional approach to economic growth that has grossly neglected the environment.

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malaysia1: The New Economic Model

new economic model malaysia summary

Left unchecked, we will soon be taken over by regional competitors, especially if capital and talent outflows continue. But for too long, the implementation of our affirmative action policies has not reached those who needed them the most. Wealth and income creation come from enhancing the value of the supply chain. Liberalisation of all sectors. The Eleventh Malaysia Plan added an emphasis to equity ownership, by specifying 30% equity ownership with effective control.

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NEW ECONOMIC MODEL FOR MALAYSIA CONCLUDINg pART · new economic model for malaysia concluding Part: strategic Policy measures 3 december 2010 NEAC national economic advisory council

new economic model malaysia summary

JD135691 03 Capt 1. Under the 8th Malaysia Plan, the average annual private investment grew by only a mere 1. There is much work to be done, but the potential upside requires us to place a focus on these key sectors. Economies around the world faced GDP contraction. The blueprint for Malaysias economic transformation is now complete and is encapsulated by initiatives set forth in 1Malaysia, the ETP, the GTP, the 10MP, and further reflected in the 2011 Budget recently unveiled.


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2021/36 "Malaysia’s New Economic Policy and the 30% Bumiputera Equity Target: Time for a Revisit and a Reset" by Lee Hwok Aun

new economic model malaysia summary

In March 2010, the NEAC presented a frank and realistic assessment of Malaysias current economic situation and its future prospects. Per capita GNP will rise to about USD17,700 by 2020. GLCs which manage physical infrastructure and are also service providers e. This people always the last get the aid from the government because their residence is too far or no proper road to their home. The OPP1 laid out the empirical basis for the NEP, furnishing data that showed stark socioeconomic inequalities, specifically the myriad ways in which Bumiputeras were lagging.

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