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Encyclopedia > Second Malaysia Plan
Crop diversification was introduced during the Second Malaysia Plan, phasing out rubber in favour of oil palm.
Crop diversification was introduced during the Second Malaysia Plan, phasing out rubber in favour of oil palm.

The Second Malaysia Plan was an economic development plan introduced by the government of Malaysia with the goal of implementing the Malaysian New Economic Policy (NEP). It lasted from 1971 to 1975 and aimed to "restructure" the society of Malaysia and reduce Malaysian Chinese and foreign dominance in the economy of Malaysia so as to improve the economic position of the Malays. [1] It was the successor to the First Malaysia Plan, which was also intended to specifically tackle the problem of poverty among the Malays. However the First Malaysia Plan had limited success, which may have been a factor in the May 13 Incident in 1969 when race riots broke out in Kuala Lumpur. The Second Malaysia Plan was regarded by some as excessive in its zeal to increase Malay participation in the economy, and the government accordingly scaled back the emphasis on restructuring the economy when the plan ended. Image File history File links LinkFA-star. ... Image File history File links Rubber_dripping. ... Image File history File links Rubber_dripping. ... Rubber is an elastic hydrocarbon polymer which occurs as a milky emulsion (known as latex) in the sap of several varieties of plants. ... Species Elaeis guineensis Elaeis oleifera The oil palms (Elaeis) coomprise two species of the Arecaceae, or palm family. ... Development economics is a branch of economics that deals with the study of macroeconomic causes of long term economic growth, and microeconomica; the incentive issues of individual households and firms, especially in developing countries. ... Economic policy refers to the actions that governments take in the economic field. ... Politics of Malaysia takes place in a framework of a federal parliamentary monarchy, whereby the Prime Minister of Malaysia is the head of government, and of a pluriform multi-party system. ... Under the Malaysian New Economic Policy, Bumiputra are given discounts on real estate. ... Malaysian Chinese are overseas Chinese who reside in Malaysia. ... Malaysia is a small and relatively open economy. ... Malays (Dutch, Malayo, ultimately from Malay: Melayu) are a diverse group of Austronesian peoples inhabiting the Malay archipelago and Malay peninsula in Southeast Asia. ... The First Malaysia Plan (1966–1970) was an economic development plan implemented by the government of Malaysia. ... World map showing population below national poverty line. ... The May 13 Incident saw numerous cases of arson in the Malaysian capital city of Kuala Lumpur. ... A race riot or racial riot is an outbreak of violent civil unrest in which race is a key factor. ... Flag Seal Nickname: KL Motto: Maju dan makmur (Malay: Peace and progress) Location Location in Malaysia Coordinates: Government Country State Malaysia Federal Territory Establishment 1857 (Granted city status in 1974) Mayor Ruslin Hasan Geographical characteristics Area 243. ...



Although the Malays have nearly always comprised a majority of the Malaysian population, their economic power has rarely been commensurate. In 1970, the Bumiputra controlled only 1.9% of the Malaysian economy, while the non-Malays (mostly Chinese) held 37.4%, with the rest in foreign hands.[2] Due to this wide disparity, Article 153 of the Constitution requires the government to set quotas for the dispensation of scholarships, employment in the civil service, etc. targeted at improving the economic status of the Malays. Bumiputra or Bumiputera (Sanskrit, translated literally, it means sons of the Earth; Malay, translated literally, it means princes of the Earth), is an official definition widely used in Malaysia, embracing ethnic Malays as well as other indigenous ethnic groups. ... In 2005, UMNO Youth Chief Hishamuddin Hussein brandished the keris (traditional Malay dagger) in defense of ketuanan Melayu, the social contract and Article 153. ...

