A Study of Regional Development in Malaysia Based On State Level Data 4-Libre

A STUDY OF REGIONAL DEVELOPMENT IN MALAYSIA BASED ON STATE
LEVEL DATA

BY

UMMU HANI HUSNA BINTI ABDUL AZIZ

A PROJECT PAPER SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF BACHELOR OF URBAN AND REGIONAL
PLANNING

KULLIYYAH OF ARCHITECTURE AND ENVIRONMENTAL DESIGN
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

JUNE 2012

CHAPTER 1
INTRODUCTION
1.1 Overview of Study
This paper makes an analysis and examines the government policies in regional developments in
Malaysia. The government handles the imbalanced development with a set of policies, but it
failed to make a balanced development in Malaysia. The analysis of this paper will focus on the
reviewing policies like eighth and ninth national plan, transformation economic model. The topic
also gives indicators and verifies the failure of two major strategies of frontier area development
and in-situ development that were implemented since 1970s. The new economic model is an idea
based on the new economic corridor, but it give the impression of the limitation of the economic
development in rural region not only due to structural constraints developed from historical
process but also the structure of the capitalist system itself which limits the growth of rural
economic. The policies for economic given the rapid pace of globalization and increased
competition between regions across nations development should focus on inclusiveness and
give a spatial balance. The imbalanced development In Malaysia started since independence
from British in 1957. There was districts disparity in development between the different regions
of peninsular Malaysia. The regions along the west coast from Penang to Johor Bahru were
exploited first with economic activities and later developed into trading centers. There are
physical constraints contributed to imbalanced economic activities disparity in Malaysia, such as
the geography being in the middle of the peninsular Malaysia and the long distance to port
facilities prevent the exploitation of resources in the east coast region.
The regional development in Malaysia was formed since 1970s by the government to develop the
country. The previous policies that were used for region development. Regional development
planning had been seen as one of the ways to achieve the goals of eradications of poverty and the
restructuring of society in term of social, economic and spatial components. There are several
policies that have been used for the development in Malaysia. The famous policies for regional
development is frontier regions, the development of existing rural settlements or in-situ rural
development, the dispersal of industrial activities to the less developed regions and the creation
of new growth centers or new townships in the rural areas (see Alden and Awang ,1985 ;Mat
1983)
The regional disparity is situation of an imbalanced development according to Mohammad
Sharif Krimi, Zulkornain Yusop and Law Siong Hook (2010). The regional disparity or
imbalance refers to a situation where per capita income, standards of living, consumption,
industrial and agriculture and infrastructure development are not uniform in different parts of a
given region. Regional disparities are global phenomenon. The problems of regional disparities
in the level of economics development are almost universal. It is not a new phenomenon as it
occurred in other countries as well. Even during new earlier periods there were differences in the
level of economic development both in the advanced countries in Europe and developing
countries in Asia and Africa.

1.2 Problems Statement
Malaysia has been one of the developing countries; the country faced the development since
independence 1957. In cities of developing countries, the citys center is grown organically from
an originally uncontrolled residential area, commercial and institution which contribute to mixed
land use. The past history also contributes a regional disparity among the states when British
colonial developed a state based on the location. Note that planners are dealing with increasing
problems and issues of the regional development like regional disparity especially at rural areas.
1.3 Aim and Objectives
1.3.1 Aim
The purpose of this study is to identify the sample of regional development in Malaysia and the
policies to address the regional development issues.
1.3.2 Objective
There are several objectives that have been identified as follow:
To review regional planning policies and strategies of the government to from the
perspective of the balance and sustainable development in Malaysia
To evaluate the effectiveness of the existing development policies for regional
development in Malaysia
To evaluate the regional policies, practices and government efforts that have
supported the current and future development

1.4 Research Question
Based on the objectives of the study, there are several research questions identified for this
research as stated below:
1. What the level of development contentment the Malaysian peoples perceive since
independence ?
2. How the policies that has been made by government can help or facilitate the quality of
life?
3. What are the factors influencing imbalanced developments in Malaysia?
4. What are the recommendations of the policy makers to improve the regional development
in Malaysia ?
5. When will Malaysia have a balanced regional development, with all parties involvement?

1.5 Scope of Study
The scope of this study has been determined in order to facilitate the literature study by focusing
on certain or related fields. This study is to identify and examine the policy by government
which addresses the issues on regional disparity in Malaysia. Based on the investigation, we need
to collect all the data needed in order to know the regional development level in Malaysia. All
the data is recorded using Microsoft Excel, and Map Info to show the result.

1.6 Limitations of Study
There are several limitations in order to complete this research paper. They are as follows:
1) The sample for this analysis is small due to time and budget constraint
2) The study is limited to a few socio economy data state level only. The other data for
development could not be studied due to limited time of research.
1.7 Significance of the Research
This study is to determine the regional development in Malaysia based on state level data to
determine the government policies for regional development in Malaysia. In addition, the study
also gives an opportunity to tackle the issues and problems of regional disparities in Malaysia.

1.8 Structure of the Research
1.8.1 Chapter One: Introduction
This is an introduction chapter of the thesis and includes the background of the projects,
problems statements, objectives, scope of study and methodology.
1.8.2 Chapter Two: Literature Review
This chapter presents the literature review on the introduction and understanding of the regional
development in Malaysia, the policies and the factors contributed to regional disparities in
Malaysia. In addition this chapter also identifies the technique chosen for this research. The
principal and the guidelines of the research regional development are explained in this chapter.

1.8.3 Chapter Three: Methodology
This chapter is to inform the methodology of the research which uses the Location quotation
analysis. This research only uses a secondary data by the policies that had been made by a
government for the development. Then data was analyzed by using Microsoft Excel and Map
Info to analyzed and show the result.

1.8.4 Chapter Four: Study Area
This chapter provides information about the site background which covers the whole area of
Malaysia. The geographical location, the administration and the history of Malaysia informed
discussed in this chapter.

1.8.5 Chapter Five: Analysis and Finding
This is the chapter which provides explanations the result and the analysis of the data collected.
All of the data collected was explain. The data was analyzed by using Location quotation
technique. The result are analyzed and presented.
1.8.6 Chapter Six: Recommendation and Conclusion
This is the last chapter for conclusion and recommendation of this analysis. Overall conclusion
of this project stated in this chapter together with some future recommendations.
1.9 Conclusion
This study is intended to get better information for balanced regional development instead of
regional disparity. Thus planners and policy makers has a responsibility that need a technique
and ideas to handle this issues. This project paper is also a good channel between policy makers,
research institutions and people that are recognized in the regional development scene.

CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
This chapter will give a reviewing regional development in Malaysia .The chapter thrash out
previous Malaysia regional development especially during 1970s to 2000. To achieve balanced
regional development will remain as one of the key objectives of national development during
the development plans in Malaysia. Therefore this chapter give an example of previous pattern of
regional disparities amongst major states in Malaysia to find out gap and rank of regional
development during two development plans (seventh and eighth plan). The empirical results
indicate that in terms of regional balance, little progress was made in reducing development gaps
between regions during two plans and Wilayah Persekutuan Kuala Lumpur was the most
developed region in 2000 and 2005.
2.2 The introduction of regional development
There are a few studies about regional disparities. The rest of those researches are analyses
regional disparities amongst various states based on HDI (Human Development Index),
Economic and socio-economic indicators with simple models such as Normalize and weighted
mathematical method such as: Riskin (1988) observes that substantial disparities between
Chinese provinces in the 1950s became much more serious with industrialization. He states that
the leadership opted for the diversion of investment resources to the more backward provinces
and consequently, relative convergence of provincial industrialization occurred from the start of
the First Five Year Plan [1953-57] with less industrialized provinces growing at higher
proportional rates than more industrialized ones. (Page 227). Nevertheless, he argues that the
regional disparities in terms of rural poverty remained high.
Fedorov (2002) highlights the growing regional inequalities in Russia in the1990s. Referring to
recent studies on regional disparities in Russia he states that Virtually all authors agree that the
transition period has been characterised by rapidly growing economic inequality among Russias
regions Vanderpnye-Orgle (2002) after citing a number of studies on the growing regional
disparities in Ghana, discusses the growing trends in spatial inequalities and polarization in
Ghana during the period of stabilization and structural adjustment programmes late 1980s to
late 1990s. This study concludes that regional inequality increased during the first stages of
reform period, followed by a short period of decline before resuming its increasing trend for the
rest of the period to 1999. Wei and Kim (2002) showed that the increasing regional inequality is
widely considered to be the reason for the existing regional problems in China and an obstacle to
its stability and development. In this study of inter-county inequality in Jiangsu province of
China they conclude that for the period of 1950-95. Noorbakhsh (2003) analyzed regional
disparities amongst major states in India to find out if they are on a convergence or further
divergence course. The analysis is extended to the evolution of disparities amongst the states
with respect to a larger set of socio-economic indicators especially HDI.
A number of regional composite indices are constructed from the selected indicators and tested
for their validity. In case of regional development disparities in Malaysia, there is just one study
by Economic Planning Unit in 2006 that used of the Development Composite Index (DCI), based
on 16 indicators include social and economic index. This study use a simple method (Normalize
method) for ranking states in Malaysia the result shows that Wilayah Persekutuan Kuala Lumpur
ranked the highest DCI followed by Pulau Pinang, Melaka and Selangor.

2.3: Theoretical Basis for Regional Development
A number of the multitudinous theories and concepts of development that have been put forward
in the past hundred years have significantly shaped regional development thinking. The
following sections discuss these theoretical trajectories in terms of their basic concepts or
perspectives and how the same have translated into policies and strategies in regional
development. Richardson (1973) explains the claim of neoclassical economics that regional
disparities in terms of supply and demand of factors of production (labor, capital, technology) or
commodities will even out inevitably given the sufficient increase in the accessibility between
regions and consequently by the mobility of these production factors and commodities.
According to the theory, regional imbalances in supply and demand manifest themselves in
differences in prices of these factors of production and commodities. Hirschman (1957) and
Perroux (1964) have been considered the forerunners of the trickle down or the center down
paradigm, which had been the basis for the development of the growth center approach. The
concept largely mirrors the view of neoclassical economics. Stohr (1981) in succinct terms,
explained that the trickle down paradigm purports that development can start only in a relatively
few dynamic sectors and geographic locations from where it is expected to spread to the
remaining sectors and geographical areas of a country. The trickle down process starts from a
high level (from worldwide or national demand, or from world or national innovation centers)
filtering down and outward to national and regional units through various mechanisms: urban
hierarchy, multi-plant business organizations and large-scale government organizations.
2.4 Regional Policies in Malaysia
During the pre-independence period in Malaysia, the economic development of the government
was mainly focused on agriculture and infrastructure development. These developments were
mostly dependent on private sector or foreign direct investment. Private sector still played the
same role after the independence in 1957 and up to the year 1970. During this period, economic
base theory was put into practice where industrial development base on import substitution
industrialization was created. However, this industrialization did not help the economy. During
this period, unemployment rose to 8% in 1968 and the distribution of income widened by Gini
coefficient increasing from 0.49 to 0.55. (Aslam and Ali, 2003) During this period too, the
economic policies implemented had created the background of the 1969 riots. The riots, which
started on the 13
th
of May 1969, were based on four overlapping polarizations. They are the rich
versus poor, the muslim versus non-muslim, urban-rural occupational structure, and spatial
disparities (regional gaps). (Hansen, Higgins, and Savoie, 1990) The rich versus the poor factor
is referred to the Chinese versus the Malays. Because of the economic structure that the British
implemented, the Chinese were in the cities and they dominated the business and finance sector.
The Malays, which were encouraged to farm and fish for living by the British, were mostly
living in the villages. Because of the location and the type of work they do, the Chinese were
richer than the Malays. Moreover, the locations where the Chinese and Malays were located too
contributed to the urban-rural occupational structure. On the other hand, the Malays are mostly
Muslims, while the Chinese, Indians and some European populations are not. This leads to
another difference in the social-economic development.

2.4.1 Regional Income Disparity In Malaysia during 1970s to 2000
The GDP per capita for various states in the period of 1970 till 2000. In the earlier period, Negeri
Sembilan, Perak, Selangor, Sabah and Wilayah Persekutuan registered real GDP per capita that
is above the national average. However, in 2000, Malacca, Penang, Selangor, Terengganu and
Wilayah Persekutuan were experiencing rapid growths in the GDP per capita which exceed the
national average. Sabah has shown a decreasing GDP per capita as the state was the third richest
state in 1970 but the third poorest state in 2000. Kelantan remain as the poorest state throughout
the period. Meanwhile, Selangor and Wilayah Persekutuan remain the richest states in Malaysia
for the past decades. Table 2 shows the ranking by state according to real GDP per capita. The
poor state of Kelantan remained last throughout the years while Kuala Lumpur maintained in the
top position. Table 3 shows the poverty line index (PLI), incidence of poverty and hardcore
poverty. The incidence of poverty and the hardcore poverty are very high in the poor states of
Sabah, Terengganu and Kelantan.

