FACULTY OF ADMINISTRATIVE SCIENCE

&
POLICY STUDIES
DIPLOMA OF PUBLIC ADMINISTRATION
PAD350

FUNDAMENTAL OF SUSTAINABLE DEVELOPMENT

MALAYSIA’S SUSTAINABLE DEVELOPMENT JOURNEY:

PREPARED BY:
NO. STUDENT NAME STUDENT ID
1. MUHAMMAD AIDRYLSYAH DANISH BIN SHAHRUL KAMAR 2021472914
2. MUHAMMAD HARIZ BIN HISHAM 2021206454
3. MUHAMMAD FAREEZ HAFIZIE BIN MOHAMMED RAIHAN 2021852562
4. MUHAMMAD ROHAIZAD BIN ROSLAN 2021461012
5. AHMAD NAWFAL BIN AHMAD MAHADZIR SHAFFIRIN 2021608106

SEMESTER:
5

PREPARED FOR:
SIR MOHD IDHAM MOHD YUSOF

DATE OF SUBMISSION:
1 DECEMBER 2023
 Table of Contents
1.0 INTRODUCTION.....................................................................................................................5

2.0 MALAYSIA’S SUSTAINABLE DEVELOPMENT JOURNEY:CHALLENGES, STRATEGIES,

INITIATIVES, AND INTERNATIONAL ENGAGEMENT................................................................6

2.1 Tunku Abdul Rahman Putra al-Haj......................................................................................6

2.1.1 Challenges.....................................................................................................................6

2.1.2 Strategy.........................................................................................................................6

2.1.3 Initiative.........................................................................................................................7

2.1.4 International Engagement.............................................................................................8

2.2 Tun Haji Abdul Razak bin Dato' Hussein.............................................................................9

2.2.1 Challenge......................................................................................................................9

2.2.2 Strategy.........................................................................................................................9

2.2.3 Initiative.......................................................................................................................10

2.2.4 International Engagement...........................................................................................10

2.3 Tun Hussein bin Dato’ Sir Onn..........................................................................................11

2.3.1 Challenge....................................................................................................................11

2.3.2 Strategy.......................................................................................................................12

2.3.3 Initiative.......................................................................................................................13

2.3.4 International Engagement...........................................................................................13

2.4 Tun Dr. Mahathir bin Mohamad.........................................................................................14

2.4.1 Challenge....................................................................................................................14

2.4.2 Strategy.......................................................................................................................15

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 2.4.3 Initiative.......................................................................................................................15

2.4.4 International Engagement...........................................................................................15

2.5 Tun Abdullah bin Ahmad Badawi.......................................................................................16

2.5.1 Challenge....................................................................................................................16

2.5.2 Strategy...........................................................................................................................16

2.5.3 Initiative.......................................................................................................................17

2.5.4 International Engagement...........................................................................................18

2.6 Dato’Sri Mohammad Najib bin Tun Haji Abdul Razak.......................................................19

2.6.1 Challenge....................................................................................................................19

2.6.2 Strategy.......................................................................................................................19

2.6.3 Initiative.......................................................................................................................20

2.6.4 International Engagement...........................................................................................21

2.7 Tan Sri Dato' (Dr) Haji Muhyiddin bin Haji Muhammad Yassin.........................................22

2.7.1 Challenge ...................................................................................................................22

2.7.2 Strategy.......................................................................................................................23

2.7.3 Initiative.......................................................................................................................24

2.7.4 International Engagement...........................................................................................24

2.8 Dato' Sri Ismail Sabri bin Yaakob......................................................................................25

2.8.1 Challenge....................................................................................................................25

2.8.2 Strategy.......................................................................................................................25

2.8.3 Initiative.......................................................................................................................26

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 2.8.4 International Engagement...........................................................................................26

2.9 Dato' Seri Anwar Ibrahim...................................................................................................27

2.9.1 Challenge....................................................................................................................27

2.9.2 Strategy.......................................................................................................................27

2.9.3 Initiative.......................................................................................................................29

2.9.4 International Engagement...........................................................................................33

3.0 CONCLUSION.......................................................................................................................34

References..................................................................................................................................35

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1.0 INTRODUCTION

Sustainable Development Goals (SDGs), as outlined by the United Nations, represent a global

call to action for addressing some of the most pressing challenges facing humanity. These 17

interlinked goals cover a wide spectrum of socio-economic and environmental issues, ranging

from poverty eradication to environmental sustainability. This assignment delves into the

progress and challenges of implementing SDGs within the unique context of Malaysia. As a

nation with a growing economy and a diverse cultural landscape, Malaysia plays a vital role in

the global pursuit of sustainable development. With a multicultural society and a rapidly evolving

economic landscape, the nation faces a complex set of challenges and opportunities in aligning

its policies and practices with the SDGs. The successful integration of the SDGs into Malaysia's

national policies and strategies can significantly impact the well-being of its citizens, as well as

contribute to the global advancement of the SDGs.

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2.0 MALAYSIA’S SUSTAINABLE DEVELOPMENT JOURNEY:CHALLENGES,

STRATEGIES, INITIATIVES, AND INTERNATIONAL ENGAGEMENT

2.1 Tunku Abdul Rahman Putra al-Haj

2.1.1 Challenges

One of the main challenges faced by the newly independent Malaysia was the widespread

poverty that was being experienced across the country. About half of the rural Malay population

lived in poverty and poverty was also a problem among the other races as well. One of the

reasons this was a problem was due to the administration of the former colonial ruler of

Malaysia, Great Britain. The British had created a good colony but not a very good country

when they left Malaya. There was clear division among the races, the Malays stayed in villages,

the Chinese stayed in town while the Indians stayed in estates. These divisions in race

translated into economical division, which is why there are so many rural Malays who lived in

poverty. In addition to that, the Malaysian people hadn’t been every well-educated. This was

also due to the former colonial rules. They had only provided the people with a very basic

education and left no practical means for people to get a higher education except for those who

were wealthy. These were the things that needed to be addressed in order Malaysia to

overcome its greatest economic hurdle (Idris M. B., 2020).

