Identification of Malaysia’s Economic System
Malaysia is a democratic country with excellent economic system. We are one the leading country in economic terms and being an example for the economy system we are using. In Malaysia, we are into mixed economy system. This economy system is the leading type of economic system that is used in most of the countries such as United States. Mixed economy system includes a mixture of capitalism and socialism. It combines private economic freedom, centralized economic planning and government regulation. Government plays major role in economic growth as well as distribution of wealth. For example, our government collects tax and provides subsidies at the same time for the public. The success of mixed economic system started in Malaysia with the initiative of Central Government with the creation of National Development Plan. In Malaysia, the planning revolves around the Economic Planning Unit and other central agencies while the Malaysia’s experience in monitoring the implementation of national developments programmes and projects have contributed towards the success of this national socioeconomic development using mixed economic system. Development goals in 1950s have modernized our traditional sectors. Importance was given to infrastructural development and agricultural diversification in the 1960s. In the first two decades since independence, social services and infrastructural network development were the main points for the socio-economic development programme. Three main factors responsible for Malaysia’s success mixed economy are: a) sound and sustained socio-economic development programmes b) a committed and modernized bureaucracy, responsive to the political leadership and peoples’ needs c) a system of planning, monitoring and evaluation that ensures implementation always remain on track.
Evaluation of Economic System In Malaysia
The economic structure of a nation is a very important factor in the progress of the country. In mixed economy, both the government and the private sector jointly control the economic structure. There are numerous advantages of a mixed economy. First and foremost, mixed economy system will provide fair competition. The presence of private enterprise ensures that there is fair competition in the market and the quality of products and services are not compromised.
Apart from that, market prices are well regulated. The government with its regulatory bodies ensure that the market price does not go beyond its actual price. Additional to that, there will be optimum utilization of national resources, In a mixed economy, the resources are utilized efficiently as both government and private enterprises are utilizing them. The combined efforts lead to rapid economic development. The economic resources of the economy are used efficiently. Wastages of resources are minimised.
Most importantly, people are given more power. The public have more say when it comes to the quality and the prices of products and services.
Mixed economy also will not allow monopoly at all. Barring a few sectors, a mixed economy does not allow any monopoly as both government and private enterprises enter every sector for business. Right to own property is granted. Law of inheritance is also applied, so certain members of society grow richer and richer. Public sector in the economy tries to provide economic facility to the general masses. It reduces inequality of income. The planning commission of the country makes policies for the development of every region of the economy. The government tries to develop all regions and every section of population. Apart from that, there is freedom to own private property. Individuals are free to acquire property and retain in their own names, so the initiative to work more and earn more is there. It helps in the rapid development of the economy in the field of agriculture, industry and other services. Mixed economy will...
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