Business opportunities in Malaysia trade and industry

ECONOMY. Malaysia is a moderate-income economy and has the third highest GDP per capita (US$4,625) among the Southeast Asian countries after Singapore and Brunei. The country was a producer of raw materials in the main but altered its economy from the 1970s to the 1990s into a multi-sector economy. Malaysia’s economic development is export supported principally from exports of electrical and electronic products.

Malaysia’s economy is somehow constant with healthy foreign exchange reserves and a GDP of US$118.3 billion in 2004. From 2000 to 2004, Malaysia’s actual GDP sprang up by a yearly moderate rate of 5.7% while inflation stayed below 2.0% and unemployment Business opportunities in Malaysia trade and industry below 4.0%. The Asian economic slump of 1997 had bad impact on Malaysia’s economy during the period. It is improbable that the country will go through an economic slump like that of 1997 with current healthy foreign exchange business reserves, low inflation and small foreign debt.

The manufacturing sphere appraised for 48.5% of Malaysias GDP in 2004, services appraised for 42.4% and the agriculture sphere appraised for 9.1%. Leading industries comprise electronic & electrical products, textiles, clothing & footwear, chemicals, petroleum, wood and metal trade products. Leading industry agriculture industries comprise Business opportunities in Malaysia trade and industry palm oil, rubber, cocoa, rice, poultry and timber.

DEMOGRAPHY. Malaysia consists of Peninsular Malaysia and East Malaysia (situated on the northern half of the island of Borneo) with a population of 26 million. Malaysia is a multi-ethnic society comprising of the predominant indigenous Malays (50%) followed by the Chinese (24%) and Indians (7%). Other Business opportunities in Malaysia trade and industry indigenous groups (11%) comprise the Ibans, Kadazans, Melanaus and Kelabits. Leading religion practiced is Islam followed by Buddhism, Taoism, Hinduism and Christianity. Leading Malaysia languages applied are Malay (national language), English (usually applied in business), Chinese (principally Mandarin, Hokkien and Cantonese) and Tamil.

Malaysia’s life style is turning to be more and more urban. The country’s urban lifestyle rose from 54.7% to 62.8% of Malaysia’s complete population from 1995 to 2004. Principal cause is growing employment chances in the leading urban Malaysia areas. Leading urban areas comprise the Business opportunities in Malaysia trade and industry nation’s capital Kuala Lumpur and the surrounding Malaysia areas (called the Klang Valley), Penang, Johor Bahru, Ipoh, Kuantan, Kuching and Kota Kinabalu.

Households in the urban areas have a moderate income that is double the one for the rural areas. A reckoned 5% of Malaysian households live below the poverty line while 50% are low-income households. The Business opportunities in Malaysia trade and industry rate of moderate income households is 33% while high-income Malaysia households are 10%.