However, the First Malaysia Plan — whose approach had been dependent on the Malays "availing themselves of these facilities and services and putting them to good use" — failed in addressing the economic imbalance.[3] Its policies also resulted in discontent among the non-Malays, who mostly supported the opposition parties that favoured reducing or eliminating affirmative action for the Bumiputra in the 1969 general election. A victory parade held on May 12 by supporters of the opposition led to a retaliatory rally on May 13 by the United Malays National Organisation (UMNO), a major party in the governing Alliance coalition. However, the rally soon turned into a riot which lasted two days. Officially, around 200 people died — although others have given much larger estimates — with thousands left homeless, the majority of them Chinese. A state of emergency was declared, and Parliament was suspended. The National Operations Council (NOC) governed until 1971, when Parliament reconvened.[4] The First Malaysia Plan (1966–1970) was an economic development plan implemented by the government of Malaysia. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... UMNO Flag The United Malays National Organisation, or UMNO, (Malay: Pertubuhan Kebangsaan Melayu Bersatu), is the largest political party in Malaysia and a founding member of the Barisan Nasional coalition, which has ruled the country uninterruptedly since its independence. ... Barisan Nasional (National Front or BN) is a political coalition in Malaysia. ... The Houses of Parliament in Kuala Lumpur. ...

While it held the reins of power, the NOC set out the NEP, with the ultimate aim of eradicating poverty and eliminating "the identification of race with economic function" through a "rapidly expanding economy"; the NEP aimed for a Bumiputra share of 30% of the economy within 20 years.[5] The Outline Perspective Plan was also approved, with similar goals to the NEP. Both the NEP and the Outline Perspective Plan were set to expire in 1990, and the Second Malaysia Plan was passed by Parliament to implement the goals of these policies.[6]

Economic restructuring

The Second Malaysia Plan stepped up government involvement in the economy, with the main goal of increasing Malay economic interests, especially in the areas of manufacturing and mining.[7] In order to avoid directly hurting Chinese economic interests, the plan focused on huge economic growth, with the goal of expanding both the Malay and non-Malay shares of the economy in absolute terms, while increasing the Malay share in relative terms as well. [8]

A sum of M$7.25 billion in total was allocated for the Second Malaysia Plan. Although this constituted a decrease from the First Malaysia Plan's allocation of M$10.5 billion, the Second Malaysia Plan hoped to achieve greater reduction in poverty and increase the involvement of the Malays in the private sector by imposing certain restrictions on private firms that would benefit Malay employment and economic ownership.[9] Ringgit (Malay for jagged) mostly refers to the Malaysian ringgit, which is the local currency in Malaysia, but it can also refer to the Singapore dollar and Brunei dollar in the Malay language. ...

At the time the plan was announced, the non-Malays had, in the words of one commentator, "a virtual monopoly of private industrial and commercial employment", and were concentrated in the urban areas. However, foreign interests controlled most modern industries, including manufacturing, banking, finance, rubber, and tin. The Malays were largely involved in rural occupations such as paddy farming, fishing, tending to rubber or oil palm smallholdings, and so on. They were conspicuously absent from even minor white collar jobs, such as clerical work, and only in the civil service, where they were guaranteed 80% of all government jobs, were they present in the upper portion of the hierarchy. Most members of some professions, such as medicine and law, were non-Malay. Ironically, government policies, such as those set out by Article 153, appeared to hinder Malay involvement in the private sector by giving them preference in only the public sector. Unemployment among all races was also rampant, largely due to poor education, with about 70% of the 275,000 unemployed in 1970 being aged between 15 and 25 years. It was all this that the NEP and the Second Malaysia Plan set out to change.[10] In economics, a monopoly (from the Latin word monoplium - Greek language Greek monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a kind of product or service. ... Paddy has these meanings:- A paddy field, a field for cultivating rice or other semi-aquatic crops. ... Species Elaeis guineensis Elaeis oleifera The oil palms (Elaeis) coomprise two species of the Arecaceae, or palm family. ... White-collar workers perform tasks which are less laborious yet often more highly paid than blue-collar workers, who do manual work. ... An 1837 political cartoon about unemployment in the United States. ...


