The Malaysia Incorporated Policy is a strategy for the attainment of a competitive, dynamic, robust and resilient economy. It stresses the need to define, develop and operationalize a new pattern of behaviour, thinking and interaction with regard to the public private sector relationship. The identification of the critical approaches within the public-private sector productive partnership will ensure the sustenance of the nation's comparative advantages in an increasingly competitive global economic environment. The pursuit to improve Malaysia's competitive advantages to match competing nations in the international marketplace must necessarily be the strategic intention of the Malaysia Incorporated Policy.
The concept of Malaysia Incorporated was propounded by the Honourable Prime Minister in 1983 as one of the fundamental bases of national development. While the concept has been accepted into the framework for development, its operational reality on the other hand is less evident, and indeed little understood by-our society.
The Honourable Prime Minister has broadly defined the concept of Malaysia Incorporated to mean a system of cooperation between the Government and the private sector towards the creation of a Malaysian company to achieve progress and where the profits accruing will be shared by all. The government is a shareholder in this company, and if the company progresses and makes profit, a portion will accrue to the government and subsequently to the people as a whole. The Honourable Prime Minister has on various occasions underlined the relationship between the respective roles of the public and private sectors under this concept. In this symbiotic relationship, the public sector is expected to function efficiently to support the efforts of the private sector as the main engine of growth of the national economy.
Unlike other policies for national development, Malaysia Incorporated is behavioural in nature, encompassing shared values and a sense of common purpose. Consequently the policy must be viewed within the spectrum of the "software" of societal relationships. Its manifestations in this sense are less tangible and visible, thus rendering it more difficult to quantify or measure.
Nevertheless, the relationship envisaged represents an ethos within a society which transcends the dichotomies distinguishing the domains of the public and private sectors. In its ideal state, the polarities between the public and private sectors should not exist. There is a synergy between these two sectors which not only reinforces their respective roles but is also mutually supportive.
The main objective of Malaysia Incorporated is that the private and the government should work closely together in a manner where both of these sectors will gain benefits from this cooperation. This is also to hasten Malaysia’s development as well as bringing up our country’s image.
• Deregulation of cumbersome bureaucratic rules and regulations; • Improving the delivery system;
• Institutionalizing the consultative machinery between the private and public sectors; • Establishing smart partnership programmes in nation building efforts between the private and public sectors; and • Pursuing privatization.
The fundamental basis of this approach is that successful national development requires the public and private sectors to adhere to the perception of the nation as a corporate business entity, jointly owned by both sectors and working in tandem in pursuit of a common mission. The resulting benefit of this cooperation is higher growth and expansion of the private sector leading to spin-offs in economic investment, expansion and growth, as well as the generation of employment opportunities. The increase in government revenues could then enable the government to finance not only socio-economic development but also the public administrative machinery. This...