2.1.2 Strategy

FELDA was formed on July 1st, 1956, under the Land Development act and would prove to be

an important tool that the government was used in solving their poverty issued that would

ravage. One of the main ways that FELDA would achieve this goal is by developing land. There

was a lot of unsettled land in Malaysia at the time, this land was unsettled because the British

didn’t really have any interest in developing the land into anything and so it remained

undeveloped. FELDA would find different ways to develop this land to use it for economic

activities. Firstly, they would find out whether the land was good for crops and if so, what kind of

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crops would be suitable for that land. In the beginning, FELDA primarily focused on palm oil and

rubber as those were easy to grow and could be exported. The reason FELDA chose to take an

agricultural approach to development is because agriculture is a form of sustainable

development. Things like mining are good while there is more in the ground, but it is not

sustainable as the ore will eventually run out. This is different to something like agriculture or

raising animals, these industries are sustainable as more of the items can be produced

repeatedly. This shows that FELDA was thinking about long term sustainable development and

had the future of the country in mind while developing their project. These plantation sites

would also create jobs for the local people and help them increase their standard of living.

Moreover, FELDA would make use of land that was not suitable for agriculture as well. They

would develop the land into housing areas that would be suitable for people to live in. This was

there to incentivize the rural poor to move to these sites with better living conditions where they

could live decent lives and further develop the area (Berhad, 2020).

2.1.3 Initiative

One of the main initiatives carried out to overcome the poverty issue in Malaysia was an

emphasis on education. This is because education is the key to breaking the poverty cycle. By

having a good education system, the country can build a population that is full of intellectuals

who can innovate and be creative, that can make a good income and create jobs. A highly

educated population will also make it so that work is easier to find, and the country is able to

utilize a high percentage of its manpower. The Education Act was passed in 1961 and allowed

the government to overhaul the outdated colonial education system introduced by the British

and replaced with something that better aligns with Malaysia’s goals and ambitions. The

National Education System was established under the act and would ensure that all the races

would continue to learn in harmony. In addition to that, Chinese and Tamil to be used as

medium of instruction in vernacular schools but Malay would be made a compulsory subject.

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This was to generate a sense of national unity in the Malay language and have a more

standardized way of communication (Devan, 2021).

2.1.4 International Engagement

The foreign policy of Malaysia in the era of Tunku Abdul Rahman were very much dictated by

the escalating geopolitical situation abroad what was happening domestically. The country was

very much anti-communist and pro-western. This is because of the emergence of Malaysia

Communist at the time. It was a militant group that terrorized the people of Malaya for many

years and required the cooperation of the Malaysian government as well as The Commonwealth

forces to eventually put an end to. Tunku Abdul Rahman saw these militants as a security,

social and economic threat to the country which is one of the reasons Tunku Abdul Rahaman

tended to be more pro-western. Malaysia at the time did not have a very big security force and

that mean that it struggled to keep up with fighting the communist guerillas whilst also trying to

administrate the rest of the country. Therefore, Malaya had to rely on its allies in The

Commonwealth to help fight off the threat. Moreover, Malaya didn’t really want to have a big

security force. To maintain, train and supply a large army would be very costly to the young

government; all the funds used to train a big army could be directed towards social welfare

programs and economic activities. This is why Tunku Abdul Rahama made such allies, so that

the funds were better spent on building the country. By the 1960s the communist threat in

Malay was mostly subdued and the foreign policy began to drift from pro-western towards

neutral. This can be seen when Malaysia began to trade with Yugoslavia, a communist country.

This show that Malaysia was willing to look past certain ideological differences for the sake of

nation building, while Yugoslavia may have been ideologically aligned with the communist

guerillas, it was the violent militant side that Tunku Abdul Rahman opposed, and Yugoslavia

didn’t seem to pose a security threat to the country. Thus, Malaysia was willing to work with

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them both diplomatically as Yugoslavia was a member of the Non-Alignment Movement as well

as economically (Mitsuomi, 2015).

2.2 Tun Haji Abdul Razak bin Dato' Hussein

2.2.1 Challenge

Malaysia's May 1969 crisis, sometimes referred to as the "May 13 incident," had a profound

impact on the history of Malaysia. There was an environment of economic uncertainty in the

immediate aftermath of the May 13 tragedy. Investors, both domestic and foreign, expressed

anxiety about the violent conflicts and political unrest. A key component of economic growth,

investor confidence, was severely damaged. Investors were reluctant to commit to long-term

projects and investments because of the abrupt outbreak of violence and the resulting political

concerns. The first racial crisis occurred on May 13th in 1969 which had slowed down the

private investments and consequently the economic growth in 1971–1972 (Jasman Tuyona,

2016).

2.2.2 Strategy

Tun Abdul Razak has made several strategies to solve poverty and economic problems when

he was the Prime Minister of Malaysia. One of the well-known strategies made by Tun Abdul

Razak was the introduction of the New Economic Policy (NEP) in 1971. The New Economic

Policy was created to solve the problems faced by Malaysia at that time such as the problem of

economic instability and poverty (Mohamad Asrol Arpidi bin Mamat & Ariffin, 2014). The New

Economic Policy (NEP) of Malaysia was introduced in 1970 as a component of a set of policies

implemented following the May 1969 political crisis. To foster national unity, it aimed to

eradicate poverty and restructure society to eliminate the identification of race with economic

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function (Jomo, 2005). Improving the quality and accessibility of education for the poor was

given significant focus by the NEP to break the cycle of poverty. A significant amount of

government funding was set aside to support the education of young Bumiputera in both urban

and rural areas. After being sent to well-equipped residential schools, they were given

preference when it came to higher education, with options including local universities that

operated on a quota system or universities abroad. Although there were significant negative

effects of the affirmative action policies for talented non-Malay academics and students,

Malaysia saw a significant secular decline in absolute poverty through this process of

progressively broadening educational opportunities and several other affirmative action-based

programs to reduce poverty (Syah, 2019).

