Sustainable Strategies for Economic Transitions in Malaysia

Abstract

This chapter will analyse the three basic elements of economic sustainability in Malaysia, i.e. the socio-economic policies, democratization of housing and education, and mobilizing the “trust funds” that are pro-poor. A historical overview in the first part of the chapter is supposed to help the reader to get some idea about the many transitions Malaysia underwent throughout its history. As shall be explained, Malaysia was able to utilize western ideas and models since its independence. Later on, in the 1980s, Malaysia employed the Look East Policy towards the Japanese humanistic model of Japan’s work style. Beyond the 1990s and certainly beyond 2000, China’s economy seems to influence the Malaysian counterpart. Finally, Malaysia employed a uniquely designed formula to manage her transitions. The stability of the government and the visions of a country’s leaders play a crucial role in managing transitions successfully and in ensuring the sustainability of the economy. A list of strategies will be based on the lessons learnt from Malaysia’s transitions, before arriving at the conclusion that the Malaysian model would be useful for many developing countries, especially those with the British colonial background and natural resources.

6.6 Appendix: Figures and Tables

Fig. 6.2

The Federal Government Budget 2013 (Source: Malaysia Economic Planning Unit (2010) Economic Report, 2012–2013)

Fig. 6.3

Major Economic Policies Vision 2020 (Source: Malaysia Economic Planning Unit (2010) Economic Planning Unit Briefing by the Director general)

Table 6.2 Number of students benefiting education in private and public institutions of higher learning

Table 6.3 Malaysia’s economic structure

Table 6.4 Malaysia’s self-sufficiency levels in food commodities 2000–2010 (%)

Table 6.5 WAWASAN 2020

Table 6.6 Debate: with 8 years remaining, is Malaysia on track to fulfill Vision 2020?