Several government agencies that had been established prior to the advent of the Second Malaysia Plan increased their participation in the economy during the Second Malaysia Plan. These agencies included the Malaysian Industrial Development Authority (MIDA) and Majlis Amanah Rakyat (MARA). Several more were also established under the plan, including the Perbadanan Nasional (PERNAS, or the National Trading Corporation), State Economic Development Corporation and the Urban Development Authority (UDA). [11]-1... The Majlis Amanah Rakyat (Malay: Peoples Trust Council; commonly abbreviated as MARA) is a Malaysian government agency. ... The Urban Development Authority (Malay: Perbadanan Pembangunan Bandar; commonly abbreviated as UDA) is an agency of the government of Malaysia. ...

PERNAS was established to purchase businesses and participate in joint ventures with private companies, as well as to develop nascent industries to be held in trust until the Malays held sufficient capital to take them over. By the end of the plan's tenure, PERNAS owned 100% of eight companies involved in insurance, trading, construction, properties, engineering, securities, and mining. Joint ventures had also been formed with the private sector to develop the mining, containerisation, tourism and consulting industries. [11]

Parliament passed the Industrial Coordination Act during the Second Malaysia Plan, which required all new manufacturing enterprises with M$100,000, or twenty-five or more workers, to be licensed by the Minister of Trade and Industry. To obtain such a licence, each firm had to meet certain conditions set by the Ministry, which could vary. Malaysian Chinese manufacturers were concerned about the act, as they had operated with minimal control from the government before. Nevertheless, the government stated the act was not meant to be detrimental towards any group, and went ahead with its implementation. Under the act, firms were divided into three categories: firms approved after January 1, 1972, firms approved before then, and firms operating without approval from the Ministry. All firms subject to the act were required to submit a proposal to the Ministry stating how they planned to achieve the long-term target of achieving 30% Malay and 70% non-Malay Malaysian ownership in the company. Proposals that were accepted then became the guidelines for how the relevant company would operate.[12] Ringgit (Malay for jagged) mostly refers to the Malaysian ringgit, which is the local currency in Malaysia, but it can also refer to the Singapore dollar and Brunei dollar in the Malay language. ... January 1 is the first day of the calendar year in both the Julian and Gregorian calendars. ... 1972 (MCMLXXII) was a leap year starting on Saturday. ...

Until the Second Malaysia Plan, industry was concentrated on the west coast of Peninsular Malaysia. The plan thus moved to establish new industrial estates on the east coast, in order to curb rural-urban migration — the east coast was considerably less urbanised than the west coast.[13] Map of Peninsular Malaysia Peninsular Malaysia (or Semenanjung Malaysia in the Malay language) is the part of Malaysia which lies on the Malay Peninsula, and shares a land border with Thailand in the north. ...

By 1975, manufacturing activities constituted 16% of the Malaysian Gross Domestic Product (GDP), one per cent short of the target of the Second Malaysia Plan. Manufacturing grew negligibly in 1975, attributed by the government to the global recession that year. This contrasted with the 15% growth achieved in 1974, which well exceeded the target of 12.5% growth per year during the Second Malaysia Plan. Food, wood products, and chemical products made up the majority of the manufacturing sector. The substantial growth in manufacturing during this period has been attributed to the government's establishment of free trade zones, where any goods brought in would not be subject to customs duties, and goods could be freely exported abroad or transferred to another free trade zone. In 1974, such zones were declared in the states of Penang, Selangor, and Malacca. The industries located in these zones were mostly electronics-, rubber product- and textile-based.[14] A regions gross domestic product, or GDP, is one of several measures of the size of its economy. ... A recession is usually defined in macroeconomics as a fall of a countrys real Gross Domestic Product in two or more successive quarters of a year. ... State motto: Bersatu dan Setia (United and Loyal), formerly Let Penang Lead Location in Malaysia Government Capital George Town (5. ... State motto: Dipelihara Allah (English: Under Gods (Allah) Protection) Capital Shah Alam Royal Capital Klang Sultan Sultan Sharafuddin Idris Shah Chief Minister Dato Seri Dr Mohd Khir bin Toyo Area 7,956 km2 Population  - Estimated 4,100,000 State anthem Duli Yang Maha Mulia Selangor (Jawi: سلنجور, population 4. ... State motto: Bersatu Teguh (Malay, United We Stand) Capital Malacca Town Governor Tun Datuk Seri Utama Mohd Khalil Yaakob Chief Minister Datuk Seri Haji Mohd Ali Mohd Rustam Area 1,650 km² Population  - Estimated 648,500 State anthem Melaka Maju Jaya This article is about a state in Malaysia. ...

