Economic policies[edit]
Abdullah Badawi declared an end to the economic legacy and grandiose projects of his predecessor, Mahathir Mohamad, during the 57th UMNO General Assembly. He told delegates that he would not pursue the economic strategies adopted two decades ago by Mahathir.
He said that in the past, wealth was generated not by innovation and creativity, but by foreign investment, government contracts, and privatisation.
Agriculture and biotechnology are some of the highlighted issues in 9MP that the government believes such sectors are still able to generate wealth for many Malaysians, especially those in rural areas.
In late 2005, Badawi successfully led Malaysia into a historic free trade agreement with Japan enabling the two countries to scrap tariffs on essentially all industrial goods and most agricultural, forestry and fishery products within a decade.[11]
Under the Abdullah Badawi administration, the country is moving down to a value chain economy by developing its inherent strengths in agriculture without losing its existing manufacturing base.[12] However, Abdullah has been criticised as to his handling of the sudden hikes in the price of petrol and electricity through the restructuring of government subsidies, especially as it is detrimental to Malaysia's position as a traditional exporter.