2.4.2 The effects of the policies implemented on the regions
Firstly, the different industrialization policies above had moved the sector from the primary to
the secondary in Malaysia. Malaysias economy is currently less dependent on the primary sector
for activities such as agriculture, forestry, and fishing. What the transformation had created since
1970 especially is the move to the secondary sector, where manufacturing is the main
importance. The policies had also helped the less developed regions to reduce poverty by getting
them into the secondary sector.
2.4.2.1 Table of Percentage of GDP by Industry of Origin and Region, 1970, 1980, 1990,
and 2000
Year Northern(N
)
Easter
n (E)
Centr
al (C)
Souther
n (S)
Less
Develope
d Region
(L)
More
Develope
d Region
(M)
Peninsular
Malaysia
Agricultu
re,
forestry,
fishing,
etc.

1970 34.0 42.6 19.3 41.0 48.6 25.4 30.2
1980 18.4 35.6 11.5 32.8 28.9 16.3 19.3
1990 21.7 20.7 6.9 29.4 25.1 13.2 16.0
2000 15.0 15.2 4.0 17.2 17.6 8.3 10.4
Percenta
ge change

-55.9 -64.3 -79.3 -58.0 -63.8 -67.3 -65.6
Manufact
uring
1970 9.3 6.3 19.1 14.0 6.3 15.3 13.4
1980 18.0 10.5 28.5 23.8 7.0 27.1 22.2
1990 28.7 10.9 37.9 28.0 13.4 34.6 29.6
2000 36.5 21.2 44.0 40.8 25.7 41.6 38.0
Percenta
ge change

292.5 236.5 130.4 191.4 307.9 171.9 183.6
Source: Aslam and Ali, Development Planning and Regional Imbalances in Malaysia

Table above shows the percentage of GDP by industry of origin and region. We can basically
observe that the percentage change in the primary sectors is in the negative, which means a
percentage decrease. This is totally the opposite for the percentage change in the secondary
sector where it is in the positive. We recognized that the economy grew for the four decades by
knowing that the percentage increase in the secondary sector is higher than the percentage
decrease in the primary sector. We can notice percentage that is higher than 200% in the northern
and eastern regions because these are where the poor states are located. They are also the states
that faced the most initiatives to reduce poverty in the states and country. The states in these
regions that are considered poor are Kedah, Perlis, Kelantan, and Terengganu. The states are also
heavily populated by the Malays.
Table above shows the ratio of manufacturing GDP distribution by state compared to the ratio of
the Selangor state. The data that we see here shows a trend of increases in the ratio from 1970 to
1980, and then, a decrease from 1980 until 2000. From this data, we can conclude that from 1970
until 1980, there was a surge of investment in manufacturing in every state except for Selangor.
From 1980 until 1990, the ratio dropped, which shows that the manufacturing GDP for every
state was more equal with the manufacturing GDP of Selangor. However, if we consider that the
manufacturing GDP for Selangor did decrease between 1980 until 1990, we can conclude that
the manufacturing GDP for other states did not increase by much. Also, as we move towards the
year 2000, tertiary sector in the economy of Malaysia did increased too, which would decrease
the ratio of manufacturing GDP. In the year 2000, 50% of the economy of Malaysia was already
in the tertiary sector. (Siew Nooi, 2005) The Malaysian economy already started to move
towards the last stage of the Sector Theory, where the products that they produce or sell are more
income elastic products.

2.5 The Establishment of Regional Economic Growth Corridors
The regional economic growth corridors were established during the Ninth Malaysia Plan, and
were incorporated in the Mid-Term Review of the Ninth Malaysia Plan. The focus of regional
development was on raising the standard of living and attaining balanced socio-
economic development across regions and states. It involves development of growth centers
and growth corridors that transcend state boundaries, modernization and diversification
of the economic based on less developed states and reducing urban-rural digital divide
(Government of Malaysia, 2008: 65). According to the Mid-term Review of the Ninth
Malaysia Plan (2008), corridor development will reduce regional imbalance and bring
about equitable growth, investment and employment opportunities to all regions of Malaysia.
The aims were at creating a comprehensive and wide spread economic development in a more
coordinated and integrated manner. It was assume that the income generation will be
accompanied by accelerated eradi cation of povert y, restructuring of societ y and
over al l we al t h c r e a t i on. To f a ci l i t at e and e xpe di t e t he i mpl e ment a t i on
of pr ogr a ms t h e r e gi onal corridors authorities were established. Corridors development
will be private sector driven and the government roles are to provide conducive
environment to attract private sectors participation such as competitive package of
incentives as well as the establishment of one stop centers.

2.6 Conclusion
This chapter studies and gives an elaboration about the literature review. The literature review
gives an enhancement to the regional development program that already made by government,
the effectiveness of the programs and the theory of regional development. The explanation is
important to give an early understanding to the reader.

CHAPTER 3
THE METHODOLOGY
3.0 INTRODUCTION
This chapter will explain the method of data collection pertaining to this research. In this chapter,
there will be explanation on how to collect the data, from where the data will be obtained and
how the data will be analyzed. Apart from explaining the type of data used, this chapter also
cover the method use for analysis and stages of methodology which include preliminary of study,
reviewing the literature study, followed by data collection, analyzation of data and ended with
recommendations. The preparation of this chapter mainly to explained the proper methodology
development and ensure that this research attain the objectives which had been set up priory in
chapter 1.
3.1 STAGE OF STUDY

3.1.1 First Stage: Preliminary Study
This stage is considered as the first chapter in the research. It is become the main guide to the
whole process of the study. In this chapter, the aspect that had been covers are mostly are
introductory part. The core of the research had been studied where it consequently lead to
formulation of problem statements, research question, objectives and scope of study. The
familiarization of issues and problems, as well as the topic also conducted in this stage where as
the study on specific topic are done widely by using various sources. The socio economy data at
states level was collected for this research .Apart from that, the formulation of goal, objectives
are also conducted in this stage. From there, the structure of the research will not overboard and
achieved the target of the research.
3.1.2 Second Stage: Literature Review
The literature study for this research is conducted in this stage. After formulation of problem
statement and research question, the literature review are done by using reliable and available
sources such as books, articles, planning guideline, reports, journals, seminar paper, websites,
blogs and many more sources. In this stage, the overview understandings are conducted. The
demographic study, as well as other related information such as their festive occasions an ritual
are done in order to understand the integration community which had been practiced in Malaysia.
Apart from that, this stage also cover the planning standard and guideline used in the regional
development analysis. From the sources also, the research on regional development based on
states level data .
3.1.3 Third Stage: The methodology of data collection
This stage demonstrates the process or the methodology of the whole process in the research. It
is the vital stage where its explaining on how the data are acquired, the type of data, and the
method used to obtain the data. Basically, there are one types of data only which is secondary
data. This stage is important in gathering all the data required and information needed for
achieving the goals and objectives of the study.
Observational methods are essential in order to obtain the understanding pertaining to current
situations regarding the worship places at study area. By conducting observation, it allow
researcher to get genuine picture of issues and problems due to its status as a reliable sources to
the study. The study of regional development uses a location quotation theory for the
development.

3.1.3.1 Secondary data
The secondary data basically can be defined as the data which had been collected by other
agencies . For this case study, the researcher also depends to secondary data. The researcher used
data such as governments policy plan report likes national physical plan and physical plan each
states and development action plan, in order to know policy which had been stated by the local
authority pertaining to the development of the states and data by states .Then, there are also
articles, journal, website, seminar paper, reports which mainly put under secondary data. Apart
from that, the secondary data also used as resources for the researcher to make analysis
pertaining to the issues arises regarding the provision of regional development in Malaysia . As a
conclusion, the only secondary data are essential in providing the sources toward the research
and it is vital due to produce valid case study.
3.1.4 Fourth Stage: Data analysis and findings
After all the data had been collected, as mentioned in chapter 3, it will lead to the process of
analyzation. The data and findings from secondary data are analyzed in order to dig out the core
issues as well as overall situations of development in Malaysia . The data which had been
obtained from reviewing the report will study as well as analysis will conducted, totally from
the reviewing session . The After read the previous policy or physical plan of states , the data
will be extract of written back to Microsoft excel , based on what the report
3.1.5 Fifth Stage: Conclusion and Recommendation
This is the final stage for this research and it was conducted after the completion of data analysis
and findings. Based on the data findings and analysis, the recommendation for this issue will
formulate. Basically, this stage was purpose to conduct an approach which help to overcome the
problems which mostly had been outlined in the priory stages, and based from the analysis by
using the methodology mentioned in third stages, the researcher can formulate appropriate policy
which also can help to improve the integrity among the people in the study area. Then, the
conclusions are conducted to conclude overall study.

3.2 Technique for the analysis
The study focused on location quotient (LQ) analysis. The LQ analysis is a technique that
mathematically indexes a regions economy to a large reference (national) economy. The
method can be carried out easily, quickly and inexpensively. It is computed as follows.
LQ = [ai /bi] / [Ao/Bi]
ai = total output in sector i in state s
bi = total output in state s
Ao = total output in sector i in national economy n
Bi = total output in national economy n
The LQ shows on the sectors contribution to the regional economy compared to the sectors
contribution to the national economy. If the value is less than one, the sectors share of the total
regional output falls short of the same sectors share of total output in the national economy.
Otherwise, if the value is greater than one, the sectors share of total regional output exceeds the
same sectors share of total output in the national economy. There are 14 states in the Malaysian
economy. The states are Johor, Kedah, Kelantan, Melaka, Negeri Semblian, Pahang, Penang,
Perak, Perlis, Selangor, Terengganu, Wilayah Persekutuan, Sabah and Sarawak. In this paper we
divided the economy into 5 regions. Regions are divided according to the followings.
Northern Region (Kedah, Perlis, Perak and Penang)
Central Region (Selangor, Malacca and Negeri Sembilan)
Eastern Region (Kelantan, Terengganu and Pahang)
Southern Region (Johor)
Sabah
Sarawak
Furthermore, the five sectors under study include agriculture, mining and quarrying,
manufacturing, constructions and services. In this study we compare the performance of the rich
regions and the poor regions namely central region and the regions of eastern and Sabah &
Sarawak respectively.
The performance of two rich states and two poor states are also analyzed. Rich states represented
by Penang and Selangor while Kedah and Kelantan representing the poor. The LQ analysis of
these regions is compared to the national economy using the number of employment for the
particular sectors. We use secondary data that are compiled from the various government
department and Bank Negara Malaysia for the period 1970 till 2006.

3.3 Use Of GIS
Methodologies based on computerized geographical information systems (GIS) are appearing
with regularity in the library and information science literature and conference proceedings. This
article illustrates and discusses several specific GIS techniques available to LIS researchers,
administrators, planners, and instructors. These techniques include thematic mapping (shading,
coloring, or using various sized symbols to indicate amount and type), data maps (positioning
actual data on maps rather than on tables), and geocoding (positioning addresses obtained from
various reference sources to specific points on a map). Maps are used to illustrate the techniques
recommended for more widespread use among library and information researchers

3.3 .1 The Method of Digitizing
In the past 10 years, geographic information systems (GIS) have been widely used in urban and
regional planning in the developed countries in Australia, North America and Europe. However,
the use of GIS in urban and regional planning in the developing countries is limited and still at an
early stage of development. This paper use the current use of GIS in urban and regional planning
in the developing countries in Asia. The major hindrances in the use of GIS in the developing
countries is related not so much to the technology of GIS but more to data availability,
leadership, organization structure and planning practice. For GIS to be more useful to urban and
regional planning in the developing countries the development of a sustainable strategy in
developing GIS and staff training is needed. International assistance agencies and GIS software
companies can play an active role in making GIS available and usable to the planners in the
developing countries.

3.3.2 Implementation of GIS to analysis
The implementation of GIS map by using Map info software .The Mapinfo software was design
to use GIS map ,this technique make an easy way to create a map .It is easier way to create a
analyzed map .

3.3.3 Overview

This chapter outlines how to go about bringing your spatial and business data into MapInfo
Professional so that you can fully visualize and analyze the information. This chapter focuses on
database access. Please refer to the MapInfo Professional documentation set for specifics on
MapInfo mapping and analytical features.
3.3.3.1 The five steps for GIS application are:
1. Acquisition the data in Microsoft excel to put all data.The data will keep in table and will put
in excel table .Then the table will open directly with Map Info
2. Use of the GIS software, Mapinfo to open the file from Microsoft excels to geocode to
produce a map.The analysis will done based on this table and result will appear on map.
3. To ensure the word inside table is correct follow the rules of the geocode table ,it is because
the software can not read the wrong word .
4. After the data inside the table can open directly by using Mapinfo,then the geocode step will
take action.
5. After geocode all the data ,then make a thematic map based on the data that already geocodde
.Then ,the by doing the thematic map user can chooseeither use a hatching or colour and symbols
.There are variety of way to produce a thematic map.But for this research I will choose hatching
to show my result on Map
6. Then the thematic map wil produce after we choose the technique for the map.The map will
show the result based in the data and analysis
3.3.3.1 Steps For Geocoding In Map Info
Geocoding Manually
To geocode a table manually:
1. Open the table with the reference map in it.
2. Open your table and add it to the current Map window.
3. On the Map menu, click Layer Control.
4. Select your table and make that layer editable. Click OK.
5. On the Window menu, click New Browser Window. Select the table to geocode.
6. On the Window menu, click Tile Windows to display your Map and Browser windows
side by side.

