Insular Southeast Asia - Dragons and Tigers: A Geography of South, East and Southeast Asia - page 455

Islamic laws in both states. Malaysians in general dis-
cussed the notion of the country being divided into two
corridors: the “Mecca Corridor” in the east and the “Mul-
timedia Supercorridor” in the west. Subsequently , new
elections brought down the two Islamic state govern-
ments along with the autocratic head of state, Mahathir
bin Mohamad. With the appointment of his more moder-
ate successor, Abdullah Badawi, Islamic fervor abated,
and calls for jihad in Malaysia faded into the background.

unequal societies in Southeast Asia in terms of in-
come distribution. While it is true that absolute
poverty levels have declined—from 29 percent in
1980 to 6 percent in 2000—critics complain that
these figures are misleading. The poverty line is at
US$134 a month and this cannot keep up with the
rising costs of living. The World Bank reports that
the trend of inequality reduction has reversed it-
self since 1990. Another report that measures
Malaysia' s Gini Index—where 0 indicates perfect
equality and 1.0 indicates perfect inequality—
finds that the country' is 0.49 score is one of the
highest in the region. Indonesia is at 0.34 and
Thailand is at 0.42.
According to another research study , intra-
ethnic inequality appears to be higher among Malays.
T Two decades of affirmative action policies did in-
crease the stake in the economy of the Bumiputeras
and led to the emergence of a Malay middle class.
However, a huge amount of this stake is held by
state-backed investment agencies holding shares in
trust.
Another disparity concerns the rural-urban di-
vide. Rural incomes are much lower than urban in-
comes. Many of the poor Malay households can be
found in Kelantan, T Terengannu, Kedah, and Perlis
states. It is in this “heartland” that support for con-
servative Islam is the strongest. In East Malaysia,
indigenous groups in the interior of Sarawak and
Sabah are very poor as are the Orang Asli of penin-
sular Malaysia.

DEVELOPMENT SCHEMES
One widely acclaimed land development scheme was
the Federal Land Development Authority (FELDA) set-
tlement plan. Commencing with a 2,470 to 4,940 acre
(1,000 to 2,000 ha) block of land, contractors were
brought in to clear the jungle, plant the main crop—
rubber in the early years and palm oil, cocoa, and coffee
in later years—and build basic infrastructure such as
roads, houses, and schools. Settlers were selected,
moved in, and employed as salaried workers until the
crop began to produce. Each family was given title to a
plot of land once the mortgage was paid off. By 1987
there were 422 FELDA schemes in all states except
Pinang.
T Today, , FELDA schemes are more likely intensively
run “agro-businesses” than traditional Malaysian farm-
ing communities. Moreover, the schemes increasingly
are becoming part of the Western, mechanized, uniform
production system. FELDA plans were cut to zero in the
Sixth Malaysia Plan of 1991.
The Ninth Malaysia Plan of 2006 promotes a shift
from those mono-crop, low-technology , and small-scale
operations that still exist, to integrated, high-tech, and
large-scale enterprises. Emphasis on palm oil and rub-
ber is to be reduced while the production of fruit and
vegetables is to be promoted. The plan also proposes to
intensify land use by integrating more food crops with
plantation crops. Furthermore, the government is en-
couraging urban horticulture and agro-technology
parks. Land settlement is now seen as the concern of
the private sector in the context of regional planning
frameworks.

The Malaysian government is in the process of de-
veloping two new regions in order to accelerate eco-
nomic growth and raise incomes. The first, launched in
2007, is the Northern Corridor Economic Region ( Ko-
rridor Utara ) in Perlis, Kedah, Pulau Pinang, and the
north of Perak. Pinang, with its 1.6 million inhabi-
tants, has become Malaysia' s “Silicon Island,” attract-
ing both foreign and domestic industrial concerns.
Chinese make up 42 percent and Malays comprise 40
percent of the population. Pinang is part of an eco-
nomic “Growth T Triangle” that incorporates Sumatra
and Thailand.
The second focus will be on Iskandar Malaysia, a de-
velopment zone in southern Johor with links to Singa-
pore. These projects are expected to be completed by

Rural Poverty

For all its impressive growth rates and higher per
capita incomes, Malaysia ranks among the most