This report is the first of two documents by the National Economic Advisory Council (NEAC) on the New Economic Model (NEM). This report presents an overall framework of the NEM for transforming Malaysia from a middle income to an advanced nation by 2020. It was developed following a series of meetings of the NEAC beginning in 2009 and consultations with stakeholders in the business sector, government, labour unions, academia and others. It is intended that this report will serve as the basis for formulating the policy measures and the implementation plan in the final document that follows.
The independent work of the NEAC is an important component of the government’s 1Malaysia concept and programme. The NEM will define the Strategic Reform Initiatives (SRIs) that will propel Malaysia to the goals first set forth in Vision 2020. In the Budget 2010 Speech in October 2009, the Prime Minister and Minister of Finance, YAB Dato’ Sri Mohd. Najib Tun Abdul Razak, emphasised high-skilled human capital, efficient public services, a reinvigorated private sector and equal opportunity for all Malaysians. The NEAC embraces these themes in the NEM.
The National Economic Advisory Council (NEAC) was inaugurated by the Prime Minister of Malaysia with a specific mandate to formulate a New Economic Model (NEM) that will drive Malaysia’s transformation into an advanced nation by 2020.