2.2.3 Initiative

The New Economic Policy's development is designed and implemented using many initiatives.

The primary source of dissatisfaction among people is poverty. It's available not just in urban

areas but also in rural areas. The fact that the Malays have the highest proportion of poverty

among all races and are mostly engaged in traditional agricultural activities raises concerns

about the potential impact of their situation on national unity. Achieving racial balance in energy

consumption requires workers to participate in activities that can produce higher productive

power in addition to labour transfers between sectors. Because of this, the government needs to

give Malays additional chances to engage in activities in the modern sector on a larger scale. As

a result, there will be an indirect effect on work conditions in the main sector, reflecting the

participation of a labour force that is balanced in terms of race. It can also ensure that every

race has access to full employment and lessen the disparity in per capita income between races

(Mohamad Asrol Arpidi bin Mamat & Ariffin, 2014).

Between 1970 and 1980, there was a decline in the poverty rate from 49.3% to 29.2%.

Additionally, from about 791,800 in 1970 to 666,100 in 1980, there were fewer estimated poor

6
households. It is predicted that the poverty rate in the agriculture sector fell from 68.3% in 1970

to 46.1% in 1980. In the non-agricultural sector, the pace of decline accelerated, falling from

27.8% in 1970 to 16.8% in 1980 (Mohamad Asrol Arpidi bin Mamat & Ariffin, 2014).

2.2.4 International Engagement

During his term as Malaysia's second prime minister from 1970 to 1976, Tun Abdul Razak

participated in several international initiatives aimed at addressing issues of poverty and

economic difficulty. The needs of promoting poverty reduction, economic growth, and elevating

Malaysia's profile internationally significantly informed his strategy. When the Association of

Southeast Asian Nations (ASEAN) was established in 1967, Tun Abdul Razak was a key figure.

Economic growth was an important goal, even if regional political and security cooperation was

the main goal. For member nations like Malaysia, ASEAN offered a forum for cooperation on

economic projects, the exchange of best practices, and the pursuit of shared prosperity. The

ASEAN was created to achieve the organization aims which is enhance the region's

improvement in society, economic growth, and cultural development via collaborative efforts in

the spirit of equality and partnership to fortify the groundwork for a successful and peaceful

community of Southeast Asian nations and encourage active cooperation and mutual support in

the areas of economics, social, culture, technology, and administration on issues of shared

interest (Secretariat, 2020).

2.3 Tun Hussein bin Dato’ Sir Onn

2.3.1 Challenge

By 1976 the Malaysian economy was doing quite well, the poverty rate had gone down

significantly, down to 47.8 percent since the implementation of the New Economic Policy. The

main challenges faced by the country in this era were what to do with its bountiful opportunities.

There was a lot of unused land that had yet to be settled and yet to be used for things like

agriculture and other economic activities. Now that the country was more economically stable, it

7
had the opportunity to exploit these natural resources economically in the country. This is

because, despite what was previously said, the reduction and eradication of poverty was still a

main priority for policy makers. This was because there were still many rural Malays who lived in

extreme poverty, doing small and inefficient farm work with just enough to get by. The main

challenge would be finding a way to administrate and organize all these untapped resources to

be used to solve the economic problems the country faced (Malaysia).

2.3.2 Strategy

The main strategy implemented to fact the current challenges faced by the country was that of

the Third Malaysia Plan. The Third Malaysia plan was made to continue with the progress set

off by the New Economic Policy. The plan emphasized the importance of government in the

creation of wealth and jobs for the people. One strategy taken up by the plan was to open and

settle new land for the purpose of agriculture. These new sites would be places of large-scale

agriculture projects, things like patty fields, rubber tree plantations and other forms of important

agriculture. The goal was to decrease unemployment by creating job opportunities through

these agricultural projects. This would allow the rural poor to have more jobs and a steadier

source of income in comparison to the small-scale farming that was previously carried out. This

would also increase the amount food production in the country, the hope was that Malaysia

could eventually create enough food to sustain itself without the need of imports and to have a

steady export of materials to boost the economy. In addition to this, the plan also insinuated that

the government would pour more of its resources into industry. This would assist in giving the

rural poor more job opportunities to live a decent life. The emphasis on industry was so that one

day Malaysia could produce products locally and reduce its reliance of in the import of certain

products. Furthermore, the plan also laid what to do about the population of urban poor in

Malaysia. Though it was mostly the rural Malays who lived under poverty, they were still Urban

Malays living in similar situations. The plan strategy to combat this was by incentivized labor

8
from the government in the form of the newly sprouting industries. Industries like construction

require a lot of manpower which gave opportunities to urban Malays for better jobs in the urban

centers of the country. It was seen as very important that all of this happen now as it would

become the base from which all future economic and industrial projects would be built upon.

That the future generation could take what had been prepared and made at this time and use it

to invest in a better, more productive future (Aun, 2021).

2.3.3 Initiative

One of the initiatives made in the era of Tun Hussein Onn to solve the economic issues at the

time was the establishment of the Yayasan Pelaburan Bumiputera (YPB). This organization was

established in 1978 in accordance with the plans set out by the New Economic Policy. One of

the main goals of the Yayasan Pelaburan Bumiputera was to be to promote the ownership of

share capital among the Bumiputera. This would be things like the purchasing and investing of

assets and managing assets and investments with the purpose of gaining profit. This was very

important as the concept of investing and shares was a very foreign concept to many Malays.

This was due to several factors, like the limited education of such topics both before and after

independence. Moreover, Malays have always lived an agricultural and fishery dominant

lifestyle so the concept of investing and buying assets wouldn’t appear to be appealing or

relevant to them. The government wanted to change that mindset and thus the Yayasan

Pelaburan Bumiputera was established. The organization was founded as a safe and secure

way by which Bumiputera could own share capital and be generally educated on investing. This

would lead to the creation of the Pemodalan National Berhad (PNB) which is a fund

management company also to assist in the management of the funds given by the Bumiputera.

