A STUDY OF REGIONAL DEVELOPMENT IN MALAYSIA BASED ON STATE LEVEL DATA

BY

UMMU HANI HUSNA BINTI ABDUL AZIZ

A PROJECT PAPER SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF URBAN AND REGIONAL

PLANNING

KULLIYYAH OF ARCHITECTURE AND ENVIRONMENTAL DESIGN INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

JUNE 2012

CHAPTER 1

INTRODUCTION

1.1 Overview of Study

This paper makes an analysis and examines the government policies in regional developments in

Malaysia. The government handles the imbalanced development with a set of policies, but it

failed to make a balanced development in Malaysia. The analysis of this paper will focus on the

reviewing policies like eighth and ninth national plan, transformation economic model. The topic

also gives indicators and verifies the failure of two major strategies of frontier area development

and in-situ development that were implemented since 1970s. The new economic model is an idea

based on the new economic corridor, but it give the impression of the limitation of the economic

development in rural region not only due to structural constraints developed from historical

process but also the structure of the capitalist system itself which limits the growth of rural

economic. The policies for economic given the rapid pace of globalization and increased

competition between regions across nation’s development should focus on inclusiveness and

give a spatial balance. The imbalanced development In Malaysia started since independence

from British in 1957. There was districts disparity in development between the different regions

of peninsular Malaysia. The regions along the west coast from Penang to Johor Bahru were

exploited first with economic activities and later developed into trading centers. There are

physical constraints contributed to imbalanced economic activities disparity in Malaysia, such as

the geography being in the middle of the peninsular Malaysia and the long distance to port

facilities prevent the exploitation of resources in the east coast region.

The regional development in Malaysia was formed since 1970s by the government to develop the

country. The previous policies that were used for region development. Regional development

planning had been seen as one of the ways to achieve the goals of eradications of poverty and the

restructuring of society in term of social, economic and spatial components. There are several

policies that have been used for the development in Malaysia. The famous policies for regional

development is frontier regions, the development of existing rural settlements or “in-situ” rural

development, the dispersal of industrial activities to the less developed regions and the creation

of new growth centers or new townships in the rural areas (see Alden and Awang ,1985 ;Mat

1983)

The regional disparity is situation of an imbalanced development according to Mohammad

Sharif Krimi, Zulkornain Yusop and Law Siong Hook (2010). The regional disparity or

imbalance refers to a situation where per capita income, standards of living, consumption,

industrial and agriculture and infrastructure development are not uniform in different parts of a

given region. Regional disparities are global phenomenon. The problems of regional disparities

in the level of economics development are almost universal. It is not a new phenomenon as it

occurred in other countries as well. Even during new earlier periods there were differences in the

level of economic development both in the advanced countries in Europe and developing

countries in Asia and Africa.

1.2 Problems Statement

Malaysia has been one of the developing countries; the country faced the development since

independence 1957. In cities of developing countries, the city’s center is grown organically from

an originally uncontrolled residential area, commercial and institution which contribute to mixed

land use. The past history also contributes a regional disparity among the states when British

colonial developed a state based on the location. Note that planners are dealing with increasing

problems and issues of the regional development like regional disparity especially at rural areas.

1.3 Aim and Objectives

1.3.1 Aim

The purpose of this study is to identify the sample of regional development in Malaysia and the

policies to address the regional development issues.

1.3.2 Objective

There are several objectives that have been identified as follow:

• To review regional planning policies and strategies of the government to from the

perspective of the balance and sustainable development in Malaysia

• To evaluate the effectiveness of the existing development policies for regional

development in Malaysia

• To evaluate the regional policies, practices and government efforts that have

supported the current and future development

1.4 Research Question

Based on the objectives of the study, there are several research questions identified for this

research as stated below:

1. What the level of development contentment the Malaysian peoples perceive since

independence ?

2. How the policies that has been made by government can help or facilitate the quality of

life?

3. What are the factors influencing imbalanced developments in Malaysia?

4. What are the recommendations of the policy makers to improve the regional development

in Malaysia ?

5. When will Malaysia have a balanced regional development, with all parties involvement?

1.5 Scope of Study

The scope of this study has been determined in order to facilitate the literature study by focusing

on certain or related fields. This study is to identify and examine the policy by government

which addresses the issues on regional disparity in Malaysia. Based on the investigation, we need

to collect all the data needed in order to know the regional development level in Malaysia. All

the data is recorded using Microsoft Excel™, and Map Info™ to show the result.

1.6 Limitations of Study

There are several limitations in order to complete this research paper. They are as follows:

1) The sample for this analysis is small due to time and budget constraint

2) The study is limited to a few socio economy data state level only. The other data for

development could not be studied due to limited time of research.

1.7 Significance of the Research

This study is to determine the regional development in Malaysia based on state level data to

determine the government policies for regional development in Malaysia. In addition, the study

also gives an opportunity to tackle the issues and problems of regional disparities in Malaysia.

1.8 Structure of the Research

1.8.1 Chapter One: Introduction

This is an introduction chapter of the thesis and includes the background of the projects,

problems statements, objectives, scope of study and methodology.

1.8.2 Chapter Two: Literature Review

This chapter presents the literature review on the introduction and understanding of the regional

development in Malaysia, the policies and the factors contributed to regional disparities in

Malaysia. In addition this chapter also identifies the technique chosen for this research. The

principal and the guidelines of the research regional development are explained in this chapter.

1.8.3 Chapter Three: Methodology

This chapter is to inform the methodology of the research which uses the Location quotation

analysis. This research only uses a secondary data by the policies that had been made by a

government for the development. Then data was analyzed by using Microsoft Excel™ and Map

Info™ to analyzed and show the result.

1.8.4 Chapter Four: Study Area

This chapter provides information about the site background which covers the whole area of

Malaysia. The geographical location, the administration and the history of Malaysia informed

discussed in this chapter.

1.8.5 Chapter Five: Analysis and Finding

This is the chapter which provides explanations the result and the analysis of the data collected.

All of the data collected was explain. The data was analyzed by using Location quotation

technique. The result are analyzed and presented.

1.8.6 Chapter Six: Recommendation and Conclusion

This is the last chapter for conclusion and recommendation of this analysis. Overall conclusion

of this project stated in this chapter together with some future recommendations.

1.9 Conclusion

This study is intended to get better information for balanced regional development instead of

regional disparity. Thus planners and policy makers has a responsibility that need a technique

and ideas to handle this issues. This project paper is also a good channel between policy makers,

research institutions and people that are recognized in the regional development scene.

CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

This chapter will give a reviewing regional development in Malaysia .The chapter thrash out

previous Malaysia regional development especially during 1970s to 2000. To achieve balanced

regional development will remain as one of the key objectives of national development during

the development plans in Malaysia. Therefore this chapter give an example of previous pattern of

regional disparities amongst major states in Malaysia to find out gap and rank of regional

development during two development plans (seventh and eighth plan). The empirical results

indicate that in terms of regional balance, little progress was made in reducing development gaps

between regions during two plans and Wilayah Persekutuan Kuala Lumpur was the most

developed region in 2000 and 2005.

2.2 The introduction of regional development

There are a few studies about regional disparities. The rest of those researches are analyses

regional disparities amongst various states based on HDI (Human Development Index),

Economic and socio-economic indicators with simple models such as Normalize and weighted

mathematical method such as: Riskin (1988) observes that substantial disparities between

Chinese provinces in the 1950s became much more serious with industrialization. He states that

the leadership opted for the diversion of investment resources to the more backward provinces

and consequently“, relative convergence of provincial industrialization occurred from the start of

the First Five Year Plan [1953-57] with less industrialized provinces growing at higher

proportional rates than more industrialized ones.” (Page 227). Nevertheless, he argues that the

regional disparities in terms of rural poverty remained high.

Fedorov (2002) highlights the growing regional inequalities in Russia in the1990s. Referring to

recent studies on regional disparities in Russia he states that “Virtually all authors agree that the

transition period has been characterised by rapidly growing economic inequality among Russia’s

regions” Vanderpnye-Orgle (2002) after citing a number of studies on the growing regional

disparities in Ghana, discusses the growing trends in spatial inequalities and polarization in

Ghana during the period of stabilization and structural adjustment programmes – late 1980s to

late 1990s. This study concludes that regional inequality increased during the first stages of

reform period, followed by a short period of decline before resuming its increasing trend for the

rest of the period to 1999. Wei and Kim (2002) showed that the increasing regional inequality is

widely considered to be the reason for the existing regional problems in China and an obstacle to

its stability and development. In this study of inter-county inequality in Jiangsu province of

China they conclude that for the period of 1950-95. Noorbakhsh (2003) analyzed regional

disparities amongst major states in India to find out if they are on a convergence or further

divergence course. The analysis is extended to the evolution of disparities amongst the states

with respect to a larger set of socio-economic indicators especially HDI.

A number of regional composite indices are constructed from the selected indicators and tested

for their validity. In case of regional development disparities in Malaysia, there is just one study

by Economic Planning Unit in 2006 that used of the Development Composite Index (DCI), based

on 16 indicators include social and economic index. This study use a simple method (Normalize

method) for ranking states in Malaysia the result shows that Wilayah Persekutuan Kuala Lumpur

ranked the highest DCI followed by Pulau Pinang, Melaka and Selangor.

2.3: Theoretical Basis for Regional Development

A number of the multitudinous theories and concepts of development that have been put forward

in the past hundred years have significantly shaped regional development thinking. The

following sections discuss these theoretical trajectories in terms of their basic concepts or

perspectives and how the same have translated into policies and strategies in regional

development. Richardson (1973) explains the claim of neoclassical economics that regional

disparities in terms of supply and demand of factors of production (labor, capital, technology) or

commodities will even out inevitably given the sufficient increase in the accessibility between

regions and consequently by the mobility of these production factors and commodities.

According to the theory, regional imbalances in supply and demand manifest themselves in

differences in prices of these factors of production and commodities. Hirschman (1957) and

Perroux (1964) have been considered the forerunners of the trickle down or the center down

paradigm, which had been the basis for the development of the growth center approach. The

concept largely mirrors the view of neoclassical economics. Stohr (1981) in succinct terms,

explained that the trickle down paradigm purports that “development can start only in a relatively

few dynamic sectors and geographic locations from where it is expected to spread to the

remaining sectors and geographical areas of a country”. The trickle down process starts from a

high level (from worldwide or national demand, or from world or national innovation centers)

filtering down and outward to national and regional units through various mechanisms: urban

hierarchy, multi-plant business organizations and large-scale government organizations.

2.4 Regional Policies in Malaysia

During the pre-independence period in Malaysia, the economic development of the government

was mainly focused on agriculture and infrastructure development. These developments were

mostly dependent on private sector or foreign direct investment. Private sector still played the

same role after the independence in 1957 and up to the year 1970. During this period, economic

base theory was put into practice where industrial development base on import substitution

industrialization was created. However, this industrialization did not help the economy. During

this period, unemployment rose to 8% in 1968 and the distribution of income widened by Gini

coefficient increasing from 0.49 to 0.55. (Aslam and Ali, 2003) During this period too, the

economic policies implemented had created the background of the 1969 riots. The riots, which

started on the 13th

of May 1969, were based on four overlapping polarizations. They are the rich

versus poor, the muslim versus non-muslim, urban-rural occupational structure, and spatial

disparities (regional gaps). (Hansen, Higgins, and Savoie, 1990) The rich versus the poor factor

is referred to the Chinese versus the Malays. Because of the economic structure that the British

implemented, the Chinese were in the cities and they dominated the business and finance sector.

The Malays, which were encouraged to farm and fish for living by the British, were mostly

living in the villages. Because of the location and the type of work they do, the Chinese were

richer than the Malays. Moreover, the locations where the Chinese and Malays were located too

contributed to the urban-rural occupational structure. On the other hand, the Malays are mostly

Muslims, while the Chinese, Indians and some European populations are not. This leads to

another difference in the social-economic development.

2.4.1 Regional Income Disparity In Malaysia during 1970s to 2000

The GDP per capita for various states in the period of 1970 till 2000. In the earlier period, Negeri

Sembilan, Perak, Selangor, Sabah and Wilayah Persekutuan registered real GDP per capita that

is above the national average. However, in 2000, Malacca, Penang, Selangor, Terengganu and

Wilayah Persekutuan were experiencing rapid growths in the GDP per capita which exceed the

national average. Sabah has shown a decreasing GDP per capita as the state was the third richest

state in 1970 but the third poorest state in 2000. Kelantan remain as the poorest state throughout

the period. Meanwhile, Selangor and Wilayah Persekutuan remain the richest states in Malaysia

for the past decades. Table 2 shows the ranking by state according to real GDP per capita. The

poor state of Kelantan remained last throughout the years while Kuala Lumpur maintained in the

top position. Table 3 shows the poverty line index (PLI), incidence of poverty and hardcore

poverty. The incidence of poverty and the hardcore poverty are very high in the poor states of

Sabah, Terengganu and Kelantan.

