Abstract
Since independence, Malaysia has gradually built a robust and resilient economy, which has sustained strong economic growth. We have almost eradicated hardcore poverty, and at the same time, have been able to provide the society near universal access to basic health, education, communications and other public services. As a result, the quality of life for the vast majority of Malaysians has improved. However, achieving our bold aspirations of Vision 2020, by the year 2020, will be challenging. Despite the resilient economic condition, Malaysia still belongs to the middle-income group. In order to join the high-income nations, Malaysia needs to transform economically. This government is committed in pursuing this strategy to achieve high-income status. We have embarked on an Economic Transformation Programme (ETP) to propel our economy to 2020. The ETP builds upon the policy directions, strategies and programmes of the 10th Malaysia Plan incorporated in the New Economic Policy. In this ETP strategy programmes have laid out the long-term budget in order to achieve the vision 2020 objectives. Using these figures, this study has forecasted the expected economic impact on Malaysia in the year 2020 using the input-output analysis technique. The results of the study reveal that, by year 2020 Malaysia is expected to produce a total output estimated at RM1,603 billion, increase the total household income to RM 138.365 billion, and create 9.784 million employments for the Malaysian. Keyword: Economic transformation programme, economic impact, inputoutput analysis.
Highlights
Malaysia economy has evolved from a traditional agricultural‐based to a more matured manufactured‐ based and continue gradually moving towards services‐based and knowledge‐based economy
The general objective of this study is to examine the economic impact for the Malaysian Economy for 12 National Key Economic Area by the year 2020
Currently Malaysia is categorized as an upper‐middle‐income country, once been an economy relied heavily on income from natural resources but has been successfully diversified first into manufacturing and into services sectors
Summary
Malaysia economy has evolved from a traditional agricultural‐based to a more matured manufactured‐ based and continue gradually moving towards services‐based and knowledge‐based economy. The second horizon encompasses economic activities driven by the New Economic Policy (NEP 1971‐1990), which focused on economic growth with equitable distribution of income and wealth. The basic philosophy of the policy is to maximize the growth potential of the economy with an equitable distribution of income and wealth; with a view of achieving national unity as the overriding objective of economic and social development. Such a growth with equity approach has given more weight in addressing an inter‐ethnic income gap issue. The implicit objectives of this policy are to strengthen national unity because it is a widely known from experiences of other countries that severe polarization can cause economic and business uncertainty, which impede the achievement of socio‐ economic objectives
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