Figure 3.1 ;The example of geocode in Mapinfo
Source: http://www.kxcad.net/mapinfo/mapinfo_professional/MapInfow-09-24.html#wp1550516

7. Scroll through the Browser to find the record that you would like to geocode. Click in the box to the
left of the row to select the record.
8. Click in the title bar of the Map window. The Symbol tool on the Drawing toolbar is now available.
9. Select the Symbol tool.
10. Click the map where you want the point placed for the selected record.
11. On the File menu, click Save. The selected record is geocoded. Repeat steps 7-10 for each record
you would like to manually geocode

3.3.1 The Flow Chart of The Methodology

Analysis and data findings
Recommendations and conclusion
Data collection
Selection of study area
Preparation of study area
Primary data
Interviews
Site observation
Secondary data
Internet surfing
National physical plan report ,states
physical plan report and new economic
model report books, journal, reports, and
action development plans seminar paper.
Problems Identification
Formulation of Goals, Objectives and
Scope of Study.
Literature Review

3.4 SUMMARY
As a conclusion, this chapter summarizes the methodology which helps the researcher to obtain
the data pertaining to the issues and problems regarding worship places. Overall, it covers the
methodology or process to conduct the study. It started with the problems identification,
literature review on the study, collection on data, and analysis on data and findings. Then, the
study closed with the final stages, which are suggesting some recommendation as a solution to
overcome the problems, which had been questioned in the prior chapter. This methodology is
very important in becoming guidance for the researcher to conduct this research, which
successfully help the researcher to attain goals and objectives which had been formulated in prior

CHAPTER 4
THE STUDY AREA
4.1 Introduction
Achieving balanced regional development will remain as one of the key objectives of national
development during the development plans in Malaysia .Therefore this paper analyses
disparities amongst major states in Malaysia to find out gap and rank of regional development
during two developments. Regional disparities or imbalance refers to a situation where per capita
income, standard of living, consumption situation, industrial and agriculture and infrastructure
development are not uniform in different parts of a given region. Malaysia is an independent
nation state a parliamentary constitutional monarchy, with a federal government structure. Most
of the countries of the world are experiencing the problem of regional disparities. The problem is
not a new phenomenon. Even during the earlier periods also there were difference in the level of
economic development both in the advanced countries of the Europe and developing countries of
Asia and Africa. But due to the lack of statistical measures these imbalances didn't attract notice.
However, in recent years they have received a lot of attention because of their adverse
implications for balanced economic development

4.2 Study Area
The location of the study area is located at South China Sea which separates the two landmasses
that make up Malaysia. The country was covering the southern half of the peninsular Malaysia
and the other spread over the northwest coastal region of Borneo (Sabah and Sarawak). In 1957
the federation of Malaya gained its independence from the British colony. In 1963 together with
the British colonies of Sabah and Sarawak, Malaysia come into being as an independent
federation Singapore has opted out from the federation and became independent in 1965.
The federal government has considerable power over the state governments of the eleven states
of peninsular Malaysia. Sabah and Sarawak however enjoy rights which are derived from
agreements reached when Malaysia was formed.
Malaysia is a multi-ethnic country compromising predominantly of the Malays, Chinese and
Indian. The varieties of ethnics groups influenced the cultures and play a large rate in Malaysia
policies.

4.1 :Key Location Map
Source : www.google.com

Figure 4.2 : Site Location Map
Source : www.google.com

ap
Figure

4.4.2 The geographical location

The area is 329,847 sq .km (127,315 sq mi) slightly larger than a New Mexico cities, Capital
city of Malaysia is Kuala Lumpur and other cities like Johor Baru, Kota Bharu, Penang, Kuala
Terengganu, Kedah, Ipoh, Kuala Terengganu, Kota Kinabalu, Kuching, Kuantan, Shah Alam,
Kangar, Alor Star and Malacca. The South China Sea separates peninsular Malaysia from East
Malaysia Borneo.

Figure 4.3: Map of Malaysia
Source : National Physical Plan Report

4.3 The Demographic, Social and Economic Setting of Malaysia
The population of Malaysia comprises the three major ethnic groups of Asia- the Chinese,
Indians and Malays. In Peninsular Malaysia (where 80 per cent of the population lives), about
61.1 per cent are Malays (Department of Statistics 2001a). The Malays, together with a small
group of the other indigenous groups, are known as the Bumiputra, or son of the soil. The
Chinese and Indians make up about 27.4 per cent and 9.4 per cent of the population of Peninsular
Malaysia respectively. They are the descendants of migrants from China and India in the early
part of the twentieth century. The remaining 0.7 per cent are Others. Each ethnic community
has maintained its own socio-cultural ways of life, and is segregated to some extent by place of
residence, education and occupation. The various ethnic groups are at different stages of
demographic transition. Mortality rates have fallen to a low level for all segments of the
population, with a crude death rate of less than 5 per thousand populations. The infant mortality
rate is lowest among the Chinese (5 per thousand live birth) and highest among the Malays (9 per
thousand live births), with the Indians in-between. Female life expectancy ranges from about 73
years for the Malays to 78 years for the Chinese (Department of Statistics 2001b).
4.3.1 The regional cooperation
During the plan period, Malaysia continue to cooperate at the regional level to increase the
dynamism of the region and During the Plan period, Malaysia continue to cooperate at the
regional level to increase the dynamism of the region and enhance inter-regional cooperation.
Malaysia will also cooperate with other countries in the region to address common issues and
enhance competitiveness for economic growth and development through closer economic
integration, particularly among ASEAN members.

Association of Southeast Asian Nations. Malaysia in cooperation with other ASEAN members,
continue to undertake measures to deepen the economic integration of ASEAN towards
achieving the objectives of the ASEAN Economic Community (AEC) by 2020. In this regard,
Malaysia will cooperate actively with ASEAN members to implement various initiatives under
the Vientiane Action Programme (VAP) and the Framework Agreement on Priority Integration
Sectors. The acceleration of liberalisation of the services sector is expected to promote intra-
ASEAN trade in services and also provide the necessary impetus to sustain and boost economic
growth.

During the Plan period, in addition to ASEAN-China FTA in Goods, ASEAN also implement the
ASEAN-Korea FTA in Goods in 2006. Efforts will be intensified to conclude the on-going FTA
negotiations with the other Dialogue Partners. All these FTAs are expected to have significant
impact on the ASEAN economies and to provide the catalyst to continue to attract foreign direct
investment into the region.

Malaysia continue to encourage and support cooperation under the ASEAN Plus Three
framework towards the establishment of an East Asia community, including the possibility of an
East Asia FTA. Collaboration with Japan, Peoples Republic of China and Republic of Korea
will be continued in sub-regional development initiatives, particularly the Growth Triangles, as
well as in efforts towards the integration of ASEAN through the narrowing of development gaps
between its members. Malaysia also spearhead efforts to streamline and strengthen ASEAN
through an institutional review and the adoption of the ASEAN Charter.
Asia Pacific Economic Coop
regional economic developme
Towards this end, trade and bu
business will be reduced and
Malaysia will encourage gre
technical cooperation as well a
4.4 Conurbation of regional d

Figure 4.4 : Map of Malaysia
Source : National Physical Pla
The figure 4.4 show the con
development by region. In g
administrative boundaries, wh
region as an area comprising
Plans are the National Econo
namely; the Northern Corrido
operation. Malaysia continue to emphasize
ment and enhancing shared prosperity in the
business facilitation will be implemented, whe
nd capacity building initiatives will continue t
reater efforts among members to further int
ll as build human and institutional capacity.
al development in Malaysia
ia Conurbation Development
Plan Report
conurbation states in Malaysia, it shows the
n general, a region is defined as an area co
whilst the Town and Country Planning Act 197
g of two or more states. The regions outlined
nomic Regional Corridor covering an area o
idor Economic Region, Central Region, Easter
ize the strengthening of
the Asia Pacific region.
hereby the cost of doing
e to be given emphasis.
intensify economic and

the important town and
covering two or more
976 (Act 172), defines a
ed in the 9 the Malaysia
of more than 2 states,
tern Corridor Economic
Region and Southern Johor Economic Region (Iskandar Development Region). The National
Physical Plan (NPP) has identified four (4) Conurbations or City Regions that shall be planned
and developed as integrated regions, namely; Klang Valley Conurbation, George Town
Conurbation, Kuantan Conurbation and the Johor Bahru Conurbation (Iskandar Development
Region).
4.4.1 Table of Basic Socio Economy Data For Malaysia
State Area (square
kilometres)
Population Annual
Population
growth rate
(%)
Percentage o
population(6-18
years ) enrolled in
schools
Population
per doctor
2008 2009 2009 2007 2008
Malaysia
Johor
Kedah
Kelantan
Melaka
Negeri Sembilan
Pahang
Perak
Perlis
Pulau Pinang
Sabah
330,803
19,210
9,500
15,099
1,664
6,686
36,137
21,035
821
1,048
73,631
28,306.7
3,385.2
2,000.0
1,634.2
769.3
1,013.9
1,543.3
2,393.3
240.7
1,577.3
3201.0
2.1
2.2
2.1
2.4
2.1
1.8
2.0
1.8
1.9
1.9
2.2
66.0
70.9
69.1
66.4
72.8
74.5
67.8
71.8
69.1
47.8
69.1
1,105
1,571
1,445
1,863
879
859
1,639
1,039
952
817
2,454
Source : Economy Planning Unit Annual Report

4.5 The socio economic background of Malaysia
Population is important for planning; the estimation of population is highly related with future
development. The population estimation in Malaysia 2011 is mid-year population estimates.
Then the estimation in 2009 is based on the 2000 population and Housing census data which
were projected to the current year based on the change on the components of births, deaths, and
migrations. The figures are census earlier that has been revised for under enumeration based on
under-enumeration rates from the post enumeration survey and smoothing of distribution of
people.
4.5.1 The population background
The population of Malaysia in 2010 is recorded at 28.3 million and annual population growth
rate 1.7%. Ethnic groups are Malay (53.5%), Chinese 26.0%, indigenous 11.8%, Indian 7.7.%,
others 1.2%. The religions Islam (60.4), Buddism (19.2), Christianity (9.1%),
Hinduism(6.3)(6.83%) and others/none (5.0%). The official language for Malaysia is Bahasa
Melayu, second is English and the other languages can be used in Malaysia. In addition, the
education in Malaysia starting at pre-school, primary, secondary and tertiary, meanwhile literacy
Sarawak
Selangor
Terengganu
W.P Kuala Lumpur
124,450
8,153
13,035
243
91
2,503.6
5,179.6
1,121.1
1,655.1
89.0
2.0
2.1
2.4
1.6
1.5