2.4.2 The effects of the policies implemented on the regions

Firstly, the different industrialization policies above had moved the sector from the primary to

the secondary in Malaysia. Malaysia’s economy is currently less dependent on the primary sector

for activities such as agriculture, forestry, and fishing. What the transformation had created since

1970 especially is the move to the secondary sector, where manufacturing is the main

importance. The policies had also helped the less developed regions to reduce poverty by getting

them into the secondary sector.

2.4.2.1 Table of Percentage of GDP by Industry of Origin and Region, 1970, 1980, 1990,

and 2000

Year Northern(N

)

Easter

n (E)

Centr

al (C)

Souther

n (S)

Less

Develope

d Region

(L)

More

Develope

d Region

(M)

Peninsular

Malaysia

Agricultu

re,

forestry,

fishing,

etc.

1970 34.0 42.6 19.3 41.0 48.6 25.4 30.2

1980 18.4 35.6 11.5 32.8 28.9 16.3 19.3

1990 21.7 20.7 6.9 29.4 25.1 13.2 16.0

2000 15.0 15.2 4.0 17.2 17.6 8.3 10.4

Percenta

ge change

-55.9 -64.3 -79.3 -58.0 -63.8 -67.3 -65.6

Manufact

uring

1970 9.3 6.3 19.1 14.0 6.3 15.3 13.4

1980 18.0 10.5 28.5 23.8 7.0 27.1 22.2

1990 28.7 10.9 37.9 28.0 13.4 34.6 29.6

2000 36.5 21.2 44.0 40.8 25.7 41.6 38.0

Percenta

ge change

292.5 236.5 130.4 191.4 307.9 171.9 183.6

Source: Aslam and Ali, Development Planning and Regional Imbalances in Malaysia

Table above shows the percentage of GDP by industry of origin and region. We can basically

observe that the percentage change in the primary sectors is in the negative, which means a

percentage decrease. This is totally the opposite for the percentage change in the secondary

sector where it is in the positive. We recognized that the economy grew for the four decades by

knowing that the percentage increase in the secondary sector is higher than the percentage

decrease in the primary sector. We can notice percentage that is higher than 200% in the northern

and eastern regions because these are where the poor states are located. They are also the states

that faced the most initiatives to reduce poverty in the states and country. The states in these

regions that are considered poor are Kedah, Perlis, Kelantan, and Terengganu. The states are also

heavily populated by the Malays.

Table above shows the ratio of manufacturing GDP distribution by state compared to the ratio of

the Selangor state. The data that we see here shows a trend of increases in the ratio from 1970 to

1980, and then, a decrease from 1980 until 2000. From this data, we can conclude that from 1970

until 1980, there was a surge of investment in manufacturing in every state except for Selangor.

From 1980 until 1990, the ratio dropped, which shows that the manufacturing GDP for every

state was more equal with the manufacturing GDP of Selangor. However, if we consider that the

manufacturing GDP for Selangor did decrease between 1980 until 1990, we can conclude that

the manufacturing GDP for other states did not increase by much. Also, as we move towards the

year 2000, tertiary sector in the economy of Malaysia did increased too, which would decrease

the ratio of manufacturing GDP. In the year 2000, 50% of the economy of Malaysia was already

in the tertiary sector. (Siew Nooi, 2005) The Malaysian economy already started to move

towards the last stage of the Sector Theory, where the products that they produce or sell are more

income elastic products.

2.5 The Establishment of Regional Economic Growth Corridors

The regional economic growth corridors were established during the Ninth Malaysia Plan, and

were incorporated in the Mid-Term Review of the Ninth Malaysia Plan. The focus of regional

development was on raising the standard of living and attaining balanced socio-

economic development across regions and states. It involves development of growth centers

and growth corridors that transcend state boundaries, modernization and diversification

of the economic based on less developed states and reducing urban-rural digital divide

(Government of Malaysia, 2008: 65). According to the Mid-term Review of the Ninth

Malaysia Plan (2008), corridor development will reduce regional imbalance and bring

about equitable growth, investment and employment opportunities to all regions of Malaysia.

The aims were at creating a comprehensive and wide spread economic development in a more

coordinated and integrated manner. It was assume that the income generation will be

accompanied by accelerated eradication of poverty, restructuring of society and

ov e r a l l we a l t h c r e a t i o n . T o f a c i l i t a t e an d e x pe d i t e t he i mp l e men t a t i o n

o f p r o g r a ms t h e r e g i o n a l corridors authorities were established. Corridors development

will be private sector driven and the government roles are to provide conducive

environment to attract private sector’s participation such as competitive package of

incentives as well as the establishment of one stop centers.

2.6 Conclusion

This chapter studies and gives an elaboration about the literature review. The literature review

gives an enhancement to the regional development program that already made by government,

the effectiveness of the programs and the theory of regional development. The explanation is

important to give an early understanding to the reader.

CHAPTER 3

THE METHODOLOGY

3.0 INTRODUCTION This chapter will explain the method of data collection pertaining to this research. In this chapter,

there will be explanation on how to collect the data, from where the data will be obtained and

how the data will be analyzed. Apart from explaining the type of data used, this chapter also

cover the method use for analysis and stages of methodology which include preliminary of study,

reviewing the literature study, followed by data collection, analyzation of data and ended with

recommendations. The preparation of this chapter mainly to explained the proper methodology

development and ensure that this research attain the objectives which had been set up priory in

chapter 1.

3.1 STAGE OF STUDY

3.1.1 First Stage: Preliminary Study

This stage is considered as the first chapter in the research. It is become the main guide to the

whole process of the study. In this chapter, the aspect that had been covers are mostly are

introductory part. The core of the research had been studied where it consequently lead to

formulation of problem statements, research question, objectives and scope of study. The

familiarization of issues and problems, as well as the topic also conducted in this stage where as

the study on specific topic are done widely by using various sources. The socio economy data at

states level was collected for this research .Apart from that, the formulation of goal, objectives

are also conducted in this stage. From there, the structure of the research will not overboard and

achieved the target of the research.

3.1.2 Second Stage: Literature Review

The literature study for this research is conducted in this stage. After formulation of problem

statement and research question, the literature review are done by using reliable and available

sources such as books, articles, planning guideline, reports, journals, seminar paper, websites,

blogs and many more sources. In this stage, the overview understandings are conducted. The

demographic study, as well as other related information such as their festive occasions an ritual

are done in order to understand the integration community which had been practiced in Malaysia.

Apart from that, this stage also cover the planning standard and guideline used in the regional

development analysis. From the sources also, the research on regional development based on

states level data .

3.1.3 Third Stage: The methodology of data collection

This stage demonstrates the process or the methodology of the whole process in the research. It

is the vital stage where its explaining on how the data are acquired, the type of data, and the

method used to obtain the data. Basically, there are one types of data only which is secondary

data. This stage is important in gathering all the data required and information needed for

achieving the goals and objectives of the study.

Observational methods are essential in order to obtain the understanding pertaining to current

situations regarding the worship places at study area. By conducting observation, it allow

researcher to get genuine picture of issues and problems due to its status as a reliable sources to

the study. The study of regional development uses a location quotation theory for the

development.

3.1.3.1 Secondary data

The secondary data basically can be defined as the data which had been collected by other

agencies . For this case study, the researcher also depends to secondary data. The researcher used

data such as governments policy plan report likes national physical plan and physical plan each

states and development action plan, in order to know policy which had been stated by the local

authority pertaining to the development of the states and data by states .Then, there are also

articles, journal, website, seminar paper, reports which mainly put under secondary data. Apart

from that, the secondary data also used as resources for the researcher to make analysis

pertaining to the issues arises regarding the provision of regional development in Malaysia . As a

conclusion, the only secondary data are essential in providing the sources toward the research

and it is vital due to produce valid case study.

3.1.4 Fourth Stage: Data analysis and findings

After all the data had been collected, as mentioned in chapter 3, it will lead to the process of

analyzation. The data and findings from secondary data are analyzed in order to dig out the core

issues as well as overall situations of development in Malaysia . The data which had been

obtained from reviewing the report will study as well as analysis will conducted, totally from

the reviewing session . The After read the previous policy or physical plan of states , the data

will be extract of written back to Microsoft excel , based on what the report

3.1.5 Fifth Stage: Conclusion and Recommendation

This is the final stage for this research and it was conducted after the completion of data analysis

and findings. Based on the data findings and analysis, the recommendation for this issue will

formulate. Basically, this stage was purpose to conduct an approach which help to overcome the

problems which mostly had been outlined in the priory stages, and based from the analysis by

using the methodology mentioned in third stages, the researcher can formulate appropriate policy

which also can help to improve the integrity among the people in the study area. Then, the

conclusions are conducted to conclude overall study.

3.2 Technique for the analysis

The study focused on location quotient (LQ) analysis. The LQ analysis is a technique that

mathematically indexes a region’s economy to a large reference (national) economy. The

method can be carried out easily, quickly and inexpensively. It is computed as follows.

LQ = [ai /bi] / [Ao/Bi]

ai = total output in sector i in state s

bi = total output in state s

Ao = total output in sector i in national economy n

Bi = total output in national economy n

The LQ shows on the sector’s contribution to the regional economy compared to the sector’s

contribution to the national economy. If the value is less than one, the sector’s share of the total

regional output falls short of the same sector’s share of total output in the national economy.

Otherwise, if the value is greater than one, the sector’s share of total regional output exceeds the

same sector’s share of total output in the national economy. There are 14 states in the Malaysian

economy. The states are Johor, Kedah, Kelantan, Melaka, Negeri Semblian, Pahang, Penang,

Perak, Perlis, Selangor, Terengganu, Wilayah Persekutuan, Sabah and Sarawak. In this paper we

divided the economy into 5 regions. Regions are divided according to the followings.

• Northern Region (Kedah, Perlis, Perak and Penang)

• Central Region (Selangor, Malacca and Negeri Sembilan)

• Eastern Region (Kelantan, Terengganu and Pahang)

• Southern Region (Johor)

• Sabah

• Sarawak

Furthermore, the five sectors under study include agriculture, mining and quarrying,

manufacturing, constructions and services. In this study we compare the performance of the rich

regions and the poor regions namely central region and the regions of eastern and Sabah &

Sarawak respectively.

The performance of two rich states and two poor states are also analyzed. Rich states represented

by Penang and Selangor while Kedah and Kelantan representing the poor. The LQ analysis of

these regions is compared to the national economy using the number of employment for the

particular sectors. We use secondary data that are compiled from the various government

department and Bank Negara Malaysia for the period 1970 till 2006.

3.3 Use Of GIS

Methodologies based on computerized geographical information systems (GIS) are appearing

with regularity in the library and information science literature and conference proceedings. This

article illustrates and discusses several specific GIS techniques available to LIS researchers,

administrators, planners, and instructors. These techniques include thematic mapping (shading,

coloring, or using various sized symbols to indicate amount and type), data maps (positioning

actual data on maps rather than on tables), and geocoding (positioning addresses obtained from

various reference sources to specific points on a map). Maps are used to illustrate the techniques

recommended for more widespread use among library and information researchers

3.3 .1 The Method of Digitizing

In the past 10 years, geographic information systems (GIS) have been widely used in urban and

regional planning in the developed countries in Australia, North America and Europe. However,

the use of GIS in urban and regional planning in the developing countries is limited and still at an

early stage of development. This paper use the current use of GIS in urban and regional planning

in the developing countries in Asia. The major hindrances in the use of GIS in the developing

countries is related not so much to the technology of GIS but more to data availability,

leadership, organization structure and planning practice. For GIS to be more useful to urban and

regional planning in the developing countries the development of a sustainable strategy in

developing GIS and staff training is needed. International assistance agencies and GIS software

companies can play an active role in making GIS available and usable to the planners in the

developing countries.

3.3.2 Implementation of GIS to analysis

The implementation of GIS map by using Map info software .The Mapinfo software was design

to use GIS map ,this technique make an easy way to create a map .It is easier way to create a

analyzed map .

3.3.3 Overview

This chapter outlines how to go about bringing your spatial and business data into MapInfo

Professional so that you can fully visualize and analyze the information. This chapter focuses on

database access. Please refer to the MapInfo Professional documentation set for specifics on

MapInfo mapping and analytical features.

3.3.3.1 The five steps for GIS application are:

1. Acquisition the data in Microsoft excel to put all data.The data will keep in table and will put

in excel table .Then the table will open directly with Map Info

2. Use of the GIS software, Mapinfo to open the file from Microsoft excels to geocode to

produce a map.The analysis will done based on this table and result will appear on map.

3. To ensure the word inside table is correct follow the rules of the geocode table ,it is because

the software can not read the wrong word .

4. After the data inside the table can open directly by using Mapinfo,then the geocode step will

take action.

5. After geocode all the data ,then make a thematic map based on the data that already geocodde

.Then ,the by doing the thematic map user can chooseeither use a hatching or colour and symbols

.There are variety of way to produce a thematic map.But for this research I will choose hatching

to show my result on Map

6. Then the thematic map wil produce after we choose the technique for the map.The map will

show the result based in the data and analysis

3.3.3.1 Steps For Geocoding In Map Info

Geocoding Manually

To geocode a table manually:

1. Open the table with the reference map in it.

2. Open your table and add it to the current Map window.

3. On the Map menu, click Layer Control.

4. Select your table and make that layer editable. Click OK.

5. On the Window menu, click New Browser Window. Select the table to geocode.

6. On the Window menu, click Tile Windows to display your Map and Browser windows

side by side.

