To accomplish vision 2020, Dr. Mahathir has shown at that place have nine strategic challenges. The first of the challenges is set uping a united Malayan state. In other definition, different race should be populating in harmoniousness and made up of one “ Bangsa Malaysia ” with political trueness and dedication towards the state. The second of the challenges is making a psychologically liberated Malayan society with assurance in itself to confront all mode of hardship. The 3rd challenge is furthering a mature democratic community. The Forth is challenge of organizing a society that has high moral and ethical. That means citizens are strong in spiritual and infuse with the highest of cultural criterions. The 5th challenge that for Malaysia citizens have ever faced is set uping a matured, broad and tolerant community. Because of Malaysian is multiple race, they should be respects the imposts, civilizations and spiritual to each other. The 6th is the challenge of set uping a scientific and progressive society. The 7th challenge is set uping a to the full caring society. The eight is the challenge of guaranting an economically merely society. That means the society is just and just distribution of wealth among the citizen and can non administer the occupations harmonizing the races. The 9th challenge is the challenge of set uping a comfortable society with an economic system that is to the full competitory. ( 3 )

From 1990 to 2020, there are different between 30 old ages. In these 30 old ages, Malaysia authorities has introduced several Malaysia Plans to accomplish Vision 2020. From 1957, Malaysia was an agricultural economic system until the 1970s and so started traveling into industrial until the mid 1980s. From 1985 and onwards, Malaysia became a new industrialized economic system and to go a knowledge base economic system.

Before vision 2020 has introduced by Dr. Mahathir, there has planning First Outline Perspective Plan ( OPP1 ) which including Second Malaysia Plan ( 1971-1975 ) , Third Malaysia Plan ( 1976-1980 ) , Forth Malaysia Plan ( 1981-1985 ) and Five Malaysia Plan ( 1986-1990 ) . In add-on, the New Economic Policy ( NEP ) had introduced and under the Principles of OPP1 in 1970. New Economic Policy ( NEP ) was introduced because Malaysia faced two jobs in 1969 which are poorness and instability racial socio-economic. The aim of the New Economic Policy ( NEP ) is to convey a more just distribution of wealth between the different races and groups in the assorted strata of community in Malaysia. That means NEP is to take the designation of race with economic map and should be a good mix of the cultural groups that make up the Malayan state.

Harmonizing to the Speech of Dr. Mahathir ( 2008 ) reported the national incidence of poorness has declined from 52.4 per centum in 1970 to 17.1 per centum in 1990. In Peninsular Malaysia, the incidence of poorness declined to 15 per centum while in Sabah and Sarawak declined to 34.3 per centum and 21 per centum severally. This decrease is a important accomplishment by international criterions although the poverty line of $ 370 ringgit for 1990 is far above those used in many developing states to specify poorness ( Koleksi Arkib Ucapan,2008 ) . However, the New Economic Policy has non been accomplishing to the full effectual to cut down poorness. Hence, authorities Malaysia was launched a new policy and replaced it. It is because to cut down farther the current disparities among the races.

The new policy called New Development Policy ( NDP ) . This new policy will keep the basic schemes of the NEP and to rectify societal and economic instabilities, promotes societal and political stableness every bit good as sustained development. New Development Policy ( NDP ) besides is one of the stairss to enable Malaysia to go a to the full developed state by the twelvemonth 2020. In 1992, the Second Outline Perspective Plan ( OPP2 ) was introduced and it was formulated based on the New Development Policy ( NDP ) . This program is covered the period from 1991 to 2000. It includes Sixth Malaysia Plan and Seventh Malaysia Plan towards vision 2020. In the Seventh Malaysia Plan has introduced the cognition based economic system, which can speed up rate of economic growing and increase the international fight.

In this Second Outline Plan ( OPP2 ) , it has strength the capacity of the bumiputera to increase their ownership of corporate wealth and accomplish a more just distribution of income and wealth throughout the state. Besides this, the development scheme of the Second Outline Plan ( OPP2 ) period is based on four rules which are optimal balance between ends of economic growing with equity ; guaranting balanced social development for societal and political stableness ; cut downing the societal, fostering of a Malayan society that is responsible, resilient, progressive and lovingness and relates to the environment. ( 4 ) National IT Agenda ( NITA ) and the Multimedia Super Corridor ( MSC ) were introduced. National IT Agenda ( NITA ) is to explicate schemes and advance the use and development of IT whereas the Multimedia Super Corridor ( MSC ) is strives to make an thought IT and multimedia environment.

