CHAPTER 8: REGIONAL POLICIES

MUHAMMAD HAFIZ B. AMIRMUHAMMAD AZAM AIZAT B. MOHD

JALALUDINNAZIRAH BINTI S. RAINI

NURUL IZYAN BINTI SORHAIMINUR HAZWANI BINTI HAMZAHNORAMIRAH BINTI HAMDANNOR IZWANI BINTI RUSLI

• The policy, adopted by government, attempt to upgrade the quality of region focus at redressing uneven development, reduce the poverty, improve the local infrastructures and restructure the society within a region

DEFINITION

OBJECTIVES

• Economic policy should promote higher per capita real incomes, full employment, wide choices of kinds of work and styles of life for the individual, security of income, and not to much inequality among incomes.

• Spending public funds for improved services, subsidizing the establishment of new industries in the region, or imposing restrictive controls on land uses to help some people more than others and may well help some at the expenses

1. INDIVIDUAL AND SOCIAL WELFARE CRITERIA

• To difference of interest among groups within a region, there is an important difference between the optimum for any single region and the optimum pattern of regional growth rates in relation to national welfare.

2. REGIONAL ECONOMIC GROWTH AS A GOAL

i. National high-employment policy and regional economic adjustment- The national monetary and fiscal authorities have great powers to increase the nation s ’money supply and disposable income, and thus to stimulate spending and investment in the aggregate: helps to maintain the necessary buoyant climate in which constructive regional adjustments by people and industries can occur.

3. REGIONAL OBJECTIVES IN A NATIONAL SETTING

ii. Efficiency, equity and structural unemployment

This type of unemployment comes about because there are wide disparities in the employability of different groups in the labor force.

claiming that the national government has a responsibility for helping disadvantaged regions as such.

besides fiscal and monetary policy for facilitating effective allocation of resources among regions and the necessary dynamic adjustments.

efficiency equity structural unemployment

iii. Helping Regions and Helping People

If public policy should specifically help the less advantaged classes of people to find jobs, then it should by the same token seek to underwrite the prosperity and growth of all communities.

GROWING CONCERN WITH REGIONAL DEVELOPMENT

PEOPLE PROSPERITY

PLACE PROPERITYVS

Definition Of Regional Development

• Any government program designed to encourage the industrial and economic development of regions by joblessness or other economic hardship.

• The most common method of encouraging development is to offer grants, loans, and loan guarantees to companies relocating or expanding in the region.

People Prosperity Vs Place Prosperity

People Prosperity Place Prosperity

Definition: The community have achieve the satisfaction in demand of opportunity and better services such as job opportunity and health welfare.

If people are refuse to move then, practically any populated area can be made attractive to new employers if it follows the proper policy encourage more employers to move to region where unemployment is high.

Definition: That place have all the facilities and infrastructure to convenient society such as school, police station and so on.

Since allocation of assistance to regions is by view the emphasis on degree of difficulties, hence people have to be helped and that every region, must have adequate development potential.

ISSUES ON REGIONAL POLICIES

•Aim to empower Bumiputera•Bumiputera status remain fragile

•Social – eco gap widening

FAILURE OF NEP

•Focus on Bumiputera•NEP target to increase share of corporate capital for Bumiputera – 24% to 30% while chine plus Indian only 34.3% to 40%

RACE – BASED POLICY

•Many objective, but not all objective is successful

•Some of the successfulness still questioned

•Eg: objective is to combine small plantation, to develop but failed

SUCCESFULNESS OF POLICY

GROWTH CENTERS

Growth center Theory• According to Hirschman (1958), the economic development of an area can be extended To other areas based on a profit level.

• Economic development will not occur at the same time, but when there is progress in the right spur economic centralization in the area of growth.

• The profits made in the growth area will encourage development in the area

• The objective of growth center is

1. To spread benefit/ opportunities of urban-based industrial and service sectors to the largest number of people in the less-develop states.

2. To restructure the present regional economic imbalance and to avoid polarization in too few centers.

3. To promote the utilization of human and natural resources in depressed agricultural areas.

Role of growth center

1.Provide more job Opportuni

ties

•With employment opportunities, labor from the surrounding area will be drawn to work in growth centers.

•The growth center also serves as the center of attraction to migration to urban areas that experience congestion

2. Diffusion

of innovatio

n

•It can increase the rate of growth of underdeveloped areas

•occurs through the dissemination of information on innovation.

3. Socioeconomic

•by increasing the wage rate

•alerting local entrepreneurs about investment opportunities available

4.Stimulate the

development of the

surrounding area

•decentralization capital

•rising cost of production factors in the growth centers and congestion costs

Growth center & growth pole Growth pole Growth center

definition Large and fast growing industries

Geographic interpretation of growth pole

Concept The pole will effect linked firm or industry

Related to the concept of agglomeration

Growth pattern effect

Not uniform over entire region, take places around specific pole

uniform

Benefit towards small firm

Benefit to small industries due to linkage

Cannot compete

example Petroleum industry in Kedah

Kuala Lumpur

MALAYSIA’S

REGIONAL POLICIES

MAJOR GOVERNMENT POLICIES

New Economic Policy

Malaysia Incorporated Policy

Privatization Policy

National Agricultural Policy

Educational Policy

National Urban Policy

Regional Economic Corridor

New economic policy

• The new land development strategy

• The disadvantaged in society must be helped

• To reduce and eradicate poverty of ethnicity

• To restructure the society-eliminate community identification through economic sectors

• Launched in 1971 and ended in 1990 before National Development Policy is implemented.

