Malaysian Economy Ind Asgnmt

MALAYSIAN ECONOMY WITNESSED AN ECONOMIC BOOM IN THE 1970S, FOLLOWING WHICH IT EXPANDED TO BECOME A MULTI-SECTOR ECONOMY FROM BEING A RAW MATERIALS PRODUCER. THE COUNTRY’S RICH NATURAL RESOURCES ENSURE SOUND DEVELOPMENTS IN AGRICULTURE, FORESTRY AND MINING. ECONOMIC GROWTH IS ALSO ATTRIBUTED TO ITS BORDER WITH THE STRAIT OF MALACCA WHICH IS AN IMPORTANT INTERNATIONAL SHIPPING CROSSROAD, WHICH PROMOTES THE COUNTRY’S INTERNATIONAL TRADE. MALAYSIA’S WELL DEVELOPED MANUFACTURING SECTOR PRODUCES A DIVERSE RANGE OF GOODS. IN THIS TREMENDOUS GLOBALIZATION PERIOD MALAYSIA HAS BEEN LEFT BEHIND BY OTHER DEVELOPING COUNTRIES.

OUR ECONOMIC SYSTEM TODAY IS GRADUALLY COLLAPSING AND CRASHING FROM THE EXCESSES OF THE PAST. THIS MEANS THAT TODAY’S CENTRALIZED MODEL IS OUTDATED AND OBSOLETE FOR OUR FUTURE. WE NOW NEED TO RECOGNIZE THAT OUR WORLD ECONOMIC SYSTEM IS IN TRANSITION. HOWEVER, MALAYSIA NEED TO IMPLEMENT NEW OFFERING OR FINDING TO REACH TO THE PEAK OF ECONOMY GROWTH, ALTHOUGH IT’S TOO DIFFICULT TO OVERCOME THIS SCENARIO BUT MALAYSIA NEED TO BE PREPARE TO FACE ALL THE PRESSURE AND CHALLENGES. MALAYSIA GOVERNMENT HAS BROUGHT UP MANY IDEAS AND FRAMEWORK TO MAKE SURE THAT THE VISION 2020 IS ACHIEVED.

THE MAIN FRAMEWORK IS THE NEW ECONOMIC MODEL (NEM). THE OBJECTIVE OF THE NEM IS FOR MALAYSIA TO JOIN THE RANKS OF THE HIGH-INCOME ECONOMIES, BUT NOT AT ALL COSTS. INCLUSIVE GROWTH ENABLES THE BENEFITS TO BE BROADLY SHARED ACROSS ALL COMMUNITIES. SUSTAINABLE GROWTH AUGMENTS THE WEALTH OF CURRENT GENERATIONS IN A WAY THAT DOES NOT COME AT THE EXPENSE OF FUTURE GENERATIONS.

A NUMBER OF STRATEGIC REFORM INITIATIVES HAVE BEEN PROPOSED. THESE ARE AIMED AT GREATER PRIVATE INITIATIVE, BETTER SKILLS, MORE COMPETITION, A LEANER PUBLIC SECTOR, PRO-GROWTH AFFIRMATIVE ACTION, A BETTER KNOWLEDGE BASE AND INFRASTRUCTURE, THE SELECTIVE PROMOTION OF SECTORS, AND ENVIRONMENTAL AS WELL AS FISCAL SUSTAINABILITY. OVERALL, THE NEW ECONOMIC MODEL DEMONSTRATES THE CLEAR RECOGNITION THAT MALAYSIA NEEDS TO INTRODUCE DEEP- REACHING STRUCTURAL REFORMS TO BOOST GROWTH. THE PROPOSED MEASURES REPRESENT A SIGNIFICANT AND 2 WELCOME STEP IN THIS DIRECTION.

WHAT WILL MATTER MOST NOW IS THE TRANSLATION OF PROPOSED PRINCIPLES INTO ACTIONABLE POLICIES AND THE STRONG AND MULTI-YEAR COMMITMENT TO IMPLEMENT THEM. BESIDES THAT, THE WORLD ECONOMY BOTH BEFORE AND ESPECIALLY SINCE THE FINANCIAL CRISIS HAS CHANGED SIGNIFICANTLY. POLICIES WHICH IN THE PAST LED TO HIGH LEVELS OF GROWTH AND HELPED REDUCE HARD CORE POVERTY WILL NO LONGER BE ENOUGH TO RAISE INCOME LEVELS AND CREATE THE HIGH-VALUE ECONOMY WE WANT TO SEE.