At the beginning of the Second Malaysia Plan, the private sector employed mostly Malaysian Chinese; however, they had no real ownership stake in modern industries.
At the beginning of the Second Malaysia Plan, the private sector employed mostly Malaysian Chinese; however, they had no real ownership stake in modern industries.

Image File history File links Trishaw_malacca. ... Image File history File links Trishaw_malacca. ... Malaysian Chinese are overseas Chinese who reside in Malaysia. ...


Until the late 1970s, Malaysia was the world's foremost producer of tin, supplying roughly 40% of the non-communist world's tin. Nevertheless, tin reserves were declining; mining's contribution to the GDP was projected to fall 13% over the course of the Second Malaysia Plan, due to the exhaustion of tin and iron reserves. However, bauxite and copper continued to contribute to the mining sector in the early 1970s. Malay participation in the mining sector was minimal, and as much as 70% of the industry remained under foreign control.[15] This was a legacy of the British colonial era; many British firms, which had arrived in the 19th century to exploit Malaysian mineral resources, had not departed yet. Malay participation in the mining sector — especially in tin — was further hampered by the British tendency in the 19th century to bring in cheap Chinese labour; most of those employed in mining were still Chinese as late as 1970.[16][17] General Name, Symbol, Number tin, Sn, 50 Chemical series poor metals Group, Period, Block 14, 5, p Appearance silvery lustrous gray Atomic mass 118. ... This article is about communism as a form of society and as a political movement. ... General Name, Symbol, Number iron, Fe, 26 Chemical series transition metals Group, Period, Block 8, 4, d Appearance lustrous metallic with a grayish tinge Atomic mass 55. ... Bauxite with penny Bauxite (pebbly) Bauxite is a naturally occurring, heterogeneous material composed primarily of one or more aluminium hydroxide minerals, plus various mixtures of silica, iron oxide, titania, aluminium silicates, and other impurities in minor or trace amounts. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11, 4, d Appearance metallic pinkish red Atomic mass 63. ...

Petroleum or crude oil began to significantly contribute to the Malaysian economy in the 1970s, as new oil rigs and refineries were set up. By 1975, total production of crude oil stood at 90,000 barrels per day, most of it produced by Shell. In 1974, the exclusive right to own, explore and exploit petroleum in Malaysia was vested in the government enterprise of Petronas. The following year, Petronas was granted sole rights over the marketing and distribution of all petroleum products and a provision to control other companies without taking an ownership stake in them, through the issuance of management shares to Petronas.[18] Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a black, dark brown or greenish liquid found in porous rock formations in the earth. ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... Natural gas drilling rig A drilling rig or oil rig is a structure housing equipment used to drill for and extract oil or natural gas from underground reservoirs. ... View of Shell Oil Refinery in Martinez, California. ... For the oil company, see Royal Dutch-Shell. ... PETRONAS, short for Petroliam Nasional Berhad, is Malaysias owned oil and gas company that was founded on August 17, 1974. ...

The number of Malays employed in the mining sector soared from 1970 onwards, as the government's restructuring policies came into force. When the Second Malaysia Plan began, less than 200,000 Malays were employed in the mining industry. By 1990, they numbered nearly a million, well ahead of the target numbers originally outlined.[19] Licences for mining operations were specially reserved for Malays as part of the drive to increase their ownership level in the mining industry.[20] The government also ostensibly increased Bumiputra ownership by nationalising several formerly foreign mining companies — by 1989, state corporations controlled 60% of the mining industry.[21] The government was also aided by the fact that petroleum soon eclipsed other minerals in the mining sector — as Petronas was a state-owned corporation, it was also considered a Bumiputra enterprise. However, the government has been criticised for this practice, as it is argued nationalised corporations belong to the public at large, and not only to the Bumiputra.[22]


