Note 8 : National Policies

NATIONAL DEVELOPMENT
Introduction
-

In general, development is man's ability in fulfilling their potential to ensure they

would get their basic necessities (food, clothing, shelter), jobs and equality. What is
important in development is the ability to obtain basic services (health, education,
clean water supply etc.), security and humanitarian rights.

development also refers to efforts to change the situation of the society or the
country from an under-developed situation to a progressive one. This change
includes various aspects of human life e.g. social, culture, politic, economy,
psychology, physical resources as well as human resources.

most third world countries have development programs and policies implemented in
an orderly manner. Each program has specific strategies and aims that are to be
achieved. Malaysia, Indonesia and Thailand are examples of such countries. In
Malaysia and Indonesia, a time frame of five years has been set for each
development program.

Development Plans
- First Malaya Plan (1956-1960)
It had the aim to develop the rural sector in reducing the income gap between the
rural and urban areas and to _____________. Diversification of economic activity
and source of income was also planned to reduce reliance on rubber and tin mining.
However, most of the funds for this plan were spent on security because the country
was in a state of Emergency. In addition, the funding faced problems when the price
of rubber and tin fell.
- Second Malaya Plan (1961-1965)
It showed an improvement in managing development by employing two major
strategies. First is the involvement of the people in the planning and implementing
process. Second, ___________________ programs by the government was based
on needs of the people at that particular place. At each district, operation rooms were
set up and the ____________________ was responsible in supervising
implementation of the programs.
- First Malaysian Plan (1966-1970)
This plan gave attention to economic growth of the country. It also gave attention to
national integration between the states due to the inclusion of Sabah and Sarawak in
Malaysia. However the socioeconomic imbalance between communities and areas
was still not well addressed, which gave effect to political and social stability. This
was evident in the _______________________.

Generally, these three plans gave emphasis on agricultural productivity, diversifying

crops, building basic facilities, and rural development with regards to infrastructure
and social services.
-

In 1970, the _________________) was launched. It had two major aims, i.e. poverty
eradication and social restructuring. Some of its major strategies were:
a) increase productivity and income of the poor in rural areas by opening new land
for agriculture
b) create more job opportunities in the industrial sector
c) improve infrastructure (roads, irrigation etc)
d) _____________________________
e) encourage involvement of all communities in all economic, social and political
activities
f) ______________________

The NEP spanned a period of 20 years (1970-1990) and involved four Malaysian
Plans.
- Second Malaysian Plan (1971-1975)
- Third Malaysian Plan (1976-1980)
- Fourth Malaysian Plan (1981-1985)
- Fifth Malaysian Plan(1986-1990)
-

the National Development Policy (NDP) replaced the NEP in 1991 to last until 2000.
It is 1/3 of the Vision 2020 plan (1991-2020) which is to cover from the Sixth
Malaysian Plan until the Eleventh Malaysian Plan. The Malaysian Plans that fell
under the NDP were:
- Sixth Malaysian Plan (1991-1995)
- Seventh Malaysian Plan (1996-2000)

Under the NDP, several aims were identified based on the experience of NEP:
a) more attention was given to eradicate _________________________________
This is done by reducing relative poverty, i.e. the gap between the rich and the
poor. Among actions taken were programs by the government and nongovernment organizations (NGOs), and creating opportunities for the low-income
group, especially in less developed areas / states.
b) social restructuring was continued, but with more involvement of the private
sector. More opportunities were to be created in this sector in order to let it
develop more.
c) achieving equal distribution of development between states / rural and urban
areas. Here, emphasis was given in developing human resource through
education and skill training. The economic foundation of less developed states
was diversified and the nation's physical, social and economic infrastructures
were expanded throughout the country.

