MALAYSIA PLANS

Shaping a Prosperous and Progress Malaysia

Since gaining independence on 31 August 1957 until now, Malaysians have enjoyed a prosperous life for 57 years now. The nation status has changed, from a poor nation to the upper middle-income nation.

The country’s economy has been prosper and progressed, from an economy dependent on agriculture and primary commodities, now has expand to an economy that based on manufacturing, driven by export and spurred on by high technology, knowledge and capital-intensive industries.

This was achieved through the implementation of five-year economic development plans that began with the First Malaya Plan (RM1) from 1956 to 1960 and Second Malaya Plan from 1961 to 1965. After the formation of Malaysia in 1963, the five-year plan then was known as Malaysia Plan (MP) inclusive Sabah and Sarawak, as opposed just Peninsular Malaysia before. The First Malaysia Plan began in 1966 until 1970 and now Malaysia is under the Tenth Malaysia Plan (2011 to 2015).

PLAN	PERIOD	EMPHASIS
First Malaya Plan	1956 – 1960	Agricultural productivity
Second Malaya Plan	1961 – 1965	Rural development
First Malaysia Plan	1966 - 1970	Eradication of poverty
Second Malaysia Plan	1971 - 1975	Socioeconomic balance
Third Malaysia Plan	1976 - 1980	Industry
Fourth Malaysia Plan	1981 - 1985	The Private sector
Fifth Malaysia Plan	1986 - 1990	Moderate and stable growth
Sixth Malaysia Plan	1991 - 1995	Balanced growth
Seventh Malaysia Plan	1996 - 2000	Resilience and strengthening of the economy
Eighth Malaysia Plan	2001 - 2005	National unity and harmony
Ninth Malaysia Plan	2006 - 2010	Human resource development
Tenth Malaysia Plan	2011 – 2015	Towards high income nation

First Malaya Plan (1956-1960)

The main emphasis of the plan was to develop basic facilities and to diversify agricultural production in rural areas with more than RM478.2 million or 44.5% of total allocation went to the rural development projects. Two key agencies established, the Federal Land Development Authority (FELDA) and Ministry of National and Rural Development.

 

Second Malaya Plan (1961 – 1965)

The plan achieved a greater success than its predecessor. The plan aimed to improve the economy to maintain living standards through the product development other than rubber. 

First Malaysia Plan (1966-1970)

The first plan that encompassed Peninsular Malaysia, Sabah and Sarawak emphasised on poverty eradication. It also aims of cultivating social integration amongst the people of various states in Malaysia, improving economic growth and the welfare of the people. The New Economic Policy (NEP), which was drafted by the National Action Council (MAGERAN) to create national unity through the eradication of poverty irrespective of race, was introduced.

Second Malaysia Plan (1971-1975)

The second plan is the first phase of the First Long-term Framework Plan under the framework of the New Economic Policy (NEP:1971-1990). This plan implemented to achieve the NEP's objectives to redress the socio-political imbalances which existed between races, the different regions and states of the country. The manufacturing industries were identified as the main area of growth for the nation.

Third Malaysia Plan (1976-1980)

This plan is the second phase of the NEP, the strategy in modernizing agricultural sector and expand labour-intensive industries had been intensified. Under this plan, country’s economy grew at 7.8 per cent that was slightly less than targeted.

Fourth Malaysia Plan (1981-1985)

Various programmes were intensified to increase income and improve the living standards for the people. The strategy for growth included the increase in agricultural produce, increasing diversity in industrial sector with focus on heavy industry, modernising the financial sector and increasing sources of growth. Privatisation policy was implemented in 1983.

Fifth Malaysia Plan (1986-1990)

Development under purview of this plan emphasised on stable but moderate growth due to the discouraging economic situation and unstable world economy. The private sector became the catalyst for economic growth, particularly in the growth of heavy industries and natural resource-based activities. The implementation of the Privatisation Policy was intensified. Gross Domestic Product grew by 6.7 per cent per annum compared to a target of 5 per cent.

Sixth Malaysia Plan (1991-1995)

The plan is the first phase of the Second Long Term Framework Plan under the National Development Policy (1991-2000). The most obvious focus in the nation’s macroeconomic strategy is to strengthen production capacity and international competitiveness to boost Foreign Direct Investment. Emphasis was given to ‘balance growth’ based on the awareness that continued growth depended on diversification of the economy. Rapid growth rate recorded at 8.7 per cent per annum, outperforming the targeted 8.1 per cent.

Seventh Malaysia Plan (1996-2000)

The plan undertaken comprehensive strategy to further drive balanced economic growth as a preparation to face challenges in twenty-first century .The key driver in this plan is the shift from development based on input to one that based on productivity to increase output, a more substantive transformation and balanced development. In 1998, National Economic Action Council and National Economic Recovery Plan were established with intention to safeguard the unsteady economy due to the currency crisis that hit in July 1997.

Eighth Malaysia Plan (2001-2005)

The plan is the first phase of the Third Long-term Framework or known as the National Vision Policy (2001-2010) as a roadmap in realising Vision 2020. The strategy of the plan focused on resilient national growth, redirect economic growth strategy from input-based to a knowledge-based economy. Emphasis was given to private sector in spearheaded the economy supported by development of human resources, intensification of Research & Development (R&D) and application of technology particularly in Information Communication Technology (ICT).

Ninth Malaysia Plan (2006-2010)

The Ninth Malaysia Plan, which aims to create prosperity, is one of the most important Malaysia Plans in the country’s history as the country is at the halfway point in its journey towards the year 2020. This plan encompasses an amalgamation of government initiatives to create a nation with a developed economy, a balanced social development, with a citizenry which is united, cultured, of good character, one that is knowledgeable and forward-thinking. Five Regional Development Programmes introduced with aim to heighten the impact by consolidating the efforts to develop the nation.

  

Tenth Malaysia Plan (2011-2015)

The New Economic Model has been introduced under this plan to transform Malaysia into a High-income and High-productivity economy to give a quantum-leap impact in realising Vision 2020. The key target in the plan is to increase gross per capita income to RM38,850 in 2015, and this requires six per cent per annum in economic growth rate. Private sector will be the economic growth leader while agriculture and agro-based product rejuvenated to amplify income especially in rural areas. Focus is given to 12 National Key Economic Areas (NKEA’s) that will give high income and impact on the economy.