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Country Profiles
Malaysia Malaysia Flag

Brief History    Geography & Demographics    Water & Sanitation    Economy
Trade & Industry    Business    Holidays    Travel    Links
________________________________________________________________________

Malaysia Map

Official Name: Malaysia
Capital: Kuala Lumpur
Population: 22,662,365 (July 2002 est.)
Major language: Malay (official), English, Chinese dialects, Indian Dialects
Major religion: Islam, Buddhism, Taoism, Hinduism, Christianity, Sikhism
Monetary unit: 1 Ringgit = 100 Sen
International dialing code: +60
Main exports: Electronic equipment, petroleum and liquefied natural gas, chemicals, palm oil, wood and wood products, rubber, textiles

Brief History:

In the first century AD, two far-flung but related events helped stimulate Malaysia's emergence into international trade in the ancient world. As maritime trade among Middle Eastern, Indian, and Chinese ports flourished, the peninsula benefited from its location as well as from development of its diverse resources, including tropical woods and spices. Indian trade brought Indian culture, economy, religion, and politics, with historic results for what is now Malaysia.

From the 9th to 13th century, the Buddhist Malay Kingdom of Srivijaya dominated much of the peninsula, which was followed by the Hindu Kingdom of Majapahit in the 14th century,. In the early 14th century conversion of the Malays to Islam began and this led to the formation of the state of Malacca in the 15th century. The Portuguese conquered Malacca in 1511, which marked the beginning of European expansion in Southeast Asia. In 1641the Dutch ousted the Portuguese from Malacca and the British captured the region in 1795.

During British control, a well-ordered system of public administration was established, public services were extended, and large-scale rubber and tin production was developed. This control was interrupted by the Japanese invasion and occupation from 1942 to 1945 during World War II. Communist guerrillas, who fought the Japanese throughout the occupation, began an armed struggle against British rule in 1948 and Malaya achieved independence in 1957. Sabah, Sarawak and Singapore combined with Malaya to establish Malaysia in 1963, but two years later Singapore withdrew from the confederation. The formation of Malaysia was opposed by both the Philippines and Indonesia, as each had territorial claims on East Malaysia.

Tension rose in 1963 during the 'Confrontation' with Indonesia. Indonesian troops crossed Malaysia's borders but were repelled by Malaysian and Commonwealth forces. In 1969, violent riots broke out between Malays and Chinese, though the country's racial groups have since lived in relative peace together. The United Malays National Organisation (UMNO) has been in power since 1974. Prime Minister Dr Mahathir Mohamad, who is keen to exert his influence on the world stage as a pan-Asian leader, presided over a booming economy until 1997, when tumbling Asian currencies dragged the ringgit down with them.

In September 1998 the country hosted the Commonwealth Games, but the public relations aspect of the competition came apart when students and citizens protested against the unfair sacking and later imprisonment of deputy Prime Minister, Anwar Ibrahim. Continuing street protests,calling for the resignation of Dr Mahathir Mohamad, have unsettled Malaysia's reputation as one of the most politically stable of South-East Asian countries.

Syed Sirajuddin Syed Putra Jamalullail was installed as Malaysia's 12th king on 25 April 2002. Mahathir Mohamad was elected as the prime minister in 1981 and he continues to serve the role for the past 22 years.

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Geography:

Location: Southeastern Asia, peninsula and northern one-third of the island of Borneo, bordering Indonesia and the South China Sea, south of Vietnam
Area: Total: 329,750 sq km   Land: 328,550 sq km   Water: 1,200 sq km
Land Boundaries: Total: 2,669 km
Border countries: Brunei 381 km, Indonesia 1,782 km, Thailand 506 km
Natural Resources: Tin, petroleum, timber, copper, iron ore, natural gas, bauxite
Environmental Issues: Air pollution from industrial and vehicular emissions; water pollution from raw sewage; deforestation; smoke/haze from Indonesian forest fires

Demographics:

Population   22,662,365 (July 2002 est.)
Age Structure   0-14 years: 34.1%
   15-64 years: 61.6%
   65 years and over: 4.3% (2002 est.)
Population Growth Rate   1.91% (2002 est.)
Birth Rate   24.22 births/1,000 population (2002
   est.)
Death Rate   5.16 deaths/1,000 population (2002
   est.)
Net Migration Rate   0 migrant(s)/1,000 population
   note: does not reflect net flow of an    unknown number of illegal immigrants    from other countries in the region (2002    est.)
Sex Ratio   at birth: 1.07 male(s)/female
   under 15 years: 1.06 male(s)/female    15-64 years: 1 male(s)/female
   65 years and over: 0.78 male(s)/female
   total population: 1.01 male(s)/female    (2002 est.)
Infant Mortality Rate   19.66 deaths/1,000 live births (2002    est.)
Life Expectancy at Birth   total population: 71.39 years
   male: 68.75 years
   female: 74.21 years (2002 est.)
Total Fertility Rate   3.18 children born/woman (2002 est.)
Literacy   definition: age 15 and over can read    and write
   total population: 83.5%
   male: 89.1%
   female: 78.1% (1995 est.)

