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Economic crisis and policy response in Malaysia: the role of the new economic policy
Author(s) -
Doraisami Anita
Publication year - 2012
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/j.1467-8411.2012.01348.x
Subject(s) - recession , vulnerability (computing) , economic policy , independence (probability theory) , diversity (politics) , development economics , economics , crisis response , financial crisis , political science , macroeconomics , statistics , computer security , mathematics , computer science , law , public relations
Since achieving independence in 1957, Malaysia has experienced three recessions, each of which emanated from different sources of vulnerability. This paper analyses the policy response to economic crisis, in particular, the role of the New Economic Policy (NEP) which was introduced in 1970 and which remains in force today. It concludes that in spite of the diversity in the proximate causes of the crises, the policy response was consistent and sought to ensure that NEP objectives were paramount and the vested interests that had emerged as a result of the NEP and which were linked to the ruling party were preserved.