ABSTRACT

In the early five-year development plans, initiated after Malaysia’s independence, the emphasis was on rural development and agriculture. But as the economy matures and development of the nation begins to hinge upon the dictates of the world economy and the global marketplace, some choices have to be made. The imperative for Malaysia in the 1990s is to industrialize in order to become an advanced, affluent nation. The major challenge is to balance development between urban and rural areas, between industry and agricultural activities. The choices are complex and not mutually exclusive. But clearly, Malaysia’s agricultural sector must be fully strengthened, for it is one of the basic pillars of the national economy; after all, 40 percent of Malaysia’s GNP comes from this sector. Equally clear, Malaysia must industrialize.