Figure 3.1 ;The example of geocode in Mapinfo Source: http://www.kxcad.net/mapinfo/mapinfo_professional/MapInfow-09-24.html#wp1550516 7. Scroll through the Browser to find the record that you would like to geocode. Click in the box to the

left of the row to select the record.

8. Click in the title bar of the Map window. The Symbol tool on the Drawing toolbar is now available.

9. Select the Symbol tool.

10. Click the map where you want the point placed for the selected record.

11. On the File menu, click Save. The selected record is geocoded. Repeat steps 7-10 for each record

you would like to manually geocode

3.3.1 The Flow Chart of The Methodology

Analysis and data findings

Recommendations and conclusion

Data collection • Selection of study area

• Preparation of study area

Primary data • Interviews

• Site observation

Secondary data • Internet surfing • National physical plan report ,states

physical plan report and new economic model report books, journal, reports, and action development plans seminar paper.

Problems Identification

Formulation of Goals, Objectives and Scope of Study.

Literature Review

3.4 SUMMARY As a conclusion, this chapter summarizes the methodology which helps the researcher to obtain

the data pertaining to the issues and problems regarding worship places. Overall, it covers the

methodology or process to conduct the study. It started with the problems identification,

literature review on the study, collection on data, and analysis on data and findings. Then, the

study closed with the final stages, which are suggesting some recommendation as a solution to

overcome the problems, which had been questioned in the prior chapter. This methodology is

very important in becoming guidance for the researcher to conduct this research, which

successfully help the researcher to attain goals and objectives which had been formulated in prior

CHAPTER 4

THE STUDY AREA

4.1 Introduction

Achieving balanced regional development will remain as one of the key objectives of national

development during the development plans in Malaysia .Therefore this paper analyses

disparities amongst major states in Malaysia to find out gap and rank of regional development

during two developments. Regional disparities or imbalance refers to a situation where per capita

income, standard of living, consumption situation, industrial and agriculture and infrastructure

development are not uniform in different parts of a given region. Malaysia is an independent

nation state a parliamentary constitutional monarchy, with a federal government structure. Most

of the countries of the world are experiencing the problem of regional disparities. The problem is

not a new phenomenon. Even during the earlier periods also there were difference in the level of

economic development both in the advanced countries of the Europe and developing countries of

Asia and Africa. But due to the lack of statistical measures these imbalances didn't attract notice.

However, in recent years they have received a lot of attention because of their adverse

implications for balanced economic development

4.2 Study Area

The location of the study area is located at South China Sea which separates the two landmasses

that make up Malaysia. The country was covering the southern half of the peninsular Malaysia

and the other spread over the northwest coastal region of Borneo (Sabah and Sarawak). In 1957

the federation of Malaya gained its independence from the British colony. In 1963 together with

the British colonies of Sabah and Sarawak, Malaysia come into being as an independent

federation Singapore has opted out from the federation and became independent in 1965.

The federal government has considerable power over the state governments of the eleven states

of peninsular Malaysia. Sabah and Sarawak however enjoy rights which are derived from

agreements reached when Malaysia was formed.

Malaysia is a multi-ethnic country compromising predominantly of the Malays, Chinese and

Indian. The varieties of ethnics groups influenced the cultures and play a large rate in Malaysia

policies.

4.1 :Key Location Map

Source : www.google.com

Figure 4.2 : Site Location MapSource : www.google.com

ap

Figure

4.4.2 The geographical location

The area is 329,847 sq .km (127,315 sq mi) slightly larger than a New Mexico cities, Capital

city of Malaysia is Kuala Lumpur and other cities like Johor Baru, Kota Bharu, Penang, Kuala

Terengganu, Kedah, Ipoh, Kuala Terengganu, Kota Kinabalu, Kuching, Kuantan, Shah Alam,

Kangar, Alor Star and Malacca. The South China Sea separates peninsular Malaysia from East

Malaysia Borneo.

Figure 4.3: Map of Malaysia Source : National Physical Plan Report

4.3 The Demographic, Social and Economic Setting of Malaysia

The population of Malaysia comprises the three major ethnic groups of Asia- the Chinese,

Indians and Malays. In Peninsular Malaysia (where 80 per cent of the population lives), about

61.1 per cent are Malays (Department of Statistics 2001a). The Malays, together with a small

group of the other indigenous groups, are known as the Bumiputra, or son of the soil. The

Chinese and Indians make up about 27.4 per cent and 9.4 per cent of the population of Peninsular

Malaysia respectively. They are the descendants of migrants from China and India in the early

part of the twentieth century. The remaining 0.7 per cent are “Others”. Each ethnic community

has maintained its own socio-cultural ways of life, and is segregated to some extent by place of

residence, education and occupation. The various ethnic groups are at different stages of

demographic transition. Mortality rates have fallen to a low level for all segments of the

population, with a crude death rate of less than 5 per thousand populations. The infant mortality

rate is lowest among the Chinese (5 per thousand live birth) and highest among the Malays (9 per

thousand live births), with the Indians in-between. Female life expectancy ranges from about 73

years for the Malays to 78 years for the Chinese (Department of Statistics 2001b).

4.3.1 The regional cooperation

During the plan period, Malaysia continue to cooperate at the regional level to increase the

dynamism of the region and During the Plan period, Malaysia continue to cooperate at the

regional level to increase the dynamism of the region and enhance inter-regional cooperation.

Malaysia will also cooperate with other countries in the region to address common issues and

enhance competitiveness for economic growth and development through closer economic

integration, particularly among ASEAN members.

Association of Southeast Asian Nations. Malaysia in cooperation with other ASEAN members,

continue to undertake measures to deepen the economic integration of ASEAN towards

achieving the objectives of the ASEAN Economic Community (AEC) by 2020. In this regard,

Malaysia will cooperate actively with ASEAN members to implement various initiatives under

the Vientiane Action Programme (VAP) and the Framework Agreement on Priority Integration

Sectors. The acceleration of liberalisation of the services sector is expected to promote intra-

ASEAN trade in services and also provide the necessary impetus to sustain and boost economic

growth.

During the Plan period, in addition to ASEAN-China FTA in Goods, ASEAN also implement the

ASEAN-Korea FTA in Goods in 2006. Efforts will be intensified to conclude the on-going FTA

negotiations with the other Dialogue Partners. All these FTAs are expected to have significant

impact on the ASEAN economies and to provide the catalyst to continue to attract foreign direct

investment into the region.

Malaysia continue to encourage and support cooperation under the ASEAN Plus Three

framework towards the establishment of an East Asia community, including the possibility of an

East Asia FTA. Collaboration with Japan, People’s Republic of China and Republic of Korea

will be continued in sub-regional development initiatives, particularly the Growth Triangles, as

well as in efforts towards the integration of ASEAN through the narrowing of development gaps

between its members. Malaysia also spearhead efforts to streamline and strengthen ASEAN

through an institutional review and the adoption of the ASEAN Charter.

Asia Pacific Economic Coop

regional economic developme

Towards this end, trade and bu

business will be reduced and

Malaysia will encourage gre

technical cooperation as well a

4.4 Conurbation of regional d

Figure 4.4 : Map of Malaysia Source : National Physical Pla

The figure 4.4 show the con

development by region. In g

administrative boundaries, wh

region as an area comprising

Plans are the National Econo

namely; the Northern Corrido

operation. Malaysia continue to emphasize

ment and enhancing shared prosperity in the

business facilitation will be implemented, whe

nd capacity building initiatives will continue t

reater efforts among members to further int

ll as build human and institutional capacity.

al development in Malaysia

ia Conurbation Development Plan Report

conurbation states in Malaysia, it shows the

n general, a region is defined as an area co

whilst the Town and Country Planning Act 197

g of two or more states. The regions outlined

nomic Regional Corridor covering an area o

idor Economic Region, Central Region, Easter

ize the strengthening of

the Asia Pacific region.

hereby the cost of doing

e to be given emphasis.

intensify economic and

the important town and

covering two or more

976 (Act 172), defines a

ed in the 9 the Malaysia

of more than 2 states,

tern Corridor Economic

Region and Southern Johor Economic Region (Iskandar Development Region). The National

Physical Plan (NPP) has identified four (4) Conurbations or City Regions that shall be planned

and developed as integrated regions, namely; Klang Valley Conurbation, George Town

Conurbation, Kuantan Conurbation and the Johor Bahru Conurbation (Iskandar Development

Region).

4.4.1 Table of Basic Socio Economy Data For Malaysia

State Area (square

kilometres)

Population Annual

Population

growth rate

(%)

Percentage o

population(6-18

years ) enrolled in

schools

Population

per doctor

2008 2009 2009 2007 2008

Malaysia

Johor

Kedah

Kelantan

Melaka

Negeri Sembilan

Pahang

Perak

Perlis

Pulau Pinang

Sabah

330,803

19,210

9,500

15,099

1,664

6,686

36,137

21,035

821

1,048

73,631

28,306.7

3,385.2

2,000.0

1,634.2

769.3

1,013.9

1,543.3

2,393.3

240.7

1,577.3

3201.0

2.1

2.2

2.1

2.4

2.1

1.8

2.0

1.8

1.9

1.9

2.2

66.0

70.9

69.1

66.4

72.8

74.5

67.8

71.8

69.1

47.8

69.1

1,105

1,571

1,445

1,863

879

859

1,639

1,039

952

817

2,454

Source : Economy Planning Unit Annual Report

4.5 The socio economic background of Malaysia

Population is important for planning; the estimation of population is highly related with future

development. The population estimation in Malaysia 2011 is mid-year population estimates.

Then the estimation in 2009 is based on the 2000 population and Housing census data which

were projected to the current year based on the change on the components of births, deaths, and

migrations. The figures are census earlier that has been revised for under enumeration based on

under-enumeration rates from the post enumeration survey and smoothing of distribution of

people.

4.5.1 The population background

The population of Malaysia in 2010 is recorded at 28.3 million and annual population growth

rate 1.7%. Ethnic groups are Malay (53.5%), Chinese 26.0%, indigenous 11.8%, Indian 7.7.%,

others 1.2%. The religions Islam (60.4), Buddism (19.2), Christianity (9.1%),

Hinduism(6.3)(6.83%) and others/none (5.0%). The official language for Malaysia is Bahasa

Melayu, second is English and the other languages can be used in Malaysia. In addition, the

education in Malaysia starting at pre-school, primary, secondary and tertiary, meanwhile literacy

Sarawak

Selangor

Terengganu

W.P Kuala Lumpur

124,450

8,153

13,035

243

91

2,503.6

5,179.6

1,121.1

1,655.1

89.0

2.0

2.1

2.4

1.6

1.5

47.8

69.0

64.3

72.6

63.3

53.3

2,032

1,100

1,421

488

2,368

rates for Malaysia is 98.3% (2010) which means almost 100% Malaysian can read. Therefore the

quality of health is improving in Malaysia as we can see the infant mortality rate is 6.7/1,000, life

expectancy for female is 76 years and male is 72 years. Lastly the employment sector has a work

force 10.89 million (2007) which are contributed by different sectors like service 57%, industry

28%, manufacturing 19% , mining and constructions 9% and agriculture 15%.

4.5.2 The administration in Malaysia

The government of Malaysia is administered by two separate parties and a federal parliamentary

democracy with a constitutional monarch. Malaysia has independence in august 31, 1957, the

independence for peninsular Malaysia, then Sabah and Sarawak joined Malaysia in 1963.

Singapore was split from Malaysia in 1965. Malaysia contains 13 states and three federal

territories (Kuala Lumpur, Labuan Island, Putrajaya federal administrative territory). Each state

has an assembly and government headed by a chief minister. Nine of these states have hereditary

rulers, generally titled “sultans”, while the remaining four have appointed governors in

counterpart positions. The branches contains executive the highest majesty of Agong head of

states and customarily referred to as the king has a ceremonial duties, prime minister the head of

government cabinet. The legislative bicameral parliament comprising of 70 members senate by

26 elected by the 13 state assemblies, 44 appointed by the king on the prime minister’s

recommendations and 222 member house of representatives elected from single –member

districts. Judicial federal court, court of appeals, high courts, session’s courts, magistrate’s court

and juvenile court. Sharia courts hear cases on certain matters involving Muslims only. The

political parties contains with the rolling part Barisan Nasional (National Front), a coalition

compromising the United Malays National Organizaton (UMNO), and 12 other parties, most of

which are ethnically based on democratic action party (DAP), Party Islam se Malaysia (PAS),

Parti Keadilan Rakyat Malaysia (PKR). There are more than 30 registered political parties,

including the foregoing not all of which are represented in the federal parliament suffrage.