The Second Malaysia Plan continued the initiatives that previous five year plans, such as the First Malayan Five Year Plan, had taken. Although expenditure on other development increased substantially, by about M$1 million, funding for rural development was also increased. The Second Malaysia Plan focused on diversifying crops grown in Malaysia; the 1974 Green Book program aimed to make Malaysia self-sufficient in food production by encouraging farmers to grow vegetables, such as long beans, chilies, etc., and rear livestock — the Veterinary Department going as far as to distribute cattle. Fertilisers, seedlings, insecticides and herbicides were subsidised. Double-cropping of rice was encouraged, so farmers could harvest twice in one year and effectively double their output.[23][24][25] The Farmer's Organization Authority was established in 1973 with the goal of coordinating agricultural cooperatives, farmers' associations, and government agricultural agencies.[26] The First Malayan Five Year Plan (1956 – 1960) was the first economic development plan launched by the Malayan government, just before independence in 1957. ... This article is about the doctrine of Moammar Qaddafi. ... Trinomial name Vigna unguiculata sesquipedalis (L.) Verdc. ... The chile pepper, chili pepper, or chilli pepper, or simply chile, is the fruit of the plant Capsicum from the nightshade family, Solanaceae. ... Sheep are commonly bred as livestock. ... Binomial name Bos taurus Linnaeus, 1758 Cattle (called crocadiles in vernacular and contemporary usage, kine or kyne in pre-modern English, or kye as the Scots plural of cou) are domesticated ungulates, a member of the subfamily Bovinae of the family Bovidae. ... Fertilizers are chemicals given to plants with the intention of promoting growth; they are usually applied either via the soil or by foliar spraying. ... Sunflower seedlings, just three days after germination In a botanical sense, germination is the process of emergence of growth from a resting stage. ... A insecticide is a pesticide used against insects in all development forms. ... A herbicide is a pesticide used to kill unwanted plants. ... In agriculture, multiple cropping is the practice of growing two or more crops simultaneously in the same space during a single growing season. ... Species Oryza glaberrima Oryza sativa Rice refers to two species (Oryza sativa and Oryza glaberrima) of grass, native to tropical and subtropical southern & southeastern Asia and to Africa, which together provide more than one fifth of the calories consumed by humans[1]. (The term wild rice can refer to wild...

Growth in small-scale agriculture was viewed as crucial to creating jobs and reducing rural poverty, and government agencies such as FELDA (the Federal Land Development Authority) vastly increased the scope and size of their development programs. RISDA (the Rubber Industries Smallholder Development Agency) was given the task of diversifying smallholder estates; RISDA set itself the ambitious goal of developing 150,000 acres (610 km²) during the Second Malaysia Plan. The main aim was to diversify into palm oil through the planting of oil palms. The Malaysian economy relied heavily on rubber at the time — at its peak, Malaya (Peninsular Malaysia) alone produced more than half of the world's rubber. However, the Great Depression, which depressed rubber prices, greatly set back the Malayan economy. The Malaysian government thus aimed to avert another incident by diversifying the agriculture sector. However, RISDA overreached itself in attempting to so quickly reappropriate land; by the end of the Second Malaysia Plan, only 40,000 acres (160 km²) had been developed, with only half this number comprising oil palm estates.[27][28] The Federal Land Development Authority (more commonly referred to as FELDA) is a Malaysian government agency handling the resettlement of rural poor into newly developed areas. ... An acre is an English unit of area, which is also frequently used in the United States and some Commonwealth countries. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Species Elaeis guineensis Elaeis oleifera The oil palms (Elaeis) coomprise two species of the Arecaceae, or palm family. ... The Great Depression was a global economic slump that began in 1929 and bottomed in 1933. ...

