Delivering the policy through plans and agencies
The New Economic Policy (NEP) was put into practice through the country's five-year Malaysia Plans, from the Second to the Fifth Malaysia Plan (1971–1990). To reach its goals, the government created and expanded many development agencies. Institutions such as MARA, PERNAS (Perbadanan Nasional), the Urban Development Authority (UDA), and later Permodalan Nasional Berhad (PNB), set up in 1978, were tasked with building Bumiputera participation in commerce and industry. PNB's unit trust scheme, Amanah Saham Nasional (ASN), launched in 1981, let ordinary Bumiputera invest in shares.
Attacking poverty
To eradicate poverty, the government focused heavily on rural development. Land schemes run by FELDA and FELCRA opened new farmland for landless families, while RISDA helped smallholder rubber growers. Large regional development authorities such as KEJORA, KESEDAR and DARA opened up new growth areas, complete with roads, schools and clinics.
Restructuring society
Restructuring targeted three areas: employment, ownership of share capital, and the creation of a Bumiputera Commercial and Industrial Community (BCIC). In education, the government expanded scholarships, admission quotas, MARA Junior Science Colleges and institutions such as Institut Teknologi MARA (ITM, now UiTM) to increase the pool of trained Bumiputera professionals.
Key idea
The NEP relied on active government agencies and rolling five-year plans to open opportunities, rather than leaving change to market forces alone.
Remember
- Delivered through the Second to Fifth Malaysia Plans (1971–1990).
- Agencies: MARA, PERNAS, UDA, PNB (1978), ASN (1981).
- Rural land schemes: FELDA, FELCRA, RISDA.
- Restructuring covered employment, share ownership and the BCIC.