The Third Malaysia Plan is a statement of the political developments within the Malaysian polity, and provides great insight into the main debates and power configurations within the coalition government. The article examines the Plan in its political context and analyses four broad areas of political controversy: the New Economic Policy; poverty eradication; racial economic balance; education. These politically controversial areas of policy help one understand how coalition politics operate in Malaysia and the bargains that must be negotiated if the political system is to be maintained.