The Following Plan is Third Outline Perspective Plan ( OPP3 ) which was covering from 2001 to 2015. It includes Eighth Malaysia Plan ( 2001-2005 ) , Ninth Malaysia Plan ( 2006-2010 ) every bit good as Malaysia Tenth Plan ( 2011-2015 ) . The schemes of the Third Outline Perspective Plan ( OPP3 ) are beef uping the fabrication sector ; reconstituting the agribusiness sector to be dynamic and competitory ; developing the services sector as the chief engine of growing ; speed uping the development of S & A ; T capacity and capableness to farther addition efficiency ; increasing the use of ICT in all sectors to increase productiveness ; and increasing coverage every bit good as bettering entree and quality of basic substructure and societal services to increase efficiency and quality of life. Besides this, Third Outline Perspective Plan ( OPP3 ) attempts to develop the economic system based on cognition to increase the productiveness, particularly in the countries of human resource development ( HRD ) , scientific discipline and engineering ( S & A ; T ) , research and development ( R & A ; D ) , info construction and funding to place itself conspicuously in the planetary. ( 5 )

In add-on, the New Vision Policy ( NVP ) was launched in 2001 and under Malaysia Eighth Plan while the Economic Transformation Program ( ETP ) is under Malaysia Tenth Plan in 2010. All of these be aftering are toward to Vision 2020.The intent of National Vision Policy is set uping a imperfect and comfortable “ Bangsa ” Malaya that lives in harmoniousness. Besides this, economic growing will be cut downing poorness, societal, economic, and regional instabilities and restructuring of society. The National Vision Policy ( NVP ) besides pursues environmentally friendly and sustainable development to guarantee that the environment is clean, healthy and attractive every bit good as capable of prolonging the state ‘s demands and aspirations. ( 6 ) NVP has seven of import pushs which are ( 1 ) advancing just society ; ( 2 ) Prolonging economic growing, ( 3 ) Meeting planetary competition ; ( 4 ) Constructing a resilient state ; ( 5 ) Developing a cognition based on economic system ; ( 6 ) Strengthening HRD and ( 7 ) Prosecuting environmentally sustainable development. Furthermore, the new dimensions of the National Vision Policy which are developing Malaysia into a cognition based economic system ; bring forthing endogenously driven growing through beef uping domestic investing ; increasing the dynamism of the agribusiness, fabrication, & A ; services sectors ; turn toing pockets of poorness every bit good as increasing the income and quality of life of those in the lowest 30 percent income class ; accomplishing effectual Bumiputera engagement every bit good as equity ownership of at least 30 per centum by 2010 ; increasing the engagement of Bumiputera in the prima sectors of the economic system and reorientation human resource development to back up a cognition based society.

The 5th Malaysia ‘s Prime Minister, Abdullah bin Badawi besides initiated five regional economic corridors to guarantee Malaysia achieves vision 2020. The five regional economic corridors are Northern Corridor Economic Region ( NCER ) ; Iskandar Malaysia, East Coast Economic Region ( ECER ) ; Sarawak Corridor of Renewable Energy ( SCORE ) and Sabah Development Corridor ( SDC ) . All of these economic corridors are really of import to impel the Malaysia economic growing.

Presents, Malaysians face several jobs which are falling private investing, falling productiveness rates, inefficient usage of its resources, outflow of endowment, and deficiency of a significant pool of skilled labor. Hence, the Tenth Malaysia Plans was launched by Prime Minister Dato ‘ Sri Najib Tun Razak and to work out the jobs that face. In the Tenth Malaysia Plan, it towards become a high income and high productiveness economic system by the twelvemonth 2020.In this programs, the authorities aims the gross national income ( GNI ) per capital is to increase RM38,850 in 2005. That average Malaysia requires accomplishing the existent GDP growing is 6 per centum per annum. There are five strategic BASIC to accomplish the aspirations of the Tenth Malaysia Plan. First of the strategic is making an environment that promote economic growing with private sector. The 2nd strategic is authorities dramas an of import function in the transmutation of the economic system every bit good as prove quality services to Malaysia citizen. The 3rd is guaranting income and wealth is equal with other races. The Forth is to advance productiveness and preserve quality endowment base and the fifth is increase the quality of Malaysia life.

