a) Evaluate Discuss FOUR (4) contributions of New Economic Policy (NEP) in facilitating

the rapid increase of Malay economic development during the premiership of Tun Abdul

Razak.

New Economic Policy has been introduced by Tun Abdul Razak in his premiership as a long

term policy. It is a government plan that launched in 1970 through 2 nd Malaysian Plan that aims

to eradicate poverty irrespective of race and restructuring Malaysian Society to correct

economic. After the Emergency Declared, Tun Razak worried watching Malay as a dominant

race in Malaysia left behind in term of economy. The difference rate between income class

worried him as the low class may feel unsatisfied with the high or elite class. It is a development

plan to boost Malaysia economy, aims for 20 years forward, that cover the 2 nd,3rd,4th and 5th

Malaysian Plan(1970-1990) . Tun Razak ty to eliminate the identification of race with economic

function. New Economic Policy is the first long term policy that have been made after the

independence.

One of the contributions of new economic policy is the rapid modernization of rural

development, facilitating the more efficient access and use of FELDA Land. FELDA have been

used to achieve this target, as it is suitable with their establishment purpose, as an agency to

handle the resettlement of rural poor into newly developed area and to organize small holder

farms. Settler were chosen from rural Malay poor aged between 21 and 50 years. They have been

gather at FELDA and been restructured. In the early existence, there is not much modernization

and access to information. Time by time, FELDA have been completed with basic infrastructure

such as school, medical center, water and electricity. FELDA was a result to the first phase of

Malaysia Rural Development Transformation. FELDA focus on the plantation of palm oil and
rubber as the main commodities in the establishment. Under the act 0f 474 and 530, FELDA has

been authorized to develop new territory and receive the power to handle and organize project

directed to them.

Besides that, the contributions of new economic policy are the improvement public

amenities in the rural areas and training opportunities for the high number of unemployed rural

youths. Public amenities quite poor in the early 1970 especially in rural area. By this policy,

some of rural area has been face a lot of improvement by the development of infrastructure such

as water, electricity and medical center. FELDA was one of the rural area that been lose to the

basic infrastructure. A lot of hospital, clinic, road and public building has been built to improve

the rural area. Kampung Baru also included in this plan. ^To give the training opportunities for

the high number of unemployment, Maktab MARA has been changed to Insitut Teknologi

MARA as a plan to settle the problem that has been stated by United Nations.300 acre of land

have been approved as a site to build a campus. The campus will be used to train the young

bumiputera in certain area of study, mostly the critical part that cannot been focused by

government, such as business and industry. At the early phase, ITM has been control by

Kementerian Luar Bandar, the second phase under Kementerian Pendidikan by the act of 173.

Next, the contributions of New Economic Model are the intensive of Malay exposure in

the urban sectors of commerce and industry that to be steered by such public enterprises. It is one

of the government desire for people in Malaysia have the portion to the economy such as

enterprise and the acquisition of share stock. Focusing on Bumiputra, government want to

increase the hold by the Bumiputra to 30%,40% for non-bumi and 30% from foreigners.

Government try to ease the ownership for people by the Ministry of Trade and Industry and other

Government Link Companies. Some of the GLC is Perbadanan Nasional Berhad that take care of
Amanah Saham Nasional for bumiputra status to have some indirect ownership in any

investment made by PNB. The task of Majlis Amanah Rakyat (MARA) is to help the bumiputra

that want to participate in enterprise and commerce by giving the training and grants for start the

business. Perbadanan Nasional Berhad (PERNAS) also one of the main player in New

Economic Policy to help the Malay in ownership of economy.

New economic Model also introduced most of the programs designed to expand the

involvement of the Malay or Malay quota for government employment, education & application

to the private sector of the economy. Malay has received a lot of advantages in the policy either

economy and social. New Economic Policy was made to avoid the feel of unsatisfied between

Malay at rural and urban. This policy wants to reduce the income gap so the aims for national

unity. Some of Malay privileges, that been received yet been stated in federal constitutions is the

right of Malay in government sector. They have formulated the quota system in new unified

Malaysian Administrative & diplomatic service (PTD) 4: 1. Now, the Malay are the majority in

public service. Malay also enjoys favorable quota in admission & receiving scholarship to higher

education. A lot of admission for scholarship would require the status of Bumiputra to allowed

them received the scholarship. Malay also have the privileges that applied to land law, as the

status of Malay ownership cannot be changed to other races.