47.8
69.0
64.3
72.6
63.3
53.3
2,032
1,100
1,421
488
2,368
rates for Malaysia is 98.3% (2010) which means almost 100% Malaysian can read. Therefore the
quality of health is improving in Malaysia as we can see the infant mortality rate is 6.7/1,000, life
expectancy for female is 76 years and male is 72 years. Lastly the employment sector has a work
force 10.89 million (2007) which are contributed by different sectors like service 57%, industry
28%, manufacturing 19% , mining and constructions 9% and agriculture 15%.
4.5.2 The administration in Malaysia
The government of Malaysia is administered by two separate parties and a federal parliamentary
democracy with a constitutional monarch. Malaysia has independence in august 31, 1957, the
independence for peninsular Malaysia, then Sabah and Sarawak joined Malaysia in 1963.
Singapore was split from Malaysia in 1965. Malaysia contains 13 states and three federal
territories (Kuala Lumpur, Labuan Island, Putrajaya federal administrative territory). Each state
has an assembly and government headed by a chief minister. Nine of these states have hereditary
rulers, generally titled sultans, while the remaining four have appointed governors in
counterpart positions. The branches contains executive the highest majesty of Agong head of
states and customarily referred to as the king has a ceremonial duties, prime minister the head of
government cabinet. The legislative bicameral parliament comprising of 70 members senate by
26 elected by the 13 state assemblies, 44 appointed by the king on the prime ministers
recommendations and 222 member house of representatives elected from single member
districts. Judicial federal court, court of appeals, high courts, sessions courts, magistrates court
and juvenile court. Sharia courts hear cases on certain matters involving Muslims only. The
political parties contains with the rolling part Barisan Nasional (National Front), a coalition
compromising the United Malays National Organizaton (UMNO), and 12 other parties, most of
which are ethnically based on democratic action party (DAP), Party Islam se Malaysia (PAS),
Parti Keadilan Rakyat Malaysia (PKR). There are more than 30 registered political parties,
including the foregoing not all of which are represented in the federal parliament suffrage.
Executive power is vested in the cabinet led by the prime minister, the Malaysia constitution
stipulates that the prime minister must be a member of the lower house of parliament who in the
opinion of the Yang di Pertuan Agong commands a majority in Parliament. The cabinet is chosen
from among members of both houses of parliamentary and is responsible to that body.
4.5.3 The economic performance of Malaysia
The economy since it became independence in 1957, Malaysias economy record has been one
of Asias best. Real gross domestic product (GDP) grew by an average of 6.5 % per year from
1957 to 2005. Performance peaked in the early 1980 through the mid -1990s as the economy
experienced sustained rapid growth averaging almost 8% annually. High levels of foreign and
domestic private investment played a significant role as the economy diversified and
modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today
is a middle income country with a multi sector economy based on services and manufacturing.
Malaysia is one of the worlds largest exports of semiconductor devices electrical goods, solar
panels and information and communication technology (ICT ) products.
As other countries, Malaysia also struggled economically during the 1997-1998 asian financial
crisis and applied several valuable lessons to its economic management strategies that
contributed to the economys resilience to the 2008-2009 global financial crisis. After
contracting 1.7 % in 2009, Malaysias GDP grew 7.2 % in 2010. Malaysian banks are well
capitalized, conservatively managed and had no measurable exposure to the U.S, subprime
market. The central bank maintains a conservative regulatory environment, having prohibited
some of the riskier assets in vogue elsewhere. Malaysia maintains high levels of foreign
exchange reserves and has relatively little external debt.
The government continues to actively manage the economy with state owned enterprises heavily
involved in the oil and gas ,plantation ,ship building ,steel ,telemunications ,utilities ,automotive
,mining and others sectors .Since 1971 ,ethnic preferences have been given to Bumiputras (ethnic
Malays and indigenous peoples ) by requiring 30 % .Bumiputra ownership in new businesses.
The economy new model was introduce by fifth prime minister ,it reform program includes
measures and proposals to modify these ethnic preferences and to divets state enterprises while
increasingly the private sectors role in stimulating higher levels of investment and boosting
GDP growth. The NEM aims to create a business environment more conductive to long term
sustained economic growth ,development and investment, with the goal of Malaysia becoming a
high income, developed nation by 2020. The governments economic transformation program
includes individual projects and other reform measures.

4.5.3.1 : Table of GDP by states of Malaysia
State Industrial Production
(Manufacturing (Value
of grass ouput)
Agriculture Production
Rubber
(Tonnes)
Paddy
(Tones)
2006 2008 2008
Malaysia
Johor
Kedah
Kelantan
Melaka
Negeri Sembilan
Pahang
Perak
Perlis
Pulau Pinang
Sabah
Sarawak
Selangor
Terengganu
W.P Kuala
Lumpur
710,237,504
109,663,612
23,247,948
2,498,160
56,032,951
42,827,755
21,314,476
22,481,632
957,122
122,610,760
24,604,621
46,616,054
178,492,107
29,091,428
27,698,283
29,091,428
59,593
8,027
11,036
8,071
1,945
15,179
8.340
5,177
-
-
10
-
1,808
-
-
-
2,353,032
8,128
867,335
232,309
4,158
5,437
21,384
280,237
233,144
120,075
133,138
206,753
177,444
63,490
-
-
Source : Economic Planning Unit

4.6 Issues And Problems
Based on the study area, there are several issues regarding to regional development in Malaysia.
For a long time since independence, Malaysia still has a problem regarding to development
process. The regional development in Malaysia was having a problem with the imbalanced
development between regions, where as the developed states have a concentration in
development rather than less developed regions.
Second issue is unsuccessful policies implementations for regional development, there are
several programs that has been made by government, but the implementation does not show a
2,100.594
positive impact to the development in chosen states like Kelantan, Terengganu and Pahang and a
part of Mersing (ECER). The program still does not show the development in that states.
Third issue is social inequalities, study area also have a inequality for socio economic indicators
like basic quality of life such as health, education and physical development. The problems
related with the issue is bad infrastructure installation in less developed area, thus making an
investor lose interested to invest in that state.

4. 7 Conclusion
Basically this chapter discusses the study area, and also gives an explanation to the basic socio
economic data for readers understanding. This chapter also gives a brief discussion about the
site area and help into collecting useful information to help this study to achieve the objectives.
The next chapter will study the analysis and findings of the data that have been gathered from
field study.

CHAPTER 5
ANALYSIS AND FINDINGS
5.1 Introduction
This chapter is the core chapter in this research study as it consist all the data analysis and
findings that lead to fulfillment of research objectives. The data is regarding the socio economic
states data, the analysis is used Location Quotient technique. Most of the sample of data was
collected from previous survey that was done by Department of Statistic Malaysia and Economic
Planning Unit Malaysia.
5.2 Findings and Analysis on socio economic data
There are several sectors that was chosen for this study, The selected socio economic data
chosen for this study are data of incidence poverty, health, literacy rates, mean house hold
income level, gross domestic product (GDP), employment for each sector, and urbanization
rates.
There are 16 states in the Malaysian regional development programs. The states are Johor,
Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor,
Terengganu, Wilayah Persekutuan Kuala Lumpur, Wilayah Persekutuan Putrajaya, and Wilayah
Persekutuan Labuan.
This research will use all 15 indicators to analyze the regional development in Malaysia by
producing development composite index for each state. The composite index will be calculated
based on the Location Quotient technique. From the results, recommendations will give based on
the analysis.
5.2.1 The Analysis
The data collection is secondary data which was made by reviewing the previous report for this
paper. The socio economic data is a secondary data based on report. Only several indicators were
chosen for this analysis even thought the collected data is more. Table 5.1 shows the selected
indicators data for the analysis.

5.2.2 The Analysis and Findings
Table 5.1 : Socio economic data by states of Malaysia
STATES
MEAN
MONTHLY
INCOME 09
INCIDEN
CE
POVERT
Y 09
URBANIZ
ATION
RATE 10
AVG
URBAN
POPUN
GROWTH
RATES
EMPLOYM
ENT IN
PRIMARY
SECTOR
PERLIS 2617 6 35.9 2.2 13032
WP KUALA
LUMPUR 5488 0.7 100 1.5 1454
JOHOR 3835 1.3 67.7 2.6 16324
KEDAH 2667 5.3 40.3 2.2 95781
MELAKA 4184 0.5 73.4 2.7 6020
NEGERI
SEMBILAN 3540 0.7 57.4 2.1 47401
PULAU
PINANG 4407 1.2 80 1.9 8053
WP PUTRA
JAYA 6747 0
SELANGOR 5962 3.8 89.1 2.4 67607
KELANTAN 2536 4.8 33.3 2.1 92621
TERENGGAN
U 3017 4 50.3 2.6 45371

PAHANG 3279 2.1 44.6 2.5 130760
PERAK 2809 3.5 59.3 1.6 101223
SARAWAK 3581 5.3 50.6 2.4 243310
SABAH 3102 19.7 51.6 2.9 331237
WP LABUAN 4407 4.3 78.6 1.8 2552
MALAYSIA 4025.00 3.8 63.8 3.2 276,998
STATES
EMPLOYMENT IN
SECONDARY
SECTOR
EMPLOYMENT
IN TERTIARY
SECTOR
EMPLOYM
ENT
GDP
STAT
ES
GDP %
GROWT
H
PERLIS 12900 33562 59494 2890 3.1
WP KUALA
LUMPUR 118226 503485 595068 73536 4.8
JOHOR 336512 492434 1022361 50040 5.8
KEDAH 147712 224693 520960 18153 8.3
MELAKA 40282 76496 214580 14358 7
NEGERI
SEMBILAN 80522 191287 299976 19353 7.9
PULAU
PINANG 222898 288166 519117 46744 7.9
WP PUTRA

JAYA
SELANGOR 440024 1156471 1664102 116883 5.4
KELANTAN 37318 207467 337406 9273 5.1
TERENGGANU 40259 145553 248003 14175 1.7
PAHANG 55574 101037 412074 24217 5.7
PERAK 152520 402043 655786 28518 5.5
SARAWAK 104878 395368 734556 49484 7.7
SABAH 97733 423219 802189 29827 6
WP LABUAN 2286 20102 24940 2272 9.7
MALAYSIA 435,219 3,721,665.00 11,129.4 25,866 7.0
STATES
BED
POPUN
09
DOC
POPUN
09
HEALTH
CLINIC
POPUN
09
LITERACY
OVER 10
YEARS
LITERACY
RATES OF
MALAYSIA
TOTAL OF
COMPOSITE
INDEX
PERLIS 593 784 26744 94.3 90.8 9.5
WP KUALA
LUMPUR 260 929 127315 96.2 96.2
33.4
JOHOR 562 1273 37613 94.9 93.3 21.5
KEDAH 755 1245 37736 94.3 90.2 14
MELAKA 391 728 29588 92.4 92.4 20.3
NEGERI
SEMBILAN 528 772 26682 93.7 93.7
17.2
Source : Department of Statistic Malaysia
Economic Planning Unit Annual Report

5.3 Findings and Analysis on Mean house hold income
The Household Income Survey (HIS) is one of the surveys carried out by the Departments of
Statistics, Malaysia. This survey was first conducted in 1973 and since then have been carried
out twice in every five years, that is, two surveys within each Malaysia Development Plan
period. The main objectives of the HIS are to measure the economic well-being of the
population; collect information on income distribution pattern of household classified by various
socio-economic characteristics and provide the base data for the calculation of the Poverty Line
Income (PLI). Household income and poverty statistics are used for policy formulation and
PULAU
PINANG 331 740 60665 94 93.8
32.13
WP PUTRA
JAYA 251 320 68200

SELANGOR 576 929 91275 96.3 95.6 45
KELANTAN 907 1644 30834 90.9 85.5 11.4
TERENGGANU 799 1317 28746 91.9 89.5 11.8
PAHANG 732 1145 25300 95.4 92.2 14
PERAK 343 899 33240 92.7 91.1 15
SARAWAK 603 1688 12972 91.7 81.6 14
SABAH 725 2022 41571 89.7 84.6 13.2
WP LABUAN 817 2171 89000 92 91.7 9.5
MALAYSIA 522 927 35,033 91.0 92 15
development planning particularly for the poverty eradication programmes and strategies for
distribution of income. The statistics provided were referenced from Post Enumeration Surveys,
Agriculture Census, Household Income Surveys and statistical compilations.
5.3.1 The analysis and findings
Table 5.2 Mean Household Income and Incidence Poverty data by states of Malaysia
STATES
MEAN
MONTHLY
INCOME 09
Lq analysis INCIDENC
E
POVERTY
09
Lq analysis
PERLIS 2617 <1 6 >1
WP KUALA
LUMPUR 5488 >1 0.7 <1
JOHOR 3835 <1 1.3 <1
KEDAH 2667 <1 5.3 >1
MELAKA 4184 >1 0.5 <1
NEGERI
SEMBILAN 3540 <1 0.7 <1
PULAU PINANG 4407 >1 1.2 <1
WP PUTRA
JAYA 6747 >1 0 <1
SELANGOR 5962 >1 3.8 >1
KELANTAN 2536 <1 4.8 >1
TERENGGANU 3017 <1 4 >1
PAHANG 3279
PERAK 2809
SARAWAK 3581
SABAH 3102
WP LABUAN 4407
Malaysia
SOURCE : LQ analysis on Soc
Economic Planning
5.3.3.1 Figure of mean month
FIGURE 5.1 : Mean month ho

5.3.4 Household income
Data on household income or
for household size. Nations us
<1 2.1
<1 3.5
<1 5.3
<1 19.7
>1 4.3
4025.00
1
3.80
Socio economy indicator
ing Unit
nth household income by states of Malaysia
household income by staes of Malaysia
or consumption come from household survey
use different standards and procedures in collec
>1
<1
>1
>1

80

1

eys, the results adjusted
llecting and adjusting the
data. Normally, surveys based on income show a more unequal distribution than surveys based
on consumption. The quality of surveys is improving with time, yet caution is still necessary in
making inter-country comparisons.

FIGURE 5.2: Pie Chart of household income
SOURCE : Economic Planning unit budget report

According to the data that was collected, the mean house hold income of the developed states
reached the national line. Kuala Lumpur 5488 > 1, Selangor 5962 > 1, Pulau Pinang 4407 > 1,
Putrajaya 6747 > 1 and Melacca 4184 > 1.These states are developed states and the income level
is more than the national average. Another less developed states likes Perlis 2617 < 1, Johor
3835 < 1, Kedah 2667 < 1, Negeri Sembilan 3540 < 1, Kelantan 2536 < 1, Terengganu 2317 < 1,
Pahang 3279 < 1, Perak 2809 < 1, Sabah 3102 < 1 and Sarawak 3581 < 1.
Then according to another survey that was done by Statistic Department for the economic
planning unit recently, the Malaysia average monthly household income is RM 3686 which falls
in the RM 3-4k group. 57.8 % of the families are below this group and 29.3 % are above it. This
shows that the average families actually have a higher position than the median in the
distribution as the median falls in the RM 2-3k group.

