NATIONAL

DEVELOPMENT
PLANS AND
POLICIES
Malaysia’s Main Policies
Privatization Policy
 Pros
•Business will run more
efficiently
•The government will have Reduce government
less responsibilities to look involvement
after
•Encourage competition Increase efficiency
within businesses of the public sector

•Division of businesses
between government and
Increase in
private sector Pro and Aims dividing the
cons natural resources

Cons Create more

•Government have opportunities for the
less control over the Bumiputras to
businesses establish in private
corporation
•Formation of
monopolies Privatisation Policy
•Business are profit
making

A committee has
been formed, Implications Features of the
consisting of:
•Economic Planning Unit
private sector
(EPU)
•Implementation Control Usually aimed at
Unit (ICU) making profit
Types of services that are
•Finance Ministry and usually transferred are:
Public Service Department
(PSD) •Hospitals
Privatisation is carried out in various Workers tend to have higher discipline •School
forms
•Public transport services
•Sale
•Other public services such as
•Leasing water and electricity
•Management contract
Owned by private individuals/companies
•Build-manage-transfer
•Build manage
Privatization policy
 Privatization refers to the sale or transfer of
control of a company, agency or an industry
that is owned or controlled by the
government to the private sector.
The basic objectives are:
 Reduce the government’s financial and
administrative burden

 Improve efficiency and productivity

 Accelerate economic growth

The basic objectives are:
 Reduce involvement of public sector in
the economy

 Help achieve the objectives of the New

Economic Policy
Examples of sectors privatized:
1. Telecommunications: Telekom Malaysia,
Maxis, etc

2. Broadcast: TV3, Astro, ntv7

Examples of sectors privatized:
3. Transport:
 Roads/Highways – Plus, Elite, Kesas, etc
 Arlines – Air Asia
 Port Management – West Port, Kelang Port
Management, Port of Tanjung Pelepas (PTP)
 Railways – KTM, Star, Putra, ERT
Examples of sectors privatized:
4. Public utilities:
 Electricity – TNB, Independent Power
Producers (IPP) e.g. YTL-Power
 Water Supply – Puncak Niaga
 Waste Management – Indah Water, Alam flora
Reasons:

i. Reduce financial & administration burden

ii. Improve efficiency and productivity
iii. Accelerate economic growth
iv. Reduce the size of public sector and its
involvement in the economy
v. Help to achieve the objectives of the NEP.
National Agricultural Policy

Main objectives:
 Maximise income from the agricultural
sector
 Maximise income of small-scale farmers
 Develop and increase yield and quality of
major commodities with high export
potential
Strategies:

 Opening of new land for agriculture by

agencies (e.g. Federal Land Development
Authority, FLDA)
 Improving land management and social
development in rural areas through
integrated development (e.g. Muda
Agricultural Development Authority, MADA)
Strategies:
 Providing support services in marketing,
research and development (e.g. Federal
Agricultural Marketing Authority, FAMA)
 Developing positive human attitude and
values in the agricultural society (e.g.
Human Resource Development)
National Industry
Policy
National Industry Policy

 Main objectives of the Industrial Master

Plan (IMP), 1983:

 To use the manufacturing sector as a

catalyst for industrial growth in the country
Main objectives
 To encourage the full use of the country’s
natural resources

 To raise the level of technology research

and development (R & D)
Steps taken are:
 To promote export-led economy

 To move into selected heavy industries

 To strengthen technological and human

resources
Steps taken are:
 To modernise and reorganize small and
medium-sized industries
 To foster higher efficiency and
competitiveness
 To re-examine and amend regulations
pertaining to investments
 National
Development
Policy
National Development Policy (1991)
 The National Development Policy (NDP),
was launched by Dato’ Seri Dr Mahathir
Mohamad in 1991 as a continuation of the
New Economic Policy.
National Development Policy (1991)
 The NDP maintains the strategy of the NEP
in the area of eradicating poverty and
restructuring and improving the social and
economic imbalance among the
communities.
The basic objectives are:
 To create optimum balance between
economic growth and apportionment
 To eliminate social and economic
inequality among the people
 To reduce the imbalance in economic
development among states and between
urban and rural areas
The basic objectives are:
 To build a progressive society with
positive social and spiritual values

 To build a disciplined and productive work

force
The basic objectives are:
 To promote the development of science
and technology

 To ensure the preservation of

environment and ecology
 NATIONAL
INCORPORATION
POLICY
NATIONAL INCORPORATION POLICY (1983)

 Aims at creating close, meaningful,

effective cooperation between the public
and private sector.
 Group of workers in both sectors play a
part in contributing towards enhancing
output to raise the productivity of a
“Malaysian Company” or semi-government
body that is jointly owned.
NATIONAL INCORPORATION POLICY (1983)

