Assignment Cover Sheet

Name: Asmil Bin Roslan

Student ID Number: 220537
DPP: YAB
E-mail Address: asmilroslan@gmail.com
Phone Number: 019-5382414
Assignment Name: Main Policy In Malaysia
Subject Name: Transport Planning and Policy
Name of Lecturer: Madam Emy Ezura Binti A Jalil
Due Date: 29 March 2015

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Date 29 march 2015

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CONTENTS
1

INTRODUCTION.............................................................................3

DISCUSSION.................................................................................4
2.1

New Economic Policy (NEP).........................................................4

2.2

Malaysia Incorporated Policy.......................................................4

2.3

Privatization Policy....................................................................5

2.4

Rural Development Policy...........................................................6

CONCLUSION................................................................................8

REFERENCES.................................................................................9

1 INTRODUCTION
Policy is a deliberate system of principles to guide decisions and achieve
rational outcomes. A policy is a statement of intent, and is implemented
as a procedure or protocol. In Malaysia there is 8 main policy which is
the

Vision

2020

Policy,

New

Economic

Policy

(NEP),

Malaysia

Incorporated Policy, Competitive Economic Policy, Privatization Policy,

Human Resource Development Policy, Knowledge-Based Economy Policy,
and Rural development Policy. All this policy have been made by
government to ensure the stability of Malaysian citizen and to ensure
nation development.

2 DISCUSSION
2.1

New Economic Policy (NEP)

The launching of the New Economic Policy (NEP) in 1971 was a
watershed in the Malaysian economic policy history. The NEP
underscored the importance of achieving socio-economic goals
alongside pursuing economic growth objectives as a way of
creating harmony and unity in a nation with many ethnic and
religious

groups.

The

overriding

goal

was

national

unity

(Economic Planning Unit, n.d.). This Policy was conceived as a

two-pronged strategy of eradicating poverty for all Malaysians as
well as reducing and subsequently eliminating identification of
race by economic function and geographical location. The Policy
sought to achieve its objectives through rapid expansion of the
economy over time and set its target of substantially reducing
incidence of absolute poverty by 1990. To achieve this, the Policy
called for aggressive improvement of economic status and
quality of life for all Malaysians through 4 aspect which is Access
to land, Physical capital, Training Public, and facilities. From this
policy we can see that government trying to achieve the policy
goal by improving transport planning and facilities of nation.
Wide access of land and plenty of facilities can boost and then
improve our economic level thus can reduce poverty level in our
nation (Dr. Jean-Paul Rodrigue).
2.2

Malaysia Incorporated Policy

The Malaysia Incorporated concept was first announced by the
Prime Minister in 1983 and it represents a new way of
approaching the task of national development. Both the public
and private sectors adopt the idea that the nation is a corporate

or business entity, jointly owned by both sectors public and

private, and working together in pursuit of a common mission of
the nation. The example of public private partnership in
transportation sector is Plus Expressways, PLUS Malaysia Berhad
operates and maintains 973 kilometer length of inter-urban
expressways in Peninsular Malaysia, including the North-South
Expressway (NSE) stretching from the border of Thailand to
Singapore and others including the Expressway Lingkaran
Tengah (NSECL) linking Kuala Lumpur to the Kuala Lumpur
International. It is the first expressway to be implemented via
public private partnership using the Build Operate Transfer model
in Malaysia that was completed in 1988. Another example is
Stormwater Management and Road Tunnel (SMART), SMART is
an initiative by the Government to alleviate the flooding problem
in the KL city center as well as being a traffic dispersal scheme.
The project was completed in 2007 and the construction cost of
RM1.9 billion is expected to be recovered via toll collections
within 40 years. The project was implemented through a joint
venture pact between MMC Corp Berhad and Gamuda Berhad
with the Department of Irrigation and Drainage Malaysia and the
Malaysian Highway Authority as the executing government
agencies (PricewaterhouseCoopers, 2012).
2.3

Privatization Policy
The privatization policy was first announced as a national policy
by the Government in 1983. It represents a new approach in the
national development policy and complements other national
policies such as the Malaysia Incorporated policy, developed to
underscore the increased role of the private sector in the
development of the Malaysian economy. This approach is to

facilitate the countrys economic growth, reduce the financial and

administration

burden

of

the

Government,

reduce

the

Government's presence in the economy, lower the level and

scope of public spending and allow market forces to govern
economic activities and improve efficiency and productivity in
line with the National Development Policy. In respect of
ownership of wealth, the privatization policy forms an integral
part of the Government's strategy in realizing active participation
by Bumiputera in corporate sector to correct the imbalances in
the corporate sector participation. This policy have given a huge
benefit to transport sector which is the transport sector can be
develop rapidly due to the various form support provided by
government. These forms of support were given especially for
privatized project with a high social component such as Light Rail
Transit System (LRT) and roads with low traffic density to ensure
that these services were produced at affordable prices to the end
users after privatization (Economic Planning Unit). Another
example of privatization is privatization of Penang Port, the 225year old Penang Port which was previously owned by the Ministry
of Finance was recently privatized to Seaport Terminal Sdn Bhd.
The port has seen a drop in ranking to number five in the
country from number two in terms of throughput behind Port
Klang,

Northport,

Westport

and

Port

of

Tanjung

Pelepas.

Privatization has been claimed as necessary to boost the ports

competitiveness, efficiency and ensure its long-term survival.
2.4

Rural Development Policy

This policy crated to intensify development in rural area and
narrow economic gap between urban and rural areas. The
development will increase access of the rural community to

generate better income through various cottage and craft

industries. The most important thing of this policy is to further
improve the quality of life of the rural population through
increasing physical and social infrastructure. Because of its
intensive use of infrastructures, the transport sector is an
important component of the rural economy and a common tool
used for rural development. A relation between the quantity and
quality of transport infrastructure and the level of economic
development is apparent. High density transport infrastructure
and highly connected networks are commonly associated with
high levels

of development. When transport systems are

efficient, they provide economic and social opportunities and

benefits to rural area that give positive effects to the rural
development.

3 CONCLUSION
Government policies are important, entrepreneurial activity leads to
economic growth and helps to reduce poverty, create a middle class, and
foster stability. It is in the interest of all governments to implement
policies to foster entrepreneurship and reap the benefits of its activity.
Government want to make sure all the policies are implemented and
achieving the goal for the development of nation and stability of citizen
life.

4 REFERENCES
Dr. Jean-Paul Rodrigue, D. T. (n.d.). THE GEOGRAPHY OF TRANSPORT SYSTEMS.
Retrieved from
https://people.hofstra.edu/geotrans/eng/ch7en/conc7en/ch7c1en.html
Economic Planning Unit. (n.d.). Retrieved from Economic Planning Web site:
http://www.epu.gov.my/en/dasar-ekonomi-baru
Economic Planning Unit. (n.d.). Privatization Policy in Malaysia. Retrieved from
www.epu.gov.my: www.epu.gov.my/epu-theme/RMK7/Chapter%2007%20%20Privatization.pdf
PricewaterhouseCoopers. (2012, September 12). Retrieved from www.pwc.com:
www.pwc.com/my/en/assets/services/ppp-projects-in-malaysia.pdf