183 This chapter examines the strategic interactions of organized groups and state actors in policy-making which have a bearing on develop- ment strategies, social policies and poverty. These organized groups include workers’ unions, organized business groups, non-governmental organizations (NGOs) and political parties. This chapter will investi- gate the institutional arrangements circumscribing the interactions of the organized groups with state actors. How these arrangements have evolved as a result of rapid growth will also be discussed. The impact of such organized groups on policy-making for social development matters will then be discussed. The final section discusses how the interests of unorganized groups of the poor are being represented and catered for by the political parties – especially those belonging to the Barisan Nasional (BN) – and NGOs. I Institutional arrangements on developmental matters The principal organizations in Malaysia are organized along ethnic lines. Our focus is on the economically based organizations, namely the trade unions, employer organizations and business associations. These organizations happen to be more multi-ethnic in composition, although they are still subjected to ethnic considerations, as the following discus- sion will indicate. The trade unions The trade union movement started during colonial times when it was aligned with left-wing movements and the communist party. At that time, the objectives were largely political – to fight colonialism. This confrontation between the left-wing movement and the colonial 6 Organized Groups, Development Strategies and Social Policies Francis Loh Kok Wah 9781137_267009_07_cha06.indd 183 9781137_267009_07_cha06.indd 183 7/24/2012 9:29:50 AM 7/24/2012 9:29:50 AM