The land development and resettlement policies instituted by the government, however, failed to make an impact on rural poverty. The government managed to resettle only 40,000 people, despite an estimated 535,000 families engaged in agriculture living below the poverty level. Due to inefficiencies in the program, the beneficiaries of resettlement and development were not always those with the greatest need. It was also alleged by some that there had been too much emphasis on the difficult process of resettlement and development of new areas, instead of increasing productivity in existing farms. Matters were complicated by the Constitution, which gave the states much control over land development, and thus requiring the federal government to negotiate with individual state governments. Non-Malay rural families also did not benefit much due to this, as the Constitution reserved portions of land for the Malays, and state governments were not anxious to receive destitute non-Malays.[29]

Although the Second Malaysia Plan greatly modernised the "rice bowl" states of Kedah and Perlis — virtually eliminating the water buffalo by replacing it with tractors — most smallholders and individual farmers did not benefit technology-wise. In the corporate agriculture sector, the Malays held only a 0.3% stake, as opposed to 70.8% held by foreign interests. In the noncorporate sector, the Malays held 47.1%. Due to limited capital, many Malays were still engaged in "lower productivity activities" as the Second Malaysia Plan ended.[30] Species Oryza glaberrima Oryza sativa Rice refers to two species (Oryza sativa and Oryza glaberrima) of grass, native to tropical and subtropical southern & southeastern Asia and to Africa, which together provide more than one fifth of the calories consumed by humans[1]. (The term wild rice can refer to wild... State motto: no State motto Capital Alor Star Royal Capital Anak Bukit Sultan Tuanku Abdul Halim Muadzam Shah Chief Minister Dato Hj Mahdzir Bin Khalid Area 9,426 km2 Population  - Est year 2003 1 778 188 State anthem Allah Selamatkan Sultan Mahkota Kedah (Jawi:قدح, pop. ... State motto: no State motto Capital Kangar Royal Capital Arau Raja Tuanku Syed Sirajuddin Regent Syed Faizuddin Putra Chief Minister Shahidan Kassim Area 810 km2 Population  - Est year 2000 198335 State anthem Amin amin ya Rabaljalil Perlis, a retailer of fine clothing located on Magazine Street in Uptown New Orleans. ... Binomial name Bubalus bubalis (Kerr, 1792) The Water Buffalo is a very large ungulate and a member of the bovine subfamily. ...


The Second Malaysia Plan continued past initiatives in raising nutritional levels through a number of programs. These included incentives to grow nutritious food, instruction in nutrition and menu planning, and provision of food for groups with the highest rates of malnutrition. However, these programs were hindered by a lack of trained medical personnel.[31] It has been suggested that Diet (nutrition) be merged into this article or section. ... Malnutrition is a general term for the medical condition caused by an improper or insufficient (undernourished) diet. ...

Although family planning was established as a national goal in 1964, efforts during the Second Malaysia Plan to promote it were hampered by government neglect. Much of the success achieved by the National Family Planning Board occurred during the years of the First Malaysia Plan (1966 – 1970). The Second Malaysia Plan hoped to add 600,000 new users of family planning techniques, but the facilities and personnel provided were inadequate. The topic was viewed as rather sensitive by the government, and thus family planning was mostly ignored.[32] Ironically, in 1984 Malaysian Prime Minister Mahathir bin Mohamad effectively eliminated family planning as a government policy by announcing the National Population Policy, which targeted a 70 million population by 2100 — up from 12.6 million in 1984.[33] Oral contraceptives. ... The First Malaysia Plan (1966–1970) was an economic development plan implemented by the government of Malaysia. ... The Prime Minister of Malaysia is the indirectly elected head of government of Malaysia. ... Tun Dr. Mahathir Mohamad (born July 10, 1925) is the former Prime Minister of Malaysia. ...


Although education was mostly sidelined in favour of socieconomic restructuring programs during the Second Malaysia Plan, some important initiatives were taken during its tenure.[34] In 1970, Malay, the national language, became the major medium of instruction from primary to tertiary level, replacing English. British standardised examinations were replaced with local ones, and new Malay-language textbooks were introduced. By the end of the plan, most formerly English-based schools had converted the first four years of instruction entirely to the new Malay-medium curriculum.[35] The Malay language, also known locally as Bahasa Melayu or Bahasa Malaysia, is an Austronesian language spoken by the Malay people who reside in the Malay Peninsula, southern Thailand, the Philippines, Singapore, central eastern Sumatra, the Riau islands, and parts of the coast of Borneo. ... The English language is a West Germanic language that originates in England. ...

