| Economy of Malaysia | |
|---|---|
.JPG)
Kuala Lumpur,
financial center of Malaysia.
| |
| Currency | Ringgit |
| Fiscal year | Calendar year |
| Trade organisations | APEC, ASEAN, IOR-ARC, WTO |
| Statistics | |
| GDP | $492.4 billion (PPP,2012 est.) $307.2 billion (nominal 2012 est.) |
| GDP growth | 4.5% (2012 est.) |
| GDP per capita | $16,922 (PPP, 2012 est.) $10,304 (nominal, 2012 est.) |
| GDP by sector | agriculture: 11.9% industry: 41.2% services: 46.8% (2012 est.) |
| Inflation (CPI) | 1.9% (2012 est.) |
| Population below poverty line |
1.7% (2012 est.) |
| Gini coefficient | 43.1 (2009 est.) |
| Labour force | 12.92 million (2012 est.) |
| Labour force by occupation |
agriculture: (13%), industry: (36%), services: (51%) (2005 est.) |
| Unemployment | 3.2% (2012 est.) |
| Main industries | Peninsular Malaysia - rubber and palm oil 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 |
| Ease of Doing Business Rank | 6th |
| External | |
| Exports | $239.8 billion (2012 est.) |
| Export goods | electronic equipment, vehicles, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals |
| Main export partners |  Singapore 13.6% China 12.6% Japan 11.8% United States 8.7% Thailand 5.4% Hong Kong 4.3% India 4.2% Australia 4.1% (2012 est.) |
| Imports | $197.2 billion (2012 est.) |
| Import goods | electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals |
| Main import partners | China 15.1% Singapore 13.3% Japan 10.3% United States 8.1% Thailand 6.0% Indonesia 5.1% South Korea 4.1% (2012
est.) |
| FDI stock | $77.4 billion (31 December 2010 est.) |
| Gross external debt | $72.6 billion (31 December 2010 est.) |
| Public finances | |
| Public debt | 53% of GDP (2012 est.) |
| Revenues | $59.22 billion (2012 est.) |
| Expenses | $75.31 billion (2012 est.) |
| Economic aid | $31.6 million (2005 est.) |
| Credit rating |
|
| Foreign reserves | US$139.651 billion (May 2013) |
The Southeast Asian country experienced an economic boom and underwent rapid development during the late 20th century and has GDP per capita of $17,200 today, to be considered a newly industrialized country. On the income distribution, there are 5.8 million households in 2007. Of that, 8.6% have a monthly income below RM1,000, 29.4% had between RM1,000 and RM2,000, while 19.8% earned between RM2,001 and RM3,000; 12.9% of the households earned between RM3,001 and RM4,000 and 8.6% between RM4,001 and RM5,000. Finally, around 15.8% of the households have an income of between RM5,001 and RM10,000 and 4.9% have an income of RM10,000 and above.
As one of three countries that control the Strait of Malacca, international trade plays a large role in its economy. At one time, it was the largest producer of tin, rubber and palm oil in the world. Manufacturing has a large influence in the country's economy. Malaysia is the world's largest Islamic banking and financial centre.
Since it became independent in 1957, Malaysia's economic performance has been one of Asia's best. Real gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005. Performance peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid growth averaging almost 8% annually. High levels of foreign and domestic private investment played a significant role as the economy diversified and modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today is a middle-income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world's largest exporters of semiconductor components and devices, electrical goods, solar panels, and information and communication technology (ICT) products.
Malaysia's capital market crossed the RM2 trillion threshold for the first time at the end of 2010. The capital market had achieved an annual compounded growth rate of 11% from RM717bil in 2000 due to rapid economic expansion and strong regulatory oversight that underpinned investor confidence in the Malaysian capital market.
In 1991, former Prime Minister of Malaysia, Mahathir bin Mohamad outlined his ideal, Vision 2020 in which Malaysia would become a self-sufficient industrialized nation by 2020. Tan Sri Nor Mohamed, a government minister, said Malaysia could attain developed country status in 2018 if the country's growth remains constant or increases.
Industry
Malaysia industrial sector accounts for 48.1 percent of total GDP or 63.4 billion US dollars. The industrial output is ranked 32nd in the world. The industrial sector is regulated and promoted by Malaysia Industrial Development Authority. International trade, facilitated by the adjacent Strait of Malacca shipping route and manufacturing are both key sectors of the country's economy. Manufacturing has a large influence in the country's economy, although Malaysia’s economic structure is moving away from it.Malaysia has 19 companies that rank in the Forbes Global 2000 ranking for 2012.
