The New Economic Policy (1970 – 1990) in Malaysia: The Economic and Political Perspectives

The objective of this paper is to examine thedevelopment and implementation of the New EconomicPolicy (NEP) in Malaysia. It also aims to identify andanalyzes the interconnected consequences of NEP interms of economy and politics throughout the NEP’s lifespan. The paper utilizes a secondary methodologicalapproach; extensive review of related literature wasused to compile evidence from a number of resourcesincluding journal articles, internet journal and books.All resources were utilized in order to evaluate both thepositive and negative consequences that emergethroughout the period of the NEP implementation. Thestudy finding demonstrates that the NEP was successful,to some extent, in achieving its two-pronged objectiveswhich were to eradicate poverty regardless of race andto restructure the economic imbalance amongst themajor ethnic groups in Malaysia. Furthermore, thispaper provides an insight into the Malaysian economyand politics in which the NEP has helped developed interms of: (1) the emergence of the relationship betweenpolitics and business; (2) the emergence of moneypolitics which directly and indirectly influenced thenation’s economy and politics; (3) the introduction ofthe privatization policy with its main aim to improve thegovernment revenue while releasing its administrativeand financial burden; and (4) the new born Malaymiddle class