Malaysia Economy 2014
Malaysia is a country located in the Southeastern Asia. Kuala Lumpur is the capital city of Malaysia. The Federation of Malaysia is comprised of two parts, one is the Peninsular Malaysia and the other is the East Malaysia which is also known as Malaysian Borneo. The Peninsular Malaysia consists of 11 states and the East Malaysia consists of 2 states. The Malaysian economy is an open economy where the economic activities involve both domestic community and the international community. The Malaysian economy is also a state oriented market economy. Malaysia has a fast growing economy. The Malaysian economy ranked 3rd largest among the south East Asian countries in 2007. Malaysia is situated adjacent to the Strait of Malacca. Strait of Malacca is a sea route which connects the Far East to Asia, Middle East and Europe. Thus the location of Malaysia greatly helpful in its foreign trade.
The Gross Domestic Product of Malaysia is depends on its agricultural sector, manufacturing industries and the service sectors. In 2008, the agricultural sector had contributed 9.7 % towards the country’s GDP. The contributions of the manufacturing industries were estimated as 44.6% and that of service sector was 45.7 % towards the country’s GDP. As per the GDP- PPP (Purchasing Power Parity), Malaysia is ranked 29th in the world. A GDP growth rate of 20 % was noticed towards the end of 20th century. The Gross Domestic Product nominal of Malaysia in 2009 was estimated as US$ 207,400 billion in 2009 and that of GDP-PPP was estimated as $ 3.9 billion. The GDP nominal per capita in 2009 was estimated as US $8,100.
The currency of Malaysia is the Malaysian Ringgit. The Malaysian Ringgit is represented as MYR and it can be divided into 100 cents. It is formerly known as the Malaysian dollar. The MYR is issued from the Bank Negara Malaysia.
In 2007 it was estimated that there are about 5.8 million house holds in Malaysia out of which 8.7 % was having a monthly income below RM 1,000. About 29 % of the house holds were having an average monthly income between RM 1,000 and RM 2,000 and 15.8 % of the house holds were having an average monthly income within a range of RM 5,000 and RM 10,000. Only about 4.9 % of the house holds were having income above RM 10, 000.
Malaysia has a rich deposit of natural resource in terms of agriculture, minerals and forestry. The most important agricultural plant resources of Malaysia are rubber, palm oil, pine apple, tobacco etc. The products like rubber and palm oil are exported in high rate to foreign countries which added a lot towards the country’s economy. In terms of Forestry, the loggings contributed a considerable amount to the country’s economy. The most important plantation includes timber, palm tree and rubber plants. Regarding the minerals, Malaysia has a rich deposit of minerals like tin and petroleum.
Sectors of Malaysia Economy
The mining industries of Malaysia had contributed a lot towards its economy through the export of mine products. Three most important among this are oil, gas and tin. The mining for tin had started long before itself. It had been established during the colonial period. Till 1980 Malaysia was considered as the world’s largest producer of tin. The location of the mines in the peninsular Malaysia was an advantage as it made transportation through the sea easier. The production of crude oil and natural gas has also increased to a higher rate during the last few years. It was estimated that in 1999, the total production of petroleum has reached up to 693,000 barrels. In 1999 the total production of liquefied natural gas was estimated as 3.8 billion cubic feet. In Malaysia there are five major oil refineries.
Manufacturing Industry :
There are wide varieties of well developed manufacturing industries in Malaysia. These manufacturing industries form the major part of Malaysian economy. The major manufacturing industries of Malaysia are furniture manufacturing industries, electronics manufacturing industries, Food processing industries etc. it was estimated that about 48.1 % of the Malaysia’s GDP is contributed by its industrial sector. In terms of manufacturing, Malaysia is ranked in the 23rd position among the world countries.
Malaysia is one of the hot tourist spot of the world. The most important tourism locations of Malaysia are Kuala Lumpur, Sabah, Perlis, Malacca, Terengganu etc. the Malaysia also contains many gardens, parks, museums, religious places etc.
Banking and Finance:
The banking and finance sector of Malaysia is under the control of Bank Negara Malaysia. After the financial crisis in 1990’s, a financial Sector Master Plan was introduced in 2001 which gave more importance to Islamic banking. The May Bank is the largest bank in Asia Pacific which practices Islamic Banking. The Malaysian government has decided in 2009 to give licensure to more sectors by the end of 2010 to increase the opportunities of Islamic Banking and Takaful in Malaysia
In Malaysian economy both the import and export of commodities are of great importance. In 2008, the total export was of $ 198.7 billion and the total import constituted about 154.7 billion. But the global financial crisis had adversely affected the trade system of Malaysia and in 2009, the export rate was declined to $156.4 billion and the import was declined to 119.5 billion. The major commodities exported from Malaysia are rubber, palm oil, petroleum, textiles, liquefied natural gas, wood, wood products, chemicals etc. The most important commodities imported to the country are machinery, electronics, automobiles, plastics, chemicals etc.
The population size of Malaysia at present is estimated as about 28 millions. The rate of unemployment in Malaysia is only 0.4 % which is comparatively lower than other countries. This is favored by the flourishing economy of Malaysia along with its rich deposit of natural resources.
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