In addition, to achieve a more balanced pattern of development, attention was also

given to certain aspects under the NDP:
a) creating an optimum balance between aims for economic development and equal
distribution.
b) ensuring a balance between major economic sectors in complementing each
other.

c) creating a progressive society with positive social and spiritual values.

d) making science and technology an important aspect in planning and developing
the country's socioeconomic situation
e) proper attention given to the environment and ecology in economic development

National Policies
National Agricultural Policy
-

rationale : contribution of the agricultural sector to the economic sector is decreasing.

aim : * ___________________________________________
* imporve living status of rural people involved in the agricultural sector

objectives:
1) maximise income from the agricultural sector
2) maximise income of small-scale farmers
3) develop and increase yield and quality of major commodities with high export
potential

strategies :
1) opening of new land for agriculture by agencies ( e.g. Federal Land Develoment
Authority) and state governments land development schemes
2) Improving land management and social development in rural areas through
integrated development (e.g. development of cottage industry). Example of
agencies : Muda Agricultural Development Authority (MADA) and Kemubu
Agricultural Development Authority (KADA).
3) support services in marketing, research and development (R&D). Example of
agencies: Federal Agricultural Marketing Aauthority (FAMA), Malaysian
Agricultural Research and Development institute (MARDI), Palm Oil Research
Institute of Malaysia (PORIM), Rubber Research Institute (RRI), Rubber Industry
Small Holders Development Authority (RISDA).
4) Development of positive human attitude and values in the agricultural society
(human resource development).

Privatisation Policy
-

introduced in 1983

def. : shift of government interests, investments, service and enterprise to the private
sector. ( opposite : nationalisation)

rationale: government management is relatively less efficient compared to the private

sector.
- Government :- bureaucracy / procedures, regulations / laws

Private :- motivated to increase profit

major objective : increase economic growth through better management.

reasons / aims :
1) reduce financial burden of the government
2) increase efficiency and productivity
3) promote faster economic growth
4) reduce involvement of public sector in the economy

forms :
1) total sale of enterprise
2) management contract
3) build operate transfer (BOT)
4) build operate

competition is created with other companies and with government agencies

reduce reliance on government for allocations / capital

examples of sectors privatised :

1) telecommunications : Telekom Malaysia, Maxis, Digi, Time Telecom (fixed line)
2) transport : roads / highways (Plus, Elite, Kesas, Litrak, Grand Saga, Besraya,
Metramac, MTD Prime, Silk), airlines(MAS, Pelangi Air, Air Asia, Berjaya Air) port
management (Westport, Kelang Port Management, Port of Tanjung
Pelepas(PTP),Johor), railway (KTMB, Star, Putra, PRT, ERT), shipping (MISC)
3) broadcast : TV and radio (TV3, ntv7, MegaTV, Astro)
4) public utilities : electricity (TNB, Sabah Electric, independent power producers
(IPP) e.g. YTL Power), water supply (Puncak Niaga), waste management
(Indah Water, Alam Flora), parking (Swastapark)

Development of Science and Technology

- Vision 2020s general aim : make Malaysia a fully developed country in all aspects
(economic, political, social, cultural, psychological, spiritual)
-

6th challenge related to development of science and technology, - because S&T

plays an important role in bringing economic development to a society

also, a need to shape a progressive and scientific society :

a) able to utilise and gain benefit from the latest technology
b) able to contribute to the future development of S&T

past success in S&T was more in the agricultural sector through research done by
relevant agencies

emphasis now should be given to the industrial and other sectors

study conducted under the Industrial Master Plan reported several problems in
development of S&T :
1) Unsatisfactory rate of technology transfer : technology provider (foreign
corporations) refuse to transfer or transfer low quality technology
2) Lack of professionals to conduct continuous R&D programmes : percentage of
researchers in Malaysia very low
3) No incentive to encourage local technology development and its utilisation
4) Insufficient funds

to solve these problems, the National S&T Policy was announced in 1986, aim :
promote use of S&T as a tool for economic development

2 major aims in developing S&T potential :

1) Development of S&T resources such as technical and scientific manpower,
research institutes, higher learning institutions etc.
2) Development of local entrepreneurs ability in choosing, consulting, adjusting,
improving and innovating foreign technology through cooperation agreements,
direct purchase, technical cooperation, joint ventures, use of license, franchise
etc.
National Industrial Policy
-

Malaysia - strives to be a new industrialised country

Aim - to make the manufacturing sector as the main source of economic growth
- in result, this will increase export, create more jobs and technical training.
Weaknesses of the industrial sector during 1970s until early 1980s:
1) Low level of technology
2) Export - limited to electric, Electronic goods and textile
3) Quality- not satisfactory, unable to compete at the global market
4) More on assembly
Industrial Master Plan (1983):
- put the manufacturing sector as catalyst for industrial development
- full usage of raw materials
- upgrade level of R & D and local technology
- several sectors identified to be given attention from 1986 - 1995:
- Electric and Electronic
- transport equipment
- machinery and engineering
- metals
- textile and clothing
- rubber industries
- palm oil industries
- timber industries
- food
- chemicals
Steps taken to become an industrialised country:
1) implement an industrial policy concentrating on export of manufactured products