5.3.5 Analysis and Findings
5.3.5.1 Figure of incidence p
FIGURE 5.3 Incidence poverty
5.3.5.2 Incidence of Poverty
The Poverty headcount ratio
2009, according to a World
percentage of the population li
on population-weighted subg
historical data chart, news and
population) in Malaysia. Mala
income country, has transform
emerging multi-sector econom
domestic demands to wean the
gs on incidence poverty
e poverty by states of Malaysia
erty by states of Malaysia

io at national poverty line (% of population) i
rld Bank report, published in 2010. Nationa
n living below the national poverty line. Nation
bgroup estimates from household surveys. T
nd forecast for Poverty headcount ratio at natio
alaysia is a rapidly developing economy in Asia
rmed itself since the 1970s from a producer of
omy. The Government of Malaysia is contin
the economy off of its dependence on exports. N

) in Malaysia is 3.80 in
nal poverty rate is the
ional estimates are based
. This page includes a
tional poverty line (% of
sia. Malaysia, a middle-
of raw materials into an
tinuing efforts to boost
s. Nevertheless, exports -
particularly of electronics - remain a significant driver of the economy. The incidence poverty
level for Malaysia is 3.8, then the states that exceed the national line are Perlis 6 >1, Kedah 5.3
>1, Kelantan 4.8 >1, Terengganu 4 >1, Sarawak 5.3 >1, Sabah 19.7 >1 and Labuan 4.3 >1. These
states are less developed states. The incidence poverty level is almost national level. Then other
states likes Kuala Lumpur 0.7 > 1, Johor 1.3 < 1, Malacca 0.5 < 1, Negeri Sembilan 0.7 < 1,
Pulau Pinang 1.2 < 1, Perak 3.5 < 1 and Pahang 2.1 < 1, all have incidence poverty less than or
equal with national line equivalent to 1.
5.4 Analysis and Findings on Urbanization rates
This entry provides two measures of the degree of urbanization of Malaysia. The first, urban
population describes the percentage of the total population living in urban areas, as defined by
the country. The second, rate of urbanization, describes the projected average rate of change of
the size of the urban population over the given period of time. Additionally, the world admission
includes a list of the ten largest urban agglomerations. An urban agglomeration is defined as
comprising the city or town proper and also the suburban fringe or thickly settled territory lying
outside of, but adjacent to, the boundaries of the city.

5.4.1 The Analysis and Findings
States
Urbanization
rates 2010
Lq Analysis Average growth
population 2010
Lq Analysis
PERLIS 35.9 <1 2.2 <1
WP KUALA
LUMPUR 100 >1 1.5 <1
JOHOR 67.7 >1 2.6 <1
KEDAH 40.3 <1 2.2 <1
MELAKA 73.4 >1 2.7 <1
NEGERI
SEMBILAN 57.4 <1 2.1 <1
PULAU
PINANG 80 >1 1.9 <1
WP PUTRA
JAYA >1
SELANGOR 89.1 >1 2.4 <1
KELANTAN 33.3 <1 2.1 <1
TERENGGANU 50.3 <1 2.6 <1
PAHANG 44.6 <1 2.5 <1
PERAK 59.3 <1 1.6 <1
SARAWAK 50.6 <1 2.4 <1
Table 5.3 Data Collection An
Sources: Department of Statist
Economic Planning U
LQ Analysis
5.4.2 Figure for urbanization
FIGURE 5.4 : Urbanization ra

5.4.2.1 Urbanization rates
In general the urbanization r
urbanization rate does not onl
other indicators like infrastru
have a high number of urbani
likes Johor 67.7 % (>1), Mala
SABAH 51.6
WP LABUAN 78.6
Malaysia 63.8
And Analysis On Urbanization Rates And In
tistic Malaysia
g Unit Annual Report
tion rates by states of Malaysia
rates by states of Malaysia
n rate for Malaysia is 63.5 %, the percenta
only depend on the physical development but a
tructures, environment, economy and others. T
anization rates which is 100%. Then other rate
alacca 73.4 % (>1), Pulau Pinang 80%(>1) ,
1.6 <1 2.9
8.6 >1 1.8
3.8 1.00 2.2
Incidence Poverty

ntage is not 100%, the
ut also influenced by the
s. The federal territories
ates for developed states
) , Selangor 89.1% (>1),
<1
<1
1.00
Labuan 78.6% (>1) and Kuala
35.9% (<1), Kedah 40.3 % (<1
50.3(<1), Sabah 51.6 (<1), S
increased since independence i

5.4.3 Figure for average grow
FIGURE 5.5 :Average growth
5.4.3.1 Urbanization populat
The urban population for Mal
the transformation of the deve
was 71.28% in 2011. The de
areas. Malaysia is rapidly d
Malaysia is not balanced and t
Urban population (% of total)
ala Lumpur 100 % (>1). The other less develo
(<1), Negeri Sembilan 57.7% (<1), Kelantan 33
, Sarawak 50.6 %(<1). The tempo of urbaniza
ce in 1950s until recent.
rowth rates population urban
th rates population urban by states of Malaysi
lation growth
alaysia has drastically changed from time to t
evelopment process in Malaysia. The urban po
definition of urban population is defined as p
developing its economy in Asia. However
d the disparity of regional development still pe
al) in Malaysia was reported at 72.20 in 2010,
eloped states likes Perlis
33.3 % (<1) Terengganu
ization in Malaysia has

ysia
o time. It is according to
population for Malaysia
s people living in urban
ver the development in
persist in Malaysia. The
0, according to a World
Bank report released in 2011. The Urban population (% of total) in Malaysia was 71.28 in 2009,
according to a World Bank report, published in 2010. The Urban population (% of total) in
Malaysia was reported at 70.36 in 2008, according to the World Bank. Urban population refers to
people living in urban areas as defined by national statistical offices. It is calculated using World
Bank population estimates and urban ratios from the United Nations World Urbanization
Prospects. This page includes a historical data chart, news and forecast for urban population (%
of total) in Malaysia. Malaysia, a middle-income country, has transformed itself since the 1970s
from a producer of raw materials into an emerging multi-sector economy. The Government of
Malaysia is continuing efforts to boost domestic demand to wean the economy off of its
dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant
driver of the economy.
Urban population growth or urbanization is expanding rapidly in Malaysia. The number of urban
centers with population of 10,000 and above in Malaysia has increased from 8 in 1911 to 140 in
2000. With an average of 11.1 % increase each year saw rapid development of urbanization
process in Malaysia. By the year, Malaysia is projected to be an urban society with the majority
(over 70 %) of the country's total population living in its cities (Norhaslina Hassan, 2009).
Before World War II, immigrants from China have accelerated urbanization process in Malaya
(Cooper, 1951). After the world war ended and the Federation of Malaya was established in
1957, the urban population growth process was due to migration flows from rural to urban areas.

5.5 Findings and Analysis on Employment Sector
The number of employment in Malaysia increased by 260,600 (2.5%) to 10.89 million in 2007 as
compared to 10.63 million in 2006. However the percentage of persons inside labor force (2.0%)
is lower compared to the labor 2.5 %. Therefore a higher labor force participation rates was
recorded in 2007 (63.4%) as compared to 2006 (62.1%), however the employment rates to 3.2 %
in 2007 from 3.3 % in 2006. Roughly the distribution of job an employed person is consistent
with the population composition. In 2007, 56.9 % of the total employed persons were Bumiputra
followed Chinese 25% and Indians 7.1%. Generally these people are schooling and going for
further studies have the potential to enter the labour market upon completion of their studies.

5.5.1 The Analysis and Findings :
Table 5.4 :Data on Employment sector by states of Malaysia
STATES
EMPLOY
MNET IN
PRIMARY
SECTOR
LQ
ANALYSIS
EMPLOYMEN
T IN
SECONDARY
SECTOR
LQ
ANALYSI
S
EMPLOYMN
ET IN
TERTIARUY
SECTOR
LQ
ANALAYSIS TOTAL
EMPLOY
MENT
LQ
ANALYSIS
PERLIS
13032 >1 12900 >1 33562 <1 59494 <1
WP KUALA
LUMPUR
1454 <1 118226 >1 503485 >1 595068 >1
JOHOR
16,324 <1 336512 >1 492434 >1 1022361 >1
KEDAH
9,5781 >1 147712 >1 224693 <1 520960 >1
MELAKA
6,020 <1 40282 >1 76496 <1 214580 <1
NEGERI
SEMBILAN
4,7401 >1 80522 >1 191287 <1 299976 <1
PULAU
PINANG
8,053 <1 222898 >1 288166 <1 519117 >1
WP PUTRA
JAYA

SELANGOR
6,7607 <1 440024 >1 1156471 >1 1664102 >1
KELANTA
N
9,2621 >1 37318 >1 207467 <1 337406 <1
TERENGGA
NU
4,5371 >1 40259 >1 145553 <1 248003 <1
PAHANG
130,760 >1 55574 >1 101037 <1 412074 <1
PERAK
101,223 >1 152520 >1 402043 >1 655786 >1
SARAWAK
243,310 >1 104878 >1 395368 >1 734556 >1
SABAH
331,237 >1 97733 >1 423219 <1 802189 >1
Economic Planning U

5.5.2.1 Figure of employmen
FIGURE 5.6 Figure for emplo

5.5.2.2 Primary sector of Em
The Malaysian economy has
decades. After independence 1
of tin and rubber. Recently t
activity. Before, Malaysia is a
WP
LABUAN
2552 <1
Malaysia
276,998
1
tistic Malaysia
ent at primary sector :
ployment at primary sector by states of Malaysia
mployment
as experienced significant structural changes in
e 1957, Malaysia inherited an economy largel
y the economy trend has changed from natu
s a largely based on the export of rubber and tin
2286 <1 20102 <1
435,219
1 3,721,665.
00 1
ysia
in the last four and half
gely based on the export
ature-based to industrial
tin.
24940 <1
11,129.4 1
The country has moved rapidly towards industrialization. Nowadays primary sector agricultural,
forestry and mining are 10.5% compared to manufacturing and construction percentage of 35%.
Malaysia development is also largely due to wealth at national resources in agricultures and
forestry such as rubber, palm and oil. In Malaysia, the location of the production also divided
into three:
1. Peninsular Malaysia: Rubber, coconut oil ,rice and tin
2. Sabah : Coconut ,Rice ,Rubber
3. Sarawak :Rubber and oil
As we can see from the data, less developed states are Perlis 13032 <1, Kedah, Negeri Sembilan,
Kelantan, Terengganu, Perak, Sarawak, Sabah have a high number in primary sector because the
states are rich with natural resources compared to developed states like Kuala Lumpur, Selangor,
Johor, Melaka, Penang and Labuan. The economy already changes and transformed from natural
resources to manufacturing activities.

5.5.3 Figure of employment
FIGURE 5.7 :Ssecondary secto
5.5.3.1 Secondary Of Employ
The distribution of employme
economy manufacturing, finis
within the secondary sector ac
and automobile, production, t
manufacturing, energy utility
production and manufacturing
sector is visible in its 30% co
Malaysia has abundant natura
nt in secondary sector by states of Malaysia
ector by states of Malaysia
loyment
ment in the different primary sectors secondar
nished goods .All of the manufacturing, proces
activities associated with the secondary sector i
textile, production, chemical and engineering
lity, engineering and constructions. For dev
ing are backbones of its economy. The growth
contributions to the GDP in 1999 as compar
ural resources, including minerals, liquid natur
ia

dary employment of the
cessing and construction
or include metal working
ing, industrial aerospace
developing country, oil
th of the manufacturing
pared to 13.9% in 1970.
tural gas, petroleum and
tin. The oil productions wer
significantly as shown in Mala
5.5.4 Figure of employment
FIGURE 5.8 :Employment at t

5.5.4.1 Tertiary sector of Em
The contributions of the se
increased. This sector has ex
product (GDP) and labor force
serving sector needs to be em
growth. The service sector i
professional and technical wo
contributor to the Malaysia eco
sector increased to 88.0% in 2
ere 727,200 bbl/day in 2008. Electronic co
alaysia manufacturing and expansion.
nt at tertiary sector by states of Malaysia
at tertiary sector by states of Malaysia
mployment
service sector towards the Malaysia econom
exceeded other sectors in terms of contributio
rce especially during the 1990s. Meanwhile wo
emphasized to avoid shortages of manpower
r is including the administration and manage
orkers. During the ninth Malaysia plan the se
economic growth and expanded by 6.8 % annua
in 2010. Based on the data collection, the issu
components contributed

nomy has continuously
tions to gross domestic
workers requirement for
er that could retard its
agerial workers and the
serving sector is a main
nually. The GDP for this
ssues are comprehensive
information about the demand
levels of dialogue to formulate
collection that we can see, the
>1 and Johor >1.
5.5.5 Figure for total emplo
FIGURE 5.9 : Total employm

