INTRODUCTION

ECONOMICS
Production, distribution and
consumption of goods and services
ECONOMY
Development of a country in achieving
growth, economic development
 ECONOMIC DEVELOPMENT
► Economic growth - refer to the increase over time
in GDP.
► - is the main factor, which is contributing to the
economic development.
► Conventional perspective: growth (quantitative) +
change (socio-economic, technological)
► Islamic perspective: growth (quantitative,
qualitative) + change (socio-economic,
technological)
 ECONOMIC STRUCTURE
► Definition: Composition of various economic
activities (agriculture, industries and
services).
 HISTORY OF MALAYSIAN
ECONOMY
► PRE-COLLONIAL PERIOD
► Planting, livestock, tin, iron, gold, paddy, vegetable
► Trading center at Guar Kepah and Pengkalan Bujang
Kedah, Jenderam Hilir Selangor, Kuala Selinsing Perak
► The existence of Old Malay Government eg Kerajaan
Kedah Tua
► The opening of Malacca by Parameswara or Iskandar
Shah as center of entreport between the East and
West
► National income usually will be taxed as practiced in
Malacca
 Early Malaysian Economic
Development
► 1948 - Tin mining in Selangor actively being
implemented
► Capital came from Chinese immigrant and foreign
investors and at the end of 19th Century, Malaya
became among the main contribution of world tin.
► 1896 - Rubber plantation being commercialized.
Replacing coffee with rubber because rubber no
longer important in the international trade.
► 1920 - Tin, rubber exported
 Basic Socioeconomic Problem
► Overdependence on the foreign sector:
export rubber and tin and import capital
goods
► Poverty
► Income distribution: between races, rural
and urban area
► Unemployment
► Dualism in the economy
► Imbalance in development
 POST COLLONIAL PERIOD

► Economic structure:
► Primary sector: agricultural sector (industrial and food
commodities), mining and quarrying
► Secondary sector: manufacturing and construction
► Tertiary/services sector: government administration
and trade services
► government sector
► services sector: wholesale, retail trade, hotel and
restaurant
► finance, insurance, real estate and business service
► transport, storage, communication
Economic Development Plans
► The Plan Before Independence
► The Plan After Independence
 The Plans between 1956-1970
 The Plans between 1971-1990 (NEP)
 The Plans between 1991-2000 (NDP)
 Vision 2020
► - the vision for total development
► - united nation, with a confident Malaysian
society (strong moral and ethical values)
► - society that is democratic liberal and tolerant,
caring, just and equitable, progressive and
prosperous and in full possession of an
economy that is competitive, dynamic, robust
and resilient. (The 9 challenges)