Thursday, October 25, 2012

The First Malaysia Plan 1966-1970

In the words of the Hon'ble Prime Minister "the key to progress and prosperity lies not in satisfaction with what we have already achieved but in a firm determination to make even greater efforts in the future." The First Malaysia Plan therefore represents a major step forward in meeting the main socio-economic development problems facing Malaysia. These are the heavy dependence of the economy on two export products, rubber and tin, a high rate of population growth of about 3% per annum, an uneven distribution income with wide disparities between urban and rural areas and a relatively low level of human resource development.

The strategy of development adopted for the Plan will therefore emphasize the diversification of production both for import substitution and export possibilities and investments in human capital with emphasis on technical and vocational training so as to increase overall productivity especially in the rural sector. This will sustain a steady increase in the levels of income, consumption and welfare of each individual, as well as to provide employment opportunities for the growing labour force. Diversification of production both agricultural and industrial will be stimulated in order to reduce the nation's dependence on rubber and tin. New lands will be opened and developed to provide employment for the landless and those with uneconomic holdings. To lay the groundwork for less rapid population growth, an effective programme for family planning will also be instituted.

To attain these objectives, the Plan calls for a level of investment of the order of $10,500 million during 1966-1970, Of this $4,550 million will be expended in the public sector and $5,950 million in the private sector. Of the $4,550 million, about $3,810 million or 84% will be expended on economic and social development and $740 million or 16% on defence and internal security. In formulating the allocation of public investment expenditure the main emphasis is given to projects which will directly increase productivity. These include land development schemes, irrigation and drainage projects, extended programmes of agricultural research, agricultural extension programmes and rubber replanting programmes. In the field of industrial development the programmes include development of more industrial estates and establishment of industrial research activities.

In the Borneo States, high priority is given to the development of infrastructure facilities such as power, water supplies, transport and communications. Out of the total $4,550 million for public development expenditure $464 million will be spent in Sarawak and $373 million in Sabah.

A major share of the responsibility for attaining the Plan's objectives will lie with the private sector. The government will continue to offer the necessary incentives and maintain a favourable investment climate for co-ordinated and purposeful assistance to private entrepreneurs. The overall aim is to induce the level of private investment to rise from an annual level of about $1,010 million in 1965 to about $1,400 million by 1970.

The success of the Plan will largely depend on the availability of the financial resources that can be obtained both internally and from external sources. About $1,900 million will be required from external sources in the form of market and project loans and grant assistance.

The Deputy Prime Minister Tun Abdul Razak when introducing the Plan in Parliament on 15th December, 1965, said, "If we succeed, and succeed we must, we will have taken a major step forward towards the creation of a more united, secure and prosperous Malaysia".

"And succeed we must" indicates Malaysia's determination to implement the Plan successfully.

Technical details
Five commemorative postage stamps each of the 15 cents denomination will be issued on the 1st December, 1966 to mark the First Malaysia Development Plan. Details of the stamps are as follows:

Sizes: Rectangular with the following dimensions perforation to perforation in sheets of 100:
Horizontal - 36 mm
Vertical - 25 mm

Printing Process: Photogravure

Design: The five stamps depict the following themes:
(a) Agriculture

(b) Rural Health

(c) Communications

(d) Education

(e) Irrigation

Colours: All the five stamps are in multi-colour.

Paper: Unwatermarked paper

Printed By: The Government Printing Bureau of Japan

Artist: Enche Ng Peng Nam

Period of Sale: Three months from the date of issue or until stocks are exhausted whichever is earlier.

First Day Cover

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