Malaysia
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About Malaysia /

Economy

Advantages: electronics, computers and appliances, tourism, heavy industry (steel), palm oil, latex, rubber and chemical products. National car brand is Proton.

Weaknesses: large debts, deficit of specialists. High interest rates hinder the development of private initiative, high government spending, competition from other emerging markets. The basis of economy is industry (46% of GDP) and services (41%). Agriculture provides 13% of GDP. Particularly high level of development reached the electronic and electrical industry (1 place in the world in production of electronic chips and air conditioners), auto industry (the country has a national brand Proton; Perodua - the second biggest Malaysian carmaker), oil and gas processing (3 in the world in production of liquefied gas), the textile industry. Around the capital is being built the world's largest multimedia corridor - so-called Silicon Valley. . Among having world value — palm-oil manufacture (the first place in the world), natural rubber (the third place in the world), a tin concentrate and timber. The proved stocks of oil of Malaysia — 4,3 billion barrels. Malaysian low sulfur oil, is considered one of the best in quality. It is extracted from offshore fields near the Malay Peninsula. Daily in the country produced 730 thousand barrels of oil, of which almost half is exported.
Capacities of oil refining come nearer to 500 thousand barrels per day. Stocks of natural gas of Malaysia are estimated at 2, 2 billion cubic meters (77, 7 trillion cubic foots), extraction reaches 1,36 trillion cubic foots a year. The state oil company of Malaysia PETRONAS . Its strategic partners — Exxon Mobil and Shell, who participated in the creation of major oil companies of Malaysia- Esso Prodakshn Malaysia, Sabah Shell Petroleum, Sarawak Shell Berhad and Sarawak Shell / PETRONAS Carigali. Other foreign companies actively working in Malaysia, are — Amoko, Konoko, Enron, International Petroleum Korporejshn, Mitsubishi, Mobile, Murphy Ojl, Nippon Ojl, Oksidental, Statojl, Teksako, the Triton, Petrovetnam.

Refineries - Port Dickson Shell (capacity - 100 thousand barrels per day), Malacca-1 (100 thousand) and the Malacca-2 (100 thousand), Curt Petronas (40 thousand), Port Dickson Esso (over 80 thousand), Lutong-Shell (45 thousand).
The main terminals are - Bintulu, Kuching, Malacca, Penang, Port Dickson, Port Klang, etc. One of the main problems of the oil industry is the depletion of reserves. Over the last years in Malaysia hasn’t been opened any really considerable reserves of the deposit. In order to intensify exploration government in 1998 decided to reduce taxation in the industry. At the same time executive management of PETRONAS has begun to work out a new strategy, which implies an active participation of the company in foreign projects. So, today, the Malaysian company is already operating in Turkmenistan, Iran, China, Pakistan, Vietnam, Algeria, Libya, Tunisia and other countries. In April, 1997 Malaysian investment holding company "Peter Hira" has signed the agreement with the government of Tatarstan about acquisition of a controlling interest in petrochemical company Nizhnekamskneftekhim.

Malaysia's foreign trade turnover in 1998 amounted to 133.6 billion am. dollars (in 1997 - 167 billion), including exports of $ 74.3 billion (in prices FOB) and import - 59.3 billion dollars . In terms of volume of export the country ranks 19th place in the world, import — 17th place. The basic subjects of export: electronics (about 50 %), oil and oil products, palm-oil, wood and products from it, rubber, textiles. Manufacturing industry production makes 81 % of all export, agricultural — 9,5 %, a mining industry — 6,3 %. Export consumers: the USA (21 %), Singapore (20 %), Japan (12 %), Hong Kong (5 %), Great Britain and Thailand (on 4 %), Germany (3 %)The country is among the six largest exporters of industrial products in Asia. The major items of import: cars and the equipment, chemicals, foodstuff. 27 % of import come from Japan, 16 % — from the USA, 12 % — from Singapore, 5 % — from Taiwan, on 4 % from Germany and South Korea. After some recession in production due to financial crisis of 1997 it is increasing. In 1999, the growth rate became 4.3 percent, and 8.9 percent in industry, foreign exchange reserves rose to 30.2 billion am. U.S. Inflation has fallen to three percent. The income per capita is — 4 690 dollars. External debt – 39,8 mln . am. U.S. Only 1 % of country's export consumes for service of an external debt, and the volume of short-term debts makes a little more than 30 % of reserves of the State bank. Volume of direct foreign investments is— 3 billion ам.dollars. The major investors are — the USA, Japan. The bank system develops on principles of Islamic economy. From 1993 till 1999 assets of Islamic banks have increased from 2,4 billion to 34 billion ringgits. Bank Muamalat Malaysia Berhad has a dominate position. As by laws of Sheriyat money isn't the commodity and, therefore, to demand payment for their lending(рибу) is violation of moral norms of Islamic , the Islamic credit system is based on the principle of profit sharing on investment between lenders and borrowers. There are two types of lending operations. Mudaraba (financial company attracts resources on deposit accounts and invests them in various projects in exchange for a strictly specified share of the profit; if business causes damage the only borrower suffer loss)and musharaka (investors making investments by clubbing and divide received profits or losses according to the size of the share of each participant). Manufacturing of fabrics a batik and songnet, jewelry from silver and souvenirs from tin, weaving. I Malaysia pays great attention to the development of tourism. The basic tourist centers: an island Penang, an island of Langkavi, the historical city of Malacca, national parks and reserves. Extent of the railways — 1 798 km, highway 94 500 km (70 970 km with a firm covering, including 580 km — high-speed roads). Highway North-South (848 km) runs from the Thailand border to Singapore. There are 1 307 km of oil pipelines and 379 km of gas pipelines. Maritime merchant fleet has 378 vessels, including 61 oil and 19 gas tankers. Main ports: Port Klang (the largest, the turnover of 49 million tons in 1996), Labuan, Pulau Penang, Pasir Gudang,, Kuantan, Kota Kinabalu, Sandakan, Kuching, Sibu, Bintulu.There are 115 airports, including 6 international (Sepang, Langkawi, Pulau Penang, Johor Baru, Kota Kinabalu, Kuching).

 

The national airline MAS (1971) provides flights to 75 cities around the world. The system of telecommunications and communication is well developed. In 1997 there were 2,7 million private subscribers of a telephone system and 1,45 million subscribers —business customers, over 170 thousand call boxes, almost 2,5 million cellular telephones. Telecommunication is provided with two satellite stations and the cables laid on a sea-bottom to India, Hong Kong and Singapore. Satellites (MEASAT-1 and MEASAT-2) put into orbit by the French launcher. Major Cities: Kuala Lumpur, Georgetown, Ipoh, Johor Baru, Petaling Jaya, Kuching. In 1995 is founded a new administrative capital Putrajaya. Practices five years' planning.
From 1970 to 1990 is implemented a new economic policy, which reduces the number of people living below the poverty line declined from 52 percent to 17 percent.

 

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