1. Community RESOURCE DEVELOPMENT
(DCE3411)
Associate Prof. Dr. Roziah Mohd Rasdi
Dept. of Professional Development & Continuing Education
Faculty of Educational Studies
Universiti Putra Malaysia

2. Malaysian Five-years Development Policies and New Economic Model
Topic 2
Malaysian Five-years Development Policies and New Economic Model

3. Development in Pre- and Post-Independent Malaysia

4. Period :1951 -1955 Phase of Development : Draft Development Plan
Major of Development Policy :
Infrastructural development and economic growth through primary commodities.

5. Period :1956 -1960 Phase of Development : 1st Malaya Plan
Major of Development Policy : Economic growth and infrastructural development especially towards the achievement of independence.
Rural and industrial Development Authority played its major role at the forefront of the community development programme.
Land development schemes are the government strategy for development among rural people.

6. There schemes are, federal land Development Authority (FELDA) and Federal land Consolidation and Rehabilitation (FELCRA).

7. Period :1961 -1965 Phase of Development : 2nd Malaya Plan
Major of Development Policy : Continuation of the land development programme, and the politico-administration improvement (enrich of the local participation in the development programme).
1st Strategy : The land development scheme became the primary approach. Government provide more land for the landless and create job opportunities for the needy.
2nd Strategy: To improve human resource support and involvement, the government introduced a decentralized community development policy.

8. Period :1966 -1970 Phase of Development : 1st Malaysian Plan
Major of Development Policy :
Infrastructural development, economic growth and eradication of poverty.

9. Participation from community are still low and poverty still underlying problem in local communities.
People should be educated to enable them to fully utilise the amenities and programmes provided, as sponsored and initiated by the state.

10. 1971-1975 : 2nd Malaysian Plan (NEP begins)
: 3rd Malaysian Plan
: 4th Malaysian Plan
Major of Development Policy
Implementation of NEP goals

11. Policies are: Intensification of rural development1
Intensification of rural development 2
Increase the participation of people in planning, implementation and gaining benefits of development 3
Equal opportunities for provisions such as education, health and housing 4
Increase job opportunities in public and private sectors 5
Creation of agencies based on commodities, target groups and regions 6 7
Economic growth through manufacturing and industry

12. Period :1986 -1995 Phase of Development : 5th & 6th Malaysian Plan
Major of Development Policy :
Towards achieving the National Development Plan.
Village Revolution was announced - aimed to improve standards of living, and increase the levels of productivity.

13. Policies are: Economic growth through industrialization1
Economic growth through industrialization 2
Increase use of technology in all sectors of development 3
Human resource development 4
Protection of environment and ecology – sustainable development 5
Inculcation of positive values in society 6
Reduction in structural imbalance between sectors and regions. 7
Interethnic unity

14. Period :1996 - 2000 Phase of Development : 7th Malaysian Plan
Major of Development Policy :
- Continuation of policies in the Sixth Malaysia Plan.
- Reemphasizes the concept of balanced development, sustained rapid economic growth and sustainable development.
- Moving towards Vision 2020.

15. Period :2000 - 2005 Phase of Development : 8th Malaysian Plan
Major of Development Policy :
Continuation of policies in the seventh Malaysia Plan.
Enhance competitiveness in economy to face globalization, liberalization and glocalization.
Shift of growth strategy from being input–driven towards knowledge–driven (k– economy, k–workers, k–society).
Upgrading R & D, and S & T in all sectors of development.
Social and political stability

16. Period :2006 - 2010 Phase of Development : 9th Malaysian Plan
Major of Development Policy :
Continuation of policies in the seventh Malaysia Plan.
Enhance competitiveness in economy to face globalization, liberalization and glocalization.
Shift of growth strategy from being input–driven towards knowledge–driven (k– economy, k–workers, k–society).
Upgrading R & D, and S & T in all sectors of development.
Social and political stability

17. NEW ECONOMIC MODEL Economic plan unveiled on 30 March 2010.
The first part of NEM has been presented on 30 Mac, while the second part of the report has been presented together with 10th Malaysia Plan & Malaysian Government Budget Proposal in October 2010.
From a Middle Income to a High Income Economy by 2020.
New Economic Model is expected to be anchored on:
innovation
creativity
high value sources of growth
modern services sector
skilled manpower

