Malaysia

Capital: Kuala Lumpur

Local time:
It is %T:%M %A in Kuala Lumpur

Exchange rate on :

GDP growth rate: 5.300% in 2012

FDI inward stock: 76 748 million USD in 2007

Country risk: See the country risk analysis from Malaysia provided by Ducroire.

Economic trends

Malaysia's two main economic growth factors are domestic demand and dynamic exports. Malaysia has one of the highest living standards in South-East Asia and the lowest unemployment rate. Despite the government's long-term efforts to improve the economic status of native Malays, the population of Chinese origin continues to maintain its customary dominance.

The GDP growth rate remained high until mid-2008 before suffering the effects of the global crisis and shrinking heavily in 2009.

Main branches of industry

Agriculture employs around 15% of Malaysians and contributes 10% of the GDP. Malaysia is ranked amongst the world's main producers of palm oil, cocoa, and rubber. The country is also one of the main exporters of tropical wood. Malaysia has successfully developed an economy based on raw materials (the export of rubber and tin, it also has significant reserves of oil and gas, copper and bauxite).

Industry contributes around 40% of the GDP. Malaysia is one of the world's largest exporters of semi-conductor devices, electrical goods and appliances, and also the government has ambitious plans to make Malaysia a leading producer and developer of high-tech products, including software. Malaysia is a major outsourcing destination for components manufacturing, behind China and India. The country has attracted significant foreign investments which have played a major role in the transformation of Malaysia's economy.

The tertiary sector accounts for nearly half of the GDP, in particular the tourism sector. Malaysia has become one of South-East Asia's major tourist destinations.

International trade

Malaysia is well known for its openness to international trade. Foreign trade accounts for more than double of the country’s GDP. The main three trade partners are the United States, Singapore and Japan, followed by China and the European Union.
The country mainly exports electric and electronic equipment, machinery, mineral fuels and hydrocarbons, animal and vegetable oils and fats, wood and charcoal. The country mainly imports electric and electronic equipment, machinery, fuels and oils, plastic products, iron and steel. In 2007 and in 2008 the country registered a surplus in its trade exchanges. The current crisis has not affected the earnings of the trade balance despite the fact that it has caused heavy reduction in external trade, with imports having reduced more that exports.