Eleventh Malaysia Plan

Question 2

Malaysia Development Plan is usually updated every five years. The latest development plan is Eleventh Malaysia Plan. Every single development plan ahs its own targets and problems that need to achieve and solve.

There are advantages and disadvantages of privatization of government agencies or corporations. One of the advantage of privatization is that it can reduce the interference of government politics. And one of its disadvantages is that privatization of water and electricity authorities may become a single monopoly.

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The MSC is designed to be a comprehensive plan that covert all the old system of administration and communication to the newest version of IT system as their ultimate objective.

Question 3

Poverty line income is a level of personal or family income that below which was classified as poor according to the government standards. There are three concepts of poverty, that is relative poverty, absolute poverty and hardcore poverty.

There are reasons causing the poverty in urban and rural area. The reason why poverty will occur in urban area is because the unemployment rate and rising prices. The reason why poverty will occur in rural area is because the people live in rural area lack of infrastructure and insufficient access to markets.

To eradicate poverty, there is certain actions that can be taken. For example, government should create more job opportunities. Government could also invest in affordable but high quality child care and early education. Last but not least, government should also increase the minimum wage for every workers.

Introduction

Question 2

NEP is also known as New Economic Policy. The NEP was launched by the Malaysian Government in 1971 under the Prime Minister Tun Abdul Razak. The NEP ended in 1990,and was succeeded by the National Development Policy in 1991.

Privatization is the transfer or sale of government owned assets or institution to the private sector. Government should consider the cost and benefit before transferring their owned assets to these private sectors.

MSC stands for Multimedia Super Corridor. The MSC is being planned as a high-technology centre where world-class multimedia companies can develop state-of-the-art products and services. It helps in development of our country, Malaysia.

Question 3

Poverty is when the citizen in the country lived in an extremely poor situation. Poverty hampers the development of a country. If the poverty in the country is more serious, it also indicate that the development of the country will be slow down.

There are reasons why poverty will occur in rural and urban area. Government should always give closest attention to the problems of causing poverty as poverty could be a serious problem if government underestimate the seriousness of poverty.

Literature Review

Question 2

Differentiate the objectives of the five-year development plans of Malaysia from NEP until the latest policy.

The first phase of NEP was formulated in 1971. It is also called as Second Malaysia Plan. The goals for first phase of NEP are eradication of poverty and restructuring the society. But there is also challenge for it, it was May 13 Riots, 1969.

The 2nd Phase of NEP's objectives are more or less same as the first phase of NEP. But it was more focus on private sector. The challenge for the phase was Oil Shock that was happened on 1979.

After duration of five years, the Fourth Malaysia Plan was implemented with New Economic Plan. The challenge faced for that period was fiscal constraints. In the Mid-Term Review Fourth Malaysia Plan, they trying to achieve revitalization of agriculture sector both in private sector and heavy industry.
During Fifth Malaysia Plan, it has occurred recession in that period. In the Sixth Malaysia Plan, they want to sustain growth, balance the development and the Vision 2020 was first coming up in the period.

During the Seventh Malaysia Plan, they wanted to drive balanced economic growth in the country. The challenge faced was recession. The Eighth Malaysia Plan was developed between 2001 to 2005. The aim is to emphasise on a knowledge based economy. The Ninth Malaysia Plan was developed in 2006-2010. The aims are to build a prosperous country and the challenge was Global Financial Crisis and 12th General Election.

The Tenth Malaysia Plan was developed between 2011-2015 2010 while the Government Transformation Programme and Economic Transformation Programme was aimed to implement within this period. The challenge faced was Global Financial Crisis and weak private investment. The latest plan (Eleventh Malaysia Plan), the duration is from 2016-2020. The goal of this plan is to ensure Malaysia will become a well-being and nation inclusive country.

Explain the advantages and disadvantages of privatization of government agencies or corporations.

Privatization is most of the time associated with improved efficiency due to the profit incentive. Private companies will ensure they can improve their operating efficiency in order to reduce their costs and maximize their profit. One of the advantage of privatization is that it can reduce the interference of government politics. Government sometimes seems to have difficulty in making hard decision especially when they impact their political footing such as layoffs and pay cuts which will affect the publicity negatively.

There are disadvantages for privatization too. And one of its disadvantages is that privatization of water and electricity authorities may become a single monopoly. The entity could increase their price deliberately in order to maximise their profit and the burden is borne by the citizens in the country.
Elaborate in details the MSC programmes.

MSC stands for Multimedia Super Corridor. The MSC is being planned as a high-technology centre where world-class multimedia companies can develop state-of-the-art products and services. The MSC is a designated zone which stretches from KLCC (Kuala Lumpur City Centre) to the Kuala Lumpur International Airport in Sepang.

