Malaysia Economic Development

Malaysia economic development is one of fastest and steady in global economic scenario. Malaysia GDP per capita has been estimated to be $15,700 in fiscal year 2008. This is a clear indication of tremendous economic development in Malaysia. Malaysia economy is a middle income country that has developed since 1970’s. It was previously a mere raw materials producing economy, which has evolved now as a developing multi-sector economy. This growth bears testimony to impressive economic development at Malaysia.

Prime Minister Abdullah, after coming to power in 2003, has tried to develop economy of this south Asian country by introducing value added production. He took a number of measures to introduce hi-tech technologies and encouraged investments in high technology industries, medical technology and pharmaceuticals.

Efforts have been made by government of Malaysia to stop its dependence on export products. However, exports of electronics goods have always been a major factor in Malaysia economy. There has been huge profit accrued from export of oil and gas and it has been a major factor for Malaysia economic development. There have been huge profits from high energy prices, although there was high cost of gasoline and diesel fuel. This, however, made Kuala Lumpur minimize financial assistance of government. It has been found that currency value of Malaysia has hiked 6 percent per year when pitted against dollar in fiscal years 2006 to 2008.

Through Ninth Malaysia Plan, a five-year national growth agenda in April 2006 had been forwarded by government. This is a comprehensive plan for national budget from 2006-10. Prime Minister Abdullah has made plans to develop various other areas that may attract people for business investment. There is a 6 percent growth in GDP per year, which is being maintained as per economic goals laid down by prime minister.

Economic development of Malaysia is largely dependent on various factors. Malaysia GDP as per purchasing power parity was estimated to be $397.5 billion in 2008. GDP as per official exchange for 2008 was $214.7 billion. Real growth rate of Malaysia GDP of 2008 has been found to be about 5.5 percent.

Different sectors contribute individually for Malaysia economic development. In financial year 2008, contribution of agricultural sector to Malaysia GDP was 9.7%, industrial sector contributed 44.6% and 45.7% came from service sector. Asian Development Bank (ADB), a Manila-based institution, shows Malaysia GDP to be 5.7 percent in fiscal year 2008.