Identify and Evaluate the Economic System That Malaysia Is Adopting. Discuss the Rational of the Malaysia’s Economic System in Terms of Government Intervention and Resource Allocations in the Country.

3114 Words Nov 2nd, 2012 13 Pages
1 INTRODUCTION
Continuous rapid economic growth has raised Malaysia from an agricultural and commodity-based low-income economy to a successful middle-income economy. As a mixed economy, Malaysia has elements of a free market economy nevertheless with intervention government. Malaysia's economic activity consist of a mixture of sectors whereas mixed of capitalism and socialism The strong economic performance has helped improve the quality of life for Malaysians and supported advances in education, health, infrastructure, housing and public amenities and others.
The population of Malaysia locate at over 28 million in 2012.Malaysia's population involved many ethnic groups, with the Malays at around 50.4% making up the majority and other
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The policy was alter in year 1991-2000 by launch the National development policy (NDP).The foundation emphasizes the balanced development in a way develop a united and fair society. Subsequent to that, the government took steps to renew the country's economic policy after ten years of implementation of the national policy Development Division to strengthen the existing policy. The 1990s began with the introduction of Vision 2020, which visualised Malaysia to become fully developed nation by the year 2020. The National Economic Action Council (NEAC) was set up in 1998 to make tangible recommendations to the government to revive the economy. After evaluating Malaysia’s situation, the NEAC prepared a comprehensive National Economic Recovery Plan (NERP).
The NERP was launched in 1998 with six goals. The objective is to steady the ringgit, restore market confidence, maintain financial market stability, strengthen economic fundamentals, continue with the equity and socio-economic agenda, and revive adversely affected sectors. In addition, new procedures were introduced to deal with definite problems while some of the existing policies were modified to enhance economic management.
In 2001, the government launched a new plan, the National Vision Policy (NVP), to guide development over the period from

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