The Malaysian economy is growing at a steady pace.  The economy is primarily dependent on exports and services. The main products exported include semiconductor devices, electronic goods and solar products.

(Source: National Statistics)

Malaysia’s GDP at current prices was MYR 674.43 billion in 2009 which decreased slightly from MYR 738.68 billion in 2008.

In the second quarter of 2010 Malaysia's GDP grew at 8.9% and in the third quarter GDP grew at 5.3%.

(Source: National Statistics)

(Source: National Statistics)

The GDP at the constant prices in 2009 was MYR 521.09 billion. The growth rate for the second quarter of 2010 was MYR 138.52 billion, whereas for the third quarter GDP was MYR 141.9 billion. (Source: National Statistics)

Gross national nncome (GNI) per capita, PPP

Malaysia’s GNI per capita at PPP in 2010 was USD 13,927 compared to USD 12,143 in 2005.

(Source: UNDP)

Trade balance

In 2010 (Jan to Nov), exports from Malaysia amounted to MYR 582,263 million, while imports were valued at MYR 481,716 million. The trade balance had a surplus of MYR 100,547 million.

(Source: Central Bank of Malaysia)

Tax rates

Individual residents are taxed progressively between 2% and 26% depending on their income. Individuals are taxed on earnings directly made in  Malaysia, whereas foreign sources of income are not taxable under Malaysian tax laws.

(Source: tax rates)

Inflation rate

The inflation rate in Malaysia in 2009 dipped to -1.08% and in 2010 it was at 1.34%.

(Source: Central Bank of Malaysia)

Foreign direct investment (FDI) inflow

The FDI in 2009 was MYR 275,631 million which increased from MYR 234,097 million in 2008.

(Source: National Statistics)

Banking sector assets

The table below shows the assets of the Central Bank of Malaysia since January. The total assets increased in 2011 to MYR 333,547,316,060 from MYR 332,196,919,677 in 2010.

Currency Unit: Ringgit (MYR)

(Source: CentralBank of Malaysia)

Consumer price index

(Source: CentralBank of Malaysia)

Base, Year 2005 = 100

The consumer price index has been increasing. Malaysia's consumer price index in 2006 was 103.6 compared to 114 in 2010, indicating that prices of consumer goods are increasing.

Interest rates on saving deposits/time deposits

Since February, 2010 interest rates have been  2.74% for overnight deposits, 2.76% for 1 week, and 2.79% for one month deposits.

(Source: Central Bank of Malaysia)

Money supply (Currency in Circulation)

The currency in circulation at the end of December 2010 amounted to MYR 47,693.3 million.

(Source: Central Bank of Malaysia)

Government expenditure

Government operating expenditure in Malaysia was MYR 157,067 million in 2009. In 2010 (Q1 to Q3) government expenditure was MYR 107,536 million.

(Source: Central Bank of Malaysia)

Official exchange rate

The USD/MYR rate at the end of 2010 was 3.08

(Source: Central Bank of Malaysia)

Government finances

Fiscal balance

Malaysia’s overall fiscal deficit in 2009 was MYR 47.4 billion or 7% of GDP compared  to a deficit of MYR 35.6 billion in 2008 (4.8% of GDP).                                                                                                                                                                                               

(Source: Ministry of Finance)

Total revenue

Malaysia’s revenue in the first three quarters of 2010 amounted to MYR 113,835 million compared to MYR 158,639 in 2009.

(Source: Central Bank of Malaysia)

Tax revenue

In 2009, the total revenue from taxes amounted to MYR 106,504 million compared to MYR 112,897 million in 2008. The tax revenue for the first three quarters of 2010 was MYR 77,623 million.

(Source: Central Bank of Malaysia)

Current account balance - surplus/deficit

Malysia recorded a current account surplus of MYR 66,595 million in the first three quarters of 2010 compared to a surplus of MYR 112,139 million in 2009.

(Source: Central Bank Malaysia)

Balance of payments

(Source: Central Bank Malaysia)

The labour force in Malaysia was recorded at 11.32 million people in 2009. The labour force participation rate was 62.9% in 2009 and the unemployment rate was 3.7% for the same period.

The employed population in 2009 was 10.9 million people compared to 10.7 million in 2008.

The unemployment rate rose to 3.7% in 2009 compared to 3.3% in 2008.

(Source: National Statistics)

(Source: National Statistics)

Minimum wage

Malaysia does not have a minimum wage law. Although there is an act called the Wages Council Act 1947, it only protects certain categories of workers.

(Source: temasekreview, Ministry of Human Resources)

Level of unionisation

Trade union activity in Malaysia is moderate and the majority of the work force are not members of trade unions. Since 2010, Malaysia has 690 trade unions and had a total membership of 803,289 people. The main trade unions in Malaysia include:

·         Congress of Unions of Employees in the Public and Civil Services

·         Malaysian Trades Union Congress

·         National Council of Unions of the Industrial and Lower Income Group of Government Workers

 (Source: Ministry of Human Resources)

Malaysia is a monarchy with a parliamentary democratic system of government. The King or the Yang di-Pertuan Agong is the head of state and the prime minister is the head of the government.

The Yang di-Pertuan Agong is elected by the Conference of Rulers, which includes rulers at state level. The Yang di-Pertuan Agong is the supreme commander of the armed forces and also appoints diplomats to serve in other countries.

Executive power is vested in the federal and state government. Parliament has legislative power. Malaysia's parliament is bicameral and consists of the house of representatives and the senate.

It is a statutory requirements for the house of representatives to have 222 members who are directly elected for a five year term. The Senate consists of 70 members, of which 26 are elected by the state legislative assemblies and the remaining 44 are appointed by the head of state.