In 1973, the Curriculum Development Centre was established. Its goal was to coordinate projects to reform the curriculum that had previously been handled by varying government departments. It also began revamping the curriculum for science and mathematics, and began a new program to review the various social science curricula.[36] Science in the broadest sense refers to any knowledge or system of knowledge, attained by verifiable means. ... Euclid, a famous Greek mathematician known as the father of geometry, is shown here in detail from The School of Athens by Raphael. ... The social sciences are groups of academic disciplines that study the human aspects of the world. ...

The Second Malaysia Plan also hoped to increase the availability of vocational and technical training. Despite some attempts, little progress was made in improving the curriculum, which focused on providing a general education and made little room for vocational or technical training. Several new technical and vocational schools were built under the Second Malaysia Plan, with seven institutions alone completed in 1975. It was hoped this would alleviate the problem of unemployment, especially among the youth.[37]


The Second Malaysia Plan aimed to modernise Malaysian railroads, which the government regarded as crucial to development and industry. All trains were converted to use the more efficient diesel fuel, and the government increased allocations for maintenance and modernisation of the rail infrastructure. In particular, emphasis was placed on upgrading existing rolling stock, roadbeds, and repair facilities. [38] Diesel or Diesel fuel is a specific fractional distillate of fuel oil (mostly petroleum) that is used as fuel in a diesel engine invented by German engineer Rudolf Diesel. ... Rolling Stock banner Rolling Stock was a newspaper of ideas and a chronicle of the 1980s published in Boulder, Colorado by Ed Dorn and Jennifer Dunbar Dorn. ...

Air service was expanded under the plan, which paid for the purchase of all-weather and night traffic control equipment, as well as the training of staff to handle the equipment. The Second Malaysia Plan also saw Malaysia-Singapore Airlines split into the Malaysia Airline System (MAS) and Singapore Airlines (SIA).[39] To meet Wikipedias quality standards, this article or section may require cleanup. ... Singapore Airlines Limited (Abbreviated: SIA; Chinese: 新加坡航空公司; Pinyin: Xīnjīapō Hángkōng Gōngsī; abbreviated 新航) (IATA: SQ, ICAO: SIA, and Callsign: Singapore) SGX: S55 is the national airline of Singapore, and the worlds second-biggest carrier by market value. ...

The Second Malaysia Plan also saw the introduction of containerisation in Malaysia to better facilitate transportation. The plan called for the establishment of a national haulage company to handle inland transport; in August 1971, Kontena Nasional Berhad (National Containers Limited) was established by the government. In December, M.V. Benavon became the first container vessel to dock in Malaysia, at the North Terminal of Port Klang in Selangor.[40] Containers in the port of Kotka (Finland) on the Baltic Sea. ... Port Klang (Malay: Pelabuhan Klang) is the main port of Malaysia, located in the district of Klang in the state of Selangor. ...

At the time of the Second Malaysia Plan, there were only two sea ports in Malaysia; one in Penang, and one in Klang. The plan called for the construction of two new ports, both in peninsular Malaysia; one would be in Johor, and another would be in Kuantan, a major town in Pahang. The two main objectives of these projects were to meet increasing demand for sea transportation of freight, and to bring development to underdeveloped states. Johor Port was completed in 1977, while Kuantan Port began full operations in 1984.[41] Seaport, a painting by Claude Lorrain, 1638 The Port of Wellington at night. ... State motto: Bersatu dan Setia (United and Loyal), formerly Let Penang Lead Location in Malaysia Government Capital George Town (5. ... This is the town of Klang, Malaysia. ... State Motto: Kepada Allah berserah (English: all hopes is to God (Allah) Capital Johor Bahru Royal Capital Pasir Pelangi Sultan Sultan Iskandar Al-Haj Chief minister Dato Abdul Ghani Othman Area 19,984 km² Population 3. ... Teluk Cempedak Beach, Kuantan Kuantan (population 501,965)(2005) is a town in Malaysia, and is the state capital of Pahang, the largest state in the peninsular, covering around 36,000 km². The city comprises 62% of Malays, 28% of Chinese, 4% of Indian and 6% of other races. ... State motto: no State motto Capital Kuantan Royal Capital Pekan Sultan Sultan Haji Ahmad Shah Chief Minister Dato Seri Adnan Yaakob Area 35,964 km2 Population  - Est year 2005 1,372,500 State anthem Pahang State Anthem Pahang (Jawi: Ú¨Ù‡Ú ) is the largest state on Peninsular Malaysia, occupying the huge Pahang... Johor Port is located at Pasir Gudang in the southwest of Johor in Peninsular Malaysia. ...


