The evolution of development planning in Malaysia

The primary objective of this paper is to trace the evolution of five-year development plans that have been formulated in Malaysia since the 1950s. Both internal and external factors have influenced the formulation and implementation of these plans. State bureaucracies played a crucial role in implementing the New Economic Policy in the 1970s. Economic reforms in the 1980s then reduced the independence of the planning bureaucracy by making bureaucrats more project-oriented and under the control of politicians. The corporate restructuring that followed the Asian Financial Crisis brought about greater involvement of corporate technocrats from Government Investment Companies (GICs) and Government Linked Companies (GLCs). Economic policy-making changed further under the Najib administration with increased centralization of development expenditure in the Prime Ministers Department and greater use of private consultants. The current trajectory suggests a more centralized and flexible, but less transparent, approach to development planning. (J SEA Econ/GIGA)