 Symbolizes the readiness of the

government sector to distribute business
opportunities, join or cooperate with the
private or public sector to organise effective
services for the people in integrated
manner.
 National
Development
Policy
National Development Policy (1991)
 The National Development Policy (NDP),
was launched by Dato’ Seri Dr Mahathir
Mohamad in 1991 as a continuation of the
New Economic Policy.
National Development Policy (1991)
 The NDP maintains the strategy of the NEP
in the area of eradicating poverty and
restructuring and improving the social and
economic imbalance among the
communities
The basic objectives are:
1. To create optimum balance between
economic growth and apportionment
2. To eliminate social and economic
inequality among the people
3. To reduce the imbalance in economic
development among states and between
urban and rural areas
The basic objectives are:
4. To build a progressive society with
positive social and spiritual values
5. To build a disciplined and productive work
force
6. To promote the development of science
and technology
7. To ensure the preservation of
environment and ecology
Vision 2020
Vision 2020

 The main objective is to make Malaysia a

developed nation by 2020, as presented in
a working paper entitled “Malaysia –
Stepping Forward” at the Malaysian Trade
Council in 1991 by Prime Minister Dr
Mahathir.
 By:
Former prime
minister
Mahathir

Origin
Where:
During the
Malaysian
business When:
council 28 February
1991
Vision 2020

 According to the vision, independent

Malaysia will become a truly advanced,
united, prosperous and progressive nation
by 2020. The people will live harmoniously
in a society that is tolerant, democratic,
just, moral, dynamic and resilient.
 To cultivate a
To form a community
community that is matured
that has high and tolerant To form a
morale, ethics nation that
and religious stand as one
strength

To develop a To cultivate a
mature prosperous
democratic community
community
The
Challenges

To form a
To cultivate a progressive
community science
rich in values To produce a
community.
and loving Malaysian
culture community
To ensure the
formation of a that has
community freedom,
with a fair strength, and
economy. full of self
confidence.
Basic challenges are:
1. Create a united Malaysian nation
2. Create a free, strong and self-confident
society
3. Build a tolerant, progressive and
democratic society
4. Form a society that is morally strong,
ethical and religiously sound
Basic challenges are:
5. Create a society that is caring and kind
6. Ensure that the society is fair
economically
7. Create a society that is prosperous
Objective

The vision calls for a

self-sufficient industrial,
Malaysian-centric
developed nation,
complete with an
economy, in 2020 that
will be eightfold
stronger than the
economy of the early
1990s.
Development of
Science and
Technology
Development of Science and
Technology
 Globalization refers to socioeconomic
processes like trading, manufacturing,
marketing and the transferring of capital on
a global basis.
 The world is moving into information-based
technology. Because of this, the
government has embarked on the
Multimedia Super Corridor (MSC).
Development of Science and
Technology
 Multimedia technology has been identified
as a catalyst for the creation of industries
that are cost-saving and not labour-
intensive.
How it begins
Aware of the need to keep pace with new technology, especially
in Information & Communication Technology (ICT)

National information Technology Council(NITC) 1994

Dr Mahatir Mohamad (chairman)

Advise government on matters pertaining to ICT in the M’sia

overall pursuit of development. Established with the vision
of creating a knowledge-and-value-based cicil society in line
with the aspirations of Vision 2020

Malaysia Institution of Microelectronics Systems(MIMOS)

1984. Secretariat to NITC and provides necessary support for
NITC’s activities
 •ICT does not provide
To sustain and
improve the solutions
quality ofto all the
life withinsocial woes and
population
economic needs.
•Could only enhance
To transform
Malaysia from a P-
what it already has, To improve
based economy to a especially the P- competitiveness in
the fields of science
K-based economy(production and technology
economy(Vision2020) economy)
•K-economy(knowledge
economy) has to co-exit
with P-economy

Objectives
 Past & present strategic plans for M’sia
•E-Economy(focuses on
M’sia’s economic adaptability in
•CAD/CAM/CAE the face of the emerging global
•E-Government
•VLSI Design K-economy)
•Multipurpose Card •Digital ContentPALMOILIS,
Development
6MP •Smart School 7MP•Network: 8MP •E-Public 9MP
SIRMLINK,Service(focuses on
•E-Commerce
AGROLINK, CSL, enhancing effective and
Jaringan
•Telehealth
• ICT was emphasized • National
•SSO
Information • Expansion of ICT • Focus on expanding
as an enabler mainly Technology
Pendidikan efficient
services among the delivery ofexisting
the services to
•E-Business
in the manufacturing Agenda(NITA)
•Bioinformatics general public and communications
the public through electronic
•R$D Cluster
sector catalyses the
transformation of
rural area were
priority means)
given network across the
country
• National Information
•Technopreneur
Technology M’sia into a value-
•Advanced manufacturing• National Broadband • MY|CMS 886
based economy •E-Community(focuses on
Development
Council(NITC) to
through•Advanced
the
• Communication &
Materials
Multimedia
• reduce digital divide
ensure ICT is well strengthening community
• Develop existing cyber
•Biotechnology
integrated in the socio- My|CMS886
development of talent, Services(My|CMS)886
•Microelectronics
infrastructure and Blueprintrelations
was throughcities & develop new
electronic
•Nanotechnology RFID
economic fabric of the
applications Development
•Content to benefit
ones(MSC Phase II)
nation •Biotechnology
the Malaysian society
introduced in 2005 for
networking) • Faster new growth
•Wireless Technologies •ICT Education Hub the orderly integrated sectors such as
•ICTSuper
• Multimedia •E-Sovereignty(focuses
development 3 bioinformaticson
•MEMS •Digital Multimedia
Corridor(MSC) is M’sia Receivers
converging
•Multimedia Technology
bold experimental national
technologies:
• Develop ICT talent
cellular concerns in the context
•Photonics •Communication
venture into the Devices • Enhancing information
•Energy telephony, Internet
of the borderless world of ICT
security
•Laser Technology •Embedded Components
creation of a world- and broadcasting
•Aerospace
class multimedia & •E-Learning(focuses in
•Fuel Cell Technology •Foreign Ventures
content industry.
•Nanotechnology
• E-Initiative strengthening community
•Robotics
•Photonics relations through electronic
•IT Solution
•Pharmaceuticals network)