2) set up selected heavy industries to support the export industry

3) develop and improve manpower and local technology
4) Reduce spending in building new infrastructure and paying more attention to areas
that already have the needed infrastructure
5) Modernise and rearrange the industrial structure by increasing the development of
Small and Medium sized Industries (SMI) - Because they are the backbone of the
industrialisation process
6) Restructure the industrial incentive system
Malaysia and the Information Age : Globalisation and the need for Information
Technology
-

Globalisation here refers to the social process that is economic in nature (e.g.
trading, manufacturing, marketing etc.)

effects of globalisation on daily human activities can be identified when

communication and dissemination of information happen through facilities such as
the telephone, fax, satellite TV, the Internet etc.

Kenichi Ohmae, a famous management guru/expert and former advisor to the Prime
Minister created the term 'a borderless world'.

Human civilisation has shifted from the agricultural age to the industrial age to the
information age (Predictions is that the future would be the biotech age). Changes
has brought advancement of technology and economic activity:
agricultural : from farm animals to tractors, harvesters etc.
industry : from manual tools / human operated machines to automated
machines / robots
information technology : from isolated and stand alone computers to
convergence of technology and the Internet.

information is the commodity of the 21st century. The nation / organization who has
more information, obtain it at a timely manner, able to manage and use it would have
the competitive advantage.

the Multimedia Super Corridor (MSC) is developed as a major facility for the
information age and to be part of the multimedia industry.

the MSC is a 15km by 50km zone that includes Kuala Lumpur and 4 mega
infrastructures: Kuala Lumpur City Centre (KLCC), Putrajaya (administration center),

Cyberjaya (intelligent city) and Kuala Lumpur International Airport (KLIA). The whole
area will be connected by digital fibre optic network and supported by the Kuala
Lumpur Tower, the tallest telecommunication facility in the region. It is planned that
local and foreign multimedia corporations would have their businessunits and R&D
facilities in the MSC.
-

Seven flagship applications of the MSC :

1) Research and Development (R&D) clusters
2) Electronic government
3) Worldwide manufacturing webs
4) Smart schools
5) Borderless marketing centers
6) Telemedicine
7) National multi-purpose card

NOTES 9:
TUNKU ABD.RAHMAN PUTRA AL HAJ
Father of Independence
Personal Life.
Called the Prince with a common touch.
The twentieth child in a long line of children by Sultan Abdul Hamid Halim Shah,
the twenty-fourth Sultan of Kedah and Nerang, or better known as Che
Menjalara, was the daughter of Luang Nara Borirak, of Burmese and Siamese
descent from Chao Phya Maha Kota, Thailand.
Was nicknamed Awang by his mother as his dark complexion was tanned a
deeper brown from playing in the sun.
EDUCATION
-English Medium Government School, Alor Setar, age 6
-Debsurin School, Bangkok, 1913, age 10
Met his close friend, Navil Gutrapak
-Penang Free School (1916), age 16. He went to St. Catherines College, Cambridge
University, England when he was at the age of 17. Received his Law and History Degree
-Inner Temple, England
-Inns of Court, England (1947)
-Received law qualifications.
EXPERIENCES
Active in football; remained as one of his favourite sports as he played for his
college in Cambridge University.
Was made the Honourary President (for life) of the Football Assosciation of
Malaysia and the President of the Football Federation of Asia.
Joined the Kedah Civil Service as a cadet in the Legal Advisor's Office, before
serving as the District Officer in several districts of Kedah.
He was appointed District Officer of Sungai Petani and later of Kulim.
Fought to improve health and medical conditions for the malarian-ridden district
of Kuala Nerang.
Became Deputy Director of Civil Defence, Southern Kedah.
Appointed the Supervisor of Education, a post he held on to until the British took
over Kedah and the rest of the country.
POLITICAL ACTIVITIES

Tunku became President of UMNO on the 26th of August 1951 after Dato Onn
bin Jaafar resigned from his post of UMNO President.

