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Before independence, Malaysia's economy was heavily reliant on agriculture, particularly rubber and tin mining, with colonial powers controlling the wealth. Post-independence, the government aimed to diversify the economy, focusing on industrialization and modernizing agriculture to reduce dependence on primary commodities. Policies such as the New Economic Policy (NEP) were introduced to promote equitable wealth distribution and increase participation of the bumiputera population in the economy. These shifts were driven by the need for sustainable growth, economic stability, and social cohesion in a multi-ethnic society.

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