WE CANNOT DEPEND SOLELY ON NEW CAPITAL TO FUEL GROWTH. RATHER WE MUST USE IT MORE EFFECTIVELY TO INCREASE PRODUCTIVITY, STIMULATE INNOVATION AND ENHANCE THE SKILLS OF THE MALAYSIAN WORKFORCE. WE RISK LOSING OUR COMPETITIVE EDGE ALTOGETHER IF WE DO NOT ACT QUICKLY TO ADDRESS STRUCTURAL BARRIERS TO GROWTH THAT STAND IN THE WAY OF AN EFFECTIVE RESPONSE TO THE CHANGING ECONOMIC ENVIRONMENT.

IN THE OTHER HAND, OUR EDUCATION SYSTEM MUST CONTINUE TO BE RE-EVALUATED AND IMPROVED TO CREATE THE WORKFORCE OF THE FUTURE, WITH A COMMITMENT TO MERIT-BASED PROGRAMS. THESE WILL REWARD EXCELLENCE AND NURTURE TALENTED GRADUATES WHO EXCEL IN STRATEGIC AND CREATIVE THINKING, AND ENTREPRENEURIAL AND LEADERSHIP SKILLS THAT WILL DRIVE SUCCESS IN THE DECADES AHEAD. FURTHERMORE, RE-ORIENTING THE INSTITUTIONAL FRAMEWORK IN MALAYSIA; THE WAY PEOPLE INTERACT, THEIR EXPECTATIONS, AND THE NORMS AND CONVENTIONS THAT GOVERN THESE INTERACTIONS MUST CHANGE.

THE NORMS, HABITS AND CONVENTIONS IN SOCIETY MUST SUPPORT EFFICIENCY AND COMPETITIVENESS, AND NOT GIVE WAY TO LASSITUDE AND INDIFFERENCE. THIS AMBITIOUS GOAL, BECAUSE IT INVOLVES THE FABRIC OF SOCIETY, COULD WELL TAKE MORE THAN A DECADE TO ACHIEVE. INSTITUTIONAL REFORM OF THIS NATURE INVOLVES GUARANTEEING: FREEDOM OF SPEECH; FREEDOM OF ASSEMBLY AND DEMONSTRATION: EQUAL OPPORTUNITY; FREEDOM FROM EXCESSIVE GOVERNMENTAL INTERVENTION; RESPECT FOR MINORITIES; AND A FAIR, INDEPENDENT JUDICIARY. 3 NEXT WOULD BE, SOCIAL INTERACTION AND SUSTAINABLE COMMUNITIES IN LINE WITH 1MALAYSIA CONCEPT.

THE MALAYSIAN GOVERNMENT BELIEVES THAT MALAYSIA’S FUTURE AS A SUCCESSFUL COUNTRY DEPENDS ON THE ABILITY OF MALAYSIANS OF DIFFERENT RACES, RELIGIONS OR CULTURE TO WORK AND LIVE TOGETHER IN PEACE AND HARMONY. WHILE 'BANGSA MALAYSIA' (MALAYSIAN NATION) OUTLINED IN VISION 2020 IS THE ULTIMATE OBJECTIVE OF THIS JOURNEY, 1MALAYSIA CONCEPT PROVIDES THE KEY APPROACH TOWARDS ACHIEVING THE STATED OBJECTIVE. THE GOVERNMENT ENUNCIATES 2-10 SUCCINCTLY THAT "1MALAYSIA IS A CONCEPT TO FOSTER UNITY IN MALAYSIANS OF ALL RACES BASED ON SEVERAL IMPORTANT VALUES WHICH SHOULD BECOME THE PRACTICE OF EVERY MALAYSIAN”.

IT EMPHASIZES THE ACCEPTANCE AND RESPECT AMONGST THE PEOPLE OF VARIOUS RACES AND THE DIVERSITY OF THE NATION WITH UNIQUENESS AND INHERENT STRENGTHS IN EACH ETHNIC GROUP.

