Salient. Official Newspaper of the Victoria University Students' Association. Vol 41 No. 9. April 24 1978
The Second M'sian Plan (1971—75)
The Second M'sian Plan (1971—75)
The objectives were:
a) | To increase the percentage per capita income of low income groups. |
b) | To guaranteee employment opportunities and to eradicate poverty irrespective of races. |
c) | To achieve the aims of the New Economic Plan. |
The 2nd Malaysian plan is a component and a cornerstone of the 20 year New Economic Plan (1970—1990). The objectives were:
a) | To accelerate the restructuring of Malaysian society in order to redress the imbalance in the propriety rights of the economy. |
b) | To increase the rate of production and income so that by 1990 the restructure of the racial employment pattern will be proportional to the composition of the population. |
In every kind of business, the Malays are required to constitute 50% the Chinese 38% and the Indians 10% and others 2%.
What the Malaysian government has done so far:
1) | Up until 1970, the present government's attempts to solve the unemployment problem by increasing investment in manufacturing (service sector) has led to an increasing flow of rural labourers to urban areas. The abundant cheap labour had been complemented by granting more Pioneer Industries (foreign industries exempt from taxes) greater status and naturally foreign investments have boosted GNP. |
2) | Between 1970—75 over $900 M investment was spent on quasi-Governmental enterprises characterised by foreign capital joint ventures in the fields of share investments, trusts and banking. Present enterprises included MARA, PERNAS (deals in oil), MIDF, FIMA. According to the government once these enterprises become profitable they will be handed to the Malays.At present only 2.3% of Malays earn over $700 a month. 5.3% earned between $400 — $699. 92.4% of Malays are finding it hard to meet their basic needs, least of all to think of investing in shares. |
3) | The rich Chinese are able to adjust to the new set-up by Ali-Baba partnership (with Malays) or by bribery. But the relatively large number of less rich Chinese will find it hard. The government policy is effectively strengthening the racial conflict practised by the past British colonial master. |
4) | The foreign investors (British, Americans, Japanese) see the Malaysian government's action as economic 'nationalism', but for whom? Up till now it has been the politicians and the aristocratic class who have recieved the benefits, at the expense of the masses. |
The recent Industrial Coordination Act and negotiations with foreigners on the oil issue showed the strength of foreign domination (Hussein Onn by conceding to Exxon and Shell on oil shares has lost $100 — 120 M in oil revenue.)
The two plans' objectives have remained on paper and have been merely a prophesy to the people.