etp_handbook_chapter_1-4_economic_model

etp_handbook_chapter_1-4_economic_model - chapter 1 New...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
chapter 1 New Economic Model
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
57 Economic Transformation Programme A Roadmap For Malaysia Chapter 1: New Economic Model of Malaysia alaysia has achieved significant economic and social progress over the past several decades. However, the world economy is changing, and Malaysia needs a fundamentally new economic model in order to become a high-income nation. Our historical growth engines are slowing, we risk being caught in a middle-income trap, our fiscal position is arguably unsustainable while global competition for markets, capital and talent is increasingly intense. In response, the Economic Transformation Programme (ETP) represents a marked change in approach that builds on the Tenth Malaysia Plan and input from the National Economic Advisory Council (NEAC). The ETP focuses on key growth engines or National Key Economic Areas (NKEAs). It relies heavily on private sector-led growth, describes very specific investments and policy actions and has a clear transparent implementation roadmap with strong performance management. MALAYSIA HAS MADE SIGNIFICANT PROGRESS Sustained rapid economic growth has raised Malaysia from an agricultural and commodity-based low-income economy to a successful middle-income economy. Our story of moving from low-to middle-income status is one of the world’s success stories of the past few decades. Since 1945, Malaysia is one of only 13 countries 1 to have sustained growth of over 7 percent or more for 25 years. This strong economic performance has helped improve the quality of life for Malaysians and supported advances in education, health, infrastructure, housing and public amenities, some of which are shown in Exhibit 1-1 . Growth has also been accompanied by a near-eradication of hardcore poverty, which fell from 6.9 percent in 1984 to 0.9 percent in 2010. Primary school enrolment is now nearly universal. Basic healthcare has improved in the past two decades with life expectancy rising and infant mortality rates falling significantly. As a result, Malaysia’s score in the United Nations Human Development Index rose from 0.67 in 1980 to 0.83 in 2007, surpassing the 0.8 score benchmark for countries with high standards of human development. M 1 The 13 countries are Botswana, Brazil, China, Hong Kong SAR, Indonesia, Japan, Republic of Korea, Malaysia, Malta, Oman, Singapore, Taiwan and Thailand
Image of page 2
58 Chapter 1 New Economic Model of Malaysia Exhibit 1-1 Despite this progress, significant challenges remain. For example, 7 percent of the rural population live below the poverty line; only 80 percent of the workforce have education up to SPM (Sijil Penilaian Menengah) qualifications (high school equivalent to O-levels); and Malaysia’s economic growth has been sluggish over the decade since the Asian financial crisis. Our task is to build on the platform we have established over the past few decades and create the next generation of national development.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern