National Development Policy

The National Development Policy is introduced by Mahathir Mohamad, the then Prime Minister of Malaysia intended to enhance the welfare of the Malaysia comparing to the world. The National Development Policy replaced the Malaysian New Economic Policy in 1990 but continued to pursue most of NEP policies of affirmative action for bumiputera. The Malay share of the economy, though substantially larger, was not near the 30% target according to government figures. In its review of the NEP, the government found that although income inequality had been reduced, some important targets related to overall Malay corporate ownership had not been met. Both Mahathir and the Tunku had expressed concern that the Malays remained too reliant on the Chinese economically.

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