Malaysia in the 1990s: Case Study Analysis
Southern States University
This article offers a case analysis of Malaysia economic growth. Malaysia has lots of natural resources and they started to diversify their export product. Malaysia was very succesful producer and exporter of natural rubber, tin and oil palm. Especially, timber was very important for economy. The Western press had been talking about deforestation and environmental groups were trying to change their forest policies. The prime minister had to consider about new development strategies. Malaysia regulated forests area and forbade timber production. After the riot in the 1969, Malaysia changed the policy ...view middle of the document...
during 10 years, tin, timber and foodstuffs became an important export revenue. After the 1973 they focused on oil and natural gas business. Fuel contributed for one-fourth of export income. The malaysian government created a policy to incent export development such as tax holidays and soft technology-sharing. During 1970s and 1980s, big international companies such as Intel, and National Semiconductor interested in West Malaysia and due to this investors, industry increased by 20% in the same period. Also, timber production and export surged gradually and they increased exported goods variety. Then, the government incented domestic materials such as lumner, plywood, wooden moldings, latex and furniture. While the government wanted to rise manufactured goods’ exports, natural resource goods decreased steadily. (Ellet, 2007, p. 237)
Malaysia has been asserting human capital in their development plans. After the racial riot in the 1969, they changed the policy and it contributed education, employment and ownership quality. While, Mahathir’s strategy provided growth every year, some people,however, concerned about foreign investors. Because distribution of income is not equal. (Yusoff, Hasan, & Jalil, 2000, p. 2-4)
Malaysia has vast natural resources but timber industry caused waste, overharvesting and destruction for the country. Fortunately, the government interfered in this industry and they regulated forests as PFE( Permanent Forest Estate) to improve environmental and economic conditions. Also, timber production was forbidden. To encourage downstream industries Malaysia government supported assistance and...