The New Economic Policy (1970 – 1990) in Malaysia: The Economic and Political Perspectives

Abstract

The objective of this paper is to examine the
development and implementation of the New Economic
Policy (NEP) in Malaysia. It also aims to identify and
analyzes the interconnected consequences of NEP in
terms of economy and politics throughout the NEP’s life
span. The paper utilizes a secondary methodological
approach; extensive review of related literature was
used to compile evidence from a number of resources
including journal articles, internet journal and books.
All resources were utilized in order to evaluate both the
positive and negative consequences that emerge
throughout the period of the NEP implementation. The
study finding demonstrates that the NEP was successful,
to some extent, in achieving its two-pronged objectives
which were to eradicate poverty regardless of race and
to restructure the economic imbalance amongst the
major ethnic groups in Malaysia. Furthermore, this
paper provides an insight into the Malaysian economy
and politics in which the NEP has helped developed in
terms of: (1) the emergence of the relationship between
politics and business; (2) the emergence of money
politics which directly and indirectly influenced the
nation’s economy and politics; (3) the introduction of
the privatization policy with its main aim to improve the
government revenue while releasing its administrative
and financial burden; and (4) the new born Malay
middle class.