Malaysian development experience

Lessons for developing countries

Ragayah Haji Mat Zin

    Research output: Contribution to journalArticle

    6 Citations (Scopus)

    Abstract

    This paper describes the policies pursued by Malaysia in her attempt to attain growth with equity, which she has achieved relatively well. These include education provision and employment creation, export-oriented industrialisation, rural development, and restructuring equity ownership and asset accumulation. Her success is indicated by her structural transformation from an agricultural to an industrial economy as well as improved quality of life and income distribution with low poverty incidence. The positive lessons that could be drawn for other developing countries with similar background comprise, first, emphasising agricultural development through large allocations that enabled Malaysia to a leading producer of rubber and palm oil which helped finance the industrial sector. Second, despite its weaknesses, the New Economic Policy was successful in promoting growth and equity and maintaining racial harmony and political stability. The latter, together with trade-friendly policies, investment in infrastructure, human capital development supported the policy of promoting growth through foreign direct investment. Fourth is the importance of literacy and widespread access to education. Finally, there were social safety nets to assist the less fortunate. And the most important of the pitfalls to be avoided is state-government-party collusion that promoted rent-seeking behaviour.

    Original languageEnglish
    Pages (from-to)17-55
    Number of pages39
    JournalInstitutions and Economies
    Volume6
    Issue number1
    Publication statusPublished - 2014

    Fingerprint

    Developing countries
    Malaysia
    Education
    Equity
    Equity ownership
    Palm oil
    Harmony
    Income distribution
    Industrialization
    Quality of life
    Rural development
    Foreign direct investment
    Economic policy
    Investment policy
    Rubber
    Assets
    Poverty
    Industrial sector
    Literacy
    Agricultural development

    Keywords

    • Growth with equity
    • Income distribution
    • New economic policy
    • Poverty

    ASJC Scopus subject areas

    • Business, Management and Accounting(all)
    • Economics, Econometrics and Finance(all)

    Cite this

    Malaysian development experience : Lessons for developing countries. / Mat Zin, Ragayah Haji.

    In: Institutions and Economies, Vol. 6, No. 1, 2014, p. 17-55.

    Research output: Contribution to journalArticle

    Mat Zin, Ragayah Haji. / Malaysian development experience : Lessons for developing countries. In: Institutions and Economies. 2014 ; Vol. 6, No. 1. pp. 17-55.
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