MALAYSIA

 

 

During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula except Singapore formed the Federation of Malaya, which became independent in 1957.

Malaysia was formed in 1963 when the former British colonies of Singapore, as well as Sabah and Sarawak on the northern coast of Borneo, joined the Federation. The first several years of the country’s independence were marred by a communist insurgency, Indonesian confrontation with Malaysia, Philippine claims to Sabah, and Singapore’s withdrawal in 1965.

During the 22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials to the development of manufacturing, services, and tourism. Prime Minister Mohamed NAJIB bin Abdul Razak (in office since April 2009) has continued these pro-business policies and has introduced some civil reforms.

 

Malaysia map

 

Capital: Kuala Lumpur

Area: 329,847 km2 (water: 1,190 km2)

Population: 30,513,848 (July 2015 est.)

Currency: Malaysian Ringgit (MYR)

Languages: Bahasa Malaysia (official), English, Chinese (cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB’s Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country’s economic growth. The government has also taken steps to liberalize some services sub-sectors.

The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy’s dependence on exports. Nevertheless, exports – particularly of electronics, oil and gas, palm oil and rubber – remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas.

The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia’s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.


GDP (purchasing power parity):

$525 billion (2013 est.)

country comparison to the world: 30

$501.5 billion (2012 est.)

$474.7 billion (2011 est.)

note: data are in 2013 US dollars


GDP (official exchange rate):

$312.4 billion (2013 est.)


GDP – real growth rate:

4.7% (2013 est.)

country comparison to the world: 63

5.6% (2012 est.)

5.1% (2011 est.)


GDP – per capita (PPP):

$17,500 (2013 est.)

country comparison to the world: 79

$17,000 (2012 est.)

$16,400 (2011 est.)

note: data are in 2013 US dollars


Gross national saving:

32.3% of GDP (2013 est.)

country comparison to the world: 18

31.9% of GDP (2012 est.)

34.9% of GDP (2011 est.)


GDP – composition, by end use:

household consumption: 50.1%

government consumption: 13.9%

investment in fixed capital: 26.2%

investment in inventories: 0.8%

exports of goods and services: 84.1%

imports of goods and services: -75.2%

(2013 est.)


GDP – composition, by sector of origin:

agriculture: 11.2%

industry: 40.6%

services: 48.1% (2013 est.)


Agriculture – products:

Peninsular Malaysia – palm oil, rubber, cocoa, rice; Sabah – palm oil, subsistence crops; rubber, timber; Sarawak – palm oil, rubber, timber; pepper


Industries:

Peninsular Malaysia – rubber and oil palm processing and manufacturing, petroleum and natural gas, light manufacturing, pharmaceuticals, medical technology, electronics and semi-conductors, timber processing; Sabah – logging, petroleum and natural gas production; Sarawak – agriculture processing, petroleum and natural gas production, logging


Industrial production growth rate:

5% (2013 est.)

country comparison to the world: 56


Labor force:

13.19 million (2013 est.)

country comparison to the world: 41


Labor force – by occupation:

agriculture: 11.1%

industry: 36%

services: 53.5% (2012 est.)


Unemployment rate:

3.1% (2013 est.)

country comparison to the world: 24

3% (2012 est.)


Population below poverty line:

3.8% (2009 est.)


Household income or consumption by percentage share:

lowest 10%: 1.8%

highest 10%: 34.7% (2009 est.)


Distribution of family income – Gini index:

46.2 (2009)

country comparison to the world: 34

49.2 (1997)


Budget:

revenues: $65.72 billion

expenditures: $79.4 billion (2013 est.)


Taxes and other revenues:

21% of GDP (2013 est.)

country comparison to the world: 157


Budget surplus (+) or deficit (-):

-4.4% of GDP (2013 est.)

country comparison to the world: 158


Public debt:

54.6% of GDP (2013 est.)

country comparison to the world: 59

53.3% of GDP (2012 est.)

note: this figure is based on the amount of federal government debt, RM501.6 billion ($167.2 billion) in 2012; this includes Malaysian Treasury bills and other government securities, as well as loans raised externally and bonds and notes issued overseas; this figure excludes debt issued by non-financial public enterprises and guaranteed by the federal government, which was an additional $47.7 billion in 2012


Fiscal year:

calendar year


Inflation rate (consumer prices):

2.2% (2013 est.)

country comparison to the world: 76

1.7% (2012 est.)

note: approximately 30% of goods are price-controlled


Central bank discount rate:

3% (31 December 2011)

country comparison to the world: 108

2.83% (31 December 2010)


Commercial bank prime lending rate:

4.5% (31 December 2013 est.)

country comparison to the world: 162

4.7% (31 December 2012 est.)


