Since Malaysia gained independence in 1963, the economy has been steadily developing and focused on manufactured items. Malaysia’s economy prospers due to its geographical proximity to many major trade routes, and being open to globalization and influence by other countries. The economy has always been changing and developing to fit its citizens needs as best as possible. Due to an outbreak in 1969 over a surprising result to an election, A New Economic Policy (NEP) was introduced in 1970. This NEP would end all correlation between race and economic accomplishments, and to eliminate all poverty regardless of race. This was a large goal due to the fact that in 1970 almost half of the population of Peninsular Malaysia was declared poor. The economic policy was primarily successful, as poverty rates fell from approximately 49 percent in 1970 to 17 percent in 1990. Also, the former prime minister of Malaysia, Mahathir bin Mohamad introduced a plan called Wawasan 2020. The goal of this plan was to develop a sufficient and stable economy, as well as a caring, ethical, and progressive society. But, in 1997, the economy suffered and put Wawasan 2020 on hold as the Asian Financial Crisis struck. The GDP fell immensely in 1997 and 1998, but Malaysia was able to recover efficiently and more quickly than other Asian nations, by making the currency, ringgit, non-convertible.
Since the Asian Financial Crisis, Malaysia’s economy has gotten right on track and is noted for being successful and developing quickly.
Since the Asian Financial Crisis, Malaysia’s economy has gotten right on track and is noted for being successful and developing quickly.
A song created about Wawasan 2020, by Akbar Nawab
