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The New Economic Model for Malaysia

Contents. Why Malaysia needs a new economic modelThe New Economic Model (NEM)Challenges in achieving the NEM. 2. e. 3. We Have Been in the Middle Income Trap for Quite Some Time . 6. 8. (USD thousand). 4. 22. 20. 2. 18. 16. 14. 12. 10. 0. Chile. Argentina. Thailand. Slovakia. Poland. Indonesia.

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The New Economic Model for Malaysia

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    1. The New Economic Model for Malaysia Dato’ Dr Mahani Zainal Abidin Institute of Strategic and International Studies, Malaysia 12 November 2010

    2. Contents Why Malaysia needs a new economic model The New Economic Model (NEM) Challenges in achieving the NEM

    3. We Have Been in the Middle Income Trap for Quite Some Time

    4. Post Asian Crisis, Growth Rate Has Been Mediocre

    7. Why Malaysia needs a new economic model The New Economic Model (NEM) Challenges in achieving the NEM

    8. The Prime Minister’s Vision - Transforming Malaysia

    17. Why Malaysia needs a new economic model The New Economic Model (NEM) Challenges in achieving the NEM

    19. Investment Needs to Pick Up and Drive Growth

    24. Both graphs are from the Economic Monitor The first graph shows that the income gap between urban and rural areas has widened. In the 1970s and 1980s, there was a narrowing of the income gap between urban and rural areas, but this gap has increased again in the last two decades. 2nd graph shows the proportion of students scoring less than 400 on the TIMSS achievement test. Students from rural schools perform significantly worse on tests than their peers in urban areas. Disparities within states between rural and urban areas are most prevalent in poorer states like Sabah, Kelantan, and Melaka. This is potentially as a result of less favorable conditions in rural schools, and highlights the inequality of basic education between rural and urban areas.Both graphs are from the Economic Monitor The first graph shows that the income gap between urban and rural areas has widened. In the 1970s and 1980s, there was a narrowing of the income gap between urban and rural areas, but this gap has increased again in the last two decades. 2nd graph shows the proportion of students scoring less than 400 on the TIMSS achievement test. Students from rural schools perform significantly worse on tests than their peers in urban areas. Disparities within states between rural and urban areas are most prevalent in poorer states like Sabah, Kelantan, and Melaka. This is potentially as a result of less favorable conditions in rural schools, and highlights the inequality of basic education between rural and urban areas.

    26. Thank you

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