18. e
We Have Been in the Middle Income Trap for Quite Some Time History shows the need of a compelling reason to change is required to escape
GNI Per Capita
; USD thousand
(USD thousand)
Korea 22 20
Slovakia
Czech Rep 18 16 14
Poland 12
HIGH INCOME
BOUNDARY 10
Chile 8
Argentina 6
Malaysia 4
Thailand 2
Indonesia
Source : World Bank, NEAC Analysis

19. OVERALL FRAMEWORK NATIONAL TRANSFORMATION

20. The Goals to be Achieved
Rakyat
Quality of Life
Targets
US$15,000 - $20,000
per capita by 2020
Meets present needs without compromising future generations
Enables all communities to fully benefit from the wealth of the country
HIGH INCOME
Inclusiveness
SUSTAINABILITY

21. The Goals High Income Inclusiveness Sustainability
Lifting the real growth rate to an average of 6.5 % per annum over the period
Enhance growth for expanding economic opportunities
Promoting sustainability through improved public financial management
Per capita GDP will rise to about USD 17,700 by 2020
Pursue equitable and fair opportunities and fairness in process
Environmental sustainability as top priority
Aggregate demand will have to grow at a robust pace
Accelerate liberalisation for growth
Will unlock the value of investment to be as a main driver of economic growth by 2020 , as well as labour productivity and efficiency
Focus on the bottom 40% of households and small business
Private consumption will rise and increase its share of GDP
Emphasis opportunities for inclusiveness
Public consumption will slow down
Stress knowledge creation and the knowledge economy

22. STRATEGIC REFORM INITIATIVES
Enabling Actions
Strategic Reform Initiatives
Outcomes
Coherent “big push” to boost transformation and growth
Re-energising the Private Sector
Developing Quality Workforce and Reducing Dependency on Foreign Labour
Creating a Competitive Domestic Economy
Strengthening of the Public Sector
Transparent and Market friendly Affirmative Action
Building the knowledge base infrastructure
Enhancing the Sources of Growth
Ensuring Sustainability of Growth
Break logjam of vested interests through political will and leadership
High
Income
Middle Income Trap
Prepare Rakyat for change
Inclusive-
ness
Sustain-
ability
Risk
Downward
Spiral
Feedback: Review, Revise

23. Period :2011 - 2015 Phase of Development : 10th Malaysian Plan
Major of Development Policy :
Creating the environment for unleashing economic growth.
Strategies to create an environment that fosters economic growth with private sector as main driver.
Transforming government to transform Malaysia.
The role of government will evolve to become an effective facilitator in the transformation of the economy and provide quality services to the “rakyat”. (ie.citizens)

24. Moving towards inclusive socio-economic development.
Measures to ensure income and wealth are distributed in equitable manner.
Developing and retaining a First-World talent base.
Key to promote productivity and innovation-led growth. Strategies to develop, attract and retain quality talent base
Building an environment that enhances quality of life.
Economic growth will be supplemented by strategies to raise the quality of life of the “rakyat” that commensurate with the country’s higher income status.

25. Ten Big Ideas Internally driven, externally aware1
Internally driven, externally aware 2
Leveraging on our diversity internationally 3
Transforming to high-income through specialisation 4
Unleashing productivity-led growth and innovation 5
Nurturing, attracting and retaining top talent

26. 6
Ensuring equality of opportunities and safeguarding the vulnerable 7
Concentrated growth, inclusive development 8
Supporting effective and smart partnerships 9
Valuing our environmental endowments 10
Government as a competitive corporations

27. Period :2016- 2020 Phase of Development : 11th Malaysian Plan
Major of Development Policy :
Enhancing inclusiveness towards an equitable society
This commitment to enable all citizens participate in and benefit from the country’s prosperity.
Improving wellbeing for all
Wellbeing is essential to enhancing productivity and mobility, while simultaneously strengthening social cohesion and national unity.

28. Accelerating human capital development for an advanced nation
An efficient and effective labour market is necessary to attract investment into Malaysia and enable everyone to participate in and enjoy the benefits of economic growth.
Pursuing green growth for sustainability and resilience.
A reinforced commitment to green growth will ensure that Malaysia’s precious environment and natural endowments are conserved and protected for present and future generations.

29. Strengthening infrastructure to support economic expansion
Efficient infrastructure lowers the cost of doing business, which in turn improves national competitiveness and productivity.
Re-engineering economic growth for greater prosperity
A strong and broad-based economy, producing high-value goods and services, will generate the high-paying jobs associated with and advanced nation.

30. Thank You