Executive power is vested in the cabinet led by the prime minister, the Malaysia constitution

stipulates that the prime minister must be a member of the lower house of parliament who in the

opinion of the Yang di Pertuan Agong commands a majority in Parliament. The cabinet is chosen

from among members of both houses of parliamentary and is responsible to that body.

4.5.3 The economic performance of Malaysia

The economy since it became independence in 1957, Malaysia’s economy record has been one

of Asia’s best. Real gross domestic product (GDP) grew by an average of 6.5 % per year from

1957 to 2005. Performance peaked in the early 1980 through the mid -1990s as the economy

experienced sustained rapid growth averaging almost 8% annually. High levels of foreign and

domestic private investment played a significant role as the economy diversified and

modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today

is a middle income country with a multi sector economy based on services and manufacturing.

Malaysia is one of the world’s largest exports of semiconductor devices electrical goods, solar

panels and information and communication technology (ICT ) products.

As other countries, Malaysia also struggled economically during the 1997-1998 asian financial

crisis and applied several valuable lessons to its economic management strategies that

contributed to the economy’s resilience to the 2008-2009 global financial crisis. After

contracting 1.7 % in 2009, Malaysia’s GDP grew 7.2 % in 2010. Malaysian banks are well

capitalized, conservatively managed and had no measurable exposure to the U.S, sub–prime

market. The central bank maintains a conservative regulatory environment, having prohibited

some of the riskier assets in vogue elsewhere. Malaysia maintains high levels of foreign

exchange reserves and has relatively little external debt.

The government continues to actively manage the economy with state owned enterprises heavily

involved in the oil and gas ,plantation ,ship building ,steel ,telemunications ,utilities ,automotive

,mining and others sectors .Since 1971 ,ethnic preferences have been given to Bumiputras (ethnic

Malays and indigenous peoples ) by requiring 30 % .Bumiputra ownership in new businesses.

The economy new model was introduce by fifth prime minister ,it reform program includes

measures and proposals to modify these ethnic preferences and to divets state enterprises while

increasingly the private sector’s role in stimulating higher levels of investment and boosting

GDP growth. The NEM aims to create a business environment more conductive to long term

sustained economic growth ,development and investment, with the goal of Malaysia becoming a

high income, developed nation by 2020. The government’s economic transformation program

includes individual projects and other reform measures.

4.5.3.1 : Table of GDP by states of Malaysia

State Industrial Production

(Manufacturing (Value

of grass ouput)

Agriculture Production

Rubber

(Tonnes)

Paddy

(Tones)

2006 2008 2008

Malaysia

Johor

Kedah

Kelantan

Melaka

Negeri Sembilan

Pahang

Perak

Perlis

Pulau Pinang

Sabah

Sarawak

Selangor

Terengganu

W.P Kuala

Lumpur

710,237,504

109,663,612

23,247,948

2,498,160

56,032,951

42,827,755

21,314,476

22,481,632

957,122

122,610,760

24,604,621

46,616,054

178,492,107

29,091,428

27,698,283

29,091,428

59,593

8,027

11,036

8,071

1,945

15,179

8.340

5,177

-

-

10

-

1,808

-

-

-

2,353,032

8,128

867,335

232,309

4,158

5,437

21,384

280,237

233,144

120,075

133,138

206,753

177,444

63,490

-

-

Source : Economic Planning Unit

4.6 Issues And Problems

Based on the study area, there are several issues regarding to regional development in Malaysia.

For a long time since independence, Malaysia still has a problem regarding to development

process. The regional development in Malaysia was having a problem with the imbalanced

development between regions, where as the developed states have a concentration in

development rather than less developed regions.

Second issue is unsuccessful policies implementations for regional development, there are

several programs that has been made by government, but the implementation does not show a

2,100.594

positive impact to the development in chosen states like Kelantan, Terengganu and Pahang and a

part of Mersing (ECER). The program still does not show the development in that states.

Third issue is social inequalities, study area also have a inequality for socio economic indicators

like basic quality of life such as health, education and physical development. The problems

related with the issue is bad infrastructure installation in less developed area, thus making an

investor lose interested to invest in that state.

4. 7 Conclusion

Basically this chapter discusses the study area, and also gives an explanation to the basic socio

economic data for reader’s understanding. This chapter also gives a brief discussion about the

site area and help into collecting useful information to help this study to achieve the objectives.

The next chapter will study the analysis and findings of the data that have been gathered from

field study.

CHAPTER 5

ANALYSIS AND FINDINGS

5.1 Introduction

This chapter is the core chapter in this research study as it consist all the data analysis and

findings that lead to fulfillment of research objectives. The data is regarding the socio economic

states data, the analysis is used Location Quotient technique. Most of the sample of data was

collected from previous survey that was done by Department of Statistic Malaysia and Economic

Planning Unit Malaysia.

5.2 Findings and Analysis on socio economic data

There are several sectors that was chosen for this study, The selected socio economic data

chosen for this study are data of incidence poverty, health, literacy rates, mean house hold

income level, gross domestic product (GDP), employment for each sector, and urbanization

rates.

There are 16 states in the Malaysian regional development programs. The states are Johor,

Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor,

Terengganu, Wilayah Persekutuan Kuala Lumpur, Wilayah Persekutuan Putrajaya, and Wilayah

Persekutuan Labuan.

This research will use all 15 indicators to analyze the regional development in Malaysia by

producing development composite index for each state. The composite index will be calculated

based on the Location Quotient technique. From the results, recommendations will give based on

the analysis.

5.2.1 The Analysis

The data collection is secondary data which was made by reviewing the previous report for this

paper. The socio economic data is a secondary data based on report. Only several indicators were

chosen for this analysis even thought the collected data is more. Table 5.1 shows the selected

indicators data for the analysis.

5.2.2 The Analysis and Findings

Table 5.1 : Socio economic data by states of Malaysia

STATES

MEAN

MONTHLY

INCOME 09

INCIDEN

CE

POVERT

Y 09

URBANIZ

ATION

RATE 10

AVG

URBAN

POPUN

GROWTH

RATES

EMPLOYM

ENT IN

PRIMARY

SECTOR

PERLIS 2617 6 35.9 2.2 13032

WP KUALA

LUMPUR 5488 0.7 100 1.5 1454

JOHOR 3835 1.3 67.7 2.6 16324

KEDAH 2667 5.3 40.3 2.2 95781

MELAKA 4184 0.5 73.4 2.7 6020

NEGERI

SEMBILAN 3540 0.7 57.4 2.1 47401

PULAU

PINANG 4407 1.2 80 1.9 8053

WP PUTRA

JAYA 6747 0

SELANGOR 5962 3.8 89.1 2.4 67607

KELANTAN 2536 4.8 33.3 2.1 92621

TERENGGAN

U 3017 4 50.3 2.6 45371

PAHANG 3279 2.1 44.6 2.5 130760

PERAK 2809 3.5 59.3 1.6 101223

SARAWAK 3581 5.3 50.6 2.4 243310

SABAH 3102 19.7 51.6 2.9 331237

WP LABUAN 4407 4.3 78.6 1.8 2552

MALAYSIA 4025.00 3.8 63.8 3.2 276,998

STATES

EMPLOYMENT IN

SECONDARY

SECTOR

EMPLOYMENT

IN TERTIARY

SECTOR

EMPLOYM

ENT

GDP

STAT

ES

GDP %

GROWT

H

PERLIS 12900 33562 59494 2890 3.1

WP KUALA

LUMPUR 118226 503485 595068 73536 4.8

JOHOR 336512 492434 1022361 50040 5.8

KEDAH 147712 224693 520960 18153 8.3

MELAKA 40282 76496 214580 14358 7

NEGERI

SEMBILAN 80522 191287 299976 19353 7.9

PULAU

PINANG 222898 288166 519117 46744 7.9

WP PUTRA

JAYA

SELANGOR 440024 1156471 1664102 116883 5.4

KELANTAN 37318 207467 337406 9273 5.1

TERENGGANU 40259 145553 248003 14175 1.7

PAHANG 55574 101037 412074 24217 5.7

PERAK 152520 402043 655786 28518 5.5

SARAWAK 104878 395368 734556 49484 7.7

SABAH 97733 423219 802189 29827 6

WP LABUAN 2286 20102 24940 2272 9.7

MALAYSIA 435,219 3,721,665.00 11,129.4 25,866 7.0

STATES

BED

POPUN

09

DOC

POPUN

09

HEALTH

CLINIC

POPUN

09

LITERACY

OVER 10

YEARS

LITERACY

RATES OF

MALAYSIA

TOTAL OF

COMPOSITE

INDEX

PERLIS 593 784 26744 94.3 90.8 9.5

WP KUALA

LUMPUR 260 929 127315 96.2 96.2

33.4

JOHOR 562 1273 37613 94.9 93.3 21.5

KEDAH 755 1245 37736 94.3 90.2 14

MELAKA 391 728 29588 92.4 92.4 20.3

NEGERI

SEMBILAN 528 772 26682 93.7 93.7

17.2

Source : Department of Statistic Malaysia Economic Planning Unit Annual Report

5.3 Findings and Analysis on Mean house hold income

The Household Income Survey (HIS) is one of the surveys carried out by the Departments of

Statistics, Malaysia. This survey was first conducted in 1973 and since then have been carried

out twice in every five years, that is, two surveys within each Malaysia Development Plan

period. The main objectives of the HIS are to measure the economic well-being of the

population; collect information on income distribution pattern of household classified by various

socio-economic characteristics and provide the base data for the calculation of the Poverty Line

Income (PLI). Household income and poverty statistics are used for policy formulation and

PULAU

PINANG 331 740 60665 94 93.8

32.13

WP PUTRA

JAYA 251 320 68200

SELANGOR 576 929 91275 96.3 95.6 45

KELANTAN 907 1644 30834 90.9 85.5 11.4

TERENGGANU 799 1317 28746 91.9 89.5 11.8

PAHANG 732 1145 25300 95.4 92.2 14

PERAK 343 899 33240 92.7 91.1 15

SARAWAK 603 1688 12972 91.7 81.6 14

SABAH 725 2022 41571 89.7 84.6 13.2

WP LABUAN 817 2171 89000 92 91.7 9.5

MALAYSIA 522 927 35,033 91.0 92 15

development planning particularly for the poverty eradication programmes and strategies for

distribution of income. The statistics provided were referenced from Post Enumeration Surveys,

Agriculture Census, Household Income Surveys and statistical compilations.

5.3.1 The analysis and findings

Table 5.2 Mean Household Income and Incidence Poverty data by states of Malaysia

STATES

MEAN

MONTHLY

INCOME 09

Lq analysis INCIDENC

E

POVERTY

09

Lq analysis

PERLIS 2617 <1 6 >1

WP KUALA

LUMPUR 5488 >1 0.7 <1

JOHOR 3835 <1 1.3 <1

KEDAH 2667 <1 5.3 >1

MELAKA 4184 >1 0.5 <1

NEGERI

SEMBILAN 3540 <1 0.7 <1

PULAU PINANG 4407 >1 1.2 <1

WP PUTRA

JAYA 6747 >1 0 <1

SELANGOR 5962 >1 3.8 >1

KELANTAN 2536 <1 4.8 >1

TERENGGANU 3017 <1 4 >1

PAHANG 3279

PERAK 2809

SARAWAK 3581

SABAH 3102

WP LABUAN 4407

Malaysia

SOURCE : LQ analysis on Soc Economic Planning5.3.3.1 Figure of mean month

FIGURE 5.1 : Mean month hoSOURCE : LQ analysis on Soc

5.3.4 Household income

Data on household income or

for household size. Nations us

<1 2.1

<1 3.5

<1 5.3

<1 19.7

>1 4.3

4025.00

1

3.80

Socio economy indicator ing Unit nth household income by states of Malaysia

household income by staes of Malaysia Socio economy indicator

or consumption come from household survey

use different standards and procedures in collec

>1

<1

>1

>1

80

1

eys, the results adjusted

llecting and adjusting the

data. Normally, surveys based on income show a more unequal distribution than surveys based

on consumption. The quality of surveys is improving with time, yet caution is still necessary in

making inter-country comparisons.

FIGURE 5.2: Pie Chart of household income SOURCE : Economic Planning unit budget report

According to the data that was collected, the mean house hold income of the developed states

reached the national line. Kuala Lumpur 5488 > 1, Selangor 5962 > 1, Pulau Pinang 4407 > 1,

Putrajaya 6747 > 1 and Melacca 4184 > 1.These states are developed states and the income level

is more than the national average. Another less developed states likes Perlis 2617 < 1, Johor

3835 < 1, Kedah 2667 < 1, Negeri Sembilan 3540 < 1, Kelantan 2536 < 1, Terengganu 2317 < 1,

Pahang 3279 < 1, Perak 2809 < 1, Sabah 3102 < 1 and Sarawak 3581 < 1.

Then according to another survey that was done by Statistic Department for the economic

planning unit recently, the Malaysia average monthly household income is RM 3686 which falls

in the RM 3-4k group. 57.8 % of the families are below this group and 29.3 % are above it. This

shows that the average families actually have a higher position than the median in the

distribution as the median falls in the RM 2-3k group.

