New Economic Model
{{Short description|Initiative to reform Malaysia's economy}}
{{Update|date=July 2020}}
{{EngvarB|date=December 2014}}
{{Use dmy dates|date=December 2014}}
{{Najib Razak sidebar}}
The New Economic Model (NEM) 2011-2020 was an economic plan in Malaysia unveiled on 30 March 2010 by Malaysian Prime Minister Najib Razak which was intended to more than double the per capita income in Malaysia by 2020. The programme aimed to shift affirmative action from being ethnically based to being need-based hence becoming more competitive, market and investor-friendly.
The plan
The goal of the NEM, according to Najib, is to "transform the Malaysian economy to become one with high incomes and quality growth" by 2020.{{cite news | last = Chin | first = Joseph | title = MRCB, Pos in focus after PM unveils new economic model | date = 30 March 2010 | accessdate = 31 March 2010 | url = http://www.theedgemalaysia.com/highlights/162642-mrcb-pos-in-focus-after-pm-unveils-new-economic-model.html | work = The Edge | url-status = dead | archiveurl = https://web.archive.org/web/20100402091259/http://www.theedgemalaysia.com/highlights/162642-mrcb-pos-in-focus-after-pm-unveils-new-economic-model.html | archivedate = 2 April 2010 | df = dmy-all }}{{cite news | title = MCA welcomes New Economic Model | date = 30 March 2010 | accessdate = 31 March 2010 | url = http://thestar.com.my/news/story.asp?file=/2010/3/30/neweconomicmodel/20100330213730&sec=neweconomicmodel | archive-url = https://web.archive.org/web/20110622002451/http://thestar.com.my/news/story.asp?file=%2F2010%2F3%2F30%2Fneweconomicmodel%2F20100330213730&sec=neweconomicmodel | url-status = dead | archive-date = 22 June 2011 | work = The Star }} At the time of the plan's unveiling in 2010, per capita annual income in Malaysia stood at 23,100 Malaysian ringgit, approximately $7,000 in US currency; the plan's stated goal is to reach RM49,500 (US$15,000).{{cite news | date = 31 March 2010 | title = NEM will be led by three principles | work = The Star | url = http://thestar.com.my/news/story.asp?file=/2010/3/31/neweconomicmodel/5968223&sec=neweconomicmodel | archive-url = https://web.archive.org/web/20100403195939/http://thestar.com.my/news/story.asp?file=%2F2010%2F3%2F31%2Fneweconomicmodel%2F5968223&sec=neweconomicmodel | url-status = dead | archive-date = 3 April 2010 | accessdate = 31 March 2010 }}
The keys to the plan as described by Najib at 30 March unveiling are "high income, sustainability and inclusiveness". The goal is to stimulate economic growth by improving worker productivity across all sectors of society, in part through an improved system of affirmative action, with an eye towards sustainability.{{cite web | title = Prime Minister Najib Razak sounds a reform note, but will he follow through? | url = https://www.wsj.com/articles/SB10001424052702304739104575154963045671060?mod=WSJ_latestheadlines | author = The Wall Street Journal | author-link = The Wall Street Journal | date = 1 April 2010 | accessdate = 31 March 2010 | publisher = online.wsj.com}} Among other reforms meant to accomplish this goal, the Najib administration have also claimed that the NEM is to empower the private sector and to reduce fiscal disparity between the wealthiest and poorest of Malaysians.{{cite news | title = Private Sector In Driver's Seat A Good Shift In NEM | work = Bernama | date = 31 March 2010 }}