The reason these organizations were founded was because the government wanted the

Bumiputera to take an interest in investing and finance. They wanted a population that was

financially competence and could make investments and buy shares on their own once they

9
gained the knowledge of those things. The hope was that they could create a society of smart

investors who could bring economic growth to the country in the long run through smart

investments and managing of assets (Berhad, 2020)

2.3.4 International Engagement

The foreign policy in this era was a bit different from the previous policy. The former policy

under Tunku Abdul Razak was more neutral in comparison to the one that came before it under

Tunku Abdul Rahman, which took on a more pro-western stance to combat the current threat of

communism which had spread to the region in places like the Philippines the foreign policy

under Tun Hussein Onn was different. He pushed Malaysia to be more independent and not

totally reliant on the great powers such as the United States and Great Britain. Not to cut ties

but try to be more self-sufficient to preserve the country’s sovereignty. In addition to that, he

pushed for greater cooperation between the members of ASEAN. This was to ensure the

continued safety of the region without having to involve forces from outside the region. It

allowed the members countries to be more independent regarding the action of the western

countries. It also pushed better economic relationships between member countries. This would

mean things like lifting trade taxes and when buying materials, prioritizing member countries

instead of buying it from countries outside the region. This economic sphere would allow for the

mutual benefit of all the countries in ASEAN (Foundation, 2020)

2.4 Tun Dr. Mahathir bin Mohamad

2.4.1 Challenge

In 1997 and 1998 economic crisis, which included Malaysia, changed global views on the

market and international monetary system's role and efficiency in dealing with it. Malaysia and

its East Asian neighbours' economic crisis is still regarded a major event in the nation and

globally. The 1997 and 1998 recession in Malaysia had economic, social, and political effects.

(Nazariah Osman, Md, shukri shuib, muhammad muda, mohamed faisol keling, 2020) The

10
Asian Financial Crisis had a lot of negative effects on Malaysia. It led to a drop in the value of

the ringgit, the fall of the stock market, the weakening of the banking sector, less investment,

unemployment and inflation rose, average family wages went down, prices of living rose up for

urban families, including prices for basic needs, healthcare, schooling, and transportation, and a

shrinking of the economy. The economic slowdown caused more people to lose their jobs,

prices to go up, and problems for families, especially those living in cities (Mohamed Arif,

Syarisa Yanti Abubakar, 1999).

2.4.2 Strategy

Dr. Mahathir kept Malaysia independent throughout these recessions. In times of crisis, the

National Economic Action Council (NEAC) helps the Cabinet make economic choices. NEAC

was developed to receive input from all ministries and agencies, empower people to think,

formulate policies, direct activities, and assess the status of the national economy. It forms a

"special cabinet" of elected ministers, elite bureaucrats, business leaders, and scientists. Dr.

Mahathir Mohamad, the Council Chairman and Prime Minister, clearly controls this NEAC.

Therefore, Dr. Mahathir designed a unique "power source" to "create" a special formula to

restore the country's economy during the 1997–1998 economic crisis (Nazariah Osman, Md,

shukri shuib, muhammad muda, mohamed faisol keling, 2020).

2.4.3 Initiative

When the Malaysian economy was in an economic downturn in 1997, former prime minister Tun

Dr. Mahathir Mohamad implemented his Mahathiriskonomism policy. This approach was an

attack on Western institutions like the IMF. Despite the economic downturns, Dr. Mahathir

managed to preserve Malaysia's independence.

Malaysia set the exchange rate for the ringgit to the US dollar at RM3.80 so that it would

not change. This exchange rate was made to boost trust in the ringgit's value, especially in

international trade. When exchange rates are stable, foreign businesses can trust the deals

11
they've made. This kind of situation makes trade and business more likely. Malaysia stopped

selling stocks in Singapore and reduced the amount of money it sent to other countries.

Malaysia reduce down on trade with other countries to protect its currency and keep its financial

markets stable.

2.4.4 International Engagement

In the 1980s, Malaysians were encouraged to turn to East Asian nations, particularly Japan and

South Korea, for economic growth, industrialization, and technological development. Mahathir

praised East Asian nations for their hard work, quality, innovation, and efficiency, notably in

technology and industry. He wants Malaysia's workers and corporations to share values and

practises. The Look East Policy advised Malaysians to study East Asian education, industry,

infrastructure, and management models. To alter and apply prior strategies that grew Japan and

South Korea's economies.

2.5 Tun Abdullah bin Ahmad Badawi

2.5.1 Challenge

When Tun Abdullah bin Ahmad Badawi or better known as Pak Lah become prime minister, our

country was then experiencing a global financial crisis. The financial crisis that happened at that

time was very different from the crisis experienced by Malaysia in 1998. A little explanation for

the 1998 crisis, Malaysia suffered a contraction in Gross Domestic Product (GDP) growth due to

the Asian financial crisis that started in Thailand. But the crisis faced by Pak Lah does not start

from Malaysia or any Asian country but stems from Unites States financial industry which

escalated into severe international financial crisis deep slump in global trade and global

recession by late 2008. Malaysia, a small open economy that depends heavily on exports, has

not been immune to this external shock. The fourth quarter of 2008 saw the transmission of the

negative shock to the Malaysian economy. Investments fell while exports and manufacturing

output worsened. Negative effects were also felt by consumers (Mah-Hui, 2009).

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2.5.2 Strategy

Among the strategies undertaken by Pak Lah is to increase foreign direct investment as it is

very important to contribute both human and financial resources to Malaysia's economy. To

draw in foreign direct investments, several investment incentives have been offered, and unique

investment zones, such as the Iskandar Development Region (IDR) or (IRDA). The IDR aims to

be an internationally recognized sustainable region. IDR, the start of fresh expansion, will

encourage economic advancements that unleash Malaysia's worldwide potential.

Understanding the importance of sustainable development, social and environmental issues

occupy a significant portion of its agenda. IRDA’s statutory powers and functions are designed

to achieve the above objective and include the following core functions which is promotion to

undertake broad-based promotion of Iskandar Malaysia to the public and potential investors

from local and overseas (AUTHORITY, 2016). IDR pledges to give all residents and

stakeholders an equal chance to participate in the development of the area's liveability,

including economic growth, sufficient housing, environmental protection, effective transportation,

public health and safety, and recreational opportunities.

