Infrastructure and economic development

The importance of the infrastructure sector to the process of economic growth and development has long been recognized and understood by scholars and policymakers. Without adequate infrastructure, modern commerce characterized by production specialization and exchange across markets would grind to a halt. Economic globalization would not take place without the reduction in communication and transportation costs brought about by the progress achieved in the development of infrastructure within and across countries. Thus, any attempt at understanding Malaysia’s past experiences in economic development thus requires an analysis of the role that the infrastructure has played. The purpose of this chapter is to provide an analysis of how the infrastructure sector has developed in Malaysia and the role it has played in the country’s development. In this chapter, the term ‘infrastructure’ refers to economic infrastructure, and principally covers transport, energy, information and communication technology, drinking water and sanitation.