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Evolving Paradigms in Malaysia’s Regional Development Policy

Abstract:Beyond fostering economic growth, policymakers in Malaysia have had to grapple conceptually and operationally with income inequalities between different parts of the country. Beyond its complexity, this challenge has also changed over time — in line with Malaysia’s increasing wealth and urbanization, and as understandings of what regional development is and how it should be pursued have evolved. Through a detailed study of central government planning documents and budgetary allocations, this article will analyse the targets, priorities, and approaches of Malaysian regional development policy as well as its evolution. The country’s regional policy has evolved from an a-spatial understanding of economic growth, an exclusive focus on rural development, and a “donor-recipient” approach to minimizing internal income disparities towards a deeper understanding of the relationship between location and economic activity, a greater focus on urbanization and specific cities, and a “growth oriented” approach — where all regions are encouraged to leverage their comparative advantage. While some aspects of this evolution mirror those witnessed in other countries, others may be at odds with the country’s current governance structure.