Industrialisation - issues and policies

Abstract

In mid-1975, when the Malaysian economy, as indeed the world economy, was in the throes of a rather severe recession, the Government rushed through Parliament two important pieces of legislation - the Petroleum Development (Amendment) Act and the Industrial Coordination Act. The business community was naturally surprised and thrown-off balance, as the legislations were introduced without prior warning or consultations. There was the inevitable growing uneasiness among business circles as, in the minds of some of them at least, the enactment of these two pieces of legislation could only mean one thing - they would enable the Government to exercise an unwarranted degree of control and interference over what has traditionally been the private sector sphere of activities. They were quick to react, and representations were made to the Government not only on issues having a direct bearing on these two pieces of legislation, but also on the broader question of the role and place of the private sector, particularly the foreign investors, in the economic development of the country. Discussions and consultations between the Government and the various private sector organisations soon followed, at which the socio-economic policies of the Government were more clearly expounded, and assurances given that the Government would continue to maintain a frame-work which would enable the private sector to continue to thrive and prosper.