5.5.5.1 Total employment
The population ages for emplo
value for this indicator has flu
decline in population aged 15
the other hand, the populatio
onwards. In 2009, the aged po
is expected to increase to over
nd for workforce by the market is often the m
late a policy and strategy for human capital de
the developed states likes Kuala Lumpur >1, S
loyment by states of Malaysia
yment by states of Malaysia
ployment sector in Malaysia were 54 as 2010. O
fluctuate between 98.68% in 1964 and 54 in 2
15 years and below and it will stabilize after 2
ation aged 60 years and over shows a sharp
population stands at 2 million (Department of
ver 3 million in 2020. The aged and young will
main issues raised at all
development. From data
, Selangor and Putrajaya

. Over the past years the
n 2010. There is a steep
r 2050 around 20%. On
arp increase from 2005
of Statistics, 2010) but it
ill intersect around year
2042, where both the populations will share equal proportions in the population as the second
demographic dividend occurs. The data shows that the proportion of the working population
(ages 15-64), portraying the implication of cohort flows into the future. Malaysia is currently
enjoying its demographic window or demographic opportunity as the working age population is
increasing and remains higher than the dependent population combined. Nevertheless, this
demographic window is transient and will dissipate if no policies were put in place to make full
use of this opportunity. The median age of our population that divides the population into two
equal halves - one below and the other above the median age. Aged nation status can also be
determined using the median age. By convention, the median age of 30 is used as the cutoff to
categorize a country as ageing. A population with median age under 20 can be described as
young while a median age of 30 and over as old. A median age between 20 and 29 indicates the
intermediate stage or mature population. As of 2009, the median age of Malaysians is 25 years
and thus we can be classified as a maturing nation. The data shows that developed states likes
Kuala Lumpur 595068 (>1), Johor 1022361 (>1), Pulau Pinang 519117 (>1), Johor 1022361 (>1
), Sarawak 734556 (>1), Sabah 802189 (>1) and Perak 655786 (>1). From the data that we can
see the developed states have more job opportunities than the number of employment. The less
developed states likes Kelantan 337406 (<1), Terengganu 248003 (<1), Kedah 520960 <1,
Pahang 412074 <1 and Labuan 24940 <1, these states do not really have job opportunities.
5.6 Findings and Analysis on Gross domestic product:
5.6.1 Findings and issues
Global economy rebounded in 2010 after the worldwide financial crisis and economic downturn
in 2009. Favourable economic growth has been recorded in most of the countries including the
Asia region. Malaysia also posted a strong growth of 7.2 per cent in 2010 (2009: -1.6 per cent).
The growth was driven by the Services (6.8 per cent) and manufacturing (11.4 per cent) sectors.
Upward trend of growth was reflected in the states' performances especially those that are highly
dependent on Services and Manufacturing sector.

5.6.2 The Analysis and Findings:
Table: 5.5 Data and Analysis on Gross Domestic Product by states of Malaysia
STATES GDP BY STATES

LQ GROWTH_GDP_%_10

LQ
PERLIS
2890 <1 3.1 <1
WP KUALA
LUMPUR
73536 >1 4.8 <1
JOHOR
50040 >1 5.8 <1
KEDAH
18153 <1 8.3 >1
MELAKA
14358 <1 7 >1
NEGERI
SEMBILAN
19353 <1 7.9 >1
PULAU PINANG
46744 >1 7.9 >1
WP PUTRA JAYA

SELANGOR
116883 >1 5.4 <1
KELANTAN
9273 <1 5.1 <1
TERENGGANU
14175 <1 1.7 <1
PAHANG
24217 <1 5.7 <1
PERAK
28518 >1 5.5 <1
SARAWAK
49484 >1 7.7 >1
SABAH
29827
WP LABUAN
2272
Malaysia
25,866

5.6.4 Figure for GDP by stat
FIGURE 6.0: GDP by states o
5.6.4.1 GDP states
Dependency on certain econom
focus areas. This scenario can
economy in every state and th
sector is a major contributor to
("#.# per cent$% Kelantan ("!.
<1 6
<1 9.7
1 7.0
tistic Malaysia
tates of Malaysia :
s of Malaysia
economic activities created a unique economic struc
ario can be seen from the different characteristi
e and thus resulted in a disparity in state perform
butor to the economy of WP Kuala Lumpur (8.! pe
tan ("!.8 per cent$% Pera& ('#. per cent$% Perl
<1
<1
1

mic structures and different
racteristic and structure of
performance. The (ervices
(8.! per cent$% WP Labuan
nt$% Perlis (#8.! per cent$%
Teren))anu (#8.! per cent$% (elan)or (#'.# per cent$ and Kedah (##." per cent$. Pulau Pinan)
and *e)eri (embilan +ere dominated by manufacturin) sector +ith a share of ,.! per cent
and ,8.' per cent respectively to their -DP (Table .$. /ela&a% on the other hand% had almost an
equal contribution bet+een services and manufacturin) sectors in its economy. 0n addition%
minin) and a)riculture sectors +ere amon)st the important economic force for (abah and
(ara+a&. /ean+hile% a)riculture sector +as one of the main contributors to Pahan) and Perlis
economy.
In terms of sector, WP Kuala Lumpur and Selangor remained as the main contributors in the
Services sector with a share of 47.9 per cent to the national level. Meanwhile, Johor and Pulau
Pinang contributed 8.6 per cent and 6.9 per cent respectively. The growth in the Services sector
was stimulated by Wholesale & Retail Trade and Finance & Insurance sub sectors. In the
Manufacturing sector, Selangor continued its dominance with a share of 30.0 per cent, followed
by Pulau Pinang (15.6 per cent), Johor (12.3 per cent) and Sarawak (9.2 per cent). Total
contribution of these four states accounted for 67.1 per cent (2009: 64.8 per cent). The main
impetuses in this sector were Electrical & Electronic and Motor Vehicle & Transport Equipment
sub sectors. Furthermore, the double digit expansion in Chemicals & Chemical Product, Non-
Metallic Mineral Products, Basic Metal Products and Rubber Products sub sectors also
stimulated the better performance in manufacturing.
Sabah and Sarawak remained as main players for Agriculture Sector in 2010 with a share of 37.5
per cent. The share however, is slightly lower as compared to 38.3 per cent recorded in 2009.
The main agriculture activities in both states were Palm Oil and Forestry & Logging. Meanwhile,
Johor, Pahang and Perak also contributed significantly to this sector especially from the Palm Oil
activity.
1s for the 2onstruction sector% (
3o+ever% this state e4perienced
the previous year. 0n addition% W
and .7.8 per cent respectively to
5.6.4 Growth of GDP :
5.6.5.1 : Figure of GDP growth b
FIGURE 6.1 : GDP growth by

sector% (elan)or +as the main contributor +ith a sha
erienced a lo+er )ro+th of 5.! per cent as compare
dition% WP Kuala Lumpur and 6ohor contributed a sh
ctively to the 2onstruction sector.
growth by states of Malaysia
by states of Malaysia

ith a share of !'.8 per cent.
compared to ,.' per cent in
ted a share of .'.' per cent

5.6.5.2 : GRAPH OF MALA
FIGURE 6.2: GRAPH OF MA
SOURCE : Economic Planning
Table 5.6 : GDP Growth (%)
Figure 6.3 :GDP Growth (%)

AYSIA GDP ANNUAL GROWTH RATE
MALAYSIA GDP ANNUAL GROWTH RATE
ing Unit Annual Report
%) by State at Constant Price 2000 Year 2010
by State at Constant Price 2000 Year 2010

5.6.6 Economic growth
Economic growth is the increase in value of the goods and services produced by an economy. It
is conventionally meansured as the percent rate of increase in real gross domestic product or
GDP. Growth is usually calculated in real terms i.e. inflation adjusted terms, in order to net out
the effect of inflation on the price of the goods and services produced. Economics growth is
measured as the annual percent change of National income it has all the advantage. The
economic growth is not totally depends on the GDP but also depends on the living of cost. The
living of cost for country also give an impact to the economic growth for Malaysia. As we can
see the data shows that the developed states do not really have a GDP growth compared to less
developed states.
As shown in table, Selangor recorded the highest growth of 10.8 per cent (2009: -1.0 per cent)
supported mainly by Manufacturing sector which increased sturdily by 19.5 per cent as
compared to -7.6 per cent in the previous year. Activities on the Manufacture of Motor Vehicles
& Transport Equipment and Electrical & Electronic industrial products led the robust
performance in Manufacturing sector. Similarly, GDP for Pulau Pinang and Johor showed a
strong growth of 10.0 per cent (2009: -10.8 per cent) and 9.3 per cent (2009: -4.0 per cent)
respectively mainly due to better performance in Manufacturing sector. Other states which rely
on Manufacturing and Services sectors also registered a favourable growth. The growth
momentum was seen in Perak (5.7 per cent), Melaka (5.6 per cent), Negeri Sembilan (5.3 per
cent), Pahang (4.5 per cent), Sarawak (4.5 per cent), Kedah (4.4 per cent) and Terengganu (4.3
per cent).
As for Sabah, the growth moderated to 2.4 per cent as compared to 3.8 per cent recorded a year
ago. This is due to a slower momentum in Mining and Quarrying sector. Meanwhile, higher
growth in WP Kuala Lumpur (9.2 per cent) and WP Labuan (6.0 per cent) was attributed to the
strong performance in the Services sector particularly in Finance & Insurance and Wholesale &
Retail Trade sub sectors.
5.7 Findings and Analysis on ealth !e"tor
The health development is not ne+ a)enda by )overnment for /alaysia development% it is in
line +ith /alaysia8s national plan to reduce disparities bet+een rural and urban areas .The )ap
should be less bet+een more develop and less develop re)ion. 3ealthcare in /alaysia is mainly
under the responsibility of the )overnment9s /inistry of 3ealth. /alaysia )enerally has an
efficient and +idespread system of health care% operatin) a t+o:tier health care system
consistin) of both a )overnment:run universal healthcare system and a co:e4istin) private
healthcare system. The health care system is fully under )overnment responsibility. ;ut some
cases% there are also under private sector but it is )uided by )overnment sector. ;etter health is
central to human happiness and +ell:bein). 0t also ma&es an important contribution to
economic pro)ress% as healthy population live lon)er% more productive% and save more.
3ealthcare in /alaysia is divided into private and public sectors. /alaysian society places
importance on the e4pansion and development of healthcare% puttin) #< of the )overnment
social sector development bud)et into public healthcare = an increase of more than ,"< over
the previous fi)ure. This has meant an overall increase of more than >/ 5 billion. With a risin)
and a)in) population% the -overnment +ishes to improve in many areas includin) the
refurbishment of e4istin) hospitals% buildin) and equippin) ne+ hospitals% e4pansion of the
number of polyclinics% and improvements in trainin) and e4pansion of telehealth. ?ver the last
couple of years they have increased their efforts to overhaul the systems and attract more
forei)n investment.
5.7.1 Findings and issues on Health
The issues faced by the nation have created a need assessment and standard of service provided.
Rapidly rising standards of living and advancements in medical service have led to an ever
escalating consumer demand for quality health care. Realizing these issues and to ensure that
national health care provision meets the world class standards is crucial in order to live up to
various quality assurance initiative under the guidelines of the vision for health.

5.7.2 Data and analysis
Table 5.6 Data on Health sector by states of Malaysia
STATES
BED FOR 10,000
POPULATION

LQ
DOCTOR
PER 10,000
POPULATIO
N

LQ
HEALTH
CLINIC

LQ
PERLIS
1:593 <1 1:784 >1 1:26744 >1
WP KUALA
LUMPUR
1:260 >1 1:929 >1 1:127315 <1
JOHOR
1:562 <1 1:1273 >1 1:37613 <1
KEDAH
1:755 >1 1:1245 >1 1:37736 <1
MELAKA
1:391 >1 1:728 >1 1:29588 >1
NEGERI
SEMBILAN
1:528 <1 1:772 >1 1:26682 >1
PULAU
PINANG
1:331 >1 1:740 >1 1:60665 <1
WP PUTRA
JAYA
1:251 >1 1:320 >1 1:68200 <1
SELANGOR
1:576 <1 1:929 >1 1:91275 <1
KELANTAN
1:907 <1 1:1644 <1 1:30834 >1
TERENGGAN
U
1:799 <1
PAHANG
1:732 <1
PERAK
1:343 >1
SARAWAK
1:603 <1
SABAH
1:725 <1
WP LABUAN
1:817 <1

1:522 1
Economic Planning U
LQ technique
5.7.2.1 Figure for doctor per
FIGURE 6.4 :Doctor per 10,0

1:1317 <1 1:2874
1:1145 <1 1:2530
1:899 >1 1:3324
1:1688 <1 1:1297
1:2022 <1 1:4157
1:320 >1 1:8900
1:927 1 1:35,03
tistic Malaysia
per 10,000 population by states of Malaysia
0,000 population:by states of Malaysia
746 >1
300 >1
240 >1
972 >1
571 <1
000 >1
,033 >1
:

5.7.2.2 Doctor per 10,000 population ratio
The table shows the data for the ratio of doctor per 10,000 populations, bed per 10,000
population and ration for community clinic of 10,000 populations. The data is based on 2009; it
is just three years gap with 2012. The international perspective in 2010, Malaysia population
ratio is still short of WHO minimum standard. In 2008 and 2009 the ratio was developed 1 to
600. However the amount of doctor per population still does not follow the world requirement.
Also shocking is states like Sarawak and Sabah that still have a poor number of doctors. Sabah
1:2022 and Sarawak 1:1688 seems to be far worse than the national figures. From the data
collection and LQ analysis, the developed states like Selangor, 1:929 (>1), Perak 1:899 (>1),
Kuala Lumpur 1:929(>1), Negeri Sembilan 1:772 (>1), Pulau Pinang 1:740(>1), Malacca 1: 728
(>1), Perlis 1:784(>1) and Labuan 1:320 (>1). The states followed the national requirement of
doctor per population. Instead of that the number of doctor per population also not following the
national requirement are Kelantan 1:1644(<1), Terengganu 1:1317 (<1), Kedah 1:1245, Pahang
1:1145 (<1). Both public and private hospitals including these figures, the densities also
influence the number of doctor per population. For Kuala Lumpur have a highest densities the
public hospitals, in addition Kuala Lumpur also have three largest public hospitals likes Hospital
Besar Kuala Lumpur, Hospital Universiti Kebangsaan Malaysia and Pusat Perubahatan
University Malaysia.

