Malaysia Economic Policy

By: EconomyWatch   Date: 14 October 2010

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As per latest information on Malaysia economic policy Prime Minister, Abdullah Badawi has decided to disperse economic inheritance and extravagant projects, taken up by Mahathir Mohamad, his predecessor. He declared this economic policy in Malaysia during 57th UMNO General Assembly. He decided to make his own economic policies and stated that he will not follow economic strategies that were taken up by Mahathir.


Among other Malaysia economic policies, Abdullah Badawi has decided to generate wealth not by government contracts, foreign investment and privatization but by innovation and creativity. Some of major highlights of Malaysia economic policy have been a sustained focus on agriculture and biotechnology field. It is believed that these sectors and economic policy at Malaysia regarding them would be able to bring large amount of wealth to this Asian nation.

Free trade agreements were introduced by Badawi to Japan. These contracts will help these two countries minimize tariffs on trade of all industrial goods and large number of forestry, agricultural, and fishery products. Economic policies of Malaysia also state that it has to develop and focus more on its strengths, which is agriculture. It would also look in to fact that manufacturing base is not affected. By restructuring government financial assistance, it has increased price of petrol and electricity. Abdullah Badawi has been criticized as this policy was damaging Malaysia's place as an established exporter.

Economic policies of Malaysia focus on revision of agrarian economy towards manufacturing industry. Economy of Malaysia receives contribution from various sectors of economy. Agricultural sector contributed 9.7 percent to Malaysia GDP as was estimated in 2008. Industrial sector contributed 44.6 percent and 45.7 percent came from service sector in financial year 2008.

State economic policy of Malaysia puts stress on investment in export industries, which mainly comprises of electronics goods. Major export goods from Malaysia include electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles and chemicals. Export partners include US (15.6 percent), Singapore (14.6 percent), Japan (9.1 percent), China (8.8 percent), Thailand (5 percent), and Hong Kong (4.6 percent), as per data of 2007. Malaysia economic policy includes that for financial stability, macroeconomic policies have to be put into practice. Economic policies of Malaysia look forward for development of nation at large.



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