Business Report: The Key of Transforming Malaysia into a Developed Country

Introduction

Service industry organizes and integrates the primary resources of agriculture and manufacture industry with using different kinds of labours and talents, which can make high-utility and high-effective allocation come true.  Besides, the service industry can satisfy various needs of consumers in every aspect and achieve the creation and revolution of new technology. 

With the internet technology and World Wide Web fast developing, the world entered new information era.  America had become the pioneer of the IT industry and led the world.  Some of the countries and regions also had fast developed in that period, like Japan, Korea, Taiwan and Hong Kong.  They were building the new information technology industry and achieved the advanced service industry level.  Referring to those east countries and regions, Malaysia started to renew the industrial structure, which was paying more attention on IT industry and other service industries than traditional manufacture industry. 

Responding to the new and policies and economic strategies, Malaysia began to build a new south-east Asian Silicon Valley, and transferred her economic emphasis on electronic production, internet and other service industries

1.  Periods of 5-year MP Changed Malaysia Economic Structure

1.1 The 3^rd Malaysia Plan (1980-1985)

Malaysia now had entered the procedure of construction a manufacture industrial country, but the manufacture industry still did not reach the high-productivity level and the productions selling were limited in domestic market.  When the new prime minister came on the stage, soon the Malaysia export industry was accelerated and the trade became live and open.  More and more Malaysian merchandises were sold to the world.  At the meantime, more and more foreign capitals were willing to invest Malaysia to build up tremendous infrastructures and factories.  In this period, Malaysia manufacture industry was becoming flourishing.  Malaysia, which symbolized that Malaysia finally turned into manufacture industrial country.

1.2 The 2^nd Malaysia Plan (1971-1975)

After independence, Malaysia established the Malay government as the main body. The Malay people dominated the country ’s political life. However, in the country ’s economic life, foreign capital and Chinese still prevailed as the main national people. The Malays have always been in poverty. The ethnic contradiction between the Lai ethnic group and the Chinese ethnic group. This kind of contradiction continued to intensify and eventually evolved into a large-scale national ethnic conflict in 1969. The ethnic contradictions between the Malays and the Chinese are constantly intensifying and eventually evolved into a nationwide large-scale ethnic conflict in 1969. Political struggle between political parties. At that time, the Chinese ethnic group, which accounted for about one-third of the country's population, was in an economically dominant position and hoped that its political status would be proportionate.

The implementation of the new economic policy, the 2nd Malaysia Plan, has basically solved the Malay poverty problem, the most serious social problem that has plagued Malaysia for a long time since independence, and the conflict between the two major ethnic groups, Malay and Chinese, has been eased, for national unity and the country's further development has laid a solid foundation.  Along with the rapid economic growth, the pace of social development has also significantly accelerated.  Along with the rapid economic growth, the pace of social development has also significantly accelerated.

However, it only noticed the fair distribution and sacrificed the interests of the Chinese, which greatly affected the enthusiasm of the Malaysian economy, the main force of the Chinese, thereby damaging the speed and efficiency of economic development.  Developed during the "New Economic Policy" period, most of the more than 1,000 state-owned enterprises suffered losses. The Malays lacked management experience, resulting in waste of resources and serious inefficiency.  The "New Economic Policy" just cultivated a group of Malay Bourgeoisie, making them a profiteer class, but the vast majority of middle- and lower-level Malays did not benefit from it.