5.3.5 Analysis and Findings

5.3.5.1 Figure of incidence p

FIGURE 5.3 Incidence povertySOURCE : LQ analysis on Soc5.3.5.2 Incidence of Poverty

The Poverty headcount ratio

2009, according to a World

percentage of the population li

on population-weighted subg

historical data chart, news and

population) in Malaysia. Mala

income country, has transform

emerging multi-sector econom

domestic demands to wean the

gs on incidence poverty

e poverty by states of Malaysia

erty by states of Malaysia Socio economy indicator

io at national poverty line (% of population) i

rld Bank report, published in 2010. Nationa

n living below the national poverty line. Nation

bgroup estimates from household surveys. T

nd forecast for Poverty headcount ratio at natio

alaysia is a rapidly developing economy in Asia

rmed itself since the 1970s from a producer of

omy. The Government of Malaysia is contin

the economy off of its dependence on exports. N

) in Malaysia is 3.80 in

nal poverty rate is the

ional estimates are based

. This page includes a

tional poverty line (% of

sia. Malaysia, a middle-

of raw materials into an

tinuing efforts to boost

s. Nevertheless, exports -

particularly of electronics - remain a significant driver of the economy. The incidence poverty

level for Malaysia is 3.8, then the states that exceed the national line are Perlis 6 >1, Kedah 5.3

>1, Kelantan 4.8 >1, Terengganu 4 >1, Sarawak 5.3 >1, Sabah 19.7 >1 and Labuan 4.3 >1. These

states are less developed states. The incidence poverty level is almost national level. Then other

states likes Kuala Lumpur 0.7 > 1, Johor 1.3 < 1, Malacca 0.5 < 1, Negeri Sembilan 0.7 < 1,

Pulau Pinang 1.2 < 1, Perak 3.5 < 1 and Pahang 2.1 < 1, all have incidence poverty less than or

equal with national line equivalent to 1.

5.4 Analysis and Findings on Urbanization rates

This entry provides two measures of the degree of urbanization of Malaysia. The first, urban

population describes the percentage of the total population living in urban areas, as defined by

the country. The second, rate of urbanization, describes the projected average rate of change of

the size of the urban population over the given period of time. Additionally, the world admission

includes a list of the ten largest urban agglomerations. An urban agglomeration is defined as

comprising the city or town proper and also the suburban fringe or thickly settled territory lying

outside of, but adjacent to, the boundaries of the city.

5.4.1 The Analysis and Findings

States

Urbanization

rates 2010

Lq Analysis Average growth

population 2010

Lq Analysis

PERLIS 35.9 <1 2.2 <1

WP KUALA

LUMPUR 100 >1 1.5 <1

JOHOR 67.7 >1 2.6 <1

KEDAH 40.3 <1 2.2 <1

MELAKA 73.4 >1 2.7 <1

NEGERI

SEMBILAN 57.4 <1 2.1 <1

PULAU

PINANG 80 >1 1.9 <1

WP PUTRA

JAYA >1

SELANGOR 89.1 >1 2.4 <1

KELANTAN 33.3 <1 2.1 <1

TERENGGANU 50.3 <1 2.6 <1

PAHANG 44.6 <1 2.5 <1

PERAK 59.3 <1 1.6 <1

SARAWAK 50.6 <1 2.4 <1

Table 5.3 Data Collection An

Sources: Department of Statist Economic Planning U LQ Analysis 5.4.2 Figure for urbanization

FIGURE 5.4 : Urbanization raSOURCE : LQ analysis on Soc

5.4.2.1 Urbanization rates

In general the urbanization r

urbanization rate does not onl

other indicators like infrastru

have a high number of urbani

likes Johor 67.7 % (>1), Mala

SABAH 51.6

WP LABUAN 78.6

Malaysia 63.8

And Analysis On Urbanization Rates And In

tistic Malaysia g Unit Annual Report

tion rates by states of Malaysia

rates by states of Malaysia Socio economy indicator

n rate for Malaysia is 63.5 %, the percenta

only depend on the physical development but a

tructures, environment, economy and others. T

anization rates which is 100%. Then other rate

alacca 73.4 % (>1), Pulau Pinang 80%(>1) ,

1.6 <1 2.9

8.6 >1 1.8

3.8 1.00 2.2

Incidence Poverty

ntage is not 100%, the

ut also influenced by the

s. The federal territories

ates for developed states

) , Selangor 89.1% (>1),

<1

<1

1.00

Labuan 78.6% (>1) and Kuala

35.9% (<1), Kedah 40.3 % (<1

50.3(<1), Sabah 51.6 (<1), S

increased since independence i

5.4.3 Figure for average grow

FIGURE 5.5 :Average growthSOURCE : LQ analysis on Soc5.4.3.1 Urbanization populat

The urban population for Mal

the transformation of the deve

was 71.28% in 2011. The de

areas. Malaysia is rapidly d

Malaysia is not balanced and t

Urban population (% of total)

ala Lumpur 100 % (>1). The other less develo

(<1), Negeri Sembilan 57.7% (<1), Kelantan 33

, Sarawak 50.6 %(<1). The tempo of urbaniza

ce in 1950s until recent.

rowth rates population urban

th rates population urban by states of MalaysiSocio economy indicator lation growth

alaysia has drastically changed from time to t

evelopment process in Malaysia. The urban po

definition of urban population is defined as p

developing its economy in Asia. However

d the disparity of regional development still pe

al) in Malaysia was reported at 72.20 in 2010,

eloped states likes Perlis

33.3 % (<1) Terengganu

ization in Malaysia has

ysia

o time. It is according to

population for Malaysia

s people living in urban

ver the development in

persist in Malaysia. The

0, according to a World

Bank report released in 2011. The Urban population (% of total) in Malaysia was 71.28 in 2009,

according to a World Bank report, published in 2010. The Urban population (% of total) in

Malaysia was reported at 70.36 in 2008, according to the World Bank. Urban population refers to

people living in urban areas as defined by national statistical offices. It is calculated using World

Bank population estimates and urban ratios from the United Nations World Urbanization

Prospects. This page includes a historical data chart, news and forecast for urban population (%

of total) in Malaysia. Malaysia, a middle-income country, has transformed itself since the 1970s

from a producer of raw materials into an emerging multi-sector economy. The Government of

Malaysia is continuing efforts to boost domestic demand to wean the economy off of its

dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant

driver of the economy.

Urban population growth or urbanization is expanding rapidly in Malaysia. The number of urban

centers with population of 10,000 and above in Malaysia has increased from 8 in 1911 to 140 in

2000. With an average of 11.1 % increase each year saw rapid development of urbanization

process in Malaysia. By the year, Malaysia is projected to be an urban society with the majority

(over 70 %) of the country's total population living in its cities (Norhaslina Hassan, 2009).

Before World War II, immigrants from China have accelerated urbanization process in Malaya

(Cooper, 1951). After the world war ended and the Federation of Malaya was established in

1957, the urban population growth process was due to migration flows from rural to urban areas.

5.5 Findings and Analysis on Employment Sector

The number of employment in Malaysia increased by 260,600 (2.5%) to 10.89 million in 2007 as

compared to 10.63 million in 2006. However the percentage of persons inside labor force (2.0%)

is lower compared to the labor 2.5 %. Therefore a higher labor force participation rates was

recorded in 2007 (63.4%) as compared to 2006 (62.1%), however the employment rates to 3.2 %

in 2007 from 3.3 % in 2006. Roughly the distribution of job an employed person is consistent

with the population composition. In 2007, 56.9 % of the total employed persons were Bumiputra

followed Chinese 25% and Indians 7.1%. Generally these people are schooling and going for

further studies have the potential to enter the labour market upon completion of their studies.

5.5.1 The Analysis and Findings :

Table 5.4 :Data on Employment sector by states of Malaysia

STATES

EMPLOY

MNET IN

PRIMARY

SECTOR

LQ

ANALYSIS

EMPLOYMEN

T IN

SECONDARY

SECTOR

LQ

ANALYSI

S

EMPLOYMN

ET IN

TERTIARUY

SECTOR

LQ

ANALAYSIS TOTAL

EMPLOY

MENT

LQ

ANALYSIS

PERLIS 13032 >1 12900 >1 33562 <1 59494 <1

WP KUALA

LUMPUR 1454 <1 118226 >1 503485 >1 595068 >1

JOHOR 16,324 <1 336512 >1 492434 >1 1022361 >1

KEDAH 9,5781 >1 147712 >1 224693 <1 520960 >1

MELAKA 6,020 <1 40282 >1 76496 <1 214580 <1

NEGERI

SEMBILAN 4,7401 >1 80522 >1 191287 <1 299976 <1

PULAU

PINANG 8,053 <1 222898 >1 288166 <1 519117 >1

WP PUTRA

JAYA

SELANGOR 6,7607 <1 440024 >1 1156471 >1 1664102 >1

KELANTA

N 9,2621 >1 37318 >1 207467 <1 337406 <1

TERENGGA

NU 4,5371 >1 40259 >1 145553 <1 248003 <1

PAHANG 130,760 >1 55574 >1 101037 <1 412074 <1

PERAK 101,223 >1 152520 >1 402043 >1 655786 >1

SARAWAK 243,310 >1 104878 >1 395368 >1 734556 >1

SABAH 331,237 >1 97733 >1 423219 <1 802189 >1

Sources: Department of Statist Economic Planning U

5.5.2.1 Figure of employmen

FIGURE 5.6 Figure for emploSOURCE : LQ analysis on Soc 5.5.2.2 Primary sector of Em

The Malaysian economy has

decades. After independence 1

of tin and rubber. Recently t

activity. Before, Malaysia is a

WP

LABUAN 2552 <1

Malaysia 276,998

1

tistic Malaysia g Unit Annual Report

ent at primary sector :

ployment at primary sector by states of MalaysiaSocio economy indicator

mployment

as experienced significant structural changes in

e 1957, Malaysia inherited an economy largel

y the economy trend has changed from natu

s a largely based on the export of rubber and tin

2286 <1 20102 <1

435,219

1 3,721,665.

00 1

ysia

in the last four and half

gely based on the export

ature-based to industrial

tin.

24940 <1

11,129.4 1

The country has moved rapidly towards industrialization. Nowadays primary sector agricultural,

forestry and mining are 10.5% compared to manufacturing and construction percentage of 35%.

Malaysia development is also largely due to wealth at national resources in agricultures and

forestry such as rubber, palm and oil. In Malaysia, the location of the production also divided

into three:

1. Peninsular Malaysia: Rubber, coconut oil ,rice and tin

2. Sabah : Coconut ,Rice ,Rubber

3. Sarawak :Rubber and oil

As we can see from the data, less developed states are Perlis 13032 <1, Kedah, Negeri Sembilan,

Kelantan, Terengganu, Perak, Sarawak, Sabah have a high number in primary sector because the

states are rich with natural resources compared to developed states like Kuala Lumpur, Selangor,

Johor, Melaka, Penang and Labuan. The economy already changes and transformed from natural

resources to manufacturing activities.

5.5.3 Figure of employment

FIGURE 5.7 :Ssecondary sectoSOURCE : LQ analysis on Soc5.5.3.1 Secondary Of Employ

The distribution of employme

economy manufacturing, finis

within the secondary sector ac

and automobile, production, t

manufacturing, energy utility

production and manufacturing

sector is visible in its 30% co

Malaysia has abundant natura

nt in secondary sector by states of Malaysia

ector by states of Malaysia Socio economy indicator loyment

ment in the different primary sectors secondar

nished goods .All of the manufacturing, proces

activities associated with the secondary sector i

textile, production, chemical and engineering

lity, engineering and constructions. For dev

ing are backbones of its economy. The growth

contributions to the GDP in 1999 as compar

ural resources, including minerals, liquid natur

ia

dary employment of the

cessing and construction

or include metal working

ing, industrial aerospace

developing country, oil

th of the manufacturing

pared to 13.9% in 1970.

tural gas, petroleum and

tin. The oil productions wer

significantly as shown in Mala

5.5.4 Figure of employment

FIGURE 5.8 :Employment at tSOURCE : LQ analysis on Soc 5.5.4.1 Tertiary sector of Em

The contributions of the se

increased. This sector has ex

product (GDP) and labor force

serving sector needs to be em

growth. The service sector i

professional and technical wo

contributor to the Malaysia eco

sector increased to 88.0% in 2

ere 727,200 bbl/day in 2008. Electronic co

alaysia manufacturing and expansion.

nt at tertiary sector by states of Malaysia

at tertiary sector by states of Malaysia Socio economy indicator

mployment

service sector towards the Malaysia econom

exceeded other sectors in terms of contributio

rce especially during the 1990s. Meanwhile wo

emphasized to avoid shortages of manpower

r is including the administration and manage

orkers. During the ninth Malaysia plan the se

economic growth and expanded by 6.8 % annua

in 2010. Based on the data collection, the issu

components contributed

nomy has continuously

tions to gross domestic

workers requirement for

er that could retard its

agerial workers and the

serving sector is a main

nually. The GDP for this

ssues are comprehensive

information about the demand

levels of dialogue to formulate

collection that we can see, the

>1 and Johor >1.