The MSC is particularly attractive for international and Malaysian companies that develop or use multimedia technologies to provide value-added services, that consider expansion to Asian markets a strategic priority, that are prepared to contribute to the creation and development of any of the seven Flagship Applications, that are willing to take advantage of the MSC's high-performance infrastructure and ground-breaking cyber laws, and that are interested in helping to shape a new development model for Asia's Information Age.

However, there are some challenges in MSC such as infrastructure development and the current economic crisis in Malaysia. One of the critical problem is human resource because of the global shortage in IT and multimedia experts.

Question 3

What is poverty line income and explain the concepts of poverty.

Poverty line income is a level of personal or family income that below which was classified as poor according to the government standards. There are three concepts of poverty, that is relative poverty, absolute poverty and hardcore poverty.

Relative poverty is defines as lacking a usual or socially acceptable level of resources or income as compared with others within a society or country. The dimension was economic income. Second, absolute poverty. Absolute poverty defines as lacking in basic necessity which include clean water, education, clothing, healthcare etc.
Hardcore Poverty is to identify the poorest of the poor. A household is considered as hardcore poverty when its income is half of the poverty line or less.
Discuss the reasons of poverty in rural and urban area.

There is two types of poverty, it's either in rural area or urban area. Normally poverty in rural area is usually more serious than in urban area. It's because that they lack of infrastructure. Rural areas tend to lack roads that would increase access to agricultural inputs and markets as compared to urban area.

Second, the people who facing poverty in rural area are always facing inadequate of education. Without the knowledge from proper education, they are not able to be employed with high salary and not able to do skilled job.

The reasons of poverty in urban areas are the population. Since the 20th century, along with the accelerated process of urbanization and urban population density increased. Because of this, slums have become prominent. Therefore it increasingly facing lack of access to sanitation, excessive noise levels and etc.

Second, people who living in urban area will easily lacking to employment. According to Perlman(1998) said that women who is worked in poverty areas is overstrain, without the safety property. What is more, less working opportunities contribute to low-income household struggling for survival (Baker and Schuler, 1997), and therefore, the gap between rich and poor is widening (Perlman, 1998).

What are the measures to eradicate poverty and which measure do you think is the best?

To eradicate poverty, Government should encourage all companies, whether private or public sector, to provide maore job oppurtunities to the public. With the employment, people will get salary and slowly their live will become easier.

Second, Government could implement a policy that increase the minimum wage. Increasing the minimum wage will enable those low salary worker to get a higher wages and get a better life.

Conclusion and Recommendation

Question 2

A five-year development plan clearly provides the Malaysian government with an opportunity to articulate its medium-term economic policy priorities. While this provides useful information to the private sector, the lack of details on development allocations makes it difficult to assess the impact of such allocations.

There are both pros and cons of privatizing companies held by Government. Privatization also means that the company no longer contribute their profit to the Government and hence it is a loss of revenue to the Government. Therefore, government should not allow privatization for all the public sector. Government should remain certain control for certain public sector such as healthcare to avoid the monopoly of private sector and thus government could eventually lost powers to control the price.

MSC programme is one of the important plan in Malaysia. Citizens of Malaysia should cooperate with the government in order to achieve the goal by year 2020. For the MSC, the major challenge is the development of human resources. Government of Malaysia must provide more education opportunities on engineers, programmers, system analysts etc.

Question 3

There are three basic concepts adopted by the Government of Malaysia, that are absolute poverty, relative poverty and hardcore poverty. It is possible to cut poverty. There is nothing inevitable about poverty. Citizens of Malaysia should enact the policy that will increase the economy efficiency and eventually grow the middle class.

References

1. Blank, R. and A. Blinder. 1986. " Macroeconomicss, Income Distribution, and Poverty. " Pp. 180-208 in Contending Poverty, edited by S. Danziger and D. Weinberg. Cambridge, MA: Harvard University Press
2. Cutler, David M. and Lawrence F. Katz. 1991. " Macroeconomic Performance and the Disadvantaged. " Brookings Papers on Economic Activity 2: 1-74
   BusinessWeek.. Amid the rubber trees, a Multimedia Super Corridor? 1997, August 25.
3. Mazelan, Norsaidatul Akmar, and Valida, Abelardo, and Reid, Edna and Harnevie, Martin. Multimedia Super Corridor: a journey to excellence in institutions of higher learning. London, ASEAN Academic Press (to be published).
4. "Urban poverty: Causes and solutions." UKEssays.com. 11 2013. All Answers Ltd. 06 2018 ;https://www.ukessays.com/essays/geography/urban-poverty.php?vref=1;.
5. UKEssays. November 2013. Urban poverty: Causes and solutions. [online]. Available from: https://www.ukessays.com/essays/geography/urban-poverty.php?vref=1 [Accessed 9 June 2018].
6. UKEssays. Urban poverty: Causes and solutions [Internet]. November 2013. [Accessed 9 June 2018]; Available from: https://www.ukessays.com/essays/geography/urban-poverty.php?vref=1.

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