About Malaysia

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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.

Economy Overview

As the business operates from its Malaysian HQ, it will be of interest to investors to have an insight into this fast growing Asian country and its growth potential.

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 Tun Razak, 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.

The Government 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 strained government finances, has forced Malaysia to reduce government subsidies.

The government is also trying to lessen its dependence on state oil producer Petronas, which supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves and its well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, decreasing worldwide demand for consumer goods hurt Malaysia's exports and economic growth in 2009, although both showed signs of recovery in 2010.

Following are the economic data for the year 2010 (est) and are in US Dollars

GDP (purchasing power parity) $416.7 billion
GDP - real growth rate 7.2%
GDP - per capita (PPP) $14,700
GDP - composition by sector
Agriculture 9.1%
Industry 41.6%
Services 49.3%
Labor force 12.2 million
Labor force - by occupation
Agriculture 13%
Industry 36%,
Services 51%
Unemployment rate 3.5%

Agriculture - products: Peninsular Malaysia - rubber, palm oil, cocoa, rice; Sabah - subsistence crops, coconuts, rice, rubber, timber; Sarawak - rubber, timber, pepper

Industries: Peninsular Malaysia - rubber and oil palm processing and manufacturing, light manufacturing, pharmaceuticals, medical technology, electronics, tin mining and smelting, logging, timber processing; Sabah - logging, petroleum production; Sarawak - agriculture processing, petroleum production and refining, logging