At the end of the Second Malaysia Plan, the poverty rate was found to have declined from 49% to 43%. Unemployment improved slightly, decreasing from 7.5% to 7.4%. Great strides were made in increasing Bumiputra involvement in the private sector, however; the employment rate of Bumiputra in the manufacturing sector increased from 29% to 33%, and from 24% to 34% in the commercial sector. Bumiputra equity ownership more than doubled from 3% to 7.8%. However, this was considered unsatisfactory by many, especially as much of the progress had been made by government enterprises holding the equity in trust.[42] Although the plan had initially targeted a GDP growth rate of 12.5% a year, only an average of 11% was managed. The growth was extremely uneven; while in 1973 GDP grew by 27%, in 1975, it grew a paltry 3% due to the global recession at the time.[43] Despite the government's efforts to tackle unemployment, creating 600,000 new jobs during the Second Malaysia Plan, the number of unemployed actually increased between 1970 and 1975; in 1970, there were 275,000 unemployed, but by 1975, the number stood at 324,000.[44]

The Second Malaysia Plan was also forced to confront an unexpected problem: inflation. Between 1972 and 1975, the consumer price index (CPI) unexpectedly increased by 40%. In 1974, the inflation rate averaged 18%, although it was reduced to 7% by 1975.[45] This new conundrum was therefore considered by the government when it set out the Third Malaysia Plan (1976 – 1980). --71. ...

Another overarching consequence of the Second Malaysia Plan was its efforts in crop diversification. Despite RISDA failing to meet its targets, the palm oil industry in Malaysia continued to grow. By 1998, palm oil was the second-largest contributor towards Malaysia's GDP, second only to electronics products. [46] To meet Wikipedias quality standards, this article or section may require cleanup. ... The field of electronics comprises the study and use of systems that operate by controlling the flow of electrons (or other charge carriers) in devices such as thermionic valves and semiconductors. ...

Overall, the Second Malaysia Plan made much more substantial progress towards reducing the inequity in the economy than its predecessor had. However, the emphasis on improving the lot of the Malays greatly worried the non-Malays, and when the Third Malaysia Plan was launched, the government toned down its rhetoric on affirmative action and emphasised greater economic growth, which would benefit all. [8]

See also

The First Malaysia Plan (1966–1970) was an economic development plan implemented by the government of Malaysia. ... Under the Malaysian New Economic Policy, Bumiputra are given discounts on real estate. ...

Notes and references

  1. ^ Shuid, Mahdi & Yunus, Mohd. Fauzi (2001). Malaysian Studies, p. 85. Longman. ISBN 983-74-2024-3.
  2. ^ Henderson, John William, Vreeland, Nena, Dana, Glenn B., Hurwitz, Geoffrey B., Just, Peter, Moeller, Philip W. & Shinn, R.S. (1977). Area Handbook for Malaysia, p. 323. American University, Washington D.C., Foreign Area Studies. LCCN 771294.
  3. ^ Henderson, et al., pp. 147 – 149, 322.
  4. ^ Means, Gordon P. (1991). Malaysian Politics: The Second Generation, pp. 7 – 9. Oxford University Press. ISBN 0-19-588988-6.
  5. ^ Means, p. 24.
  6. ^ Henderson, et al., p. 294.
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