s 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.

Maldives
Tourism, Maldives' largest industry, accounts for 28% of
GDP and more than 60% of the Maldives' foreign exchange receipts.
Over 90% of government tax revenue comes from import duties and
tourism-related taxes. Fishing is the second leading sector.
Agriculture and manufacturing continue to play a lesser role in the
economy, constrained by the limited availability of cultivable land
and the shortage of domestic labor. Most staple foods must be
imported. Industry, which consists mainly of garment production,
boat building, and handicrafts, accounts for about 7% of GDP. The
Maldivian Government began an economic reform program in 1989
initially by lifting import quotas and opening some exports to the
private sector. Subsequently, it has liberalized regulations to
allow more foreign investment. Real GDP growth averaged ove