AN IMPORTANT CORE ELEMENT OF UNITY STRESSES THAT ALL THE PEOPLE IRRESPECTIVE OF RACE AND CREED WILL BE TAKEN CARE OF AND NO ONE WILL BE MARGINALIZED (SOCIAL INCLUSIVENESS). FOLLOWED BY NEXT, CREATING LIVEABLE CITIES AND SUSTAINABLE COMMUNITIES WILL SEE THE GOVERNMENT PLAYING THE FACILITATING ROLE IN PROVIDING THE MOST CONDUCIVE INVESTMENT CLIMATE, THE STRATEGIC INFRASTRUCTURE AND INCENTIVES FOR PRIVATE INITIATIVES AND ENTERPRISES TO TAKE THE LEAD AND FLOURISH.

TRANSFORMING LOCAL GOVERNANCE TO PROVIDE BETTER URBAN SERVICES AND LAND USE MANAGEMENT AT LOCAL LEVELS IS ANOTHER IMPORTANT FACET OF LIVEABLE CITIES AND SUSTAINABLE COMMUNITIES. DELIVERY SYSTEMS AT THE LOCAL AUTHORITY LEVELS SHALL BE IMPROVED TO ENSURE THAT NATIONAL AND STATE LEVEL POLICIES ARE EFFECTIVELY IMPLEMENTED. IN THIS RESPECT THE GOVERNMENT HAS INTRODUCED ‘ONE STOP CENTRE’ (OSC) TO SHORTEN THE TIME TAKEN FOR THE APPROVAL PROCESSES FOR BOTH LICENSES AND PLANNING PERMISSION. LOCAL PLANS WILL BE PREPARED FOR ALL LOCAL PLANNING AUTHORITY AREAS TO PROVIDE A STATUTORY BASIS FOR LAND USE MANAGEMENT.

IN A NUTSHELL, THE INCORPORATION AND 4 COMBINATION OF THE SIX KEY BUILDING BLOCKS, AS ENUNCIATED ABOVE, WILL MUTUALLY REINFORCE EACH OTHER TO CREATE MORE LIVEABLE CITIES AND SUSTAINABLE COMMUNITIES, THUS CONTRIBUTING SIGNIFICANTLY TOWARDS REALIZING THE 1MALAYSIA CONCEPT AND NEM. INTHEOTHERHAND,THE MANPOWER PROBLEM AND TOO MUCH DEPENDENCY ON FOREIGN LABOUR. THE STAGGERING INCREASE IN THE NUMBER OF FOREIGN LABOURS IN MALAYSIA FROM 1999 TO 2008 SHOWS THAT THE CONSTRUCTION INDUSTRY IS CURRENTLY RELIES HEAVILY ON FOREIGN LABOURS AS THE MAIN WORKFORCE. THEREFORE, IT IS IMPORTANT TO DETERMINE THE FACTORS THAT LEAD TO THE OVER RELIANT OF FOREIGN WORKFORCE.

MOREOVER, DUE TO THE OVER RELIANT OF FOREIGN WORKFORCE, THERE ARE A HUGE AMOUNT OF FOREIGNERS IN THE COUNTRY. THE MASSIVE INFLUX OF FOREIGN LABOURS WILL HAVE ITS IMPACT ON THE MALAYSIAN ECONOMY AND COMMUNITY. BESIDES, PROBLEMS ARISES WILL NOT ONLY AFFECT THE CONSTRUCTION INDUSTRY BUT TO THE WHOLE MALAYSIA.

THIS IS THE SERIOUS SHORTAGE OF TRAINED AND SKILLED MANPOWER WHICH EXISTS IN MANY AREAS OF ECONOMICS ACTIVITY AND OVER A WIDE RANGE OF SKILLS.

SHORTAGES OF TECHNICIANS AND OTHER KEY PERSONNEL HAVE TO A CERTAIN EXTENT ADVERSELY AFFECTED THE IMPLEMENTATION OF SOME DEVELOPMENT PROJECTS. TRAINING OF MALAYSIANS IN MOST OF THE TECHNICAL AREAS IN WHICH MANPOWER SHORTAGES EXIST IS BEING STEPPED UP TO LEVELS GREATER THAN ANYTHING THAT HAS BEEN DONE BEFORE. FINALLY WOULD BE, DIVERSIFICATION IN EXPORT MARKETS AND PRODUCTS. PRIVATE CONSUMPTION AND TOTAL INVESTMENT HAVE BEEN RESILIENT, ENABLING THE ECONOMY TO EXPAND DESPITE THE SLUGGISH PERFORMANCE OF EXPORTS.

