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] 172

S

ustainability

P

olicies

, P

rogrammes

and

their

E

conomic

I

mpact

The New Economic Model 2010 includes sustainability as one of

its three pillars for Malaysia to achieve developed country status by

the year 2020.

These policies were considered in spatial terms through the

National Physical Plan in 2005 by establishing a general direction

for physical development and conservation of the entire region of

Peninsular Malaysia. This Plan coordinates and converts the nation’s

sectoral policies into physical dimensions, providing a framework

for planning at regional, state and local levels. Prepared for a period

up to 2020 and due to be reviewed every five years, it clearly deals

with sustainability through policies that are directed towards

conserving natural resources and the environment. It also proposes

an Environmental Sensitive Areas (ESA) instrument, suggesting a

system of ranking to guide the management of ESAs. The Plan also

highlights the need to establish a Central Forest Spine to form the

backbone of the ESA network and promotes the protection of biodi-

versity-rich core areas, interconnected by a system of large forest

complexes where ecologically sound land use is practised.

Fiscal and financial incentives have also been made available to

the private sector to encourage incorporation of pro-environment

initiatives. In March 2004, responsibility for the envi-

ronment was vested in a newly established Ministry

of Natural Resources and Environment. By combin-

ing fourteen environment-related portfolios under a

single authority, this effort was part of a comprehen-

sive plan to tackle the fragmentation that characterized

Malaysia’s environment and sustainable development

policy domain. In addition, statistics on the envi-

ronment to enable planning and decision-making

have been compiled and made available through the

Compendium of Environmental Statistics Malaysia by

the Department of Statistics. Together, all these policy

instruments provide the central integrative process

that gives Malaysia a sense of direction and ensures a

concerted effort to achieve strategic goals and objectives

of sustainable development.

Harnessing the green economy

As an upper-middle-income country, Malaysia aims

not only to graduate into the high-income category in

A Central Forest Spine promotes the protection of biodiversity-rich core areas

Image: Yeong Chee Meng Kelvin, Economic Planning Unit, Malaysia