As a conclusion, New Economic Policy have showed a lot of impact, especially

bumiputra in economic and social. Malaysia has changed a lot in this long term policy, with the

assist of 5 years’ economic policy. Malay has received a lot of impact and now has can be watch

physically as a lot of Malay now has enterprise and educated. But yet, Malay are still the most

races in low income level, yet this kind of policy should be implement with some adjustment to

applied with this new era.

Tun Abd. Razak was the second Prime Minister of Malaysia from 1970- 1976.He was the

predecessor of Tunku Abdul Rahman. He is graduated degree from Utter Barrister from Lincoln

Inn. He became the youth chief of United Malays National Organization(UMNO) in 1950. He

became Pahang Chief Minister in 1955 and was also a member of Independence mission to

London. He was also become Minister of Rural Development, Deputy Prime Minister and

Minister of Defense before becoming prime minister. He is known as Father of Development, as

he has a lot of contributions in development of rural area, human development and economy. He

died on January 14 because of Leukimia while seeking medical treatment in London.

In his premiership, he has made a lot of contributions. In politic, he has form a strong

right wing coalition, which known as Barisan Nasional. This coalition formally registered by

three main component which is UMNO,MCA and MIC with 6 others parties. BN shown multiple

representation within the government for each ethnic group. In general,BN showed that they are

the representative of multiracial group, as UMNO as the led that dominant by the Malay, MCA

by the Chinese and MIC for Indian group. The other six political party will be fulfilling the

interest of certain group in Malaysia such as Sabah and Sarawak and some region such as

Gerakan in Penang. Tun Abdul Razak the member of coalition is made by the effort to speed up

the national development and less politicking. Tun Abdul Razak want to strength the coalition, to

get the strong support from voter to ease him achieving a lot of development. He successfully

removed any radical and chauvinistic politics. He believes on the harmony of inter-ethnic power

sharing would lead the country toward a prosperous nation.

known as his contributions towards the formation of a long term strategy for Malaysian

Economy, by the aims to eradicate poverty irrespective of race and restructuring Malaysian

Society to correct economic imbalance. It is affirmative action to be launched after the

Emergency Ordinance, as it is counter action to avoid the instability in unity. He tried to uphold

the national unity pairing with the economy package, to achieve both target together. This plan

announced in the Second Malaysian Plan, that include the 2nd,3rd,4th and 5th Malaysian Plan. One

of the target for Malay was the 30% ownership by Malay towards country’s corporate wealth by

the year 1990.It is a strategy for bumiputra to participate in the development of country by

acquiring in lot of shares and company. He also wants Malay to cooperate in large corporations,

such as Amanah Saham Nasional from Perbadanan Nasional Berhad, and Majlis Amanah Rakyat

for commerce and enterprise.

His contribution in administrative reform is the establishment of new government

development agencies and institution. By these government agencies, he wants them to align

with the new economic model, boost the economy and helping the administration of government

to become more effective and efficient. A lot of government agencies function to assist the

government in controlling the resources, giving the chances of employment and develop the rural

area. Government itself cannot hold a lot of job scope, yet he wants to divided the job to

particular agencies. PETRONAS is entrusted with the responsibility of developing and handle

regarding to oil and gas. FELDA is responsible to open a new settlement, develop a new rural

settlement with basic facilities and help the poor to harvest the cash by plantation sector, mainly

rubber and palm oil. MARA was created to aid, train, and guide Bumiputra in any area of

industry and business.

the quality of delivering in public sector. Public sector is important to help the government reach

to the people and giving the best services. Public sector also part of economy booster and helping

people create job and settle the problem. To get a quality public sector, they must be some

training for them to achieve higher level. Unit Pentadbiran Pembanguan has been upgrade as

Unit Pomdenan Tadbiran dan Perancagan Pengurusan Malaysia(MAMPU), to boot the effort to

renewal of government administration. The function is to coordinate development project and

human resources plan in public sector. Insitut Tadbir Awam Negara(INTAN) has rebranded on

1972, to give a formal training to all government officer, formerly focus only officer from land

office and office management.

As conclusion, Tun Abdul Razak has a good vision on Malaysia future. He is

concentrated, optimist and consistent to watch Malaysia can be developing and uphold as a

prosperous country with functional performance by public and government agencies. Tun Abdul

Razak vision has been continued by Tun Hussein Onn and Tun Mahathir. A lot of his

contributions still can be seen now, especially in government sector that giving big impact to

people.