Malaysia in the 1990s (A) Abstract Malaysia is one of the countries that has lot of natural resources. So The Malaysian government decided to export natural resource. Malaysia produced and export oil palm, natural rubber and tin, furthermore, timber was the significant for economy. The western forest policies were trying to change Malaysia forest policies because of deforestation. So the government plan the new strategy for forest area and prohibited timber production in Malaysia. In 1996, as a result of bad policy, the riot happened and during the rioting hundreds of Malaysian people died. Then Malaysia decided to change their policy and they invested more money in education, employment and ownership quality. Besides, new policies cause the gap between poor and rich people. Furthermore, Globalization have adverse effect on Malaysia economy instead of positive effects. Keyword: Malaysian government, Economy, Forest, Deforestation Malaysia in the 1990s The main purpose of the case study is about the economic growth of Malaysia during the three decade. This paper is about Malaysia government actions about the growth of the economic which cause a problem in the social condition and environment. In the following I will describe problem and alternative solution of these issues. Malaysia is one of the country with a lot of natural resources especially timber and tin. Malaysia was good at producing and exporting oil palm and natural tin and rubber, however timber was the significant for the Malaysian economy. In 1970s, Malaysia was leading in producing of natural rubber and tin in the world. In 1991, the prime minster of Malaysia Mahatir bin Mohamad decided to remain steady and also maintain economic development. In that years the image of Malaysian tarnished because of report. This report considered that Malaysian government did not pay attention on environment because of the exporting of timber Exporting timber is major source of foreign exchange in Malaysia. About the half of the revenue of export from Malaysia belonged to rubber in 1996. And also tin is one of the significant export earing during the 1960s and 1970s. In 1973 after the oil shock, petroleum and natural gas became significant export earner. Chann Onn F. (1990). From the late 19950s and 1960s, Malaysia follow the strategy in order to substitute the import, So the government impose the law like offering promotion of exports, however the limitation on import and incentive to company to invest for production due to developing the domestic market did not completely disappear. The Malaysian authorities tried to encourage the export growth. Encouraging activity included different policy like the establishment of lots of free trade zone. During these years Malaysia looked for diversifying natural resources. Timber production and exports grew steadily between 19960s and 1970s. In 1980s, palm oil become a major export revenue than rubber. In order to escape from product fluctuations price, the government of Malaysia encouraged natural resource industries like the local manufacture industries. Malaysia government were criticized because of the alternative model of economic growth. Malaysia made up different ethnic and religious groups, these groups made up just over half of the Malaysian population and the Chinese consist of a bout third of the Malaysian population and Indians for more of the rest. This racial and religious diversity cause problems for Malaysian politicians. The Chinese Population is major part of modern business community after independence of Malaysia. (Buruma, 1991). When the Chinese opposition parties get more than twice parliamentary seats, it cause to run riot. Consequently hundreds of people died during rioting. Finally, the government established its new economic policy (NEP) in order to decrease the socio-economic inequality among the different religious and variety of race. In 1991, the forest product industry has significant influence on foreign exchange of the Malaysia. Western Journalist and environmentalist pay attention to this issue because of overharvesting and deforestation. The government developed the classification scheme and forest planning. This scheme stated that if an area in the forest was suitable for agriculture use or for plantation of oil and rubber it lead to timber harvesting whereas the area is not suitable for agriculture the action for harvest again later. In order to controlling cut down forest the government in Malaysia form a concession system to private parties. And also the Malaysian government paid subsidies and tax break due to help the domestic production of timber, furniture and other wood commodities. Deforestation leads to raise erosion and also it cause to speed up the extinction of species and plant. What’s more it lead to increase the global warming. Between 1989 and 1990, the Malaysian government asked Tropical Timber Organization (ITTO) to send inspectors to visit the forest and make suggestions to authorities. The organization recommend that the number of harvest must be decreased in the fix number in the Malaysia. ITTO suggested the Malaysian government should raise area that supposed to be protected which is called national park or wildlife preserves. The environmentalists recommended that Western nations, United States and Europe companies have to prohibit import of the log from Malaysia Conclusion In conclusion, Malaysian is become one of the successful countries in Asia that have rapid economic growth. The government strategy about the environment was worst that it caused to tarnish the reputation by the international report so the government developed the new policies about the forest which prohibited cutting down forest in order to protect environment. Finally other measures about growth economic leads to have problem for the social condition and environment that government develop variety policies due to address each problem.   Resource Buruma I. (1991), God’s dust (London: Vintage, 1991), pp. 113-114. Colquhoun K. (1987). “Malaysia: the struggle for survival.” The economist, survey, p.9. Chann Onn F. (1990). The Malaysian economic challenge in the 1990s. (Singapor: Longman, 1989). Pp.98, 159,203, 177-178. ITTO Mission Report (1991), pp 5-6. The ITTO mission did not support these proposals. Malaysia in the 1990s (A) 5 Malaysia in the 1990s (A) 1