divided into three categories: firms approved after 1 January 1972, firms approved before then, and firms operating without approval from the Ministry. All firms subject to the act were required to submit a proposal to the Ministry stating how they planned to achieve the long-term target of achieving 30% Malay and 70% non-Malay Malaysian ownership in the company. Proposals that were accepted then became the guidelines for how the relevant company would operate. Until the Second Malaysia Plan, industry was concentrated on the west coast of Peninsular Malaysia. The plan thus moved to establish new industrial estates on the east coast, in order to curb rural-urban migration—the east coast was considerably less urbanised than the west coast. By 1975, manufacturing activities constituted 16% of the Malaysian Gross Domestic Product (GDP), one per cent short of the target of the Second Malaysia Plan. Manufacturing grew negligibly in 1975, attributed by the government to the global recession that year. This contrasted with the 15% growth achieved in 1974, which well exceeded the target of 12.5% growth per year during the Second Malaysia Plan. Food, wood products, and chemical products made up the majority of the manufacturing sector. The substantial growth in manufacturing during this period has been attributed to the government's establishment of free trade zones, where any goods brought in would not be subject to customs duties, and goods could be freely exported abroad or transferred to another free trade zone. In 1974, such zones were declared in the states of Penang, Selangor, and Malacca. The industries located in these zones were mostly electronics-, rubber product- and textile-based. Mining Until the late 1970s, Malaysia was the world's foremost producer of tin, supplying roughly 40% of the non-communist world's tin. Nevertheless, tin reserves were declining; mining's contribution to the GDP was projected to fall 13% over the course of the Second Malaysia Plan, due to the exhaustion of tin and iron reserves. However, bauxite and copper continued to contribute to the mining sector in the early 1970s. Malay participation in the mining sector was minimal, and as much as 70% of the industry remained under foreign control. This was a legacy of the British colonial era; many British firms, which had arrived in the 19th century to exploit Malaysian mineral resources, had not departed yet. Malay participation in the mining sector—especially in tin—was further hampered by the British tendency in the 19th