Malaysia

Economic indicators

Malaysia has one of the highest standards of living in SE Asia, largely because of its established industrial sector which propelled the country to an 8%–9% yearly growth rate from 1987 to 1997.However, 1997-98 Asian financial crisis affected the economy badly, which was followed by slow down of global economy after 11th September 2001. The GDP growth rate was 5.9% in 2006 and 5.8% in 2007. Domestic demand and dynamism in exports are two major growth factors. IMF forecasts a growth rate of 5.6% in 2008. Despite long-term efforts of the government to improve the economic status of native ‘Malays’ through preferences, the Chinese have generally continued their long-standing dominance of the economy. The current-account surplus will remain substantial in both 2007 & 2008.

Main sectors of industry

Malaysia has successfully developed from a commodity-based economy (mainly exporting rubber and tin) to one focused on manufacturing. Industry contributes nearly 50% to the GDP. Malaysia is one of the world's largest exporters of semiconductor devices, electrical goods, and appliances, and the government has ambitious plans to make Malaysia a leading producer and developer of high-tech products, including software development. Malaysia is a major destination for outsourcing after China and India. Country has attracted large foreign investments which has played a significant role in the transformation of Malaysia's economy. Agriculture remains the basis of livelihood for about 20% of Malaysians and contributes about 15% of GDP. Malaysia is classified among the world's leading producers of palm oil, cocoa and rubber. The country is also a major exporter of tropical wood. The services sector accounts for nearly 50% to the GDP.

Source: World Bank - World Development Indicators - last available data.

Sources of economic information

Ministries

Ministry of Finance

Statistical Office

Department of Statistics Malaysia

Central Bank

Central Bank of Malaysia

Stock Exchange

Kuala Lumpur Stock Exchange

Online newspapers

Daily Express
Kwong Wah Yit Pot (in Malay)
Utusan Malaysia

Search Engines

Cari
Ada
Catcha
FounderNet
Malaysia Directory

Economic portals

Business Time

Political outline

Executive Power

The chief of state is the Paramount Ruler, commonly referred to as the King. The King is selected from the nine hereditary rulers (called Sultans) of the Malay states to serve a five-year term; the other four states (which have titular Governors) do not participate in the selection. F ollowing legislative elections, the leader of the party that wins a plurality of seats in the lower house of the parliament becomes the Prime Minister to serve a five-year term, subject to confirmation by the King. Prime Minister is the head of the government and holds the executive powers which include implementation of the law and running the day-to-day affairs of the country . Cabinet is appointed by the Prime minister from among the members of parliament with consent of the Paramount Ruler.

Legislative Power

The legislature in Malaysia is bicameral. The parliament consists of: Senate (the upper house) having 69 seats, out of which 43 appointed by the Paramount Ruler and 26 appointed by the 13 state assembles to serve six-year terms; and House of Representatives (the lower house) having 219 seats; with its members elected by popular vote to serve five-year terms. The King can dissolve parliament if he wishes but usually does so upon the advice of the Prime Minister. In general, more power is vested in the executive branch of government than in the legislative. The legislative power is divided between federal and state legislatures. Each state has its own government, a cabinet with executive authority, and a legislature that deals with matters not reserved for the federal parliament . The people of Malaysia have limited political rights.

Main political parties

Malaysia is a one party dominant state with the UMNO (United Malays National Organization) being the largest political party in the country. It has ruled the country uninterruptedly since its independence from UK in 1957. UMNO is known for being a major proponent of Malay nationalism and Islamic ideology. UMNO rules the country through a coalition called BN (National Front); its other two prominent members are:
- MCA (Malaysian Chinese Association) – a party of overseas Chinese who are citizens or long-term residents of Malaysia;
- MIC (Malaysian Indian Congress) – representing overseas Indian community in Malaysia;
- Opposition parties are allowed, but are widely considered to have no real chance of gaining power.

Current political leaders

Paramount Ruler: Tuanku SYED SIRAJUDDIN (since December 2001) – King of the state of Perlis in Malaysia
Prime Minister: ABDULLAH bin Ahmad Badawi (since October 2003) – UMNO, heading the BN coalition government

Next election dates

Paramount Ruler: December 2011
House of Representatives: April 2009

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