GROWTH AND EMPLOYMENT HAVE BEEN SUPPORTED BY THE DOMESTIC-ORIENTED SECTORS, OFFSETTING THE WEAKNESS IN EXPORT-ORIENTED INDUSTRIES. IN PART, THIS HAS BEEN ACHIEVED FOLLOWING YEARS OF STRUCTURAL REFORMS AND SOUND ECONOMIC POLICIES. NEVERTHELESS, MALAYSIA REMAINS A HIGHLY-OPEN ECONOMY FOR WHICH EXPORTS ARE A KEY SOURCE OF DEMAND. THEREFORE, INVESTING STRATEGICALLY IN THE RIGHT GROWTH INDUSTRIES IS CRUCIAL TO ENSURE THAT MALAYSIA IS WELL- 5 POSITIONED TO LEVERAGE ON NEW OPPORTUNITIES IN THE CHANGING GLOBAL LANDSCAPE. ENCOURAGINGLY, EXPORT PRODUCTS AND MARKETS HAVE BECOME INCREASINGLY DIVERSIFIED, ORIENTATED TOWARDS NEW GROWTH INDUSTRIES AND FAST-GROWING REGIONAL ECONOMIES.

THIS HAS ENABLED MALAYSIA TO MOVE UP THE VALUE CHAIN WHILE CAPITALIZING ON GLOBAL GROWTH CENTERS. GOING FORWARD, CREATING STRONG, SUSTAINABLE AND BALANCED GROWTH WOULD ENTAIL FURTHER REFORMS. SUSTAINABLE GROWTH MUST BE UNDERPINNED BY PRODUCTIVITY IMPROVEMENTS AND INNOVATION, ENABLING THE TRANSITION INTO A HIGHER VALUE-ADDED AND HIGHER-INCOME ECONOMY. DEVELOPING A COMPREHENSIVE SOCIAL SAFETY NET, WHICH INCLUDES IMPROVEMENTS TO THE PENSION AND HEALTHCARE SYSTEMS, TOGETHER WITH CONTINUED EFFORTS TO PROMOTE FINANCIAL INCLUSION, WILL ALLEVIATE THE NEED FOR PRECAUTIONARY SAVINGS AND RAISE CONSUMPTION. THESE REFORMS, COUPLED WITH DIVERSIFICATION IN EXPORT MARKETS AND PRODUCTS, WILL HAVE TO CONTINUE TO ENSURE SUSTAINED GROWTH GOING FORWARD.

IN CONCLUSION, IN ORDER TO ACHIEVE VISION 2020, THE GOVERNMENT NEED A DETAILED ROAD MAP WITH TIME FRAME AND POLITICAL WILL TO LEAD THE COUNTRY TOWARDS HIGH INCOME SUSTAINABLE AND INCLUSIVE FUTURE. VISION 2020 IS AN ECONOMIC, POLITICAL, SOCIAL AND IDEOLOGICAL AND WITH IT MEASURES EVERYTHING THAT HAPPENS IN ITS DIRECTION OR AGAINST IT.

THE VISION REPRESENTS NOT ONLY THE CHALLENGE OF ECONOMIC DEVELOPMENT, BUT ALSO THE VERY IDEALIZATION OF NATIONAL POPULAR UNITY THAT MEANS A CONCEPT CAPTURED IN THE VISION IDEAL OF BANGSA (ONE NATION) MALAYSIA. 6 REFERENCES ?HTTP://WWW. EPU. GOV. MY/EPU-THEME/RMK1/CHAPT1. PDF ?HTTP://MALAYSIAECONOMY. BLOGSPOT. COM/ ?HTTP://BLOGS. WORLDBANK. ORG/EASTASIAPACIFIC/WHAT-IS-NEW-IN-MALAYSIA-S-NEW- ECONOMIC-MODEL ?HTTP://WWW. TINDAKMALAYSIA. COM/SHOWTHREAD. PHP/2202-MALAYSIA-S-ECONOMIC- FUTURE-VISION-2020 ?JOMO KWAME SUNDARAM, SAU NGAN WONG, [NUS PRESS, 2008], BUSINESS & ECONOMICS LAW, INSTITUTIONS AND MALAYSIAN ECONOMIC.