5.5.5 Figure for total emplo

FIGURE 5.9 : Total employmSOURCE : LQ analysis on Soc

5.5.5.1 Total employment

The population ages for emplo

value for this indicator has flu

decline in population aged 15

the other hand, the populatio

onwards. In 2009, the aged po

is expected to increase to over

nd for workforce by the market is often the m

late a policy and strategy for human capital de

the developed states likes Kuala Lumpur >1, S

loyment by states of Malaysia

yment by states of Malaysia Socio economy indicator

ployment sector in Malaysia were 54 as 2010. O

fluctuate between 98.68% in 1964 and 54 in 2

15 years and below and it will stabilize after 2

ation aged 60 years and over shows a sharp

population stands at 2 million (Department of

ver 3 million in 2020. The aged and young will

main issues raised at all

development. From data

, Selangor and Putrajaya

. Over the past years the

n 2010. There is a steep

r 2050 around 20%. On

arp increase from 2005

of Statistics, 2010) but it

ill intersect around year

2042, where both the populations will share equal proportions in the population as the second

demographic dividend occurs. The data shows that the proportion of the working population

(ages 15-64), portraying the implication of cohort flows into the future. Malaysia is currently

enjoying its demographic window or demographic opportunity as the working age population is

increasing and remains higher than the dependent population combined. Nevertheless, this

demographic window is transient and will dissipate if no policies were put in place to make full

use of this opportunity. The median age of our population that divides the population into two

equal halves - one below and the other above the median age. Aged nation status can also be

determined using the median age. By convention, the median age of 30 is used as the cutoff to

categorize a country as ageing. A population with median age under 20 can be described as

young while a median age of 30 and over as old. A median age between 20 and 29 indicates the

intermediate stage or mature population. As of 2009, the median age of Malaysians is 25 years

and thus we can be classified as a maturing nation. The data shows that developed states likes

Kuala Lumpur 595068 (>1), Johor 1022361 (>1), Pulau Pinang 519117 (>1), Johor 1022361 (>1

), Sarawak 734556 (>1), Sabah 802189 (>1) and Perak 655786 (>1). From the data that we can

see the developed states have more job opportunities than the number of employment. The less

developed states likes Kelantan 337406 (<1), Terengganu 248003 (<1), Kedah 520960 <1,

Pahang 412074 <1 and Labuan 24940 <1, these states do not really have job opportunities.

5.6 Findings and Analysis on Gross domestic product:

5.6.1 Findings and issues

Global economy rebounded in 2010 after the worldwide financial crisis and economic downturn

in 2009. Favourable economic growth has been recorded in most of the countries including the

Asia region. Malaysia also posted a strong growth of 7.2 per cent in 2010 (2009: -1.6 per cent).

The growth was driven by the Services (6.8 per cent) and manufacturing (11.4 per cent) sectors.

Upward trend of growth was reflected in the states' performances especially those that are highly

dependent on Services and Manufacturing sector.

5.6.2 The Analysis and Findings:

Table: 5.5 Data and Analysis on Gross Domestic Product by states of Malaysia

STATES GDP BY STATES

LQ GROWTH_GDP_%_10

LQ

PERLIS 2890 <1 3.1 <1

WP KUALA

LUMPUR 73536 >1 4.8 <1

JOHOR 50040 >1 5.8 <1

KEDAH 18153 <1 8.3 >1

MELAKA 14358 <1 7 >1

NEGERI

SEMBILAN 19353 <1 7.9 >1

PULAU PINANG 46744 >1 7.9 >1

WP PUTRA JAYA

SELANGOR 116883 >1 5.4 <1

KELANTAN 9273 <1 5.1 <1

TERENGGANU 14175 <1 1.7 <1

PAHANG 24217 <1 5.7 <1

PERAK 28518 >1 5.5 <1

SARAWAK 49484 >1 7.7 >1

SABAH 29827

WP LABUAN 2272

Malaysia 25,866

Sources: Department of Statist 5.6.4 Figure for GDP by stat

FIGURE 6.0: GDP by states oSOURCE : LQ analysis on Soc

5.6.4.1 GDP states

Dependency on certain econom

focus areas. This scenario can

economy in every state and th

sector is a major contributor to

(75.5 per cent), Kelantan (73.

<1 6

<1 9.7

1 7.0

tistic Malaysia

tates of Malaysia :

s of Malaysia Socio economy indicator

economic activities created a unique economic struc

ario can be seen from the different characteristi

e and thus resulted in a disparity in state perform

butor to the economy of WP Kuala Lumpur (89.3 pe

tan (73.8 per cent), Perak (65.9 per cent), Perl

<1

<1

1

mic structures and different

racteristic and structure of

performance. The Services

(89.3 per cent), WP Labuan

nt), Perlis (58.3 per cent),

Terengganu (58.3 per cent), Selangor (56.5 per cent) and Kedah (55.7 per cent). Pulau Pinang

and Negeri Sembilan were dominated by manufacturing sector with a share of 49.3 per cent

and 48.6 per cent respectively to their GDP (Table 1). Melaka, on the other hand, had almost an

equal contribution between services and manufacturing sectors in its economy. In addition,

mining and agriculture sectors were amongst the important economic force for Sabah and

Sarawak. Meanwhile, agriculture sector was one of the main contributors to Pahang and Perlis

economy.

In terms of sector, WP Kuala Lumpur and Selangor remained as the main contributors in the

Services sector with a share of 47.9 per cent to the national level. Meanwhile, Johor and Pulau

Pinang contributed 8.6 per cent and 6.9 per cent respectively. The growth in the Services sector

was stimulated by Wholesale & Retail Trade and Finance & Insurance sub sectors. In the

Manufacturing sector, Selangor continued its dominance with a share of 30.0 per cent, followed

by Pulau Pinang (15.6 per cent), Johor (12.3 per cent) and Sarawak (9.2 per cent). Total

contribution of these four states accounted for 67.1 per cent (2009: 64.8 per cent). The main

impetuses in this sector were Electrical & Electronic and Motor Vehicle & Transport Equipment

sub sectors. Furthermore, the double digit expansion in Chemicals & Chemical Product, Non-

Metallic Mineral Products, Basic Metal Products and Rubber Products sub sectors also

stimulated the better performance in manufacturing.

Sabah and Sarawak remained as main players for Agriculture Sector in 2010 with a share of 37.5

per cent. The share however, is slightly lower as compared to 38.3 per cent recorded in 2009.

The main agriculture activities in both states were Palm Oil and Forestry & Logging. Meanwhile,

Johor, Pahang and Perak also contributed significantly to this sector especially from the Palm Oil

activity.

As for the Construction sector, S

However, this state experienced

the previous year. In addition, W

and 10.8 per cent respectively to

5.6.4 Growth of GDP :

5.6.5.1 : Figure of GDP growth b

FIGURE 6.1 : GDP growth bySOURCE : LQ analysis on Soc

sector, Selangor was the main contributor with a sha

erienced a lower growth of 2.3 per cent as compare

dition, WP Kuala Lumpur and Johor contributed a sh

ctively to the Construction sector.

growth by states of Malaysia

by states of Malaysia Socio economy indicator

ith a share of 36.8 per cent.

compared to 4.6 per cent in

ted a share of 16.6 per cent

5.6.5.2 : GRAPH OF MALA

FIGURE 6.2: GRAPH OF MASOURCE : Economic Planning Table 5.6 : GDP Growth (%)

Figure 6.3 :GDP Growth (%)

AYSIA GDP ANNUAL GROWTH RATE

MALAYSIA GDP ANNUAL GROWTH RATE ing Unit Annual Report

%) by State at Constant Price 2000 Year 2010

by State at Constant Price 2000 Year 2010

5.6.6 Economic growth

Economic growth is the increase in value of the goods and services produced by an economy. It

is conventionally meansured as the percent rate of increase in real gross domestic product or

GDP. Growth is usually calculated in real terms i.e. inflation adjusted terms, in order to net out

the effect of inflation on the price of the goods and services produced. Economics growth is

measured as the annual percent change of National income it has all the advantage. The

economic growth is not totally depends on the GDP but also depends on the living of cost. The

living of cost for country also give an impact to the economic growth for Malaysia. As we can

see the data shows that the developed states do not really have a GDP growth compared to less

developed states.

As shown in table, Selangor recorded the highest growth of 10.8 per cent (2009: -1.0 per cent)

supported mainly by Manufacturing sector which increased sturdily by 19.5 per cent as

compared to -7.6 per cent in the previous year. Activities on the Manufacture of Motor Vehicles

& Transport Equipment and Electrical & Electronic industrial products led the robust

performance in Manufacturing sector. Similarly, GDP for Pulau Pinang and Johor showed a

strong growth of 10.0 per cent (2009: -10.8 per cent) and 9.3 per cent (2009: -4.0 per cent)

respectively mainly due to better performance in Manufacturing sector. Other states which rely

on Manufacturing and Services sectors also registered a favourable growth. The growth

momentum was seen in Perak (5.7 per cent), Melaka (5.6 per cent), Negeri Sembilan (5.3 per

cent), Pahang (4.5 per cent), Sarawak (4.5 per cent), Kedah (4.4 per cent) and Terengganu (4.3

per cent).

As for Sabah, the growth moderated to 2.4 per cent as compared to 3.8 per cent recorded a year

ago. This is due to a slower momentum in Mining and Quarrying sector. Meanwhile, higher

growth in WP Kuala Lumpur (9.2 per cent) and WP Labuan (6.0 per cent) was attributed to the

strong performance in the Services sector particularly in Finance & Insurance and Wholesale &

Retail Trade sub sectors.

5.7 Findings and Analysis on Health Sector

The health development is not new agenda by government for Malaysia development, it is in

line with Malaysia‘s national plan to reduce disparities between rural and urban areas .The gap

should be less between more develop and less develop region. Healthcare in Malaysia is mainly

under the responsibility of the government's Ministry of Health. Malaysia generally has an

efficient and widespread system of health care, operating a two-tier health care system

consisting of both a government-run universal healthcare system and a co-existing private

healthcare system. The health care system is fully under government responsibility. But some

cases, there are also under private sector but it is guided by government sector. Better health is

central to human happiness and well-being. It also makes an important contribution to

economic progress, as healthy population live longer, more productive, and save more.

Healthcare in Malaysia is divided into private and public sectors. Malaysian society places

importance on the expansion and development of healthcare, putting 5% of the government

social sector development budget into public healthcare — an increase of more than 47% over

the previous figure. This has meant an overall increase of more than RM 2 billion. With a rising

and aging population, the Government wishes to improve in many areas including the

refurbishment of existing hospitals, building and equipping new hospitals, expansion of the

number of polyclinics, and improvements in training and expansion of telehealth. Over the last

couple of years they have increased their efforts to overhaul the systems and attract more

foreign investment.

5.7.1 Findings and issues on Health

The issues faced by the nation have created a need assessment and standard of service provided.

Rapidly rising standards of living and advancements in medical service have led to an ever

escalating consumer demand for quality health care. Realizing these issues and to ensure that

national health care provision meets the world class standards is crucial in order to live up to

various quality assurance initiative under the guidelines of the vision for health.

5.7.2 Data and analysis

Table 5.6 Data on Health sector by states of Malaysia

STATES

BED FOR 10,000

POPULATION

LQ

DOCTOR

PER 10,000

POPULATIO

N

LQ

HEALTH

CLINIC

LQ

PERLIS 1:593 <1 1:784 >1 1:26744 >1

WP KUALA

LUMPUR 1:260 >1 1:929 >1 1:127315 <1

JOHOR 1:562 <1 1:1273 >1 1:37613 <1

KEDAH 1:755 >1 1:1245 >1 1:37736 <1

MELAKA 1:391 >1 1:728 >1 1:29588 >1

NEGERI

SEMBILAN 1:528 <1 1:772 >1 1:26682 >1

PULAU

PINANG 1:331 >1 1:740 >1 1:60665 <1

WP PUTRA

JAYA 1:251 >1 1:320 >1 1:68200 <1

SELANGOR 1:576 <1 1:929 >1 1:91275 <1

KELANTAN 1:907 <1 1:1644 <1 1:30834 >1

TERENGGAN

U 1:799 <1

PAHANG 1:732 <1

PERAK 1:343 >1

SARAWAK 1:603 <1

SABAH 1:725 <1

WP LABUAN 1:817 <1

1:522 1

Sources: Department of Statist Economic Planning U LQ technique 5.7.2.1 Figure for doctor per

FIGURE 6.4 :Doctor per 10,0SOURCE : LQ analysis on Soc

1:1317 <1 1:2874

1:1145 <1 1:2530

1:899 >1 1:3324

1:1688 <1 1:1297

1:2022 <1 1:4157

1:320 >1 1:8900

1:927 1 1:35,03

tistic Malaysia g Unit Annual Report

per 10,000 population by states of Malaysia

0,000 population:by states of Malaysia Socio economy indicator

746 >1

300 >1

240 >1

972 >1

571 <1

000 >1

,033 >1

:

5.7.2.2 Doctor per 10,000 population ratio

The table shows the data for the ratio of doctor per 10,000 populations, bed per 10,000

population and ration for community clinic of 10,000 populations. The data is based on 2009; it

is just three years gap with 2012. The international perspective in 2010, Malaysia population

ratio is still short of WHO minimum standard. In 2008 and 2009 the ratio was developed 1 to

600. However the amount of doctor per population still does not follow the world requirement.

Also shocking is states like Sarawak and Sabah that still have a poor number of doctors. Sabah

1:2022 and Sarawak 1:1688 seems to be far worse than the national figures. From the data

collection and LQ analysis, the developed states like Selangor, 1:929 (>1), Perak 1:899 (>1),

Kuala Lumpur 1:929(>1), Negeri Sembilan 1:772 (>1), Pulau Pinang 1:740(>1), Malacca 1: 728

(>1), Perlis 1:784(>1) and Labuan 1:320 (>1). The states followed the national requirement of

doctor per population. Instead of that the number of doctor per population also not following the

national requirement are Kelantan 1:1644(<1), Terengganu 1:1317 (<1), Kedah 1:1245, Pahang

1:1145 (<1). Both public and private hospitals including these figures, the densities also

influence the number of doctor per population. For Kuala Lumpur have a highest densities the

public hospitals, in addition Kuala Lumpur also have three largest public hospitals likes Hospital

Besar Kuala Lumpur, Hospital Universiti Kebangsaan Malaysia and Pusat Perubahatan

University Malaysia.