5.7.3: Figure for health clinic
FIGURE 6.5 Figure for health
Primary care is the basic or
patient first seek assistance fro
level of medication. To fulfill
clinics have to be widening di
Malaysia there are private and
results of LQ analysis shows
positioned as Kuala Lumpur
Pinang 1:60665(<1). It is rela
make the density is high and t
developed states likes Perak
Terengganu 1:28746 (<1), Pah
nic
lth clinic by states of Malaysia
or general health care that focused on the poi
from the medical care system. It has primary,
ill this function, primary care and for the analys
distributed and well equipped to allow appropr
nd public clinic (Klinik Kesihatan KK). From t
ws that the five highest and lowest densities p
ur 1:124,315, Putrajaya 1:68,200, Johor 1:3
lated with the migration people from outside c
d the number of public clinic provision is very
ak 1:33240(<1), Kedah 1:37736 (<1), Kelant
ahang 1:25300 (<1), Sarawak 1:12972(<1), Sa

point at which ideally a
secondary and tertiary
lysis call as primary care
opriately trained staff. In
m the data collection and
s per 10,000 population
1:37613(<1), and Pulau
e country to inside, it is
ery limited. Another less
antan 1:30834 (<1) ,
Sabah 1:41571( <1) and
Labuan 1:89000(<1). Then the
have a limitation and is not suf
5.7.4 Figure for hospital bed
FIGURE 6.6 Figure for bed po
5.7.4.1 Map for bed populati
A health care system consists o
is important as a medium for p
is insufficient beds provided
provided every 10,000 popul
Furthermore, the distribution
was 1.07 beds per 10,000 pop
and Terengganu. The reason w
the analysis of LQ technique shows that the hig
sufficient to the community.
ed population
population
ation
ts of physical facilities. One of the facilities for
r patient to have a rest and medical service. Th
ed to patients. The data collection shows t
ulations; data was presented according the a
n of beds was very rough in Kuala Lumpur a
population, while it was very much less in Sab
n why the developed states have to follow the
high density populations
for medical is bed, which
The issue regarding bed
s that the bed facilities
e amount of population.
r and Selangor the ratio
Sabah, Sarawak, Pahang
the national requirement
because of the private and public hospitals is more in those states. Somehow some developed
states likes Selangor 1:576(<1), the number is because the area is highly dense compared to other
states. Pulau Pinang 1:331 (>1) and Putrajaya 1:251 (>1) seem do not have problem with bed
because the density is not really high compared to Selangor. The less developed states likes
Perlis 1:593 (>1), Kedah 1:755 (>1), Kelantan 1:907 (>1), Sarawak 1:603(<1), Sabah 1:725 (<1),
and Labuan 1:817 (<1). The less developed country has a problem with the bed because the
amount of Hospitals also limited.
5.8 Findings and Analysis on Educational qualities of population
Malaysia education is influenced by British system -- there are private and public sector. The
government has total authority on education in Malaysia. The attendance of the students to enroll
school is starting from age 5 to tertiary level. Upon the graduation primary school the students
will be encouraged to continue their study further. The students have choices to either choose a
public or private university or college to continue their study. The education is free, except for
tertiary level, student need to pay the fees, they have a choice either use loan or scholarship.

5.8.1 Data Collection
Table :5.7 Data On Literacy Rates by states of Malaysia
STATES
LITERACY RATES
FOR 10 YEARS
LQ ANALYSIS LITERACY
RATES FOR
MALAYSIAN
LQ ANALYSIS
PERLIS
94.3 >1 90.8 <1
WP KUALA
LUMPUR
96.2 >1 96.2 >1
JOHOR
94.9 >1 93.3 >1
KEDAH
94.3 >1 90.2 <1
MELAKA
92.4 >1 92.4 >1
NEGERI
SEMBILAN
93.7 >1 93.7 >1
PULAU PINANG
94 >1 93.8 >1
WP PUTRA JAYA

SELANGOR
96.3 >1 95.6 >1
KELANTAN
90.9 <1 85.5 <1
TERENGGANU
91.9 >1 89.5 <1
PAHANG
95.4 >1 92.2 >1
PERAK
92.7 >1 91.1 <1
SARAWAK
91.7 >1 81.6 <1
SABAH
89.7 <1 84.6 <1
Economic Planning U
5.8.2 Figure for 10 years and
FIGURE 6.7 10 years and ove

5.8.2.1 The 10 years literacy
More than 96% of primary age
census more than 91% of the
are literate. Based on 2000 ce
requirement 91.0% the percent
90.9% (<1) still below the
requirement of 91.0% Kelanta
WP LABUAN
92
MALAYSIA 91.0
tistic Malaysia
nd over literacy rates by states of Malaysia
ver literacy rates by states of Malaysia
cy rates
aged children were enrolled in School in 2005.
he population above 10 years were attending o
census the overall states in Malaysia 14 state
entage is more than the requirement. Sabah 89.
e target. However Kelantan almost achieve
ntan is just 0.01% short. The developed states
>1 91.7
1 92
ia
According to the 2000
g or had attended school
tates follow the national
9.7% (>1) and Kelantan
ve the target, with the
tes like Selangor 96.3%
<1
1
(>1), Kuala Lumpur 96.2%
opportunities, the ability to rea
As we can see the data collec
actually the number is increas
gain more students in School.
5.8.4 Figure for total literacy
FIGURE 6.8: Total literacy ra

(>1) and Pulau Pinang 94% (>1). The exp
read and write has become almost universal am
llection shows 91% Malaysia aged 10 years a
easing by year, to achieve as a developed cou
The 2000 census at population estimated the
acy rates by states of Malaysia
rates by states of Malaysia

xpansion of educational
mong the young.
s and above are literate,
ountry, Malaysia should
he literacy rate is 85%.

5.8.2.1 The literacy rates in Malaysia
The literacy rate for Malaysia was 92.46%, the data collected was 92.0% in 2000 census the data
showed that not much far away from the national requirement. In Malaysia literacy reverse
among persons aged 10 years and over and reached to 92% in 2000. The table shows that the
developed states had more literacy rates likes Selangor (95.6%) >1 and, Kuala Lumpur ( 96.2
%) >1. The medium range to the states are Negeri Sembilan (93.7 % ) >1, Malacca (92.4 % ) >1,
Pahang (92.2%) and Pulau Pinang (93.8%) > 1. The less developed states likes Kelantan (85.5
%) <1, Terengganu (89.5 %) <1, Sabah (84.6%) <1. The literacy rates have an improvement in
term of the percentage, where the peoples are now more literate rather than before.

5.9 Summary of the analysis
5.9.1: Figure of Composite In
FIGURE 6.9 : Composite inde

An attempt has been made to
development by states of Ma
proved that the regional devel
part of peninsular Malaysia.
comprises of indicators which
motorcycle per 1,000 of pop
piped water. Population of
sis
e Index of Development in Malaysia
dex of regional development in Malaysia
to consolidate these findings through produce
alaysia. The conclusion of the analysis is th
velopment in Malaysia is imbalanced. It is only
ia. However, in 2001, the composite develo
ich are unemployment rate, urbanization rate, r
opulation, GDP per capita, poverty rate, popu
Malaysia faced development since indepen

ce a composite index of
the sample showed and
nly concentrated at West
elopment index, which
e, registration of car and
opulation provided with
pendence in 1950s, the
transformation program of development happened since 1970s until now. The project paper
studied regional development in Malaysia was analyzed based on socio economic data of states
in Malaysia. The employment sector, gross domestic product, literacy rates, health, urbanization
rates, population in urban areas, means income level and incidence poverty. The Location
Quotient has been used and divided the states into more developed states and less developed
states. The more developed states are Johor, Melaka, Negeri Sembilan, Perak, Pulau Pinang,
Selangor and Federal Territory of Kuala Lumpur. The less developed states are Kedah, Kelantan,
Pahang, Perlis, Sabah, Sarawak, Labuan and Terengganu.
6.0 Conclusion
In Conclusion this analysis and findings has shown that there are disparities of regional
development in Malaysia even though there are policies made by government to improve the
development in Malaysia. This finding will help researchers to fulfill the entire objectives and
answer the most of the research question asked in chapter 1.

CHAPTER 6
RECOMMENDATION AND CONCLUSION
6.1 Introduction
Basically, this chapter will summarize the findings which were directed to achieving the aim and
objective of this research. The summaries are going to be referred in order to come out with
suitable recommendation that will help reduce the imbalanced or disparities of development in
Malaysia.
6.1.1 The summary of findings and analysis
1s +e can see no+adays the continued emphasis on )ro+th under the previous policies +ill
mean that the developed states +ill continue to benefit more than the less developed states.
(tates such as (elan)or and Pulau Pinan) are e4pected to )ro+ much faster than the national
avera)e +ith industrial and services sectors accountin) for the major share of the )ro+th.
1ccordin)ly% their -DP per capita is projected to remain above the national avera)e. 6ohor9s
development +ill ta&e off rapidly reflectin) its )ro+th as a major industrial centre and the
spillover of investments from (in)apore. 0n /alaysia there are some developed and less
developed states % the middle:income states of Pahan)% 6ohor% *e)eri (embilan% Pera&%
/ela&a% (abah and (ara+a& +ill )ro+ at rates comparable to the national avera)e. The
chan)in) economic structure of the less developed states au)urs +ell +ith the objective of
reducin) re)ional imbalances. With the pro)ressive diversification of their economies% more
employment and income earnin) opportunities +ill be created that +ill accelerate the process
of eradicatin) poverty and reducin) the economic imbalances bet+een states.
There are some ideas that increased labour mobility and dispersed economic activities +ill
facilitate labour transfer from the a)riculture and rural areas to meet the labour shorta)es in
industries that may +orsen in the nineties. 0n addition% pro)rammes for e4pandin) the physical
and social infrastructures in the less developed states +ill further open up ne+ opportunities
for )ro+th.

6.1.1.1 Summary of Findings
Regional development in Malaysia started since Independence Day in 1950s, however the
transformation is drastically happened in 1970s until present. There are policies to make
Malaysia as a developed country. The communities and regions have benefitted from the
economy and the substantial improvement in income and living standards.
The achievements in reducing income inequalities reflect the significant progress made in
reducing the national incidence of poverty from 52.4 per cent in 1970 to 17.1 per cent in 1990.
This substantial reduction in poverty was only partly due to improvements in productivity and
income levels among the target groups such as rubber smallholders, estate workers, paddy
farmers and fishermen. In addition the main source of progress in reducing poverty especially
during the eighties came from the growth of the economy which created expanding employment
opportunities in the non-traditional sectors and enabled the poor to diversify their sources of
income, thereby reducing their dependence on traditional low income and low productivity
activities. As rural households gained more access to these new opportunities and with the
tightening labour market conditions resulting in lower unemployment, wage incomes have
expanded to account for a rising share of household incomes. The shift towards wage
employment among rural households constituted the most important factor accounting for the
reduction of poverty in the country.

6.2 RECOMMENDATION
;ased on the data and analysis% fifteen indicators are used in this research and several
recommendations for the re)ional development in /alaysia. The participation of both public
and private parties +ill accomplish the balanced re)ional developments% ho+ever the public or
community also can help corporations to achieve better re)ional development in /alaysia.
There are several recommendations of policies that should be highlighted for regional
development in Malaysia.
1) In-situ program for agriculture product to commercialize
2) Eradicate poverty by education and practical programs
3) Institutional and Delivery System
4) Recommendation for Employment Restructuring and Human Resource
Development:
5) Restructuring of Ownership and Control in the Corporate Sector

6.#.1 >ecommendation for @uture Policies and (trate)ies
This analysis brings a new idea from the previous policies to develop the nation regional
development strategies and will continue to focus on reducing the large imbalances in social and
economic development between states in the country. A more balanced development is essential
to facilitate the attainment of the objective of reducing poverty in the less developed states and
improving income distribution in Malaysia.

