Introduction

1.01. The First Outline Perspective Plan (OPPI), covering the period 1971- 90, has come to an end. Under it, the Government has implemented four development plans from the Second Malaysia Plan (1971-75) to the Fifth Malaysia Plan (1986-90). These development plans have been implemented within the framework of the New Economic Policy (NEP) which was introduced by the Government in 1970, after the racial riots in 1969, to promote growth with equity with the objective of fostering national unity among the various races. 1.02. The Second Outline Perspective Plan (OPP2), covering the period 1991- 2000, has been formulated based on a policy which will be called the New Development Policy (NDP). The NDP will build upon the achievements during the OPPI to accelerate the process of eradicating poverty and restructuring society so as to correct social and economic imbalances. It provides a broader framework for achieving these socioeconomic objectives in the next ten years within the context of a rapidly expanding economy. In formulating the NDP, the Government has considered the views and proposals from various groups including the report of the National Economic Consultative Council on the post-1990 policy for the country.

1.03.  National unity remains the ultimate goal of socioeconomic development because a united society is fundamental to the promotion of social and political stability and sustained development. Development policies and strategies under the NDP take cognizance of the diversities of Malaysians - ethnic, linguistic, cultural and religious as well as regional - so that a harmonious, tolerant and dynamic society could be progressively created. Aside from socio-political and cultural considerations, continued social and political stability as well as the efficient management of the economy are factors crucial to the realization of its goals and objectives.

1.04. The NDP will set the pace to enable Malaysia to become a fully developed nation by the year 2020 not only economically but also in all other aspects. It has to be fully developed in terms of national unity and social cohesion, in terms of its economy, in terms of social justice, political stability, system of government, quality of life, social and spiritual values, national pride and confidence. The Government envisions that by the year 2020, Malaysia will be a united nation, with a confident Malaysian society, infused by strong moral and ethical values, living in a society that is democratic, liberal and tolerant, caring, economically just and equitable, progressive and prosperous, and in full possession of an economy that is competitive, dynamic, robust, resilient and socially just.

1.05.  While the NDP maintains the basic strategies of the NEP, its new dimensions will be to:

(a) shift the focus of the anti-poverty strategy towards eradication of hardcore poverty while at the same time reducing relative poverty;
(b) focus on employment and the rapid development of an active Bumiputera Commercial and Industrial Community (BCIC) as a more effective strategy to increase the meaningful participation of Bumiputera in the modern sectors of the economy;
(c) rely more on the private sector to be involved in the restructuring objective by creating greater opportunities for its growth; and
(d) focus on human resource development as a fundamental requirement for achieving the objectives of growth and distribution.

1.06. The efforts under the NDP to correct economic imbalances will focus on the expansion of capacities to generate income and create wealth as well as to provide the skills for the Bumiputera to effectively retain and manage their wealth. This strategy represents a major shift from the previous emphasis on associating equity ownership with wealth. In line with this new emphasis and in order to increase Bumiputera participation in the commercial and industrial sectors of the economy, more attention will be given towards strengthening the capacities of the Bumiputera to effectively manage, operate and own businesses rather than on achieving specific numerical targets of equity restructuring and ownership. Thus, while efforts will continue to be made under the NDP to increase Bumiputera ownership, no specific time frame has been set for the attainment of the equity restructuring target of at least 30 per cent. However, by the year 2000, a review of the achievement of this target will be made.

1.07. The OPP2 is formulated with a shorter time frame of ten years, half that of the OPP1. This shorter time frame will reduce the risks of setting unattainable goals and the uncertainties of making development projections on which these goals are dependent upon.

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