The Development of Entrepreneurship in Malaysia: State-led Initiatives

The aim of this paper is to explore the entrepreneurship development in Malaysia and analyze the trends in the development of the field. It looks into the economic and industrial activities from independence up to year 2005, which are categorized into four phases according to Malaysia's first major government policy, the "New Economic Policy (NEP)". The first phase refers to the period before the introduction of the NEP; the second is the first half of the NEP period; the third is the second half of the NEP era; and the fourth is the period after the NEP era. From the third phase onwards, entrepreneurship activities were carried out rather aggressively, particularly with the initiation of the government-supported and government-protected national automotive industry. Many enterprises were established as suppliers of parts and components to the national manufacturer under government assistance programs. The following phase put emphasis on technology in most entrepreneurial endeavors. The four phases had different foci of industrialization, but they were similar in terms of initiative, which was to become state led. The initiation of Malaysia's pioneer industrial project, the automotive industry, spurred the growth of firms and provided the gateway for the acquisition of relevant technological knowledge, technical skills, and entrepreneurial talent. Thus, this paper postulates that a new trend has emerged in the field of entrepreneurship in Malaysia as a result of the state-led industrialization effort.