Malaysia in the 1990's Case Study

Case Study: Malaysia in the 1990's

Ivana Cizmic

BU 502- Applied Business Research and Communication Skills

Instructor: Dr. Peggy Bilbruck

Southern States University

2016

Abstract

Malaysia is a country with lots of natural resources. With its' natural potentials Malaysia started to use them in form of export. Malaysia had big success in producing and exporting oil palm, natural rubber and tin, but the most important for economy was timber. The Western environmental groups were concerned with deforestation and they were trying to change Malaysia forest policies. New development strategies had to be considered. The government regulated forests area and forbade timber production. Due to bad prime minister strategy in 1969. there was a riot, where a lot of Malaysians were killed. After it, Malaysia changed the policy and it invested more money in employment, education and ownership quality. New strategy led to big differences among rich and poor people. Globalization affected Malaysia not only positive, but also negative way by increasing trade.

Keywords: forest, timber, deforestation

Case Study: Malaysia in the 1990's

        Malaysia is country with lots of natural resources. Malaysia had big success in producing and exporting oil palm, natural rubber and tin, but the most important for economy was timber. In 1970s Malaysia was one of the chief producers of natural rubber and tin in the world.

        In 1991, the Malaysian prime minister went to visit New York in order to meet American business investors. At that time Malaysia had enjoyed rapid economic growth and it was politically stable country. Malaysia reputation was jeopardized by reports that Malaysian government was not paying attention to environmental values. The case of deforestation in the East Malaysian state of Sarawak specially took attention of the Western press. Since exporting of timber was one of the most important for Malaysian economy, prime minister Mahathir had to put in order his economic strategy, the use of natural resources and Malaysia relations with environmentalists.

        In 1960s, Malaysian economy was dependent on tin and rubber. After the 1973, Malaysian economy focused on natural gas and oil business. During 1970s and 1980s, industry increased by 20% due to investments of the international companies such as National Semiconductor and Intel. By rising export of manufactured goods’, natural resource goods decreased steadily.

        Due to prime minister’s bad strategy in 1969. there was a riot, where a lot of Malaysians were killed. After it, Malaysia changed the policy and it invested more money in employment, education and ownership quality. New strategy led to big differences among rich and poor people. In response, the government launched its New Economic Policy (NEP), described as “an exercise in social engineering designed to reduce the socio-economic imbalances among ethnic groups and across regions” (Malaysia, Second Outline Perspective Plan, p.8) In 1991. NAP was declared an overall success.