2.5.3 Initiative

IRDA actively promotes Iskandar Malaysia as an attractive investment destination. It engages

with local and international investors, offering incentives and support to encourage the

establishment of businesses in the region. The goal is to create a vibrant and diversified

economic base. One of the main factors guiding the growth of Iskandar Malaysia is

environmental sustainability. To guarantee that economic progress is balanced with ecological

responsibility, IRDA has put in place programs to support green technologies, sustainable urban

design, and environmental conservation. In keeping with the government's strategy of putting

more emphasis on value-added and knowledge-intensive enterprises in the nation, IDR will give

particular attention to the services sector. The qualifying operations, or commercial development

13
efforts approved by IRDA within six priority sectors in IRDA-approved zones, would be included

in the development of IDR. Some of the priority sectors is tourism related activities, financial

advisory and consulting services.

A variety of incentives are provided by IRDA to entice investors. Tax rebates, investment

allowances, and other financial benefits may be included in these incentives, which are intended

to lower the cost of conducting business in Iskandar Malaysia. The goal of the IRDA is to attract

businesses to establish or grow their operations in the region by offering a favourable financial

environment. Attracting investments requires a strong and developed infrastructure.

Acknowledging this, IRDA has made investments in the creation of infrastructure,

encompassing technological parks, utilities, and transportation networks. These initiatives not

only improve the general business climate but also draw businesses seeking an efficient and

well-connected infrastructure to Iskandar Malaysia (Mun, 2007).

2.5.4 International Engagement

Under Abdullah Ahmad Badawi's presidency from 2003 to 2009, Mahathir Mohamad's foreign

policy was carried out. But he also took a more "middle-ground" stance that avoided controversy

and was neither confrontational nor violent. Recognizing China's economic potential, Tun

Abdullah Ahmad Badawi actively sought economic diplomacy with the nation. Malaysia aimed to

improve its commercial and investment ties with China, which resulted in several cooperative

partnerships and economic accords.

The goal of this strategy was to use China's economic expansion to Malaysia's

advantage. He had increased collaboration and enhanced diplomatic ties with China. This was

demonstrated by a level of economic cooperation that was unheard of in the previous age in the

areas of education, health, and safety as well as through state-owned enterprises. China has

been recognized as Malaysia's principal commercial partner because of the country's interests

and survival, which are greatly enhanced by China's growing economic might. Moreover,

14
Acknowledging the prospects in the halal sector, Malaysia proactively collaborated with China to

promote halal goods and services. These discussions about halal certification, cooperation in

the production of halal food, and initiatives to capitalize on the expanding Chinese market for

halal products and services were among the topics covered. Thus, national policy would give

priority to anything that strengthens Malaysia's diplomatic ties with the superpower and

promotes the country's economy. China and Malaysia have also improved their people-to-

people relations by working together to combat epidemics and promote health (Mohamad

Ikhram Mohamad Ridzuan, 2023).

2.6 Dato’Sri Mohammad Najib bin Tun Haji Abdul Razak

2.6.1 Challenge

Datuk Seri Najib Razak served as the Prime Minister of Malaysia from 2009 to 2018, leading the

country through a period marked by global economic challenges. The country recorded the

highest economic growth rate and the largest recipient of foreign investment in the Asian region

under the administration of former Prime Minister, Datuk Seri Najib Tun Razak (MANZOR,

2021). This shows that under the government of Datuk Seri Najib Tun Razak, Malaysia's

economy is at its best. Every Prime Minister who rules are bound to have challenges that will

arise and need to be resolved well, especially economic problems.

Datuk Seri Najib also faced several challenges during his time as the 6th Prime Minister

of Malaysia, among them is 1MDB scandal, fiscal deficits, external economic pressures, and

social issues such as income inequality.

2.6.2 Strategy

While serving as Malaysia's prime minister, Datuk Seri Najib Razak's administration put several

strategies into place to deal with the nation's economic problems. While some of these tactics

were to boost economic expansion, others were reactions to problems, such the 1Malaysia

15
Development Berhad (1MDB) crisis. These are some of the main tactics that Najib's

administration has used.

The 2010 launch of the Economic Transformation Programme (ETP) was one of Najib's

signature projects. The objective of the ETP was to transform Malaysia into a high-income

country by 2020 through economic diversification and concentration on key industries. The

programme identified financial services, tourism, palm oil, oil and gas, and other important areas

for development. September 2010 saw the introduction of the Economic Transformation

Programme (ETP) by Malaysian Prime Minister Dato' Sri Najib Razak. The ETP is the Prime

Minister's programme to promote new jobs, investment, and the advancement of science, even

though at the time the economic crisis was sweeping over North America and Europe. Twelve

National Key Economic Areas (NKEAs) and six Strategic Reform Initiatives (SRIs) make up the

ETP, which is overseen by the Prime Minister's Department's Performance Management and

Delivery Unit (PEMANDU).

While the NKEAs contain a variety of Entry Point Projects (EPPs) in several industries,

the SRIs seek to alter business policies. The NKEAs aim to change Malaysia's economic profile

because the country can no longer rely only on non-renewable resources and good export

conditions, which are unsustainable (Sundaram, 2003). The ETP contributes to the realisation of

Vision 2020 via the SRIs and NikeAs. According to Vision 2020, Malaysia ought to reach

developed status by 2020.

