This paper analyzes the mechanism for creation of middle classes in Malaysia since 1971. The United Malays National Organization-led government has implemented three long-term development plans. One of the objectives of the New Economic Policy (NEP)for raising the economic positions of the Bumiputera (sons of the soil) was to create Malay middle classes. The development process has taken place in three phases: from the launching of NEP in 1971 to 1981, the first half of the Mahathir administration,and from 1991 to the present. At the start of NEP, the government had an ambiguous idea about simply creating Malay middle classes. After the 1980s, however, Mahathir emphasized creating middle classes in relation to his industrialization policy. In order to achieve its target and intention, the Malaysian government has changed its role in accordance with the targets it has sought.
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