| World Rank | Company | Industry | Revenue (billion $) |
Profits (billion $) |
Assets (billion $) |
Market Value (billion $) |
|---|---|---|---|---|---|---|
| 332 | Maybank | Banking | 9.1 | 1.9 | 161.4 | 24.3 |
| 467 | CIMB Group Holdings | Banking | 6.3 | 1.4 | 110.2 | 16.8 |
| 516 | Tenaga Nasional | Utilities | 11.5 | 1.3 | 28.3 | 12.6 |
| 542 | Sime Darby | Conglomerates | 15 | 1.3 | 14.9 | 17.3 |
| 594 | Public Bank | Banking | 4.2 | 1.3 | 89.8 | 18 |
| 725 | Genting | Hotels, Restaurants & Leisure | 5.6 | 1.4 | 21.5 | 11.6 |
| 807 | Axiata Group | Telecommunications Services | 5.8 | 0. 8 | 14 | 17.2 |
| 941 | Petronas Chemical | Oil & Gas Operations | 5.4 | 1.2 | 8.3 | 16.3 |
| 973 | RHB Capital | Banking | 2.0 | 0.6 | 61.8 | 6.8 |
| 1125 | AMMB Holdings | Banking | 2.1 | 0.5 | 36.4 | 6.1 |
| 1260 | Maxis | Telecommunications Services | 2.9 | 0.6 | 5.8 | 15.6 |
| 1261 | YTL | Utilities | 6.4 | 0. 4 | 16.3 | 5.6 |
| 1302 | Hong Leong Financial Group | Banking | 2.3 | 0.4 | 53.6 | 4.8 |
| 1317 | IOI Group | Food, Drink & Tobacco | 4.9 | 0.6 | 7.2 | 9.6 |
| 1450 | Petronas Gas | Oil & Gas Operations | 1.2 | 0.5 | 4.4 | 11.8 |
| 1696 | Petronas Dagangan | Oil & Gas Operations | 9.6 | 0.3 | 3.2 | 7.4 |
| 1823 | DRB Hicom | Automotive | 2.2 | 0.4 | 12.9 | 1.5 |
| 1842 | MISC Berhad | Transportation | 3.1 | 0.2 | 12.2 | 7.4 |
| 1961 | Telekom Malaysia | Telecommunications | 3.2 | 0.4 | 7.3 | 6.1 |
Finance and banking
Finance and Banking sector in Malaysia is regulated by Bank Negara Malaysia. The central bank limits foreign participation through licensing limits. The central bank launched a Financial Sector Master plan in 2001 to revamp the finance sector following the Asian Financial Crisis. The master plan calls for emphasis on Islamic Banking, of which Malaysia has become a centre of. Malaysia has the highest number of female workers in Islamic banking.Maybank is Asia-Pacific's largest Islamic banking service provider with US$6.4 billion (RM22.48 billion) Syariah-compliant assets. Malaysia also accounts for two thirds of global $82.2 billion sukuk market in 2007. Khazanah Nasional owns the largest retakaful company in the world, ACR Retakaful Holdings Limited, with capital base amounting to 300 million US Dollars.
A quarterly report prepared by the Economist Intelligence Unit on behalf of Barclays Wealth in 2007 estimated that there were 48,000 dollar millionaires in Malaysia (over twice that of China).
In April 2009, the government announce new licenses will be issued for investment banking Islamic banking, takaful and insurance business between 2009 to 2011. It also announced that the threshold foreign equity ownership has been raised from 49% to 70% and allowed foreign banks to open up new branches and micro-credit facilities. This move was done as an attempt to put Malaysia in as center for Islamic banking and also to liberalize the financial sector.
Oil and gas
Malaysia has a vibrant oil and gas industry. The national oil company, Petronas, provides about 40% of the federal budget in taxes, dividends and royalties. The oil company ranked 121 in Fortune Global 500 list of companies in 2007. It also ranked 18 in the industry of the same list. The company has ove up to the rank by being 95th in 2008 in terms of revenue and 8th most profitable company in the world and the most profitable in Asia. Since inception in 1974, Petronas have paid the government RM 403.3 billion, with RM 67.6 billion in 2008. The payment represents a 44% of the 2008 federal government revenue.Petronas is also the custodian of oil and gas reserves for Malaysia. Hence, all oil and gas activities are regulated by Petronas. Malaysia encourages foreign oil company participation through production sharing contracts, in which significant amount of oil will be given away to the foreign oil company until it reaches a production milestone. Currently, many major oil companies such as ExxonMobil, Royal Dutch Shell, Nippon Oil, and Murphy Oil are involved in such contracts. As a result, 40% of oil fields in Malaysia are developed.
Malaysia and Thailand has a wedge shaped area 150 km from Kota Bharu, Kelantan and 260 km from the shores of Songkhla, Thailand which is jointly developed by Petronas and its Thailand counterpart. The area, which is called Malaysia-Thailand Joint Development Area, has 4.5 trillion cubic feet (130 km3) of proven reserves.
Tourism
The Ministry of Culture, Arts and Tourism (MOCAT) was established in 1987 under which the TDC was incorporated. TDC existed from 1972 to 1992, when it became the Malaysia Tourism Promotion Board (MTPB), through the Malaysia Tourism Promotion Board Act, 1992. Tourism Malaysia aims to market Malaysia as a premier destination of excellence in the region.
