Malaysia Economy Profile 2012

                                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. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - 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, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

GDP (purchasing power parity)

$447 billion (2011 est.) 
$424.8 billion (2010 est.) 
$396.4 billion (2009 est.) 
note: data are in 2011 US dollars

GDP - real growth rate

5.2% (2011 est.) 
7.2% (2010 est.) 
-1.6% (2009 est.)

GDP - per capita (PPP)

$15,600 (2011 est.) 
$15,000 (2010 est.) 
$14,200 (2009 est.) 
note: data are in 2011 US dollars

GDP - composition by sector

agriculture: 12% 
industry: 40% 
services: 48% (2011 est.)

Inflation rate (consumer prices)

3.2% (2011 est.) 
1.7% (2010 est.) 
note: approximately 30% of goods are price-controlled

Agriculture - products

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

Industries

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

Current Account Balance

$32.99 billion (2011 est.) 
$32.19 billion (2010 est.)

Exports

$212.7 billion (2011 est.) 
$197 billion (2010 est.)

Exports - commodities

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

Exports - partners

Singapore 13.4%, China 12.6%, Japan 10.4%, US 9.5%, Thailand 5.3%, Hong Kong 5.1% (2010 est.)

Imports

$168 billion (2011 est.) 
$152.6 billion (2010 est.)

Imports - commodities

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

Imports - partners

China 12.6%, Japan 12.6%, Singapore 11.4%, US 10.7%, Thailand 6.2%, Indonesia 5.6% (2010 est.)

Reserves of foreign exchange and gold

$129.6 billion (31 December 2011 est.) 
$106.9 billion (31 December 2010 est.)

Debt - external

$78.18 billion (31 December 2011 est.) 
$7.26 billion (31 December 2010 est.)

Stock of direct foreign investment - at home

$82.99 billion (31 December 2011 est.) 
$77.44 billion (31 December 2010 est.)

Stock of direct foreign investment - abroad

$90.15 billion (31 December 2011 est.) 
$82.65 billion (31 December 2010 est.).