Entrepreneurship in Malaysian Higher Education

Introduction to Entrepreneurship in Malaysia

• The book, "Introduction to Entrepreneurship," by Sodri Ariffin and Syahira Hamidon, covers entrepreneurship development in Malaysia.
• The text focuses on the historical and policy perspectives of entrepreneurial development in Malaysia.

Chapter 2 Objectives

• The chapter aims to introduce students to:
  • The development of entrepreneurship in Malaysia.
  • Various government supports and incentives for entrepreneurial activities.
  • Malaysia's economic and entrepreneurship development history.

Learning Outcomes

• By the end of the chapter, students should be able to:
  • Understand the historical perspective of entrepreneurial development in Malaysia.
  • Analyze past and present Malaysian government policy on entrepreneurial development.

List of Topics

• Malaysian Progress after Independence
• The New Economic Policy (NEP)
• The National Development Plan (NDP)
• The National Vision Policy (NVP)
• The New Economic Model (NEM)
• Entrepreneurship in Higher Education

Introduction

• Understanding the historical context and rationale behind government policies related to entrepreneurship is crucial for understanding Malaysia's economic history and challenges.
• This understanding enables Malaysians to contribute to nation-building.

Malaysian Progress After Independence

• Malaysia gained independence from the British in 1957.
• Post-independence, while progress was made socially and economically, benefits were not evenly distributed across ethnic groups.
• Indigenous populations (Bumiputeras), including Malays, Kadazans, Ibans, faced economic disadvantages compared to the Chinese and Indian communities.
• The disparity in economic opportunity created dissatisfaction and mistrust amongst ethnic groups, culminating in the 1969 racial riots.

Malaysian Progress After Independence (continued)

• This led to the realization that economic issues needed urgent attention.
• Consequently, a severe social problem required government intervention.

The New Economic Policy (NEP)

• The NEP, introduced in 1971, aimed to address socio-economic imbalances, particularly poverty and racial disparities.
• The policy intended to correct economic imbalances within Malaysian society.
• One strategy was to eradicate poverty, raise income levels, and increase employment opportunities for all Malaysians, regardless of their ethnicity.

The New Economic Policy (NEP) (continued)

• Further, the policy sought to restructure Malaysian society in terms of race and wealth distribution.
• This included an effort to promote a more equitable distribution of economic resources and opportunities.
• The NEP also introduced Rukunegara, a national ideology aimed at fostering unity and common values transcending ethnic and socio-economic differences.

The New Economic Policy (NEP) (continued)

• Despite efforts to reduce inequality, some argue that NEP remains discriminatory towards non-Malay communities.
• However, Non-Malays, particularly the Chinese, benefited from poverty eradication initiatives in 1970.
• Data on income growth for these groups suggests a positive correlation with economic reform.

The National Development Plan (NDP)

• Introduced in 1991, the plan aimed to tackle poverty and improve employment opportunities.
• An emphasis on addressing hard-core poverty was a key aspect of this plan.
• The plan also focused on developing a more active Bumiputera Commercial and Industrial Community (BCIC).

The National Development Plan (NDP) (continued)

• Despite an increase in Bumiputera businesses, these remained smaller compared to non-Bumiputera businesses.
• Poverty and hard-core poverty levels decreased during the NDP period. This period saw significant improvements in employment participation of Bumiputeras, though they tended to be in lower-paying roles.

The National Vision Policy (NVP)

• Introduced in 2001, the NVP aimed to create greater harmony and inclusiveness among different ethnic groups.
• The policy also targeted to maximize the economic participation of all groups and strengthen national unity.

The National Vision Policy (NVP) (continued)

• The NVP sought to shift the country towards a more knowledge-based economy.
• This also involved addressing the needs of indigenous people in Sabah and Sarawak.
• Furthermore, the program tried to improve the financial situation of the lowest 30% income earners.

The New Economic Model (NEM)

• Launched in 2010, the NEM aimed to turn Malaysia into a high-income, inclusive, and sustainable developed nation by 2020.
• Its core principles included high income, inclusiveness, and sustainability.
• The model also envisioned a "market-led" economy with well-governance, regional integration, entrepreneurship, and innovation.

The New Economic Model (NEM) (continued)

• One of the most important objectives for NEM is support for the growth of entrepreneurship and SME (small and medium sized enterprises).
• Special programs, dedicated funds, incubation facilities, advisory services, and training are intended to foster this growth.

Entrepreneurship in Higher Education

• The Malaysian government aims to cultivate a more entrepreneurial mindset among young people.
• This is seen by the introduction of entrepreneurship programs and support for graduates in higher education.
• The Ministry of Higher Education (MOHE) has initiated initiatives that encourage graduates to be entrepreneurs.

Entrepreneurship in Higher Education (continued)

• The Malaysia Education Blueprint has been designed to help generate more entrepreneurial graduates.
• The ministry also implemented entrepreneurship action plans to enhance entrepreneurship.

Summary

• Malaysian government policy on entrepreneurship is multifaceted, employing different avenues including technology, education, and media.
• Policies aim to shape a more positive attitude toward business, promote growth, drive economic development, foster social good, and address economic uncertainties.