Challenges Faced by Malaysia in Its Journey Towards a High Income Nation at 2020
1. Introduction
The prime minister Najib Tun Razak, on 2 may 2010, announced his new program named as New Economic Model (NEM) to make Malaysia a “developed” and “high income” country at 2020. To be more specific the main target is to increase the per capita income to 17,700 USD from 7558 UDS by 2020.
But what are the problems for the Malaysia in this way to become a developed and high-income nation?
1- The Economic Transformation And Need For New Institutions:
In the past years, Malaysia has used a growth model to become a middle-income country. Now, it has decided to become a high-income country. So, they growth model has to be changed to another model to guarantee the goal of becoming a high-income country. In this way, Malaysia has to perform its economic transformation plan, develop, and engender the organizations and institutions needed for this transformation.
2- Unity and Coalition of the Nation and Government:
Malaysia as it is known for being the truly Asia, its population is comprised of various ethnics, with various cultures, religions and wants. One group wants to have a pragmatic perspective to the economic and politic issues, another want to have an ideological perspective. More than 50% of the population is Muslim with Islamic views and having the government power. On the other hand, about 30% of the population is Chinese with an economic power and having a strong presence in the market, which most of them are Christians or Buddhists.
But we know that to reach to big goals a unity between this ethnics and coalition in the politics and economy, in addition stability in the policies and regulations, and the perspective of the nation and government toward the economy, policy and international issues is very vital and important. In fact, the Malaysia people need to rally together as a nation to embrace change, be adaptive to today’s environment and increasingly globalized and rapidly changing world.
3- Politics and Opposition Groups:
The prime minister Najib Tun Razak, on 2 may 2010, announced his new program named as New Economic Model (NEM) to make Malaysia a “developed” and “high income” country at 2020. To be more specific the main target is to increase the per capita income to 17,700 USD from 7558 UDS by 2020.
But what are the problems for the Malaysia in this way to become a developed and high-income nation?
1- The Economic Transformation And Need For New Institutions:
In the past years, Malaysia has used a growth model to become a middle-income country. Now, it has decided to become a high-income country. So, they growth model has to be changed to another model to guarantee the goal of becoming a high-income country. In this way, Malaysia has to perform its economic transformation plan, develop, and engender the organizations and institutions needed for this transformation.
2- Unity and Coalition of the Nation and Government:
Malaysia as it is known for being the truly Asia, its population is comprised of various ethnics, with various cultures, religions and wants. One group wants to have a pragmatic perspective to the economic and politic issues, another want to have an ideological perspective. More than 50% of the population is Muslim with Islamic views and having the government power. On the other hand, about 30% of the population is Chinese with an economic power and having a strong presence in the market, which most of them are Christians or Buddhists.
But we know that to reach to big goals a unity between this ethnics and coalition in the politics and economy, in addition stability in the policies and regulations, and the perspective of the nation and government toward the economy, policy and international issues is very vital and important. In fact, the Malaysia people need to rally together as a nation to embrace change, be adaptive to today’s environment and increasingly globalized and rapidly changing world.
3- Politics and Opposition Groups:
Bibliography: Central Bank Malaysia. (2010). Annual Report. Kuala Lumpur. Ministry of Eduation. (2011). Economic Transformation Programme: A Roadmap for Malaysia. Kuala Lupmur. Oxford Business Group. (2011). The Report: Malaysia 2011. London: Oxford Business Group publication. World Bank. (2011). Malaysia Economic Monitor: Brain Drain. Bangkok: World Bank. YAKCOP, T. S. (2011, July 26). MALAYSIA’S ECONOMIC CHALLENGES: CHARTING POLICY RESPONSE TOWARDS A HIGH INCOME ECONOMY. Kuala Lumpur, Malaysia.