In the next few years, with Tunkus sincere efforts, Umno and the Malayan
Chinese Association (MCA) formed Alliance Party and The Malayan Indian
Congress (MIC) joined the Alliance Party in 1955.
The Alliance won an impressive 51 out of the 52 seats contested in the first
general election in 1955. Subsequently, Tunku was appointed as Chief Minister
and Minister of Home Affairs.
On the 9th of September 1955, he declared an amnesty for communist terrorist
who surrendered voluntarily. Then The Baling Talks took place on the 28th and
29th of December 1955 between The Malayan Communist Party ,and the
government represented by Tunku and the others representatives.
Despite the minor setback, Tunku became even more resolute than ever in his
request to vanquish the terrorist. A full 5 years later saw the concerted effort of
Malayan succeeding in ending the Emergency caused by communist terrorism.

FIGHT TOWARDS INDEPENDENCE

Led a delegation to London to hold talks with the British Government regarding
independence for Malaya.
Convinced the British Government to set a date for independence.
The date set was the 31st of August, 1957.
The Malayan flag was symbolically hoisted to take the place of the Union Jack.
Early the next morning, the 31st of August, at the Merdeka Stadium, Tunku
proudly read the Proclamation of Independence, marking the birth of our country
as we know it now.

CONTRIBUTIONS
Brought forward the idea of Malaysia, to comprise Malaya, Singapore, North
Borneo (Sabah), Sarawak and Brunei.
The Philippines and Indonesia strongly opposed the formation of Malaysia, due
to personal interests of both countries.
On the 9th of July 1963, Malaysia was formed consisting of Malaya, Singapore,
Sabah and Sarawak. Unfortunately, Singapore left Malaysia on the 9th of August
1965.
The decision to let Singapore go was a sad one for Tunku as it was deeply
personal for him and reflected on the break of his friendship with Lee Kuan Yew.
Awards And Achievements

Order of Istiqlal, Maghribi, 1957

Grand Cross of the Order of the Crown, Belgium, 1958

Kedah Order of Merit, 1958

Order of Kim Khanh, Vietnam, 1958
Seri Paduka Mahkota Brunei, 1958
Order of Sikatuna, Phillipines, 1959
Chancellor's Award, Universiti Malaya, 1960
Doctorate in Law, University of Sydney, 1960
Degree of Doctor of Laws, Cambridge University, 1960
Honorary Doctorate, University of Saigon, Vietnam, 1961
Companion of Honour (C.H), United Kingdom, 1961
Doctorate from University of Aligarh, India, 1962

Knight Grand Cross of the Most Illustrious Order of Chula Chom Klao, Thailand,
1962
Grand Cross of the Royal Order of Sahametrai, Cambodia, 1962
Honorary Degree of the Premier of South Korea, 1965
Medal of Appreciation (First Class), Thai Red Cross, 6 September 1965
Tunisia's Highest Award, 5 July 1969
Honorary Doctor of Letters, University of Oxford, 29 June 1970
Doctorate from University of Songkla, Thailand, 1977
Honorary Member of Malaysian Medical Academy, 28 September 1978
National Sports Personality Award, 2 June 1979
United States Distinguished Service Award, 6 December 1981

Completed his legal studies despite numerous interruptions.

Organised Malay students in Great Britain through 'Kesatuan Melayu Great
Britain' (The Malay Association of Great Britain). He was elected secretary of the
association.
Served as District Officer at various districts in Kedah.
Tunku became President of UMNO.
Led the political alliance comprising of UMNO, MCA and MIC.
Tunku was appointed Chief Minister and Minister of Home Affairs after the 1955
general election.
Successfully led a delegation to London to hold talks with the British
Government concerning independence for Malaya and convinced the British
Government to set a date for independence: 31st August 1957.
On the 31st of August, at the Merdeka Stadium, Tunku read the Proclamation of
Independence.
In 1959, Tunku proposed the formation of Association of South-East Asia (ASA).
ASA was formed in 1961 and later evolved into ASEAN (Association of SouthEast Asian Nations).
Tunku mooted the idea of Malaysia which was later formed on the 9th of July
1963. Malaysia was formed consisting of Malaya, Singapore, Sabah and
Sarawak.
Tunku was appointed as Secretary-General of Organisation of Islamic Countries
(OIC), 1970

TUN DR MAHATHIR MOHAMMAD

INTRODUCTION

Mahathir bin Mohamad was the fourth Prime Minister of Malaysia.

