Development and Economic Model

Tun Dr Mahathir Mohamad was the one who open the country to foreign investment and reformed taxation. He had reduced the trade barriers and created world-class physical infrastructure. Became the nation's first Prime Minister that come from a modest social background, he formulated the Second Outline Perspective Plant (OPP2). Introduced New Development Policy (NDP) for the year 1991-2000, he also unveiled vision 2020 in 1991, the blueprint for Malaysia's journey to becoming a developed economy and a mature democracy by the year 2020.

During his time, Tun Mahathir work on various large scale national projects such as the North-South Expressway, Multimedia Super Corridor, capital city of Putrajaya, Johor's Port of Tanjung Pelepas, the Kuala Lumpur International Airport, the Bakun Dam in Sarawak, and the Petronas Towers. However, these development projects made the growth of Malaysia's economy decreased tremendously. The inefficient and failures of some of his projects has also been criticised. A very low Gross Domestic Product (GDP) of Malaysia per capita (US$7,468) compared to South Korea (US$16,450), Singapore (US$34,346) and Hong Kong (US$29,559) had attracted the United National Development Programme (UNDP) to talk about the country. The UNDP then suggested the government to work on new plan for the economic model, quoted as New Economic Model (NEM).

Today, the sixth Prime Minister of Malaysia, Datuk Seri Najib Tun Razak makes the model become a reality. Recently launched on March 30, NEM has its own target to propel from its current GDP from US$7,000 to at least US$15,000 in ten years. However, this third leg of Malaysia's reinvention, after 1 Malaysia and Government Transformation Programme has conducted to new conflicts and debated by many economic experts.

Besides of being a small economy, Malaysia has been susceptible to the positive and negative forces of globalisation. Based on economic crisis nowadays, does the policies introduced by the government are the best solution. Whether it will cure the disease or be a disaster to the nation, nobody knows. Tun Mahathir was recently mentioned that he has no confidence on the achievement to vision 2020. Of course it is hard to make others' idea become a reality but it is not impossible to be achieved.