Stock of narrow money:

$97.03 billion (31 December 2013 est.)

country comparison to the world: 35

$93.89 billion (31 December 2012 est.)


Stock of broad money:

$439.7 billion (31 December 2013 est.)

country comparison to the world: 23

$435.2 billion (31 December 2012 est.)


Stock of domestic credit:

$421 billion (31 December 2013 est.)

country comparison to the world: 29

$412.4 billion (31 December 2012 est.)


Market value of publicly traded shares:

$476.3 billion (31 December 2012 est.)

country comparison to the world: 23

$395.1 billion (31 December 2011)

$410.5 billion (31 December 2010 est.)


Current account balance:

$16.67 billion (2013 est.)

country comparison to the world: 18

$18.64 billion (2012 est.)


Exports:

$230.7 billion (2013 est.)

country comparison to the world: 25

$227.7 billion (2012 est.)


Exports – commodities:

semiconductors and electronic equipment, palm oil, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals, solar panels


Exports – partners:

Singapore 13.6%, China 12.6%, Japan 11.8%, US 8.7%, Thailand 5.4%, Hong Kong 4.3%, India 4.2%, Australia 4.1% (2012)


Imports:

$192.9 billion (2013 est.)

country comparison to the world: 27

$186.9 billion (2012 est.)


Imports – commodities:

electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals


Imports – partners:

China 15.1%, Singapore 13.3%, Japan 10.3%, US 8.1%, Thailand 6%, Indonesia 5.1%, South Korea 4.1% (2012)


Reserves of foreign exchange and gold:

$139.4 billion (31 December 2013 est.)

country comparison to the world: 20

$139.7 billion (31 December 2012 est.)


Debt – external:

$100.1 billion (31 December 2013 est.)

country comparison to the world: 47

$98.82 billion (31 December 2012 est.)


Stock of direct foreign investment – at home:

$143.4 billion (31 December 2013 est.)

country comparison to the world: 33

$132.4 billion (31 December 2012 est.)


Stock of direct foreign investment – abroad:

$133.5 billion (31 December 2013 est.)

country comparison to the world: 27

$120.4 billion (31 December 2012 est.)


Exchange rates:

ringgits (MYR) per US dollar –

3.174 (2013 est.)

3.09 (2012 est.)

3.22 (2010 est.)

3.52 (2009)

3.33 (2008)

BANKING


Bank Kerjasama Rakyat Malaysia

Bangunan Bank Rakyat
Jalan Tangsi, PO Box 11024 50732 Kuala Lumpur
Website: www.bankrakyat.com.my
Established for: 59 years

TEKUN Nasional

No. 2, Jalan Tasik Selatan 4 Bandar Tasik Selatan
57000 Kuala Lumpur.
Website: www.tekun.gov.my/
Established for: 15 years

SME Bank

Level 7, Menara SME Bank Jalan Sultan Ismail
Peti Surat 12352
50774 Kuala Lumpur
Website: www.smebank.com.my
Established for: 8 years

Export-Import Bank of Malaysian Berhad

Level 1, Exim Bank

Jalan Sultan Ismail
50250 Kuala Lumpur
Website: www.exim.com.my
Established for: 18 years

Amanah Ikhtiar Malaysia

Menara Amanah Ikhtiar
No 3 Jalan Cempaka SD 12/1A Bandar Sri Damansara PJU9 52200 Kuala Lumpur
Website: www.aim.gov.my
Established for: 26 years

Bank Pertanian Malaysia Berhad

Menara Agrobank, Leboh Pasar Besar 50726 Kuala Lumpur
Website: www.agrobank.com.my
Established for: 40 years

Malaysian Industrial Development Finance Berhad

82 Jalan Raja Chulan
50200 Kuala Lumpur
Website: www.midf.com.my
Established for: 53 years

Bank Simpanan Nasional Berhad

Wisma BSN
117, Jalan Ampang
50450 Kuala Lumpur
Email: www.mybsn.com.my
Established for: 39 years