In considering recent events in Malaysian housing, we must note the New
Economic Policy (NEP) 1971-90 which was the backbone of national development
policies for two decades. The NEP was the attempt by the national government to correct economic imbalances in ownership of wealth, and in economic production, and
to eradicate poverty. The objective was equality of access to economic wealth as the
foundation for national integration. The objectives and strategies marked a shift in
national development philosophy from the apparently "laissez-faire" system inherited
from the colonial administration to a welfare economic system. The NEP in this
respect pioneered a welfare state in the modem era of nation building.