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Economy
Malaysia

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. Since coming to office in 2003, Prime Minister ABDULLAH has
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
2006-07. Although this has helped to hold down the price of imports,
inflationary pressures began to build in 2007. Healthy foreign
exchange reserves and a small external debt greatly reduce the risk
that Malaysia will experience a financial crisis over the near term
similar to the one in 1997. 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. With national elections expected within the
year, ABDULLAH has unveiled a series of ambitious development
schemes for several regions that have had trouble attracting
business investment. Real GDP growth has averaged about 6% per year
under ABDULLAH, but regions outside of Kuala Lumpur and the
manufacturing hub Penang have not fared as well.

GDP (purchasing power parity):

$361.2 billion (2007 est.)

GDP (official exchange rate):

$186.5 billion (2007 est.)

GDP - real growth rate:

6.3% (2007 est.)

GDP - per capita (PPP):

$14,500 (2007 est.)

GDP - composition by sector:

agriculture: 9.9%
industry: 45.3%
services: 44.8% (2007 est.)

Labor force:

10.94 million (2007 est.)

Labor force - by occupation:

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

Unemployment rate:

3.2% (2007 est.)

Population below poverty line:

5.1% (2002 est.)

Household income or consumption by percentage share:

lowest 10%