6.2.1.1 In-situ program for agriculture product to commercialize
The natural resources available in the less developed states will be developed on a commercial
basis, oriented towards exports. In-situ agriculture will be revitalized through the adoption of
commercial production practices for which better links between the production centers and the
market outlets will be effectively established.
In order to tap the vast development potential of states like Sabah and Sarawak, physical and
social infrastructures in these states will be expanded. This will promote extensive land
development in states with substantial land resources and will facilitate agricultural
commercialization and downstream resource as well as agro-based development to take place.
Rural development efforts in the resource-poor states will continue to emphasize on the
commercialization of the in-situ agriculture and the development of SMIS. In Kedah, its
industrial development is expected to accelerate with Sungai Petani and Kulim developing more
rapidly as a result of better infrastructure facilities and easier access to the port in Pulau Pinang.
Kelantan's development is expected to pick up further as greater efforts to deal with the problem
of flooding in the Kelantan river basin are undertaken. The state is expected to benefit from the
implementation of the South Kelantan road, linking Kelantan to Perak and Terengganu because
of the opening up of areas in South Kelantan for commercial agriculture.

6.2.1.2 Eradicate poverty by education and practical programs
Firstly, with the significant progress which has been made to reduce the incidence of poverty,
this problem is no longer as large or as serious as it was at the start of the . The general problem
of poverty can largely be resolved through the process of growth.
Secondly, with better education and training as well as more job opportunities in the non-
agricultural sectors, there will be greater social mobility on the part of the poor to move out of
poverty.
Thirdly, in line with the structural changes taking place in the economy, rural households are
becoming less dependent on traditional sources of income in rubber smallholding, padi farming
and fishing. With limited prospects for achieving further productivity growth in these activities,
the antipoverty agricultural programmes which had been implemented since the sixties and
seventies to assist the major poverty groups have probably reached the limits of their
effectiveness. Changes are therefore necessary in the design and implementation of these
programmes to reduce the scope of government involvement and bring in greater elements of
land consolidation, estatization and private sector management so as to make these schemes
more commercially oriented.
Overall, the government should review the approach in implementing its policies for eradicating
poverty to take into account the changes taking place in the economy. Instead of the broad-based
approach of the past, the programmes will be reoriented to focus on the more critical aspects of
reducing poverty among all races. In line with these policies, the emphasis of the anti-poverty
programmes will shift towards meeting the specific needs of the poorest households for
assistance so as to release them from poverty. Another focus of these programmes will be to
meet the growing demand from underserved regions and less developed states for better access to
improved basic services.

6.2.1.3 Institutional and Delivery System:
A rationalization of the functions and responsibilities of the various government agencies will be
undertaken to reduce overlapping of functions and increase the efficiency in the use of resources.
First: Improvement of delivery system and technical services for economic development
In order for public sector agencies to be more effective in providing advisory and technical
services to the target groups, they will be encouraged to work more closely with the relevant
organizations representing Bumiputera entrepreneurs and businesses and develop these
organizations as an important vehicle for complementing government efforts.
Public sector agencies will provide the effective support and play a stronger role for the
development of Bumiputera entrepreneurs in the modem industrial and services sectors. The
major areas which will be given priority include enhancing Bumiputera management skills and
skills in managing wealth, strengthening the supply network for materials and services, enlarging
marketing outlets, improving financial support in the form of venture capital as well as the
identification of new business opportunities and strategies, including linkages with multinational
companies.
In addition the function of PNB will be strengthened and expanded to enable it to develop
entrepreneurial development programmes to train Bumiputera in corporate management and in
the management of wealth. The best prospects for the Bumiputera to progress as a commercial
and industrial community are through the integration of their business activities with the non-
Bumiputera private sector. Thus, an important function of public sector agencies will be to
promote such integration, particularly through the establishment of joint-ventures with non-
Bumiputera companies and multinational corporations.
6.2.1.4 Recommendation for Employment Restructuring and Human Resource
Development:
The objective of employment restructuring will continue to ensure that the employment pattern
in the various sectors and occupations of the economy reflect the ethnic composition of the
country.
To facilitate the upward mobility of the rural labour force, efforts will be made to upgrade their
education and skill levels. In order to generate a larger supply of qualified Malaysian in the
professional, managerial and technical categories, the existing policy on entry quota into the
higher learning institutions among the various ethnic communities will be continued. In addition,
the government will encourage private enterprises and companies to actively participate in
providing greater opportunities for employment restructuring.
The restructuring of employment will also take into account the need for higher participation of
non-Bumiputera in the sectors in which they are now underrepresented. Accordingly, a better
representation of the non-Bumiputera in the public sector appointments such as in the middle and
senior levels of the civil services will improve the ethnic structure of employment in the sector.
However, in the private sector the Bumiputera are underrepresented in the higher levels of
occupations. Thus, while the employment of the non-Bumiputera is expected to increase over the
1990 levels in the middle and senior appointments in the civil services, the private sector will
have to absorb correspondingly large number of Bumiputera in the professional, managerial and
executive levels to improve the ethnic structure of employment in the sector
6.2.1.5 Restructuring of Ownership and Control in the Corporate Sector
The strategy for restructuring ownership and control in the corporate sector will becontinued in
view of the expanding role of the private sector in the economy.
In the process of restructuring the equity of the corporate sector, the trust agencies and public
enterprises will be required to undertake well planned and coordinated measures in the creation
of new assets and in the acquisition of strategic interests in companies on behalf of the
Malaysian. This role will be facilitated by more effective mobilization of Malaysian savings as
well as more productive and efficient management of funds in the public enterprises and trust
agencies.
The role of the PNB will be consolidated in view of its important position in mobilizing
Bumiputera funds and its potential as an entrepreneurial development agency. The Amanah
Saham Bumiputera (ASB) will form part of the overall strategy for the PNB to continue
mobilizing Bumiputera savings during the OPP2 period. Apart from pure portfolio management,
PNB will design and implement other complementary programmes which will emphasize
entrepreneurial development and mobilize venture capital for the Bumiputera community.
Privatization will be used as a vehicle to accelerate greater Bumiputera participation in the
private sector and in attaining the objective of the restructuring of equity. In line with this, the
privatization of subsidiaries of trust agencies will be reserved for the Bumiputera. In the
privatization of other government entities, Bumiputera participation will be maximised as a
measure to make up for the shortfall in their equity ownership in other sectors. To assist the
Bumiputera to acquire shares in the privatized projects, the employees in these projects will be
provided with special financial facilities. An important consideration in the privatization
programme will be the need to ensure that after the divestment, the Bumiputera will continue to
hold their interests in the privatized entities. The restructuring strategy has placed special
emphasis in the past on ownership of equity in the corporate sector. Since ownership of equity
alone will not be sufficient to promote effectively Malaysian participation in the business
operations of the company, it is essential to shift the emphasis towards the employment aspects
of restructuring. The policy of encouraging more meaningful Malaysian participation in the
management of the corporate sector will, therefore, be more vigorously implemented through
increasing the supply of high level manpower. Companies and individuals who have been
allotted reserved shares tend to divest their shares without getting prior approval of the issuing
authorities. The government is concerned that quick divestment by Malaysian shareholders will
affect adversely the efforts to achieve the restructuring objective. Therefore, the procedures for
approving reserved shares will be improved to minimize divestment of Malaysian interests.
6.3 The rationality of the recommendations
The number of poor households in the country as a whole is expected to be reduced from
619,400 in 1990 to 373,900 by the year 2000. This is despite the expected increase in the number
of households in Malaysia from 3,614,600 in 1990 to 5,218,900 in the year 2000. With the
implementation of special programmes, hardcore poverty, now involving 143,100 households, is
expected to be practically eradicated by the year 2000. In Peninsular Malaysia, the incidence of
poverty which was 15 per cent in 1990 is expected to decrease to 5.3 per cent by the year 2000.
For the rural sector, the incidence of poverty is expected to decrease from 19.3 per cent to 8 per
cent, while poverty in the urban areas will decline from 7.3 per cent to 3 per cent.
The incidence of poverty in Sabah will be reduced from 34.3 per cent to 20 per cent over the
same period. The number of poor households is expected to decrease from 99,600 to 84,000.
Similarly in Sarawak, the incidence of poverty will decline from 21 per cent to 12.7 per cent
while the number of poor households will be reduced from 70,900 to 59,900.
Whilst economic growth will be the main factor contributing towards reducing poverty, the
public sector will continue to play an important role in the implementation of anti-poverty
programmed. However, the size of public sector expenditures need not be as large as in the past
as the magnitude of the poverty problem has been substantially reduced. Instead, the public
sector expenditures can gradually be reduced and reoriented towards alleviating poverty among
specific target groups. This will result in more efficient use of resources and more effective
implementation of anti-poverty programmes.
To facilitate the effective implementation of these programmes, a comprehensive registry of the
poorest households in every district is being compiled and updated to ensure that the targeted
groups or individuals will get access to services that will be provided to increase their production
capacity and standards of living. The services to be provided include grouping the aged who are
landless in special settlement areas which are provided with proper housing and amenities and
given direct transfers to help them meet their daily subsistence. For the economically active
individuals who lack economic resources, particularly land, they will be resettled in land
development schemes or encouraged to undertake small resource-based manufacturing activities.
In the case of those who have land but lack resources for developing their land, a programme to
promote group farming and village restructuring will be implemented. For the children of the
poorest, appropriate facilities such as village hostels, food and nutritional assistance and
transportation will be extended to them.
Poverty eradication based on the concept of self-reliance will be encouraged. In this connection,
the government will provide further financial support to non-governmental bodies involved with
poverty problems. Efforts will be made to increase the productivity and income of the other poor
households through self reliance and community-based programmes.

Efficiency, productivity and income of smallholdings will continue to be enhanced by the
formation of economic-size holdings through voluntary consolidation of farm lands and the
opening of new land in Sabah and Sarawak where the potential is still substantial. Farmers will
be encouraged to supplement their incomes with other agricultural or off-farm activities in order
to broaden their income base and minimize any adverse impact from price declines or increased
cost of living.

Improved support services will be provided to accelerate development in in-situ agricultural
schemes. The credit system especially will be reviewed to ensure that more poor households
have direct access to credit. Marketing infrastructure will also be strengthened, especially in
transportation and storage of products, as a measure to help stabilize the income of the poor as
owner operators or tenants.
In view of the concern about relative poverty, further emphasis will be to meet the basic needs of
the poor among all ethnic groups in both the rural and urban areas. This is important so that
income improvements will be complemented with greater access to basic services and amenities
to enable the rising standards of living to be shared more widely. In this regard, the coverage of
basic amenities such as electricity, treated water supply, health, education and transportation will
be further widened to reach remote and outlying areas as well. It is anticipated that by the year
2000, there will be about 95 per cent coverage of electricity supply in Malaysia. The coverage of
water supply, on the other hand, is estimated at nearly 100 per cent in the urban areas and 85 per
cent in the rural areas of Malaysia. The poorest households will be equipped with knowledge on
better nutritional practices to prevent the occurrence of malnutrition especially among children.
Educational facilities in the remote and traditional kampung and settlements as well as in
plantations and some villages will be improved so that the rural poor can have better
opportunities to improve their life through education.
Villages, including those which were previously known as new villages, and which had been
hampered by the lack of land resources will be given opportunities, wherever feasible, to expand
their area to avoid overcrowding and enhance employment generating opportunities. Similarly,
in the estates sector, the government will implement specific strategies to improve housing,
health, educational and social conditions in the sector to enhance the quality of life of the estate
population. While employers have a responsibility to provide some of these facilities, in those
areas where large capital outlay is involved with regard to the connecting of piped water from
public mains and the electricity supply and the provision of other basic amenities, the
government will provide assistance to estate employers by bringing these facilities to the fringes
of the estate to enable the estate to draw from these supplies. The government will also undertake
to provide and improve educational, health and other related facilities in estates. As regards the
workers' house ownership scheme, the government will undertake administrative and other
measures to facilitate estate management to respond more favourably to the implementation of
more of such schemes.
In urban areas, relative poverty will be reduced through the provision of improved opportunities
for better income and increased access to basic amenities such as affordable housing,
transportation and utilities. Measures will be instituted by the government through proper
planning and zoning in urban development to ensure orderly growth. This will not only contain
the further growth of squatter and slum areas but also offer new opportunities for the lower
income groups, particularly, those related to the informal sector, to be involved in small scale
businesses and industries.

6.4 Conclusion
In conclusion the policies that have been made by government have failed to make a balanced
development in Malaysia. The policies should give an opportunity so that the people may
participate and indulge the programs for regional developments. However, efforts towards
narrowing the economic imbalances between the rich and the poor and among the various ethnic
communities will be continued. Thus, the policies will seek to remove further imbalances based
on the principles of balanced development and equitable distribution to achieve social justice and
enhance national unity.

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A Study of Regional Development in Malaysia Based On State Level Data 4-Libre

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A STUDY OF REGIONAL DEVELOPMENT IN MALAYSIA BASED ON STATE

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