With the goal of reducing economic gaps between Malaysia's many ethnic groups and

regions, the ETP carries on the work of the New Economic Policy (1970–1990), the National

Development Policy (1991–2000), the National Vision Policy (2001–2010), and the New

Economic Model (2010 onwards). Because they show that Barisan Nasional is attempting to

grow the economy, these policies aid in the legitimacy of the governing political party

(Rajandran, 2013). In Malaysian politics, the economy is a major topic. Barisan Nasional

16
regularly makes promises about economic development (for example, in its election

manifestos), and the ETP is merely the most recent example of this. As this will benefit Barisan

Nasional, the government, and the prime minister in particular, must make sure that people are

aware of ETP’s commitment to economic development (Thaib, 2015)

2.6.3 Initiative

Datuk Seri Najib Razak's administration undertook various initiatives to implement strategies

aimed at addressing economic challenges and promoting growth. Most of the initiatives carried

out are directly to the people, for example Bantuan Rakyat 1 Malaysia (BR1M). The

effectiveness and results of these initiatives differed, despite the fact that they were all intended

to complement the overall strategies. While some programmes were successful in fostering

economic growth, others encountered difficulties and backlash, especially in light of scandals

such as the 1MDB affair. The implementation and impact of these policies have been the topic

of continuous scrutiny and debate due to the complex political and economic landscape

throughout Najib's government.

The 1Malaysia People's Aid (BR1M) programme was launched by the administration to

give low-income people targeted cash transfers. This programme was a direct response to the

pressing financial difficulties that disadvantaged groups of people were facing.

The primary goal of this aid is to help with the annual purchase of staples including rice,

sugar, flour, and cooking oil. The government of Malaysia allotted a total of RM 2.6 billion in the

2012 Malaysian Budget, with each household earning less than RM 3,000 receiving a one-time

payment of RM 500. Five and a half million households have benefited from the BR1M first

phase payment (Rohana Kamaruddin, 2013).

17
2.6.4 International Engagement

To address economic issues and improve Malaysia's standing in the international economy,

Datuk Seri Najib Razak participated in a few foreign projects and partnerships while serving as

prime minister of Malaysia. Najib took an active involvement in global summits and forums,

including the World Economic Forum (WEF) and the G20 meetings. Through conversations with

world leaders on these forums, Malaysia was able to talk about economic issues, exchange

ideas, and investigate cooperative solutions.

For instance, in 2013 at Switzerland, Datuk Seri Najib used that year’s WEF, themed

"Resilient Dynamism" as a platform to showcase Malaysia’s vibrant economic growth and

opportunities despite the global economic uncertainty in recent years (Bernama, 2013).

2.7 Tan Sri Dato' (Dr) Haji Muhyiddin bin Haji Muhammad Yassin

2.7.1 Challenge

During the reign of Tan Sri Muhyiddin Yassin, the country was experiencing a very serious

pandemic which was the Covid-19 pandemic. This situation forces people to lock themselves in

their homes and only go out if necessary. This situation also continued for quite some time until

it caused some industries to collapse and had to throw out some workers. Some people are

complaining because the employer cannot pay their wages. This urges the government to take

immediate action to deal with the economic problems experienced by the country.

Besides, Tan Sri Muhyiddin Yassin's administration also faced political challenges,

including shifts in political alliances and uncertainties about the government's stability. Political

instability can have implications for economic policy continuity and decision-making. Investors

do not dare to invest in a country that does not have stable politics. This is because a politically

unstable country will not guarantee that their investment will be successful. Since the last 5

years, Malaysia has changed the Prime Minister 4 times.

18
 Other than that, the inflation rate was also at a high level. Economic challenges, coupled

with changes in global commodity prices, could contribute to inflationary pressures. Managing

inflation and ensuring the affordability of essential goods and services for the population

became important concerns. The MCO of the COVID-19 epidemic had a negative impact on

Malaysia's inflation rate. Malaysia saw an inflation rate of 0.9% in the first quarter of 2020 and a

2.6% inflation rate in the second. In the first quarter of 2019, the inflation rate was -0.3% in

comparison to 2019. In contrast, the inflation rate for the second quarter of 2019 is 0.7% (Saleh,

2020).

Moreover, trade and export challenges are also one of the challenges that faced by Tan

Sri Muhyiddin Yassin. Malaysia's exports and international trade might have been impacted by

disruptions and uncertainties in global trade. Managing difficulties in the international market

and guaranteeing Malaysia's trade sector's durability became crucial factors. The demand for

exports can be impacted by global market swings and economic concerns. A decrease in the

demand for a nation's goods and services can be caused by a number of factors, including

trade disputes, geopolitical tensions, and economic recessions in important trading partners.

Incidents such as the COVID-19 pandemic have the potential to upset international supply

chains, lower consumer demand, and affect a nation's capacity to import and export products

and services. Health-related problems might result in mobility constraints, which can cause

logistical and operational problems for companies that trade internationally.

2.7.2 Strategy

Being Prime Minister during a pandemic era is certainly not easy. Therefore, Tan Sri Muhyiddin

Yassin has taken several strategic steps in dealing with the problem, especially the problem of

poverty among the people.

19
 Implementing into practice comprehensive and focused initiatives to combat the COVID-

19 pandemic's economic impact. Financial aid, stimulus packages, and initiatives to assist

impacted companies and industries may be examples of this. For example, Pelan Jana Semula

Ekonomi Negara (PENJANA), Pakej Rangsangan Ekonomi Prihatin Rakyat (Prihatin), dan

Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH). All these plans are aimed at

restoring the country's economy which collapsed because of the Covid-19 pandemic. Tan Sri

Muhyiddin Yassin has sat down to discuss with his cabinet to issue this plan. We can also see

the 2021 budget focusing more on the recovery of the country after the post-pandemic. The

government intends to use RM69 billion for development, RM17 billion for the COVID-19 Fund,

and RM236.5 billion for running expenses out of the total spending. The remaining RM2 billion

would go towards contingency savings.

2.7.3 Initiative

In order to succeed in all these strategies, several initiatives have been carried out. These

initiatives are efforts from the Perikatan Nasional government under the government of Tan Sri

Muhyiddin Yassin. The welfare of the people must be prioritized especially in the era of the

Covid-19 pandemic where the people are burdened with economic recession.