5.7.3: Figure for health clinic

FIGURE 6.5 Figure for healthSOURCE : LQ analysis on SocPrimary care is the basic or

patient first seek assistance fro

level of medication. To fulfill

clinics have to be widening di

Malaysia there are private and

results of LQ analysis shows

positioned as Kuala Lumpur

Pinang 1:60665(<1). It is rela

make the density is high and t

developed states likes Perak

Terengganu 1:28746 (<1), Pah

nic

lth clinic by states of Malaysia Socio economy indicator or general health care that focused on the poi

from the medical care system. It has primary,

ill this function, primary care and for the analys

distributed and well equipped to allow appropr

nd public clinic (Klinik Kesihatan KK). From t

ws that the five highest and lowest densities p

ur 1:124,315, Putrajaya 1:68,200, Johor 1:3

lated with the migration people from outside c

d the number of public clinic provision is very

ak 1:33240(<1), Kedah 1:37736 (<1), Kelant

ahang 1:25300 (<1), Sarawak 1:12972(<1), Sa

point at which ideally a

secondary and tertiary

lysis call as primary care

opriately trained staff. In

m the data collection and

s per 10,000 population

1:37613(<1), and Pulau

e country to inside, it is

ery limited. Another less

antan 1:30834 (<1) ,

Sabah 1:41571( <1) and

Labuan 1:89000(<1). Then the

have a limitation and is not suf

5.7.4 Figure for hospital bed

FIGURE 6.6 Figure for bed po

SOURCE : LQ analysis on Soc

5.7.4.1 Map for bed populati

A health care system consists o

is important as a medium for p

is insufficient beds provided

provided every 10,000 popul

Furthermore, the distribution

was 1.07 beds per 10,000 pop

and Terengganu. The reason w

the analysis of LQ technique shows that the hig

sufficient to the community.

ed population

population

Socio economy indicator

ation

ts of physical facilities. One of the facilities for

r patient to have a rest and medical service. Th

ed to patients. The data collection shows t

ulations; data was presented according the a

n of beds was very rough in Kuala Lumpur a

population, while it was very much less in Sab

n why the developed states have to follow the

high density populations

for medical is bed, which

The issue regarding bed

s that the bed facilities

e amount of population.

r and Selangor the ratio

Sabah, Sarawak, Pahang

the national requirement

because of the private and public hospitals is more in those states. Somehow some developed

states likes Selangor 1:576(<1), the number is because the area is highly dense compared to other

states. Pulau Pinang 1:331 (>1) and Putrajaya 1:251 (>1) seem do not have problem with bed

because the density is not really high compared to Selangor. The less developed states likes

Perlis 1:593 (>1), Kedah 1:755 (>1), Kelantan 1:907 (>1), Sarawak 1:603(<1), Sabah 1:725 (<1),

and Labuan 1:817 (<1). The less developed country has a problem with the bed because the

amount of Hospitals also limited.

5.8 Findings and Analysis on Educational qualities of population

Malaysia education is influenced by British system -- there are private and public sector. The

government has total authority on education in Malaysia. The attendance of the students to enroll

school is starting from age 5 to tertiary level. Upon the graduation primary school the students

will be encouraged to continue their study further. The students have choices to either choose a

public or private university or college to continue their study. The education is free, except for

tertiary level, student need to pay the fees, they have a choice either use loan or scholarship.

5.8.1 Data Collection

Table :5.7 Data On Literacy Rates by states of Malaysia

STATES

LITERACY RATES

FOR 10 YEARS

LQ ANALYSIS LITERACY

RATES FOR

MALAYSIAN

LQ ANALYSIS

PERLIS 94.3 >1 90.8 <1

WP KUALA

LUMPUR 96.2 >1 96.2 >1

JOHOR 94.9 >1 93.3 >1

KEDAH 94.3 >1 90.2 <1

MELAKA 92.4 >1 92.4 >1

NEGERI

SEMBILAN 93.7 >1 93.7 >1

PULAU PINANG 94 >1 93.8 >1

WP PUTRA JAYA

SELANGOR 96.3 >1 95.6 >1

KELANTAN 90.9 <1 85.5 <1

TERENGGANU 91.9 >1 89.5 <1

PAHANG 95.4 >1 92.2 >1

PERAK 92.7 >1 91.1 <1

SARAWAK 91.7 >1 81.6 <1

SABAH 89.7 <1 84.6 <1

Sources: Department of Statist Economic Planning U5.8.2 Figure for 10 years and

FIGURE 6.7 10 years and oveSOURCE : LQ analysis on Soc

5.8.2.1 The 10 years literacy

More than 96% of primary age

census more than 91% of the

are literate. Based on 2000 ce

requirement 91.0% the percent

90.9% (<1) still below the

requirement of 91.0% Kelanta

WP LABUAN 92

MALAYSIA 91.0

tistic Malaysia g Unit Annual Report nd over literacy rates by states of Malaysia

ver literacy rates by states of Malaysia Socio economy indicator

cy rates

aged children were enrolled in School in 2005.

he population above 10 years were attending o

census the overall states in Malaysia 14 state

entage is more than the requirement. Sabah 89.

e target. However Kelantan almost achieve

ntan is just 0.01% short. The developed states

>1 91.7

1 92

ia

According to the 2000

g or had attended school

tates follow the national

9.7% (>1) and Kelantan

ve the target, with the

tes like Selangor 96.3%

<1

1

(>1), Kuala Lumpur 96.2%

opportunities, the ability to rea

As we can see the data collec

actually the number is increas

gain more students in School.

5.8.4 Figure for total literacy

FIGURE 6.8: Total literacy raSOURCE : LQ analysis on Soc

(>1) and Pulau Pinang 94% (>1). The exp

read and write has become almost universal am

llection shows 91% Malaysia aged 10 years a

easing by year, to achieve as a developed cou

The 2000 census at population estimated the

acy rates by states of Malaysia

rates by states of Malaysia Socio economy indicator

xpansion of educational

mong the young.

s and above are literate,

ountry, Malaysia should

he literacy rate is 85%.

5.8.2.1 The literacy rates in Malaysia

The literacy rate for Malaysia was 92.46%, the data collected was 92.0% in 2000 census the data

showed that not much far away from the national requirement. In Malaysia literacy reverse

among persons aged 10 years and over and reached to 92% in 2000. The table shows that the

developed states had more literacy rates likes Selangor (95.6%) >1 and, Kuala Lumpur ( 96.2

%) >1. The medium range to the states are Negeri Sembilan (93.7 % ) >1, Malacca (92.4 % ) >1,

Pahang (92.2%) and Pulau Pinang (93.8%) > 1. The less developed states likes Kelantan (85.5

%) <1, Terengganu (89.5 %) <1, Sabah (84.6%) <1. The literacy rates have an improvement in

term of the percentage, where the peoples are now more literate rather than before.

5.9 Summary of the analysis

5.9.1: Figure of Composite In

FIGURE 6.9 : Composite indeSOURCE : LQ analysis on Soc

An attempt has been made to

development by states of Ma

proved that the regional devel

part of peninsular Malaysia.

comprises of indicators which

motorcycle per 1,000 of pop

piped water. Population of

sis

e Index of Development in Malaysia

dex of regional development in Malaysia Socio economy indicator

to consolidate these findings through produce

alaysia. The conclusion of the analysis is th

velopment in Malaysia is imbalanced. It is only

ia. However, in 2001, the composite develo

ich are unemployment rate, urbanization rate, r

opulation, GDP per capita, poverty rate, popu

Malaysia faced development since indepen

ce a composite index of

the sample showed and

nly concentrated at West

elopment index, which

e, registration of car and

opulation provided with

pendence in 1950s, the

transformation program of development happened since 1970s until now. The project paper

studied regional development in Malaysia was analyzed based on socio economic data of states

in Malaysia. The employment sector, gross domestic product, literacy rates, health, urbanization

rates, population in urban areas, means income level and incidence poverty. The Location

Quotient has been used and divided the states into more developed states and less developed

states. The more developed states are Johor, Melaka, Negeri Sembilan, Perak, Pulau Pinang,

Selangor and Federal Territory of Kuala Lumpur. The less developed states are Kedah, Kelantan,

Pahang, Perlis, Sabah, Sarawak, Labuan and Terengganu.

6.0 Conclusion

In Conclusion this analysis and findings has shown that there are disparities of regional

development in Malaysia even though there are policies made by government to improve the

development in Malaysia. This finding will help researchers to fulfill the entire objectives and

answer the most of the research question asked in chapter 1.

CHAPTER 6

RECOMMENDATION AND CONCLUSION

6.1 Introduction

Basically, this chapter will summarize the findings which were directed to achieving the aim and

objective of this research. The summaries are going to be referred in order to come out with

suitable recommendation that will help reduce the imbalanced or disparities of development in

Malaysia.

6.1.1 The summary of findings and analysis

As we can see nowadays the continued emphasis on growth under the previous policies will

mean that the developed states will continue to benefit more than the less developed states.

States such as Selangor and Pulau Pinang are expected to grow much faster than the national

average with industrial and services sectors accounting for the major share of the growth.

Accordingly, their GDP per capita is projected to remain above the national average. Johor's

development will take off rapidly reflecting its growth as a major industrial centre and the

spillover of investments from Singapore. In Malaysia there are some developed and less

developed states , the middle-income states of Pahang, Johor, Negeri Sembilan, Perak,

Melaka, Sabah and Sarawak will grow at rates comparable to the national average. The

changing economic structure of the less developed states augurs well with the objective of

reducing regional imbalances. With the progressive diversification of their economies, more

employment and income earning opportunities will be created that will accelerate the process

of eradicating poverty and reducing the economic imbalances between states.

There are some ideas that increased labour mobility and dispersed economic activities will

facilitate labour transfer from the agriculture and rural areas to meet the labour shortages in

industries that may worsen in the nineties. In addition, programmes for expanding the physical

and social infrastructures in the less developed states will further open up new opportunities

for growth.

6.1.1.1 Summary of Findings

Regional development in Malaysia started since Independence Day in 1950s, however the

transformation is drastically happened in 1970s until present. There are policies to make

Malaysia as a developed country. The communities and regions have benefitted from the

economy and the substantial improvement in income and living standards.

The achievements in reducing income inequalities reflect the significant progress made in

reducing the national incidence of poverty from 52.4 per cent in 1970 to 17.1 per cent in 1990.

This substantial reduction in poverty was only partly due to improvements in productivity and

income levels among the target groups such as rubber smallholders, estate workers, paddy

farmers and fishermen. In addition the main source of progress in reducing poverty especially

during the eighties came from the growth of the economy which created expanding employment

opportunities in the non-traditional sectors and enabled the poor to diversify their sources of

income, thereby reducing their dependence on traditional low income and low productivity

activities. As rural households gained more access to these new opportunities and with the

tightening labour market conditions resulting in lower unemployment, wage incomes have

expanded to account for a rising share of household incomes. The shift towards wage

employment among rural households constituted the most important factor accounting for the

reduction of poverty in the country.

6.2 RECOMMENDATION

Based on the data and analysis, fifteen indicators are used in this research and several

recommendations for the regional development in Malaysia. The participation of both public

and private parties will accomplish the balanced regional developments, however the public or

community also can help corporations to achieve better regional development in Malaysia.

There are several recommendations of policies that should be highlighted for regional

development in Malaysia.

1) In-situ program for agriculture product to commercialize

2) Eradicate poverty by education and practical programs

3) Institutional and Delivery System

4) Recommendation for Employment Restructuring and Human Resource

Development:

5) Restructuring of Ownership and Control in the Corporate Sector

6.2.1 Recommendation for Future Policies and Strategies

This analysis brings a new idea from the previous policies to develop the nation regional

development strategies and will continue to focus on reducing the large imbalances in social and

economic development between states in the country. A more balanced development is essential

to facilitate the attainment of the objective of reducing poverty in the less developed states and

improving income distribution in Malaysia.

