Measurement of Social Capital and Welfare for Sustainable Development of Malaysia

by Assoc Prof. Dr. Gazi Md Nurul Islam, Prof. Dr. Nik Rosnah Wan Abdullah, Prof. Dr.Syed Omar Syed Agil

The 1st International Conference on Business, Management and Information Systems 2019

Abstract

The Gross Domestic Product (GDP) is widely used system for national income accounting. However, it fails to measure the real “economic” state and real “wealth” of nations. The rising popularity of sustainable development as a policy goal require appropriate and effective indicators to guide development toward a sustainable and desirable future.

The Malaysian government has launched the New Economic Model (NEM) with the strategic goal of transforming Malaysia to a full-fledged high income, inclusive and sustainable country by the year 2020. While the NEM has incorporated sustainable development indicators, it lacks a set of economic and social indicators. The paper investigates the important factors for measuring sustainable development in Malaysia. Data for the study obtained from a survey of different stakeholders of Peninsular Malaysia using structured questionnaires.

The results of the study indicate that social, cultural, spiritual and governance factors are important for measuring development
changes of Malaysia. The results suggest that these indicators are important for policy makers to incorporate in order to achieve the goal for sustainable development of Malaysia.

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