SUBJECT: INTERNATIONAL BUSINESS
INSTRUCTOR: MISS SANDRA HACKER

VISION 2020
Malaysia announced its first budget under the Tenth Malaysia Plan last year in 2010. The budget focuses mainly on building the power for future development, which is central towards achieving its Vision 2020 target of a developed high-income economy. Measures to encourage private investment, improve the education system, upgrade labor skills and raise productivity have been introduced. Vision 2020 for Malaysia implies this clear vision of where the citizens of Malaysia want to go and what they want to be. The national confidence and determination to achieve this vision is based on the country’s record of development since independence.
The course of action is a strategy for the attainment of a competitive, dynamic, robust and resilient economy. It stresses the need to define, develop and theoretical new pattern of activities, thinking and interaction with regard to the public private sector relationship. The identification of the critical approaches within the public-private sector productive partnership ensures the sustenance of the nation's comparative advantages in an increasingly competitive global economic environment.
To reach the Vision 2020 target, the economy will have to grow, between 2011 and 2020, at an average annual rate of 7.0 per cent, which is clearly a tall order. Understandably, the Government’s focus seems to have shifted from Vision 2020 to “High Income Economy”. It is on this basis that the Economic Planning Unit (EPU) seems to be working on a target of 5.5 per cent annual growth under the Tenth Malaysia Plan.
Malaysia’s estimated potential growth has been shrinking from 7.0 per cent in the late eighties to 6.5 per cent in the early nineties to 5.5 per cent now, as the country has been losing its competitive advantage vis-à-vis the newcomers, including China