In add-on, Prime Minister Dato ‘ Sri Najib Tun Razak besides announced the One Malaysia ( 1Malaysia ) construct tagged with a slogan People First, Performance Now. The 1Malaysia construct besides aspires to beef up relationships among the assorted cultural groups and everyone ethnics belongs to one race that has the same end and aspirations to develop the state as a developed state in 2020. Within the 1Malaysia construct, the Government Transformation Programme ( GTP ) was introduced. It aimed at radically transforming the manner the authorities worked so it could rapidly present existent solutions to existent issues and touchable results. The aim is to better the lives of all Malaysians regardless of race, faith and societal position.

Besides this, Malayan authorities besides introduced Economic Transformation Plan ( ETP ) which is taking to construct a high income state by the twelvemonth 2020. Economic Transformation ( ETP ) was introduced and focused on cardinal economic countries know as 12 possible National Key Economic Areas ( NKEAs ) . It is a set of 12 NKEAS which contain 11 sectors and Kuala Lumpur. The 11 possible sectors of NKEAs are oil and gas ; palm oil, fiscal services ; touristry ; concern services ; electronic and electrical ; sweeping and retail, instruction ; private health care ; communications content and substructure and agriculture. ( 7 ) . It aspires to accomplish a Gross national Income ( GNI ) growing of 6 % per annum that will let Malaysia to accomplish the marks set under Vision 2020. Furthermore, Malaysia is aiming a GNI per capita from $ USD6,700 or RM23,700 in 2009 to more than $ USD15,000 or RM48,000 in 2020.

In the decision, planning is really of import to each state. Hence, authorities Malaysia should be be aftering Malaysia decently and carefully in the hereafter. It is because these 5 twelvemonth planning will interrelationship with the economic, politic and criterion of life in Malaysia. Furthermore, Malaysia has the substructure, engineering, fabricating capablenesss, and trade advantages that guarantee its continued development.

Table 1: Summary of Malaysia ‘s Development Phases and Economic Policies ( Source: Berma. M, 2003 )

Development Phases

Economic Policies


Prime Curates

Sarawak Chief Curates

-First Malaya Plan

( 1 956-1960 )

-Second Malaya

Plan ( 1961-1965 )

-First Malaysia Plan

( 1966-1970 )

Open market


YM Tunku

Abdul Rahman




( 1962-1966 )

– Dato


Tawi Sli

( 1966-1981 )

-Second M alaysia

Plan ( 1971-1975 )

-Third Malaya

Plan ( 1976-1980 )




( 1971-1990 )

Direct authorities


-Tun Abdul

Razak ( 1970-

1976 )

-Tun Hussein

Onn ( 1976-

1981 )

-Forth Malaysia Plan ( 1981-1985 )

-Fifth Malaysia Plan ( 1986-1990 )



-Malaysian Inc.

Dato ‘ Seri Dr.




PatinggTi an

Sri ( Dr. ) Haji

Abdul Taib

bin Mahmud

( 1981-present )

Sixth Malaysia Plan ( 1991-1995 )

National Development Policy ( 1991-2000 )

Seventh Malaysia Plan ( 1996-2000 )

National Vision Policy 2001-2010 )

Fiscal Crisis ( 1997-1998 )

Eight Malaysia Plan ( 2001-2005 )





-Economic resiliency

Ninth Malaysia Plan ( 2006-2010 )

YAB Dato ‘ Seri Abdullah Bin Haji Ahmad Badawi

Tenth Malaysia Plan ( 2011-2015 )

Economic Transformation Programme

Concept One Malaysia

Dato ‘ Sri Mohd. Najib Bin Tun Abdul Razak