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This article introduces a triangular model to study small and medium enterprises (SMEs) in Malaysia by examining three points, namely the state, economy and society. It discusses how and why the government has changed the nation's economic development strategies over time in response to the changing global economy. Within the context of these development strategies, the article describes how and explains why Chinese and Bumiputera (Malays and indigenous people in Malaysia) SMEs, and civil societies responded to these changes. It provides analysis on how these development strategies have shaped the development of Chinese and Bumiputera SMEs at different periods in the nation's economic development. It argues that prolonged pro-distributive policies have negative effects on the competitiveness of the nation's economy.

The Evolution of Malaysia's Development Strategies and the Global Economy:Responses from SMEs and Civil Societies