Well known as father of modernization
His father had an Indian ancestry whereas his mother was a Kedah-born malay.
However, Mahathir still considers himself as a Malay.
Mahathir bin Mohamad was born on the 10th of July 1925 in Alor Setar, the
capital of the northern state of Kedah
Mahathir bin Mohamad was married to Dr Siti Hasmah Mohd Ali on the 5th of
August 1956.
Dr. Mahahthir was blessed with seven children. They are Marina, Mirzan,Melinda,
Makhzani, Mukhriz, Maizura and Mazhar.

Background

Mahathir was an active member of UMNO.

He was being sacked from the UMNO Supreme Council on 12 July because of
his act in distributing letter to Tunku Abdul Rahman, the first Prime Minister to the
public
In his letter, he had opposed the manner in which Tunku Abdul Rahman had
handled the countrys administration
Mahathir soon rejoined UMNO, which was after Tun Abdul Razak became the
prime minister of Malaysia in 1970.
In 1974, Mahathir was appointed as a Minister of Education
Soon, Mahathir was made as a Deputy Prime Minister in addition to being
Minister of Education right after Datuk Hussien bin Onn became the Prime
Minister in 1976.
Two years later, in a cabinet reshuffle, he became the minister of trade and
industry.
In 1975, he became one of the three vice-presidents of UMNO.
Soon, Datuk Hussein stepped down and had announced his retirement in June
1981
Mahathir was elected as a president of UMNO, which then lead him to become
the fourth prime minister of Malaysia on 16 July 1981.

ACHIVEMENT
Award of World Health Organization (WHO) Health-For-All Gold Medal by Hiroshi
Nakajima, Director General of WHO
Degree of medicine from the University of Malaya in Singapore
Government Medical Officer in Alor Setar General Hospital

 Great leader of Islamic country

A renowned statesman by representation of the African, Arabic and Asian group
of organization of Islamic Conference (OIC)
Accelerated Economic Growth through an export driven industrialization program
What is Vision 2020?
An ambitious vision by Malaysia's Fourth Prime Minister Tun Doktor Mahathir
Mohammad
New Economy Policy
Influence other countries

KLCC
Officially open on 31st August 1999
Being suggested to build after the Selangor Turf club moved
KLIA

Replace Sultan Abdul Aziz Shah International Airport.

Strategic location

SEPANG CIRCUIT
Being voted as the worlds most challenging track
Big exposure to auto motor sport.
Benefit for tourism industry.
PROTON
Launch on 7th May 1983.
The History began when president of MMC visit Malaysia.
Introduce Malaysia to the world.
Education

Minister of Education in 1975

Boarding school were introduced
Liberalization of university was promoted
Mathematics and Science subjects taught in English

Politic

Member of United Malays National Organization (UMNO) party in 1964

In 1970, he was expelled by his party for the publication of The Malay Dilemma
Mahathir was then elected as UMNO President in 1981.
Engineered the dismissal of the Lord President of the Supreme Court in 1988

Former finance minister and deputy prime minister, Anwar Ibrahim in 1997

Foreign policies
United States
Australia
China
Middle East
Singapore
Bosnia-Herzegovina
ASEAN
OIC
NAM
The Sabah Issue
South-South Co-operation
G15
UN
Kosovo
Policies
Look East Policy
The Malaysia Incorporated Policy
The Privatisation Policy
The National Development Policy
The Main Industrial Plan
The Third National Agricultural Policy (NAP3)
The Science and Technology Policy
HIS VIEWS
Ever heard of the two dragons in Asia?
Singapore Senior Minister Lee Kuan Yew and
Malaysias Prime Minister Tun.Dr Mahathir Mohammad
Written quite a number of articles.
All these reveal his views and political style
HIS CONTRIBUTION
Speed up Malaysias entry into Information Age.
Actualize Vision 2020.
A world of Smart Homes, Smart Cities, Smart Schools, Smarts Cards and Smart
Partnership.
Two Smart Cities in MSC : Putrajaya and Cyberjaya.