Malaysia Economy Profile 2009

Economy - overview

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. After coming to office in 2003, former Prime Minister ABDULLAH tried to move the economy farther up the value-added production chain by attracting investments in high technology industries, medical technology, and pharmaceuticals. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - 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 forced Kuala Lumpur to reduce government subsidies. Malaysia "unpegged" the ringgit from the US dollar in 2005 and the currency appreciated 6% per year against the dollar in 2006-08. Although this has helped to hold down the price of imports, inflationary pressures began to build in 2007 - in 2008 inflation stood at nearly 6%, year-over-year. The government presented its five-year national development agenda in April 2006 through the Ninth Malaysia Plan, a comprehensive blueprint for the allocation of the national budget from 2006-10. ABDULLAH unveiled a series of ambitious development schemes for several regions that have had trouble attracting business investment. Real GDP growth averaged about 6% per year under ABDULLAH, but regions outside of Kuala Lumpur and the manufacturing hub Penang did not fare as well. The central bank maintains healthy foreign exchange reserves and the regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Decreasing worldwide demand for consumer goods is expected to hurt economic growth in 2009 and beyond, however.

GDP (purchasing power parity)

$384.3 billion (2008 est.)
$367.4 billion (2007 est.)
$345.9 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$222.2 billion (2008 est.)

GDP - real growth rate

4.6% (2008 est.)
6.2% (2007 est.)
5.8% (2006 est.)

GDP - per capita (PPP)

$15,200 (2008 est.)
$14,800 (2007 est.)
$14,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 10.1%
industry: 43.7%
services: 46.3% (2008 est.)

Population below poverty line

5.1% (2002 est.)

Labor force

11.09 million (2008 est.)

Labor force - by occupation

agriculture: 13%
industry: 36%
services: 51% (2005 est.)

Unemployment rate

3.3% (2008 est.)
3.2% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2.6%
highest 10%: 28.5% (2004 est.)

Distribution of family income - Gini index

46.1 (2002)
49.2 (1997)

Investment (gross fixed)

19.7% of GDP (2008 est.)

Budget

revenues: $48.49 billion
expenditures: $58.85 billion (2008 est.)

Public debt

41.2% of GDP (2008 est.)
45.4% of GDP (2004 est.)

Inflation rate (consumer prices)

5.4% (2008 est.)
2% (2007 est.)
note: approximately 30% of goods are price-controlled

Commercial bank prime lending rate

NA% (31 December 2008)
6.41% (31 December 2007)

Stock of money

$NA (31 December 2008)
$49.41 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$187.6 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$220 billion (31 December 2007)

Industries

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

Industrial production growth rate

1% (2008 est.)

Electricity - production

102.9 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 89.5%
hydro: 10.5%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

95.98 billion kWh (2006 est.)

Electricity - exports

2.524 billion kWh (2006 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

753,700 bbl/day (2008 est.)

Oil - consumption

501,100 bbl/day (2006 est.)

Oil - imports

308,500 bbl/day (2005)

Oil - exports

546,300 bbl/day (2005)

Oil - proved reserves

3 billion bbl (1 January 2008 est.)

Natural gas - production

64.5 billion cu m (2007 est.)

Natural gas - consumption

32.9 billion cu m (2007 est.)

Natural gas - exports

31.6 billion cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

2.35 trillion cu m (1 January 2008 est.)

Current Account Balance

$34.58 billion (2008 est.)
$28.93 billion (2007 est.)

Agriculture - products

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

Exports

$198.9 billion (2008 est.)
$176.4 billion (2007 est.)

Exports - commodities

electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals

Exports - partners

Singapore 15.6%, US 12.9%, China 12.5%, Japan 9.6%, Thailand 4.1% (2008)

Imports

$154.7 billion (2008 est.)
$139.1 billion (2007 est.)

Imports - commodities

electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

Imports - partners

Singapore 23%, China 12.7%, Japan 9.8%, US 7.8%, Thailand 5.7%, South Korea 4.3% (2008)

Reserves of foreign exchange and gold

$91.21 billion (31 December 2008 est.)
$101.1 billion (31 December 2007 est.)

Debt - external

$75.33 billion (31 December 2008)
$62.33 billion (31 December 2007)

Stock of direct foreign investment - at home

$83.35 billion (31 December 2008 est.)
$76.75 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$62.8 billion (31 December 2008 est.)
$58.18 billion (31 December 2007 est.)

Market value of publicly traded shares

$187.1 billion (31 December 2008)
$325.7 billion (31 December 2007)
$235.4 billion (31 December 2006)

Economic aid - recipient

$31.6 million (2005)

Currency (code)

ringgit (MYR)

Currency (code)

MYR

Exchange rates

ringgits (MYR) per US dollar - 3.33 (2008 est.), 3.46 (2007), 3.6683 (2006), 3.8 (2005), 3.8 (2004)

Fiscal year

calendar year