The Malaysian government has provided Pakej Rangsangan Ekonomi Prihatin Rakyat

(Prihatin) worth RM250 billion to help Malaysians affected by the Covid-19 pandemic. He

clarified that of the disclosed sum, nearly RM128 billion was allocated to safeguard public

welfare, RM100 billion to assist small and medium-sized enterprises (SMEs), and RM2 billion to

bolster the country's economy (Alyasa, 2020). This package also increases the capacity of the

Malaysian Ministry of Health (KKM), the government will use an extra RM1 billion to fund the

acquisition of tools and services to combat COVID-19, including hiring commercial health

services to provide medical expertise. To lessen the financial strain on citizens and company

20
owners as they navigate this challenging economic climate, the government would directly inject

RM25 billion.

2.7.4 International Engagement

During his time serving as Malaysia's prime minister, Tan Sri Muhyiddin Yassin carried out

several diplomatic missions and foreign engagements to raise Malaysia's profile internationally

and promote international collaboration. One of it is ASEAN relations, joining the Association of

Southeast Asian Nations (ASEAN), Malaysia was an active participant in regional efforts and

discussion under Tan Sri Muhyiddin's administration. The objectives of this engagement were to

advance diplomatic cooperation, economic cooperation, and regional stability within the ASEAN

community. Besides, Tan Sri Muhyiddin Yassin most likely participated in economic diplomacy

to strengthen economic ties with other countries and market Malaysia as a desirable location for

foreign direct investment (FDI). His foreign involvement policy would have included initiatives to

increase commerce, draw in investments, and fortify economic collaboration.

2.8 Dato' Sri Ismail Sabri bin Yaakob

2.8.1 Challenge

Everyone in the world is affected by COVID-19 when it comes to poverty rates. The COVID-19

outbreak has made more people in the country poor. Based on the Estimated Household

Income and Poverty Incidence Report 2020, the number of poor households rose from 5.6% in

2019 to 8.4% in 2020, which is about 639,800 households. After the COVID-19 pandemic, a lot

of M40 families moved to the B40 income cap group. The Estimated Household Income and

Poverty Incidence Report 2020 shows that about 20% of families, or 600,000 M40 households,

went to the B40 income limit group. The King, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah

Shah, urged the government that they needed to use a variety of methods to get rid of extreme

poverty by 2025.

21
2.8.2 Strategy

Getting rid of extreme poverty is important to make sure that everyone has a better standard of

living, no matter their gender, race, or region, and to lower inequality between people. The goal

is to have no extreme poverty by 2025. The idea of "Keluarga Malaysia" lays out three main

pillars and twenty enrichment values that the new government led by Prime Minister Datuk Seri

Ismail Sabri Yaakob will use to help the country recover from the problems and effects of the

COVID-19 pandemic. Inclusion, togetherness, and gratitude are the three main points that were

made.

This way of talking about things is used to show how honest the relationships between

people in the country are, which are based on the idea that everyone should get a good

education. The idea of "Keluarga Malaysia" will help the country get out of its health and

economic crises, which will further ensure the safety and well-being of every person who lives in

this blessed country. (MKN, 2022)

2.8.3 Initiative

RM77.7 billion that is projected to be spent on subsidies for spending in 2022 is the highest

amount that any government has ever spent on subsidies. This consumption subsidy plan aims

to reduce the cost of living for individuals by providing subsidies for fuel, diesel and liquid

petroleum gas, cooking oil, flour and electricity. In addition to the subsidy bill (RM9.7

billion). RM11.7 billion in Social Welfare Assistance, which includes "Keluarga Malaysia"

Assistance (BKM). The government wants to make it known to the public that the entire support

that covers petrol, diesel, water, and energy is also of great assistance to the B40, M40, and

T20 groups. (Bernama, ASTRO AWANI, 2022)

2.8.4 International Engagement

Datuk Seri Ismail Sabri Yaakob, the Prime Minister, met with top executives from big American

businesses. Microsoft, Google, Tesla, Boeing, IBM, Texas Instruments, GE Aviation, Conoco

22
Phillips, Ford, National Instruments, Infineon, Micron, and Insulet are some of the companies

that are part of it.A Memorandum of Understanding was signed between the Malaysian Human

Resource Development Corporation (HRD Corp) and three American companies: Accenture

PLC, World Innovation, Technology and Services Alliance (WITSA), and Human Resource

Certification Institute (HRCI).

In addition, the Prime Minister witnessed MyDigital Corporation Malaysia hand over a

Letter of Intent (LoI) to four American companies: Cisco Systems Inc., Intel Corporation,

Microsoft Corporation, and Micron Technology Inc. He also saw the Malaysian Investment

Development Authority (MIDA).

2.9 Dato' Seri Anwar Ibrahim

2.9.1 Challenge

The nation is currently at a crossroads where it must either adopt islah (changes) or continue

with the current policies and practices. These modifications have to incorporate a structure for

enhancing governance, altering policies, and implementing fresh techniques and strategies in

response to contemporary needs. Although it takes an unusual method to assessing the Twelfth

Plan's implementation, the Mid-Term Review of the Twelfth Malaysia Plan (henceforth referred

to as MTR of the Twelfth Plan) covers new policies and ways to address contemporary

concerns. The goal of the Twelfth Plan, which was introduced in 2021, is to be "Prosperous,

Inclusive, Sustainable." The MTR of the Twelfth Plan, meanwhile, strives for "Malaysia

MADANI: Sustainable, Prosperous and High-Income. It is only appropriate to note that the

COVID-19 pandemic's effects and political unrest since the start of 2020 have brought to light

the system's vulnerability and governance's shortcomings. The country was also depressing

during this time since the Movement Control Order (MCO) and emergency orders that were put

into place between 2020 and 2021 caused the rakyat to lose their jobs, the average rate of

23
economic growth to slow, and the number of foreign investors to decline. The COVID-19 virus

has claimed 37,167 deaths in total too far (ECONOMY, 2023).

