Analaysis of Malaysia’s Economy
Essay title: Analaysis of Malaysia’s Economy
The Malaysian Economy
Malaysia is a country rich in culture, languages, commerce and natural resources. The population is a diverse mix of ethnic Malays, Chinese, Malaysians of Indian descent, and Indigenous people. Although the Islamic faith is the dominant religion in the country, the cultural and socio-political environment is one of harmony and people of different religions are free to worship. The heterogeneity and open collective nature of Malaysias socio-political landscape makes it an ideal stable country for new business ventures.
Malaysia has a wealth of natural resources. Malaysias main exports include palm oil, natural rubber, cocoa and tobacco. Mineral resources are also integral to the Malaysian economy, primarily tin, oil and natural gas. In 2004, Malaysias oil reserves were estimated at 4.8 billion barrels and natural gas reserves at 89 trillion cubic feet.
The current economic focus in Malaysia has shifted from one that is commodity-based to that of manufacturing and information. Malaysian exports have become their central growth factor. The country showed consistent and stable growth throughout the last two decades; Malaysias real GDP growth exceeded 7% coupled with a low inflation rate. The value of Malaysias exports is approximately $127 billion; major export markets are with U.S. at 21%, Singapore at 17%, and Japans share at 11%. The value of imports is about $99.2 billion which includes machinery,