Entrepreneural Development In Malaysia

An interesting feature of Malaysian economic history has something to relate to the current context of entrepreneurship in Malaysia. Entrepreneurship existed in Malaysia ever since the state of Malacca started interacting with foreign traders. However, when the British colonized the Malay Peninsular, they changed the structure of the society and practiced the 'divide and rule' system in which the Malays dominated the agricultural sector; the Chinese focused on trades, becoming shopkeepers and petty traders in the towns and Indians worked in the rubber plantations.

After independence, the Malaysian government realized the importance of entrepreneurship to individuals, society and the country and its contributions to the nation's prosperity. Since then, the government has been focusing on the field of entrepreneurship to this day. The New Economic Policy (NEP) (1971-1990), the National Development Policy (NDP) (1990-2000) and Vision 2020 all encourage and support entrepreneurial development in Malaysia. Moreover, in 1995, the government established the Ministry of Entrepreneurship Development, a specific body to manage and promote the growth of entrepreneurship in Malaysia.

The word 'entrepreneur' was widely used in Malaysia after the implementation of NEP in 1971. As the Malaysian economy transforms from being manufacturing-based to knowledge-based, the kind of businesses entrepreneurs, as well. This gives rise to the need for closer consultation between the private sector, entrepreneurs and the government and its agencies.



References: Entrepreneurship. Third Edition. Sarimah Hanim Aman Shah.