The New Economic Model (NEM) 2011-2020 was an economic plan in

Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...

unveiled on 30 March 2010 by

Malaysian Prime Minister The prime minister of Malaysia ( ms, Perdana Menteri Malaysia; ms, ڤردان منتري مليسيا, label= Jawi, script=arab, italic=unset) is the head of government of Malaysia. The prime minister directs the executive branch of the feder ...

Najib Razak which was intended to more than double the

per capita income Per capita income (PCI) or total income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population. Per capita i ...

in Malaysia by 2020. The programme aimed to shift affirmative action from being ethnically based to being need-based hence becoming more competitive, market and investor-friendly.

The plan

The goal of the NEM, according to Najib, is to "transform the Malaysian economy to become one with high incomes and quality growth" by 2020. At the time of the plan's unveiling in 2010, per capita annual income in Malaysia stood at 23,100

Malaysian ringgit The Malaysian ringgit (; plural: ringgit; symbol: RM; currency code: MYR; Malay name: ''Ringgit Malaysia''; formerly the Malaysian dollar) is the currency of Malaysia. It is divided into 100 ''sen'' (formerly ''cents''). The ringgit is issue ...

, approximately $7,000 in US currency; the plan's stated goal is to reach RM49,500 (US$15,000). The keys to the plan as described by Najib at 30 March unveiling are "high income, sustainability and inclusiveness". The goal is to stimulate economic growth by improving worker productivity across all sectors of society, in part through an improved system of affirmative action, with an eye towards sustainability. Among other reforms meant to accomplish this goal, the Najib administration have also claimed that the NEM is to empower the

private sector The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment The ...

and to reduce fiscal disparity between the wealthiest and poorest of Malaysians. The plan is intended to replace the

New Economic Policy The New Economic Policy (NEP) () was an economic policy of the Soviet Union proposed by Vladimir Lenin in 1921 as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, ...

(NEP). Najib criticised the way that the NEP had been implemented over its 40-year history, arguing that affirmative action policies of the NEP needed to be better targeted.

Reaction

The

Malaysian Chinese Association The Malaysian Chinese Association (MCA; zh, 马来西亚华人公会; ; ta, மலேசிய சீனர் சங்கம், initially known as the Malayan Chinese Association) is a uni-racial political party in Malaysia that seeks to ...

released a statement supporting the plan. Opposition leader Anwar Ibrahim responded to the plan's announcement by arguing the plan was "devoid of substance" and was designed as a publicity tool for the

Barisan Nasional The National Front ( ms, Barisan Nasional; abbrev: BN) is a political coalition of Malaysia that was founded in 1973 as a coalition of centre-right and right-wing political parties. It is also the third largest political coalition with 30 ...

government. Malay activist group

Perkasa Pertubuhan Pribumi Perkasa ( Malay for "Mighty Native Organisation" or better known by its acronym: Perkasa), is a Malay dominance non-governmental organisation (NGO) that was formed by Ibrahim Ali in the aftermath of the 2008 general electi ...

expressed concerns that the proposed Equal Opportunity Commission could be unconstitutional if it did not accord with the protection of Malays afforded by Article 153 of the Constitution. A spokesman for Khazanah Nasional Berhad, a government agency, stepped out to support it as a "realistic outline", provided that it is effectively implemented and embraced by the public.

Democratic Action Party The Democratic Action Party (abbreviation: DAP; ms, Parti Tindakan Demokratik; ; ta, ஜனநாயக செயல் கட்சி) is a centre-left social democratic political party in Malaysia. As one of four component parties of the ...

spokesperson

Tony Pua Tony Pua Kiam Wee (; born 1 August 1972) is a Malaysian politician who served as the Member of Parliament (MP) for Damansara from May 2018 to November 2022, for Petaling Jaya Utara from March 2008 to May 2018 and Political Secretary to the ...

said that Najib's launching of a new unit to strengthen Bumiputera economic participation has nullified his own New Economic Model and is nothing more than an endorsement of the controversial NEP, which favours the influential elite, and a copycat of Mahathir's mega-projects and privatisation policies of the 1990s.

References

{{Economy of Malaysia Economic history of Malaysia Racial and religious quotas in Malaysia Public policy in Malaysia 2010 establishments in Malaysia

The plan

Reaction

See also

Further reading

References