Masters Theses

Date of Award

12-1989

Degree Type

Thesis

Degree Name

Master of Science

Major

Planning

Major Professor

David A. Johnson

Committee Members

George E. Bowen, Joseph Prochaska

Abstract

Malaysia is a multi-ethnic country. The population of Malaysia consists of the Bumiputera (the Malays and other indigenous people), Chinese, Indians, and others. Due to the impacts of colonialist administration in the country, the economic function of these races have been different. The Malays were commonly associated with agriculture, the Chinese with businesses and the Indians with large estates of rubber or small businesses. Since different economic functions have different income potential, poverty has therefore fallen along ethnic lines.

Dissatisfaction among the economically backward groups broke into an ethnic clash in 1969. Following this riot, economic development planners in Malaysia drafted the New Economic Policy, a development policy which was intended for the eradication of poverty and the restructuring of employment patterns. Direct government attention was given to the core of the problem. Most cases of poverty could be identified with agriculture and the Malays. The policy was, therefore, positively discriminating in favor of the Malays and the rural inhabitants. Special programs were implemented for the benefit of the poor and federal and state assistance were chanelled through many new and expanded government agencies.

The policy has brought about improvements to the Malays and the poor. However, this thesis concludes that the policy has largely failed or fallen short of its objectives. The policy was sucessful in opening many new opportunities unavailable to the poor previously but the quantitative goals planned were unachievable. Most of the problems have been blamed on the slowdown of global economic trend, and the short time frame of the policy. The thesis speculates on the large bureaucracy created by the policy as well as lack of support from the general population as additional problems. Instead of promoting economic unity, the policy has strengthened ethnic polarization further. The New Economic Policy was not popular among the Chinese and the Indians. Therefore, efforts to eradicate poverty and opening new employment frontiers to the Malays did not received the full support of the other races.

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