The plan is intended to replace the New Economic Policy (NEP).{{cite news|url=http://www.themalaysianinsider.com/index.php/opinion/breaking-views/57874-perkasa-glcs-and-the-new-economic-model-lim-teck-ghee|title=Perkasa, GLCs and the New Economic Model|last=Ghee|first=Lim Teck|date=29 March 2010|work=The Malaysian Insider|accessdate=31 March 2010|url-status=dead|archiveurl=https://web.archive.org/web/20100401054941/http://www.themalaysianinsider.com/index.php/opinion/breaking-views/57874-perkasa-glcs-and-the-new-economic-model-lim-teck-ghee|archivedate=1 April 2010|df=dmy-all}} Najib criticised the way that the NEP had been implemented over its 40-year history, arguing that affirmative action policies of the NEP needed to be better targeted.{{cite news|url=http://thestar.com.my/news/story.asp?file=/2010/3/31/neweconomicmodel/5968462&sec=neweconomicmodel|archive-url=https://web.archive.org/web/20100403195945/http://thestar.com.my/news/story.asp?file=%2F2010%2F3%2F31%2Fneweconomicmodel%2F5968462&sec=neweconomicmodel|url-status=dead|archive-date=3 April 2010|title=PM: Affirmative action a vital component in new economic reality|date=31 March 2010|work=The Star (Malaysia)|publisher=Star Publications (Malaysia)|accessdate=31 March 2010}}
Reaction
The Malaysian Chinese Association released a statement supporting the plan. Opposition leader Anwar Ibrahim responded to the plan's announcement by arguing the plan was "devoid of substance" and was designed as a publicity tool for the Barisan Nasional government.{{cite news|url=http://my-1.themalaysianinsider.com/index.php/malaysia/58180-pakatan-calls-nem-a-publicity-stunt|title=Pakatan calls NEM a 'publicity stunt'|last=Abdullah Sani|first=Asrul Hadi|date=31 March 2010|pages=The Malaysian Insider|accessdate=31 March 2010}}{{Dead link|date=April 2020 |bot=InternetArchiveBot |fix-attempted=yes }} Malay activist group Perkasa expressed concerns that the proposed Equal Opportunity Commission could be unconstitutional if it did not accord with the protection of Malays afforded by Article 153 of the Constitution.{{cite news|url=http://www.themalaysianinsider.com/index.php/malaysia/58184-perkasa-question-equality-panel-in-nem-|title=Perkasa questions equality panel in NEM|last=Kamal|first=Shazwan Mustafa|date=31 March 2010|work=The Malaysian Insider|accessdate=31 March 2010|url-status=dead|archiveurl=https://web.archive.org/web/20100402011113/http://www.themalaysianinsider.com/index.php/malaysia/58184-perkasa-question-equality-panel-in-nem-|archivedate=2 April 2010|df=dmy-all}}
A spokesman for Khazanah Nasional Berhad, a government agency, stepped out to support it as a "realistic outline", provided that it is effectively implemented and embraced by the public.{{cite news | title = Khazanah: NEM's first part a realistic outline | date= 31 March 2010 | accessdate = 31 March 2010 | url = http://biz.thestar.com.my/news/story.asp?file=/2010/3/31/business/5967034&sec=business | work = The Star}} Democratic Action Party spokesperson Tony Pua said that Najib's launching of a new unit to strengthen Bumiputera economic participation has nullified his own New Economic Model and is nothing more than an endorsement of the controversial NEP, which favours the influential elite, and a copycat of Mahathir's mega-projects and privatisation policies of the 1990s.{{cite news | title = Najib has nullified NEM | date = 9 February 2011 | accessdate = 10 February 2011 | url = http://www.freemalaysiatoday.com/2011/02/09/najib-has-nullified-nem/ | work = Free Malaysia Today | url-status = dead | archiveurl = https://web.archive.org/web/20110210205612/http://www.freemalaysiatoday.com/2011/02/09/najib-has-nullified-nem/ | archivedate = 10 February 2011 | df = dmy-all }}
See also
Further reading
- [http://themalaysianinsider.com/index.php/opinion/breaking-views/58006-the-new-econimic-model-datuk-seri-najib-razak- The New Economic Model — Najib Razak], The Malaysian Insider
References
{{Reflist|2}}
{{Economy of Malaysia}}
Category:Economic history of Malaysia
Category:Racial and religious quotas in Malaysia