THE STATUS OF ECONOMIC UNDERSTANDING OF FORM V MALAYSIAN STUDENTS AND PRE-SERVICE TEACHERS

Implementation of the New Economic Policy of Malaysia involves a changing social order which is placing new demands on the educational system. Schools need to develop in students, the skills that will be needed to understand and to cope effectively with the economic reality that surrounds their everyday lives. The purposes of the study are threefold: (1) to determine the minimum amount of economic knowledge that Malaysians should understand after eleven years of education; (2) to determine the existing status of economic understanding of the present Form Five (eleventh grade) students and First Year pre-service teachers; (3) to provide evidence that suggests the economic content that might be appropriate for inclusion in the school curriculum.;It was found that Malaysian students who lacked economic instruction possessed less understanding than those who received instruction in economics. However, that instruction is not sufficient to provide the necessary economic understanding needed to insure the success of the New Economic Policy. Pre-service teachers appeared to be deficient in economic knowledge. The lack of sufficient understanding of pre-service teachers probably inhibits their ability to disseminate knowledge of economics to their students.;Based upon the findings, the conclusions were: (1) economic understanding of Malaysian students is inadequate; and (2) the development of economic competence should be given a prominent place in the educational system. It is recommended that economic concepts be introduced into the school curriculum in a developmental manner and in-service economic education programs should be instituted for teachers with the objective of improving their ability to incorporate economic concepts into the courses they teach.;The procedures employed in this study centered on the derivation of an Optimum List of economic concepts and on the administration of the adapted and translated (Malay) version of the Test of Economic Literacy (TEL-Form B) developed by the Joint Council on Economic Education. The adapted Malay version of the TEL (TEL-M) was administered to 1719 students, comprised of Science, Arts, and Commerce Form Five students and one group of Form Six students who had had one year of instruction in economics. Three hundred and one First Year pre-service teachers also took the test.