Changes

The government has taken an active role in guiding the nation's economic development. Malaysia's New Economic Policy (NEP), first established in 1971, sought to eradicate poverty and to enhance the economic standing of ethnic Malays and other indigenous peoples (collectively known as "bumiputeras"). One NEP goal was to expand the share of corporate equity owned by ethnic Malays. In June 1991, after the NEP expired, the government unveiled its National Development Policy, which contained many of the NEP's goals. In April 2001, the government released a new plan, the "National Vision Policy," to guide development over the period 2001-2010. The National Vision Policy targets education for budget increases and seeks to refocus the economy toward higher-technology production. The stated goal is for Malaysia to be a fully developed economy by 2020.

The government has taken an active role in guiding the nation's economic development. Malaysia's New Economic Policy (NEP), first established in 1971, sought to eradicate poverty and to enhance the economic standing of ethnic Malays and other indigenous peoples (collectively known as "bumiputeras"). One NEP goal was to expand the share of corporate equity owned by ethnic Malays. In June 1991, after the NEP expired, the government unveiled its National Development Policy, which contained many of the NEP's goals. In April 2001, the government released a new plan, the "National Vision Policy," to guide development over the period 2001-2010. The National Vision Policy targets education for budget increases and seeks to refocus the economy toward higher-technology production. The stated goal is for Malaysia to be a fully developed economy by 2020.

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial crisis, which affected countries throughout the region, including South Korea, Indonesia, and Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a return to recession in 2001 when its economy was negatively impacted by the bursting of the dot-com bubble (which hurt the ICT sector) and slow growth or recession in many of its important export markets.  

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial crisis, which affected countries throughout the region, including South Korea, Indonesia, and Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a return to recession in 2001 when its economy was negatively impacted by the bursting of the [[dot-com bubble]] (which hurt the ICT sector) and slow growth or recession in many of its important export markets.  

In July 2005, the government removed the 7-year old peg linking the ringgit's value to the U.S. dollar at an exchange rate of RM 3.8/U.S.$1.0. The dollar peg was replaced by a managed float against an undisclosed basket of currencies. The new exchange rate policy was designed to keep the ringgit more broadly stable and to avoid uncertain currency swings which could harm exports.

In July 2005, the government removed the 7-year old peg linking the ringgit's value to the U.S. dollar at an exchange rate of RM 3.8/U.S.$1.0. The dollar peg was replaced by a managed float against an undisclosed basket of currencies. The new exchange rate policy was designed to keep the ringgit more broadly stable and to avoid uncertain currency swings which could harm exports.