Economic Growth and Development in Malaysia - Policy Making and Leadership

Malaysia is a multiethnic, upper middle income country that has relied heavily on income from its natural resources to engineer successful diversification into manufacturing and sharply increased incomes for all ethnic groups.

This paper examines the role of the policy‐making process and national leadership in effecting this structural change and growth with equity. It discusses the government’s role in transforming corporate ownership patterns while nurturing industrial enterprises into niche products within complex value‐added chains.

At the same time, the paper  underscores the difficulties and costs of attempting to move into areas where an economy has no strong advantages, in this case heavy industries. Privatization is seen to have been a powerful tool for expanding.