HE PROGRESS REPORT 1950
MALAYA'S CREDITABLE ECONOMIC PERFORMANCE PRIOR TO THE SECOND WORLD WAR WAS VERY MUCH THE PRODUCT OF GROWTH WITHOUT PLANNING. IT WOULD BE A MISTAKE, TO BE SURE, TO ATTRIBUTE EARLY MALAYAN ECONOMIC GROWTH SOLELY TO THE INITIATIVE AND ENTERPRISE OF PRIVATE INDIVIDUALS AND FIRMS ACTING INDEPENDENTLY OF GOVERNMENT. CERTAINLY THE BRITISH COLONIAL ADMINISTRATION, INDIRECTLY THROUGH FISCAL MEASURES AND DIRECTLY THROUGH THE ACTIVITIES OF AN INCREASINGLY IMPORTANT PUBLIC SECTOR, HAD A SIGNIFICANT ROLE TO PLAY IN DETERMINING THE DIRECTION, AND INCIDENTALLY THE MAGNITUDE, OF PRE-WAR ECONOMIC EXPANSION. COLONIAL GOVERNMENT POLICY NEVERTHELESS REMAINED COMPARTMENTALIZED AND ITS OBJECTIVES WERE DEFINED NARROWLY. THERE WAS NO IDEA OF MAXIMIZING THE DEVELOPMENT OF MALAYA'S ECONOMY AS A WHOLE. INDEED, THE MALAYAN ECONOMY DURING THE DECADES BEFORE THE WAR EVEN LACKED FUNDAMENTAL FUNCTIONAL INTEGRATION, FOR IN THE WORDS OF A WORLD BANK MISSION, “… MALAYA IN MANY RESPECTS WAS RATHER A GEOGRAPHIC REGION WHERE CAPITAL AND LABOR BELONGING TO OTHER ECONOMIES FOUND IT CONVENIENT TO CARRY ON CERTAIN SPECIALIZED OPERATIONS, WITHIN THE BRITISH MONETARY AS WELL AS POLITICAL FRAMEWORK”. WHATEVER ECONOMIC GROWTH THAT DID OCCUR INVOLVED UNPLANNED, AND LARGELY UNEVEN, DEVELOPMENT.