1990 1995 2000 2005 2010

 Mooted by NITC

Inputs for the

formulation of
Strategy3: Use strategic policies,
Signposts & Vision programmes and
Areas to manage plans to intensify
opportunities & risks M’sia’s
Strategic transformation to a
ICT Road K-based economy
Map for
Malaysia

Strategy2:
Rationalize Strategy1: Be a
institutional global leader in 3
arrangement & Technology Focus
accelerate K-based Areas
Ecosystem
2.
1.
3.Predictive
Wireless
3-D Internetanalytics
Sensors
(Multimedia Networks
(ICT info-
structure):
(ICT
Digital infrastructure):
Content):
••• Harnesses
WSN is emerging
A set of fundamental
technologies
&services
element totocomputing,
technologies make
for creating,
predictions
making surroundings
distributing about the future
& rendering 3D
“smart”
events by
scenesfrom linking
large amounts
& animations advanced
in
of
sensors
structured
immersive, withmulti-user,
&computer
unstructured
networks data using
online environments
•• statistics
Autonomous & data
eg. Entertainment, devices
mining using
image
techniques
sensors
renderingto&cooperatively
data
• eg. monitor
Weather
physical
visualisation, &disaster
or game
online
predictions,
environmental
architecture,prediction
conditions,
multimedia,
markets,
such as temperature,
marketing healthcare
assistance…..
diagnostic…..
sound, vibration, pressure,
motion or pollutants, at
different locations Strategy1: Be a
global leader in 3
Technology Focus
Areas
 To ensure a robust &
sustainable ICT ecosystem,
there is a need to rationalize
the institutional arrangement,
and accelerate development of
talent, infrastructure,
innovation and
commercialization capacity

Strategy2:
Rationalize
institutional
arrangement &
accelerate K-based
Ecosystem
 •Provides a methodology for
continuous monitoring with
feedback signposts so as to
better manage opportunities
Strategy3: Use and risks associated with
Signposts & Vision technology and its rapid
Areas to manage
opportunities & risks impacts on market
•Used to identify potential
events along the future
timeline that will impact the
Technology Focus Areas and
the key sectors of the
Malaysian economy.
Other developments:
1. The construction of the new government
administrative center at Putrajaya.
2. The setting up of institutions of higher
learning, e.g. Multi-Media University
3. The establishment of telemedicine
facilities
Other developments:
4. The use of smart card

5. The setting up of Smart Schools

Main objectives for the development
of Science and Technology:
1. To develop science and technology
resources in the country, such as
technical and scientific personnel,
research institutes, institutions of higher
learning, etc.
Main objectives for the development
of Science and Technology:
2. To develop the capability of local
entrepreneurs in choosing viable
enterprises and then in discussing,
adapting and innovating foreign
technology through the co-operation
agreement, outright purchase, technical
co-operation, joint-venture, lease of
license, franchise, etc.
Policy of Applying
Islamic Values in
Administration
Policy of Applying Islamic Values in
Administration
 To create a proud Malaysian society that
has a strong identity and respected by
other societies
 To eliminate negative attitudes when
carrying out duties or responsibilities
 To produce good quality service
Introduction
 Islamic Law
 Known as Shariah Law
 Means way or path to the water source
 System of law of the unified disciplines based on
the Quran (the religious text of Islam), hadith
(sayings and doings of Muhammad and his
companions), Ijma (consensus), Qiyas
(reasoning by analogy) and centuries of debate,
interpretation and precedent.
 Applicable

Ethics Fairness

Syariah Law

Military
Economic
Jurisprudence
Islamic Laws in Malaysia
State Law Matter
Except
Fed. Territories

Syariah Court Muslims

Article 121(1A)
Of the Constitution
Of Malaysia

Sultans Customary Laws