Abstract for: Assessing The Level Of Unity And Integration In Malaysia Using The System Dynamics Simulation Model

Social capital plays an important role in enhancing the efficiency of political institutions and the economic performance of nations. Malaysia is a multiracial country wuth a population of 22.2 millions. The four main ethnic communities are the Malay, Chinese, Indian and the indigenous people of Sabah and Sarawak. The indigenous people account for only about 12 per cent of the population but they comprise of nearly 37 ethnic groups and sub-ethnic groups. As such the importance of maintaining close social bond which encompasses national unity and integration is an important social agenda needed for a successful transformation of the Malaysian economy both economically and politically. This study attempts to assess the level of unity and integration among the diverse ethnic communities of Malaysia on the basis of the hard economic variables extracted from the 1991 and 2999 Population and Housing Census Reports of Malaysia and a sample survey on the social capital of the ethnic communities. A System Dynamics model which integrates both the hard economic variables and the perceived social capital of the ethnic communities is constructed to simulate the scenarios based on different policy options of the government, in terms of affirmative action plan. From the results obtained, strategies are suggested to address issues relating to unity and integration in Malaysia.