What is the NEM?

The New Economic Model (NEM) was launched by the Prime Minister of Malaysia on 30 March 2010 to transform the Malaysian economy into one with high income and quality growth by the year 2020. The NEM has three goals: high income, sustainability and inclusiveness.

To achieve the main goals of the NEM, Malaysia can no longer rely only spending its wealth from natural resources, which is unsustainable. Nor can we completely leave things to market forces and ignore the need to preserve social harmony.

The NEM takes a holistic approach by focusing on human development, recognising that while we have substantially reduced poverty, 40% of Malaysian households still earn less than RM1,500 a month. Income disparity needs to be addressed and measures are needed to improve the economic wellbeing of the poor, especially those in Sabah, Sarawak and rural areas of the Peninsula.

The NEM will create a Malaysia in no groups will be marginalised and the essential needs of the rakyat will be satisfied. They will live, work and study in localities free from the fear of crime, the indignity of discrimination, and the anxiety of need.

To understand more about the NEM, read our reports.