The main political parties in Malaysia are:

·         Persatuan China Malaysia (MCA)

·         Kongres India Malaysia (MIC)

·         Pertubuhan Kebangsaan Melayu Bersatu (UMNO)

·         Parti Islam Semalaysia (PAS)

·         Parti Pesaka Bumiputra Bersatu Sarawak (PBB)

(Source: malaysianmonarchy.org.my, IPU, parlimen.gov.my)

Regulatory environment in Malaysia

Malaysia is a constitutional monarchy which means that the head of the state is the chosen representative of the people and must govern according to constitutional law. 

(Source:Heritage.org)

Malaysia’s economic freedom score is 66.3, making its economy the 53^rd freest in the 2011 Index of Economic Freedom. Malaysia ranks 9^th out of 41 countries in the Asia-Pacific region. Malaysia’s overall score is above the global and regional averages.

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Malaysia is ranked 56^th on this list which indicates that the corruption levels in the public departments is moderate. (Source:transparency.org)

Freedom of information

The government has control over the media and imposes restrictions. News and publications are censored. The government also has the authority to suspend licenses of newspapers. (Source: BBC)

The World Press Freedom Index 2010 ranks Malaysia at 141^st rank with a score of 50.75 which indicates that media in Malaysia is restricted.

(Source: rsf.org)

Newspapers

The main newspapers in Malaysia include:

·         New Straits Times

·         The Star

·         Business Times

·         The Malay Mail

(Source: BBC)

Judicial system

The judicial system in Malaysia is based on both British common law and Islamic law. The judiciary in Malaysia acts as an independent organisation.

Superior courts include the Federal Court, the Court of Appeal and the High Courts. The Federal Court is the highest authority in Malaysia’s judicial system. The Magistrates' Courts and Sessions Courts are classified as Subordinate courts and have jurisdiction in criminal and civil cases.

(Source: kehakiman.gov.my)

The total population of Malaysia in 2010 was 27.56 million with a population density of 83 people per sq. km. Malaysia’s population grew at an average annual rate of approximately 2.17% between 2000 and 2010.

(Source: National Statistics)

14.11 million people of the total population were male and 13.45 million were female. The gender ratio in Malaysia is balanced i.e. there are approximately 105 men for every 100 women.

(Source: National Statistics)

The total fertility rate was 2.3 (per thousand people), the infant mortality rate was 6.4 (per thousand people) and the maternal mortality rate was 0.3 (per thousand people).

In  2008, the crude birth rate was recorded at 17.8 (per thousand people) whereas the crude death rate was 4.7 (per thousand people).

(Source: National Statistics)

The life expectancy at birth in 2008 was 71.6 years for men and 76.4 years for women.

(Source: National Statistics)

In 2009, 31.85% of the total population were in the 0-14 year age group and 4.5% were aged 65 years and above.

(Source: National Statistics)

The international migrant stock in mid-2010 was recorded at 2,357,600 people or 8.5% of the total population. (Source: UN)

The latest figures reveal that the urban population in Malaysia grew at an annual rate of 3% between 2005 and 2010. For the same period, the rural population declined at a rate of -1.3% per year. Approximately 70% of Malaysia’s population lived in urban areas.

 (Source: UN)

The major ethnic groups in Malaysia are:

·         Bumiputera

·         Chinese

·         Indian

(Source: National Statistics)

Malaysia was ranked 57^th out of 169 countries on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

Education

The adult literacy rate in Malaysia between 2005-2008 was estimated at 92%. The literacy rate for men and women in the 15-24 year age group between 2004-2008 was 98% and 99% respectively. (Source: UNICEF)

The education system includes education from pre-school to university levels. The Ministry of Education (MOE) is responsible for education from pre-school to secondary level, whereas higher education is the responsibility of the Ministry of Higher Education (MOHE).

The government provides funding for more than 95% of primary and secondary educational institutions and to 60% of tertiary educational institutions. The rest of the funding is through the private sector. The private sector education is divided into private educational institutions for preschool, primary and secondary education and private higher educational Institutions for tertiary education.

(Source: MOHE)

Health care

The Ministry of Health is responsible for health care in Malaysia. The health care system includes both public and private hospitals.

Malaysia is also a preferred destination for medical tourism, as good quality medical services are available at a lower cost in comparison to western countries.

Malaysia's public health expenditure in 2007 was 1.9% of GDP and has remained unchanged since 2006.

(Source: Ministry of Health, UNDP)

Malaysia has a very good transport system. Roads are the preferred mode of transport on peninsular Malaysia.

Ports

The main ports in Malaysia are: 

Port of Bintulu, Dermaga Tanjung Lembung, Johor Port, Kemaman Port, Kertih Port, Kota Kinabalu Port, Kuantan Port, Kuching Port, Kudat Port, Kunak Port, Labuan Port, Lahad Datu Port, Lumut Port, Malacca Port, Miri Port, Port of Penang, Port Dickson, Port Klang, Sandakan Port, Sepangar Bay Oil Terminal, Rajang Port, Sungai Udang Port, Tanjung Pelepas Port, Tawau Port and Teluk Ewa Jetty.

(Source:world port source)

Airports

(Source: Air charter world)

Telecommunications networks

In 2010, 16.90 million people i.e. 64.6% of the total population used internet services. Similarly in 2009 65.7% of the population used the internet.

In 2009 there were 44.0 fixed line telephone subscribers (per 100 households) , whereas there were 105.4 mobile phone subscribers (per 100 people) and 31.7 broadband subscribers (per 100 households). 

(Source:Ministry of finance, internetworldstats.com, World Bank)