Form 5 · Chapter 8

Formation of the National Development Policy (NDP)

When the NEP ended in 1990, the National Development Policy continued its goals from 1991 to 2000 within the wider framework of Vision 2020.

A successor to the NEP

When the twenty-year New Economic Policy came to an end in 1990, the government replaced it with the National Development Policy (NDP / Dasar Pembangunan Nasional, DPN). Announced under Prime Minister Tun Dr Mahathir Mohamad, the NDP covered the decade 1991 to 2000 and formed the core of the Second Outline Perspective Plan (OPP2).

Continuity with new emphasis

The NDP kept the two central aims of the NEP: national unity through the eradication of poverty and the restructuring of society. However, it introduced important shifts in emphasis:

  • Priority was given to eradicating hardcore poverty (kemiskinan tegar) rather than poverty in general.
  • Growth was to come increasingly from the private sector, supported by government policies such as privatisation.
  • Building a resilient Bumiputera Commercial and Industrial Community (BCIC) was emphasised, with a focus on quality rather than only quantity.
  • Greater weight was placed on human resource development, science and technology.

Importantly, the NDP dropped the rigid 30% equity target within a fixed timeframe, aiming instead for balanced development and growth shared more fairly among Malaysians.

Linked to Vision 2020

The NDP was placed within the wider goal of Vision 2020 (Wawasan 2020), launched by Tun Dr Mahathir in 1991, which set the target of Malaysia becoming a fully developed nation by the year 2020.

Key idea

The NDP continued the NEP's unity goals but shifted focus toward hardcore poverty, private-sector growth and human capital, all under Vision 2020.

Remember

  • Period: 1991–2000, under Tun Dr Mahathir Mohamad.
  • Part of the Second Outline Perspective Plan (OPP2).
  • New focus: hardcore poverty, private sector, human resources.
  • Linked to Vision 2020.

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