Economy of Malaysia

According to cheeroutdoor, Malaysia is an intensively developing industrial and agricultural country. GDP $78.7 billion, GDP per capita $3515 (2002). Employment approx. 97%. Unemployment – St. 3%. Inflation 1.9% (2002).

Structure of GDP (%): service sector approx. 50, manufacturing 34, agriculture 8, mining 8.

The manufacturing industry is the most dynamically developing industry. The country is one of the main manufacturers of integrated circuits, radio and television equipment, and air conditioners. Malaysia is the only ASEAN country that has its own automotive industry (proton cars are produced with the participation of the Japanese corporation Mitsubishi). Industrial production is mainly concentrated in the Klang Valley region (Silicon Valley), as well as in the state of Penang.

The extractive industry is represented by the production of hydrocarbon raw materials on the continental shelf of the State of Trengganu and the State of Sarawak (North Kalimantan). In 2001, oil production amounted to approx. 670 thousand barrels in a day. Operated by St. 230 wells. Trenggan accounted for approx. 60% of production. The state is considered “Malaysian Kuwait”. The total oil reserves are estimated at 3.63 billion barrels, calculated for 15-20 years of operation. Natural gas production – 1.6 trillion cubic meters. feet (40-50 years of operation). The extraction of natural raw materials is carried out by the state company Petronas. It is also active in the oil and gas industries outside the country: in Iran, Kazakhstan, Myanmar, Sudan, and is interested in cooperation with Vietnam.

Due to the depletion of reserves and low world prices, tin production, once the leading branch of the mining industry, continued to decline. In 2001, 6.3 thousand tons were produced, the lion’s share of which went to domestic consumption.

Agriculture is focused on the production of industrial crops. St. 50% of the world production of palm oil (11.8 million tons), 3rd place in the world in the production of natural rubber (580 thousand tons). Food crop production remains low and concentrated mainly in the northern states of Peninsular Malaysia.

The length of the railway network is approx. 1900 km. Its gradual electrification is envisaged. The length of paved roads – St. 25 thousand km. The state of the main federal road in western Malaysia is maintained at a high level – from the border with Thailand in the north to the Strait of Johor in the south.

There is a wide network of airfields and ports. The leading international airport is Kuala Lumpur, the largest in Southeast Asia, the sea is Port Klang, the main terminal for foreign trade. There is a wide network of telephone, videotelephone and satellite communications. M. is connected by two bridges with Singapore through the Strait of Johor. One of them has a railway and a water conduit.

Domestic trade (wholesale and retail) is controlled mainly or partly by the Chinese and Indian business sector. The network of supermarkets and megamalls is widely developed.

The service sector and tourism play a significant role. The country is visited annually by 2-4 million tourists.

Modern socio-economic policy is still aimed at increasing the participation of indigenous people (bumiputra) in economic life. Since the 1970s during the implementation of the five-year plans, the government has consistently pursued a course (“new economic policy”) to increase the share of bumiputra in private equity to 30%. In con. 1990, a program was adopted to bring Malaysia to the level of an industrialized state. One of the main tasks is to increase the share of labor productivity in economic growth. According to the current 8th five-year development plan (2001-05), it should be St. 37%.

The main direction of national development is the creation of an economy based on the latest achievements of modern knowledge. The first step along this path was the creation in the middle. 1990s in the suburbs of Kuala Lumpur “multimedia supercorridor” – a complex of design and research and production enterprises involved in the field of information and communication technologies. At the next stage, the emphasis was placed on improving the national electronic information network, training highly professional specialists in the field of computer technology, general improvement of the computer literacy of the population, development of applied sciences and technologies. Conditions have been created for the return to their homeland of Malaysians – graduates of foreign universities. The issue of creating “electronic government” is on the agenda.

Faced with the financial and economic crisis of 1997-98, the government went for an unprecedented strengthening of state control in the sphere of finance and currency circulation. In September 1998, a fixed exchange rate of the national currency was established (1 US dollar = 3.8 ring), which generally reflected its real value, and was also the result of a compromise between the interests of exporters and importers. The measure was aimed at stabilizing domestic prices and making foreign trade transactions more predictable. While maintaining the internal convertibility of the ringgit, its circulation outside the country was terminated. The decision, in particular, assumed the return to Malaysia of funds in national currency exported to Singapore in connection with the higher bank interest rate in force there. Severe restrictions were imposed on the import and export of the national currency, as well as on the operations of non-residents with government Malaysian securities. Along with this, the base discount rate of the state bank was reduced, which was aimed at revitalizing business activity in the country.

These measures were at odds with the recommendations of the IMF and the World Bank adopted by other Asian countries (Indonesia, Thailand, South Korea). However, as further practice has shown, with minor adjustments they proved to be effective in overcoming the consequences of the crisis.

The most difficult post-crisis period for the Malaysian economy was 2001, when GDP growth was only 0.4% (compared to 8% in 2000). Industrial production decreased by 3.3%. However, in 2002 the figures went up: GDP growth 4.2%, industry 4%. To a large extent, this trend was determined by high world prices for energy carriers and palm oil, the revival of activity in the production of electronic components, and the diversification of export markets (China, ASEAN countries).

Economy of Malaysia