6.2.1.1 In-situ program for agriculture product to commercialize

The natural resources available in the less developed states will be developed on a commercial

basis, oriented towards exports. In-situ agriculture will be revitalized through the adoption of

commercial production practices for which better links between the production centers and the

market outlets will be effectively established.

In order to tap the vast development potential of states like Sabah and Sarawak, physical and

social infrastructures in these states will be expanded. This will promote extensive land

development in states with substantial land resources and will facilitate agricultural

commercialization and downstream resource as well as agro-based development to take place.

Rural development efforts in the resource-poor states will continue to emphasize on the

commercialization of the in-situ agriculture and the development of SMIS. In Kedah, its

industrial development is expected to accelerate with Sungai Petani and Kulim developing more

rapidly as a result of better infrastructure facilities and easier access to the port in Pulau Pinang.

Kelantan's development is expected to pick up further as greater efforts to deal with the problem

of flooding in the Kelantan river basin are undertaken. The state is expected to benefit from the

implementation of the South Kelantan road, linking Kelantan to Perak and Terengganu because

of the opening up of areas in South Kelantan for commercial agriculture.

6.2.1.2 Eradicate poverty by education and practical programs

Firstly, with the significant progress which has been made to reduce the incidence of poverty,

this problem is no longer as large or as serious as it was at the start of the . The general problem

of poverty can largely be resolved through the process of growth.

Secondly, with better education and training as well as more job opportunities in the non-

agricultural sectors, there will be greater social mobility on the part of the poor to move out of

poverty.

Thirdly, in line with the structural changes taking place in the economy, rural households are

becoming less dependent on traditional sources of income in rubber smallholding, padi farming

and fishing. With limited prospects for achieving further productivity growth in these activities,

the antipoverty agricultural programmes which had been implemented since the sixties and

seventies to assist the major poverty groups have probably reached the limits of their

effectiveness. Changes are therefore necessary in the design and implementation of these

programmes to reduce the scope of government involvement and bring in greater elements of

land consolidation, estatization and private sector management so as to make these schemes

more commercially oriented.

Overall, the government should review the approach in implementing its policies for eradicating

poverty to take into account the changes taking place in the economy. Instead of the broad-based

approach of the past, the programmes will be reoriented to focus on the more critical aspects of

reducing poverty among all races. In line with these policies, the emphasis of the anti-poverty

programmes will shift towards meeting the specific needs of the poorest households for

assistance so as to release them from poverty. Another focus of these programmes will be to

meet the growing demand from underserved regions and less developed states for better access to

improved basic services.

6.2.1.3 Institutional and Delivery System:

A rationalization of the functions and responsibilities of the various government agencies will be

undertaken to reduce overlapping of functions and increase the efficiency in the use of resources.

First: Improvement of delivery system and technical services for economic development

In order for public sector agencies to be more effective in providing advisory and technical

services to the target groups, they will be encouraged to work more closely with the relevant

organizations representing Bumiputera entrepreneurs and businesses and develop these

organizations as an important vehicle for complementing government efforts.

Public sector agencies will provide the effective support and play a stronger role for the

development of Bumiputera entrepreneurs in the modem industrial and services sectors. The

major areas which will be given priority include enhancing Bumiputera management skills and

skills in managing wealth, strengthening the supply network for materials and services, enlarging

marketing outlets, improving financial support in the form of venture capital as well as the

identification of new business opportunities and strategies, including linkages with multinational

companies.

In addition the function of PNB will be strengthened and expanded to enable it to develop

entrepreneurial development programmes to train Bumiputera in corporate management and in

the management of wealth. The best prospects for the Bumiputera to progress as a commercial

and industrial community are through the integration of their business activities with the non-

Bumiputera private sector. Thus, an important function of public sector agencies will be to

promote such integration, particularly through the establishment of joint-ventures with non-

Bumiputera companies and multinational corporations.

6.2.1.4 Recommendation for Employment Restructuring and Human Resource

Development:

The objective of employment restructuring will continue to ensure that the employment pattern

in the various sectors and occupations of the economy reflect the ethnic composition of the

country.

To facilitate the upward mobility of the rural labour force, efforts will be made to upgrade their

education and skill levels. In order to generate a larger supply of qualified Malaysian in the

professional, managerial and technical categories, the existing policy on entry quota into the

higher learning institutions among the various ethnic communities will be continued. In addition,

the government will encourage private enterprises and companies to actively participate in

providing greater opportunities for employment restructuring.

The restructuring of employment will also take into account the need for higher participation of

non-Bumiputera in the sectors in which they are now underrepresented. Accordingly, a better

representation of the non-Bumiputera in the public sector appointments such as in the middle and

senior levels of the civil services will improve the ethnic structure of employment in the sector.

However, in the private sector the Bumiputera are underrepresented in the higher levels of

occupations. Thus, while the employment of the non-Bumiputera is expected to increase over the

1990 levels in the middle and senior appointments in the civil services, the private sector will

have to absorb correspondingly large number of Bumiputera in the professional, managerial and

executive levels to improve the ethnic structure of employment in the sector

6.2.1.5 Restructuring of Ownership and Control in the Corporate Sector

The strategy for restructuring ownership and control in the corporate sector will becontinued in

view of the expanding role of the private sector in the economy.

In the process of restructuring the equity of the corporate sector, the trust agencies and public

enterprises will be required to undertake well planned and coordinated measures in the creation

of new assets and in the acquisition of strategic interests in companies on behalf of the

Malaysian. This role will be facilitated by more effective mobilization of Malaysian savings as

well as more productive and efficient management of funds in the public enterprises and trust

agencies.

The role of the PNB will be consolidated in view of its important position in mobilizing

Bumiputera funds and its potential as an entrepreneurial development agency. The Amanah

Saham Bumiputera (ASB) will form part of the overall strategy for the PNB to continue

mobilizing Bumiputera savings during the OPP2 period. Apart from pure portfolio management,

PNB will design and implement other complementary programmes which will emphasize

entrepreneurial development and mobilize venture capital for the Bumiputera community.

Privatization will be used as a vehicle to accelerate greater Bumiputera participation in the

private sector and in attaining the objective of the restructuring of equity. In line with this, the

privatization of subsidiaries of trust agencies will be reserved for the Bumiputera. In the

privatization of other government entities, Bumiputera participation will be maximised as a

measure to make up for the shortfall in their equity ownership in other sectors. To assist the

Bumiputera to acquire shares in the privatized projects, the employees in these projects will be

provided with special financial facilities. An important consideration in the privatization

programme will be the need to ensure that after the divestment, the Bumiputera will continue to

hold their interests in the privatized entities. The restructuring strategy has placed special

emphasis in the past on ownership of equity in the corporate sector. Since ownership of equity

alone will not be sufficient to promote effectively Malaysian participation in the business

operations of the company, it is essential to shift the emphasis towards the employment aspects

of restructuring. The policy of encouraging more meaningful Malaysian participation in the

management of the corporate sector will, therefore, be more vigorously implemented through

increasing the supply of high level manpower. Companies and individuals who have been

allotted reserved shares tend to divest their shares without getting prior approval of the issuing

authorities. The government is concerned that quick divestment by Malaysian shareholders will

affect adversely the efforts to achieve the restructuring objective. Therefore, the procedures for

approving reserved shares will be improved to minimize divestment of Malaysian interests.

6.3 The rationality of the recommendations

The number of poor households in the country as a whole is expected to be reduced from

619,400 in 1990 to 373,900 by the year 2000. This is despite the expected increase in the number

of households in Malaysia from 3,614,600 in 1990 to 5,218,900 in the year 2000. With the

implementation of special programmes, hardcore poverty, now involving 143,100 households, is

expected to be practically eradicated by the year 2000. In Peninsular Malaysia, the incidence of

poverty which was 15 per cent in 1990 is expected to decrease to 5.3 per cent by the year 2000.

For the rural sector, the incidence of poverty is expected to decrease from 19.3 per cent to 8 per

cent, while poverty in the urban areas will decline from 7.3 per cent to 3 per cent.

The incidence of poverty in Sabah will be reduced from 34.3 per cent to 20 per cent over the

same period. The number of poor households is expected to decrease from 99,600 to 84,000.

Similarly in Sarawak, the incidence of poverty will decline from 21 per cent to 12.7 per cent

while the number of poor households will be reduced from 70,900 to 59,900.

Whilst economic growth will be the main factor contributing towards reducing poverty, the

public sector will continue to play an important role in the implementation of anti-poverty

programmed. However, the size of public sector expenditures need not be as large as in the past

as the magnitude of the poverty problem has been substantially reduced. Instead, the public

sector expenditures can gradually be reduced and reoriented towards alleviating poverty among

specific target groups. This will result in more efficient use of resources and more effective

implementation of anti-poverty programmes.

To facilitate the effective implementation of these programmes, a comprehensive registry of the

poorest households in every district is being compiled and updated to ensure that the targeted

groups or individuals will get access to services that will be provided to increase their production

capacity and standards of living. The services to be provided include grouping the aged who are

landless in special settlement areas which are provided with proper housing and amenities and

given direct transfers to help them meet their daily subsistence. For the economically active

individuals who lack economic resources, particularly land, they will be resettled in land

development schemes or encouraged to undertake small resource-based manufacturing activities.

In the case of those who have land but lack resources for developing their land, a programme to

promote group farming and village restructuring will be implemented. For the children of the

poorest, appropriate facilities such as village hostels, food and nutritional assistance and

transportation will be extended to them.

Poverty eradication based on the concept of self-reliance will be encouraged. In this connection,

the government will provide further financial support to non-governmental bodies involved with

poverty problems. Efforts will be made to increase the productivity and income of the other poor

households through self reliance and community-based programmes.

Efficiency, productivity and income of smallholdings will continue to be enhanced by the

formation of economic-size holdings through voluntary consolidation of farm lands and the

opening of new land in Sabah and Sarawak where the potential is still substantial. Farmers will

be encouraged to supplement their incomes with other agricultural or off-farm activities in order

to broaden their income base and minimize any adverse impact from price declines or increased

cost of living.

Improved support services will be provided to accelerate development in in-situ agricultural

schemes. The credit system especially will be reviewed to ensure that more poor households

have direct access to credit. Marketing infrastructure will also be strengthened, especially in

transportation and storage of products, as a measure to help stabilize the income of the poor as

owner operators or tenants.

In view of the concern about relative poverty, further emphasis will be to meet the basic needs of

the poor among all ethnic groups in both the rural and urban areas. This is important so that

income improvements will be complemented with greater access to basic services and amenities

to enable the rising standards of living to be shared more widely. In this regard, the coverage of

basic amenities such as electricity, treated water supply, health, education and transportation will

be further widened to reach remote and outlying areas as well. It is anticipated that by the year

2000, there will be about 95 per cent coverage of electricity supply in Malaysia. The coverage of

water supply, on the other hand, is estimated at nearly 100 per cent in the urban areas and 85 per

cent in the rural areas of Malaysia. The poorest households will be equipped with knowledge on

better nutritional practices to prevent the occurrence of malnutrition especially among children.

Educational facilities in the remote and traditional kampung and settlements as well as in

plantations and some villages will be improved so that the rural poor can have better

opportunities to improve their life through education.

Villages, including those which were previously known as new villages, and which had been

hampered by the lack of land resources will be given opportunities, wherever feasible, to expand

their area to avoid overcrowding and enhance employment generating opportunities. Similarly,

in the estates sector, the government will implement specific strategies to improve housing,

health, educational and social conditions in the sector to enhance the quality of life of the estate

population. While employers have a responsibility to provide some of these facilities, in those

areas where large capital outlay is involved with regard to the connecting of piped water from

public mains and the electricity supply and the provision of other basic amenities, the

government will provide assistance to estate employers by bringing these facilities to the fringes

of the estate to enable the estate to draw from these supplies. The government will also undertake

to provide and improve educational, health and other related facilities in estates. As regards the

workers' house ownership scheme, the government will undertake administrative and other

measures to facilitate estate management to respond more favourably to the implementation of

more of such schemes.

In urban areas, relative poverty will be reduced through the provision of improved opportunities

for better income and increased access to basic amenities such as affordable housing,

transportation and utilities. Measures will be instituted by the government through proper

planning and zoning in urban development to ensure orderly growth. This will not only contain

the further growth of squatter and slum areas but also offer new opportunities for the lower

income groups, particularly, those related to the informal sector, to be involved in small scale

businesses and industries.

6.4 Conclusion

In conclusion the policies that have been made by government have failed to make a balanced

development in Malaysia. The policies should give an opportunity so that the people may

participate and indulge the programs for regional developments. However, efforts towards

narrowing the economic imbalances between the rich and the poor and among the various ethnic

communities will be continued. Thus, the policies will seek to remove further imbalances based

on the principles of balanced development and equitable distribution to achieve social justice and

enhance national unity.

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