Based on your perception, suggest a rationale for implementation of New Economic Model (NEM) for Malaysian Economic in year 2020.

 

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Before determining why Malaysia was needed to implement the new economic model, it should be understanding what the new economic model is actually, what is the purpose to do so. The new economic model is a plan that reveals by prime minister Najib Tun Razak which is with the purpose of multiplying the per capita income of Malaysia in the year 2020. According to the data, we know that there are RM23,100 in the year 2010. The New economic model is aimed to multiply the RM23,100 about $7000 to become $15,000.  However, it was not that easy, the key to making this aim become true is the high income, sustainability, and also inclusiveness. Although, why it was important to implement the new economic model in just 10 years.

 

There are actually many reasons to implement a new economic model but most of it can be defined as stimulating the economy to reach sustainable high income and benefit everyone. In more detail, a new economic model could decrease the control of the government’s presence in some of the areas and give back those power and space to the private sector to encourage the competing of commercial activities between the private sector. This shall be able to stimulate the business to grow and offer more career opportunities to the people.

 

If there was the business of the private sector can grow successfully, it was very good for other fields too. A great number of career opportunities could decrease the unemployment rate, while also improve the quality of life of Malaysians. Other than that, the growth of the private sector could attract foreign investment too. This is because there was enough freedom to give to the private sector and this was what foreign enterprises like to have. If there was more investment come into Malaysia, it shall be able to stimulate the import and export value and also the primary sector of Malaysia.

 

Besides that, if the foreign company invests in Malaysia, open up their subsidiary in Malaysia. It would also bring their technology and technique to Malaysia, it can improve Malaysia technology, while also provide the chance to train and learn for the employee. As result, Malaysian people will have higher skills, higher income, a better quality of life, and new talent knowledge so on

In conclusion, the new economic system will bring a lot of chain reactions to the Malaysian economy. It was also trying to take care of all the fields of the economy as much as they can, benefit all parties, even train the people to have the own capital to raise themselves, and not less rely on the support of the government. The new economic model is already a good economic plan that able to accomplish the high income, inclusiveness, and sustainability even it, not enough perfect yet.

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