Challenges of Globalization
Malaysia and the Challenges of Globalization:
An Economic Perspective
Mansor Md. Isa
Faculty of Business and Accountancy
University of Malaya
50603 Kuala Lumpur, Malaysia mansor@um.edu.my Paper presented at the “10th Biennial Tun Abdul Razak Conference”, Multicultural Center, Ohio University, Athens, Ohio, USA, 11-12 May 2007.
Malaysia and the Challenges of Globalization:
An Economic Perspective
Mansor Md. Isa, University of Malaya
1. Introduction
One of the main focus of the third Malaysia’s Outline Perspective Plan that was termed as the National Vision Policy that runs over a 10-year period 2001-2010 was stated as “enhancing competitiveness to meet the challenges of globalization and liberalization”. In fact similar assertion was already made in the previous 10-year plan, the National Development Policy, 1991-2000. It was towards the end of the eighties and into the nineties that the Malaysian government gave explicit recognition to the need of our industries to increase its competitiveness to face the world of globalization. However, enhancing competitiveness is just one of many responses towards globalization which itself has many facets of interpretations. Globalization may be defined as a process of promoting greater movement of people, goods, capital and ideas due to increase economic integration especially in the form of trade and investments as manifested in efforts by many countries to remove trade and travel barriers. In many respects, globalization is not a totally a new phenomenon as people have been interacting economically, socially and politically, with each other from great distances for centuries. What is really new is that the pace of this interaction has accelerated dramatically in the last few decades, as countries have opened their economies to trade and capital through the implementation of free-market economic systems and the reduction in barriers to international trade. The term globalization in the
An Economic Perspective
Mansor Md. Isa
Faculty of Business and Accountancy
University of Malaya
50603 Kuala Lumpur, Malaysia mansor@um.edu.my Paper presented at the “10th Biennial Tun Abdul Razak Conference”, Multicultural Center, Ohio University, Athens, Ohio, USA, 11-12 May 2007.
Malaysia and the Challenges of Globalization:
An Economic Perspective
Mansor Md. Isa, University of Malaya
1. Introduction
One of the main focus of the third Malaysia’s Outline Perspective Plan that was termed as the National Vision Policy that runs over a 10-year period 2001-2010 was stated as “enhancing competitiveness to meet the challenges of globalization and liberalization”. In fact similar assertion was already made in the previous 10-year plan, the National Development Policy, 1991-2000. It was towards the end of the eighties and into the nineties that the Malaysian government gave explicit recognition to the need of our industries to increase its competitiveness to face the world of globalization. However, enhancing competitiveness is just one of many responses towards globalization which itself has many facets of interpretations. Globalization may be defined as a process of promoting greater movement of people, goods, capital and ideas due to increase economic integration especially in the form of trade and investments as manifested in efforts by many countries to remove trade and travel barriers. In many respects, globalization is not a totally a new phenomenon as people have been interacting economically, socially and politically, with each other from great distances for centuries. What is really new is that the pace of this interaction has accelerated dramatically in the last few decades, as countries have opened their economies to trade and capital through the implementation of free-market economic systems and the reduction in barriers to international trade. The term globalization in the
References: Daniel Griswold, 2000, “The Blessings and Challenges of Globalization” at www.freetrade.org.com. Mahathir Mohamad. 2002. Globalization and the New Realities. Subang Jaya: Pelanduk Publications (M) Sdn. Berhad. Mahathir Mohamad, 2000, “The Malaysian Currency Crisis: How and Why It Happened”, Pelanduk. Malaysia, Government of. 2003. Economic Report, 2003-2004. Ministry of Finance, Percetakan Nasional Malaysia Berhad: Kuala Lumpur. M. Suppermaniam, 1999, “Globalization and economic liberalization” Paper presented at Human Resource Workshop, Organized by Public Service Department Malaysia in cooperation with the Commonwealth Secretariat, Langkawi, 12-14 Nov 1999. Todaro, M.P. 1980. Economics for a Developing World, Hong Kong: Longman. World Investment Report, 2003. FDI Policies for Development: National and International Perspectives. United Nations Conference on Trade and Development, United Nations. New York. ----------------------- [1] Bank Negara Malaysia Annual Report, 2003. [2] Ministry of Education Malaysia (2001). [3] World Bank (2002)