Rags to riches: an experience of rural development in Malaysia / Jasmine Ahmad and Norhayati Mohd Salleh

Rural development continues to be one of the main priorities of the Malaysian Government. The government has set various strategies to improve the quality of life and income for all Malaysians including the rural populace. Rural Malaysia has undergone tremendous transformation due to the evolution of rural development policies, strategies and programmes since the country achieved its independence in 1957. From an economic perspective this sector is mainly agriculture-based, whereby more than half of the population involved in agricultural activities. Historically, the national economic development plan i.e. First and Second Malayan Five Year Plan (1956 – 1965), followed by a series of Malaysia Five Year Plan (1966 till today) put importance on rural development. Malaysia can be considered successful in developing rural areas through the concepts of integrated rural development, agrarian reform, in-situ development, rural industrialisation and modernisation, and rural growth centres. This paper aims at reviewing the chronological condition of rural development in Malaysia with special attention placed on the Federal Land and Development Authority (FELDA), a Malaysian government agency handling the resettlement of rural poor into newly developed areas. FELDA focuses on opening smallholder farms growing cash crops. The paper also aims at examining the opportunities explored in order to further strengthen this sector.