EstablishObjecti

ve

StrategyImportant

The new land development strategy

Federal Land Consolidation

and Rehabilitation

Authority (FELCRA)

1966

South Kelantan (KESEDAR)

1978

Terengganu Tengah

(KETENGAH)1973

Johor Tenggara (KEJORA)1972

Pahang Tenggara (DARA)1979

Rubber Industries Smallholder Development

Authority (RISDA)1973

Federal Land Development Authority (FELDA)1956

Programs FunctionsFederal Land Development Authority (FELDA)

•Running and executing land development projects.

•Promote, facilitate and implement the development, management and economic, social, agriculture, settlements , industrial and commercial as well as other ancillary activities in the areas where authorized FELDA land development projects or areas owned by FELDA and the company.

•Implement activities that will help modernize the agriculture sector in areas where FELDA authorized governing, especially in activities related to production, processing and marketing agricultural produce and livestock.

•Assisting, guiding, advising, managing and coordinating the placement of social activities , agricultural, industrial and commercial development in the FELDA.

Federal Land Consolidation and Rehabilitation Authority (FELCRA)

• Rehabilitate and Consolidate Land By Approval 

• Request by State Authority 

• Approval by Land Owner

Rubber Industries Smallholder Development Authority (RISDA)

Takes a serious view of the role of the Smallholders Sector as one of the most important yield-production sectors of the national economy.

Functions

Pahang Tenggara (DARA)

Johor Tenggara (KEJORA)

Terengganu Tengah (KETENGAH)

South Kelantan (KESEDAR)

--Develop, encourage, assist and implement economic and social development for the region.

--Develop, encourage, assist and implement residential, agricultural, and commercial development in the region.

--Monitor and coordinate the activities above, within the jurisdiction.

HISTORY STRATEGIES PROGRAMS

First announced

by the Prime

Minister in 1983.

-The public sector

plays role as

planner, facilitator &

implementing

government programs.

- improving the

delivery system.

Set as facilitators - to provide a

conductive condition in order to

stimulate rapid economic growth,

as long as allowed by law.

As it turned planner - must be

sensitive & responsive to the

changes of the world condition

when planning direction & growth

strategies; proactive, providing

the correct information;

activities encouraged better

market through representations

abroad.

Set as executor - to provide

important social facilities and

services to all people; not only

wider but the standards also

should be better.

Establishing smart partnership

program between private and public

sector.

MALAYSIA INCORPORATED POLICY

ESTABLISH OBJECTIVES STRATEGYS PROGRAMSYear 1983 Reduce

government financial burden

Increase economic growth

Increase efficiency and production

Efficient allocation of resources

• to encourage new economic policy

• Conducting privatization in stages

•Unit Perlaksanaan & Penyelarasaan (UPP) and Unit Perancang Ekonomi will investigate privatization.

provides infrastructure such as LRT and KLIA

Provide job opportunities and professional Bumiputera workers

Encourage private investor to invest in NGO

PRIVATE POLICIES

ESTABLISHMENT

OBJECTIVES STRATEGYS PROGRAMS

12 January 1984 To increase agriculture sector through mobilization of nation resources in an efficient and effective way that contribute to agriculture quality.

Increase the agriculture output to increase farmer’s income and reduce poverty.

Open new land for example FELDA

“IN-SITU” development for example MADA and RISDA

Program under the new approach viewed Village & Rural Development

Development project of Kg. Traditional by FELDA at Kedah and Terangganu

Increase subsidies of paddy

Cocoa planting project by MARDI

AGRICULTURE POLICIES

ESTABLISHMENT OBJECTIVES STRATEGY PROGRAMS

• Introduce by Tun Abdul Razak at 1956

• In 1957 this policies was recorded in Education Ordinal

• Recheck this policies in year 1960

• This policies included in Act of Education in the year 1961

Establish education system to improve national development, social, economic and political .

Bahasa Malaysia as major language of communication in Malaysia

To provide same curriculum system

Creating similar examination system

Improve the quality of education by providing balance and integrity system

UiTM help to increase education level among Bumiputera

EDUCATION POLICIES

NATIONAL URBAN POLICY

OBJECTIVE STRATEGY PROGRAM• Developing a planned,

quality, progressive, and sustainable city.

• Develop and strengthen the city's economy competitive.

• Creating an enabling environment for the promotion of social development.

• Eradicate urban poverty.

• the planning, implementation, and monitoring system.

• Strengthen urban management and administrative institutions.

• Development of efficient and sustainable urbanization.

• Strong, dynamic, and competitive economic development of a city.

• Integrated and efficient urban transport system.

• Provision of quality urban services, infrastructure, and utilities.

• Creation of an identity and live able urban environment.

• Effective urban governance.

• Physical development.

• Planning development.

Regional Economic Corridor in Malaysia

• Iskandar Malaysia in Southern Johor (IRDA)

• Northern Corridor Economic Region (NCER)

• East Coast Economic Region (ECER)

• Sabah Development Corridor (SDC)

• Sarawak Corridor of Renewable Energy (SCORE)

QUESTION AND ANSWERExplain three (3) objectives of regional policy

1) Individual and social welfare criteria2) Regional economic growth as a goal3) Regional objectives in a national setting

QUESTION 2

Differentiate between place prosperity and people prosperity.

People Prosperity Place Prosperity

Definition: The community have achieve the satisfaction in demand of opportunity and better services such as job opportunity and health welfare.

If people are refuse to move then, practically any populated area can be made attractive to new employers if it follows the proper policy encourage more employers to move to region where unemployment is high.

Definition: That place have all the facilities and infrastructure to convenient society such as school, police station and so on.

Since allocation of assistance to regions is by view the emphasis on degree of difficulties, hence people have to be helped and that every region, must have adequate development potential.