2.9.2 Strategy

The first strategy by Malaysia’s Prime Minister Malaysia Dato Sri Anwar bin Ibrahim is according

to him a total of RM1.5 billion has been approved to mobilize programs and initiatives capable of

generating revenue for target groups in order to ensure the well-being of the people. He stated

that the government has pledged to end extreme poverty this year, regardless of ethnicity or

location. "Immediate steps will be taken to eradicate poverty by empowering vulnerable groups

and strengthening social protection." "As of August 15, 2023, the government is still struggling

to lift nearly 114,000 hardcore poor families out of poverty," he stated today at the Dewan

Rakyat when tabling the 12th Malaysia Plan (12MP) Mid-Term Review (MTR). The prime

minister announced the commencement of the People's Income Initiative (IPR), a two-pronged

program that aims to address economic structural difficulties and household income. Anwar

stated that the government is putting in place a number of measures and programs aimed at

eradicating poverty, including as the Orang Asli Economic Development Program, the People's

Wellbeing Development Scheme for rural inhabitants, and the Urban Community Economic

Empowerment Programme. To raise the standard of living in the area, the government also runs

the Special Programme for Sarawak Bumiputera and the Special Programme for Sabah

Natives. "Several efforts, as outlined in the Malaysian Indian Blueprint and continued in

Kampung Baru Cina, will be extended to ethnic Chinese and Indians with low incomes. In order

to do this, the Malaysian Indian Transformation Unit (MITRA) will have more authority to provide

more coordinated support for the socioeconomic development of the Indian population,

according to Anwar. He states that, in spite of financial constraints, the government's current

priorities are to "raise the ceiling" by modernizing the nation's industrial and economic structure

and "raise the floor" by giving the less fortunate access to a strong social network. He stated

24
that the Social Protection Reform, which is being researched to increase its efficacy and

efficiency, will also be used by the government to fortify the social protection system

(BERNAMA, 2023).

2.9.3 Initiative

The initiative by Malaysia’s Prime Minister Dato Sri Anwar bin Ibrahim, on January 19, 2023,

Malaysia's 10th Prime Minister, YAB Dato' Seri Anwar Ibrahim, unveiled the MADANI policy

framework, "Membangun Negara MADANI: Visi dan Kerangka Dasar Reformasi.” The Malaysia

Madani framework outlines poverty eradication as one of the three primary strategies of the

unity government, demonstrating its unwavering commitment to eradicating poverty. The other

two strategies of the Malaysia Madani framework are generating the economy and restructuring

and restoring the economy. The framework is firmly anchored in six core values: kemampanan

(sustainability), kesejahteraan (prosperity), daya cipta (innovation), hormat (respect), keyakinan

(trust), and ihsan. What are the methods the government can use to lessen the burden of the

impoverished in accordance with the ideas presented in the Malaysia Madani concept in order

to combat poverty?

Firstly, addressing hardcore poverty, Dr. Muhammad Iqmal Hisham Kamaruddin, a

senior lecturer at Universiti Sains Islam Malaysia's Faculty of Economics and Muamalat, stated

that the government can come up with fresh ideas for short- or long-term strategies to end

poverty. According to him, the Department of Social Welfare of the government currently

provides various forms of short-term aid to underprivileged groups, including senior citizens and

people with disabilities. However, new aid programs that are suitable for these groups' needs,

the current state of affairs, and the country's financial resources must be developed in

accordance with the Malaysia Madani framework. Additionally, he pushed the government to

adopt long-term plans that would incorporate the development of human capital. "Human capital

development must be put into practice in order to ensure that the impoverished and extremely

25
poor communities are psychologically and physically prepared for a shift in their standard of

living. This will involve teaching them financial management and giving them training based on

skills; they can use the knowledge they acquire to raise their standard of existence," he said to

Bernama. According to him, this vision aligns with the opinions of Economy Minister Mohd Rafizi

Ramli, who was recently reported as stating that Malaysia's sustainable development goals,

knowledge-based economy, and national technological development should be the main

priorities in the country's aspirations to become a high-income nation. "Local communities need

to support vulnerable groups when they receive the skills and assistance needed to launch their

own enterprises or enter the workforce. This involves giving people work that fit their skill set,

utilizing their services, or purchasing their goods. “In order to support the home economy and

assist in releasing the impoverished from the grip of poverty, he said the government must also

devise plans to leverage the power of all parties involved. The government has to provide

additional incentives to support the expansion of local enterprises, particularly those engaged in

the production of food-related goods and services for the domestic market, in order to

strengthen the resilience of the domestic economy and make it less susceptible to foreign

economic risks. "This can reduce our nation's dependence on food imports," he stated (TIMES,

2023).

2.9.4 International Engagement

Within the context of global development, Malaysia has also succeeded in meeting and

surpassing a large number of the Millennium Development Goals (MDG). The Eleventh

Malaysia Plan has also integrated and mainstreamed the 2030 global development agenda of

Sustainable Development Goals (SDGs) to make it relevant and effective execution at national,

sub-national and local level (Idris M. b., 2017).

26
3.0 CONCLUSION

In conclusion, Malaysia has made significant strides towards achieving the United Nations'

Sustainable Development Goals (SDGs). The nation's commitment to these goals is evident in

various policy initiatives, from poverty reduction to environmental conservation and inclusive

economic growth. Through concerted efforts, Malaysia has managed to improve access to

education, healthcare, and clean water, thus enhancing the well-being of its citizens.

However, challenges persist, particularly in the areas of reducing inequality, addressing

environmental sustainability, and fostering inclusive economic growth. These challenges require

continued commitment and collaborative action from the government, private sector, civil

society, and the international community.

It is imperative that Malaysia maintains its dedication to the SDGs, integrating them

further into national policy frameworks and strategies. By doing so, the country can ensure a

more sustainable and equitable future for all its citizens, leaving no one behind. Achieving the

SDGs is not only a moral obligation but also essential for the long-term prosperity of Malaysia

and the well-being of its people.

As we move forward, it is crucial for Malaysia to monitor progress, adapt policies as

needed, and engage in partnerships at both national and global levels to create a more

sustainable and equitable world. By staying committed to the SDGs, Malaysia can serve as an

inspiring example for other nations and contribute significantly to the global effort to create a

better future for all.

27
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