Question

discuss the role of government policy in promoting or retarding economic growth in one of the following “development states” of east or south-east Asia: South Korea, Indonesia, Malaysia

Answer 1

Role of Government policy in economic growth of Malaysia:
As its independence in 1957,the new federation of malaysia government inherited an economy dependent on rubber & tin production and export.Policies were immediately adopted to diversity the economy by promoting & developing other activities.

In 1975,the government created incentives to expand large scale manufacturing & energy intensive industries.

from 1990-2000 these policies were extended to control price & give subsidies on fuel to keep cost of living low.

Government policies are important tool to improve malaysia's economics.It does not mean spending of government in all sectors.It also means the concern & action taken by government toward malaysia.

Malaysia wishes to develop their economy to achieve high-income nation.Government policy have developed few programs such as new economic model,Tenth malaysia plan,innovative digital economy,GTP(government transformation plan) & ETP(economic transformation plan)

ETP focus on creating more jobs opportunities.Tenth malaysia plan of government focus on improving education,healthcare,Enviornment,labor,public utilities and welfare.This plan have three challenges that is:-recover public investment,reduce fiscal & improve standard of living.

The tenth malaysia plan contains ten big ideas:

1.internally driven.

2.externally aware.

3.leveraging on diversity.

4.transforming to high income through specialisation.

5.growth and innovation.

6.attracting and retaining top talent.

7.inclusive development.

8.supporting smart partnership.

9.concerntrated growth.

10.valuing enviornment endowment.
because of all this government effort malaysia has achieved great success in recent years which are as follows:

1.It became one of the most open economy in the world.

2.There are very few trade barriers in malaysia.

3.It has followed excellent macroeconomics management.

4.It has excellent physical infrastructure such as roads & tele-communication network.

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