SECOND prime minister Tun Abdul Razak Hussein’s contributions to the country is much more than just Felda.
While many regard the inception of the Federal Land Development Authority as Razak’s most enduring and visible legacy, little had been said about his role in steering the economy amid a challenging socio-economic landscape.
Prominent economist Dr Jomo Kwame Sundaram said the Razak administration was among the most transformative for the country due to the many milestones and policies that put Malaysia on the path to stability.
“I appreciate what Tun Razak did for Felda, but the story of Tun Razak’s contributions is much bigger than just Felda. And the story of rural development is more complicated because of the rivalries between Umno members and other circumstances and issues,” Jomo said in an interview with the New Sunday Times.
He said among Razak’s key contribution were his decision to formulate the New Economic Policy, first announced in 1970. The policy was later incorporated into the Second Malaysia Plan (1971-1975).
Many books had been written about Razak, especially on his efforts in developing rural areas and introducing Felda, but little attention had been given to his other big contributions, until now.
Jomo is among 13 people who co-authored an upcoming book on Razak published by the University of Malaya Press, titled Driving Development: Revisiting Razak’s Role in Malaysia’s Economic Progress.
The book delves deeper into some of the vital policy decisions made during Razak’s tenure as prime minister from 1971 to 1976, which shaped the country’s economic development.
Jomo said another example of his legacy was his push for sustainable development.
He said Razak and his deputy, Tun Hussein Onn, had mooted an idea to include a chapter on environmental policy in the Third Malaysia Plan, which was unprecedented in Malaysia at that time.
“Tun Razak died in early (January) 1976, before the Third Malaysia Plan was announced.
“But the plan was the first in the country’s history to include a chapter on the environment. This was something Tun Razak and Tun Hussein decided upon.
“They were concerned with economic growth, which benefited the low-income people and the poor.
“And they were also concerned about protecting the environment and ensuring minimum damage to the environment.”
Jomo wrote one chapter in the new book that highlights Razak’s legacy on the economy.
In the chapter, titled “Growth and Redistribution During the 1970s: Tun Razak’s Economy Legacy”, he argues against the belief held by many people in the past about how progressive redistribution would weaken growth.
“Malaysia’s economy grew rapidly in the 1970s despite redistribution measures to reduce poverty and inter-ethnic disparities.
“So the 1970s proved that progressive redistribution does not necessarily weaken growth, but in fact, can actually accelerate growth.
“This is very important because the conventional view among many economists is that progressive redistribution will weaken growth.”
Jomo said efforts during the 1970s to ensure sound economic governance in key institutions, such as Bank Negara Malaysia and Petroliam Nasional Bhd, were crucial to progress in Malaysia at that time and beyond.
“Tun Razak and his successor, Tun Hussein Onn, took very firm stands against corruption”, he said, adding that such efforts were vital following the nationalisation of many foreign-owned companies.
He said nationalisation efforts, which continued into the 1980s, enabled Malaysia to accelerate growth and transition from a rubber-producing country to a major palm oil-producing country.
Other co-authors of the book are economists Tan Sri Kamal Salih and Professor Dr Rajah Rasiah, who are also the book’s editors, Institute Teknologi Mara’s (now Universiti Teknologi Mara) first director, Tan Sri Arshad Ayub, and newly-appointed Malaysian Aviation Commission executive chairman Dr Nungsari Ahmad Radhi.