Summary of New Economic Model

Topics: Najib Tun Razak, Chua Soi Lek, Economics Pages: 4 (955 words) Published: October 1, 2010
Summary of New Economic Model

New Economic Model (NEM) was launched by our Prime Minister, Datuk Seri Najib Tun Razak on 30 March 2010. He was announce this model at Bursa Malaysia`s Invest Malaysia 2010 conference in Shangri-La Hotel Kuala Lumpur.

Under New Economic Model, there are three principal which are high income, sustainability and inclusiveness.

First principle which is high income means high wages. Economic growth not only from capital but also from greater productivity through skills and innovation, improved coordination, stronger branding and compliance with international standards and Intellectual Property Rights. Current per capita annual income US$7,000 equal to RM23, 100 and through this model government want to improve per capita annual income to US$15000 equal to RM49, 500.

Second principle which is commitment to sustainability not only in the country`s economic activities but also the impact of economic development on the country`s environment and precious natural resources.

The third principle which is inclusiveness was a key prerequisite for fostering a sense of belonging and engagement in the New Economic Model. No one was left out in contributing and sharing the creation of wealth of our country. All Malaysians must contributed and benefited from economic growth must be a fundamental element of any new economic approach.

Datuk Seri Najib Tun Razak said that to build a truly prosperous Malaysians must be open to change. The NEM will narrow the gap between those in the bottom 40% of socio-economic scale and others within a reasonable time frame. It is to help the lowest-income group to take advantage of the opportunities to secure better jobs, raise productivity and dabble in entrepreneurial ventures and other economic activities that will boost their income.

The benefit of a high income economy include higher purchasing power and better quality of life, encompassing among others, quality healthcare and social support....
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