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Water and Sanitation:

Malaysia is rich in water resources, whose development has been the basis for the socio-economic development of the country over the past decades. Lately, the water supply situation for the country has changed from one of relative abundance to one of scarcity. Population growth and urbanization, industrialization and the expansion of irrigated agriculture are imposing rapidly increasing demands and pressure on water resources, besides contributing to the rising water pollution problem.

% of population with access to
safe water
% of population with access to
adequate sanitation
Water - Total-Sanitation - Total-
Water - Urban-Sanitation - Urban-
Water - Rural94Sanitation - Rural98

Economy - Overview:

Malaysia, a middle-income country, transformed itself from 1971 through the late 1990s from a producer of raw materials into an emerging multi-sector economy. Growth is almost exclusively driven by exports - particularly of electronics - and, as a result Malaysia was hard hit by the global economic downturn and the slump in the Information Technology (IT) sector in 2001. GDP in 2001 grew only 0.3% due to an estimated 11% contraction in exports, but a substantial fiscal stimulus package has mitigated the worst of the recession. Kuala Lumpur's healthy foreign exchange reserves and relatively small external debt make it unlikely that Malaysia will experience a crisis similar to the crisis of 1997, but the economy remains vulnerable to a more protracted downturn in the US and Japan, top export destinations and key sources of foreign investment.

GDP   purchasing power parity -    $200 billion (2001 est.)
GDP - Real Growth Rate   0.3% (2001 est.)
GDP - Per Capita   purchasing power parity -    $9,000 (2001 est.)
GDP - Composition by Sector   agriculture: 12%
   industry: 40%
   services: 48% (2001)
Inflation Rate (consumer prices)   1.5% (2001 est.)
Labor force   9.9 million (2001 est.)
Labor force - by occupation   Local trade and tourism 28%,    manufacturing 27%,    agriculture, forestry, and    fisheries 16%, services 10%,    government 10%,    construction 9% (2000 est.)
Budget   revenues: $20.3 billion
   expenditures: $27.2 billion,    including capital expenditures    of $9.4 billion (2001 est.)
Industries   Peninsular Malaysia - rubber    and oil palm processing and    manufacturing, light    manufacturing industry,    electronics, tin mining and    smelting, logging and    processing timber;
   Sabah - logging, petroleum    production;
   Sarawak - agriculture    processing, petroleum    production and refining,    logging
Exports   $94.4 billion (f.o.b., 2001    est.)
Exports commodities   Electronic equipment,    petroleum and liquefied    natural gas, wood and wood    products, palm oil, rubber,    textiles, chemicals
Exports partners   US 20%, Singapore 17%,    Japan 14%, Hong Kong 4.5%,    Netherlands 4.5%, China 4%,    Thailand 4% (2001 est.)
Imports   $76.9 billion (f.o.b., 2001    est.)
Imports commodities   Electronics, machinery,    petroleum products, plastics,    vehicles, iron and steel and    iron and steel products,    chemicals
Imports partners   Japan 20%, US 17%,    Singapore 13%, Taiwan 5%,    China 4%, Germany 4%,    Thailand 4% (2001 est.)
Currency   Ringgit (MYR)
Exchange Rates   Ringgits per US dollar - 3.8000    (January 2002), 3.8000    (2001), 3.8000 (2000), 3.8000    (1999), 3.9244 (1998), 2.8133    (1997)

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Trade and Industry:

The U.S. is currently Malaysia's largest trading partner and largest investor. Malaysia possesses abundant resources and land, a well-educated work force, adequate infrastructure, and a relatively stable political environment. The return of economic growth should boost exports, particularly in priority areas of development, including high-technology fields, industrial automation, medical products and services, education/distance learning, and the environment. Of particular interest to the Malaysian Government is the development of the Multimedia Super Corridor (MSC), Malaysia's effort to create a Silicon Valley in Asia. Malaysia, a member of the World Trade Organization (WTO), has few restraints on trade goods. Its service sector, however, remains protected, particularly in financial services.

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Current Business Situation:

Construction activity improved 0.9% in the first quarter of 2001, almost unchanged from the 1% increase in 2000. The overhang in the stock of commercial buildings and higher-cost residential units continued to constrain the growth of the sector. The construction sector accounted for 3.3% of GDP in 2000.

The manufacturing sector grew 21% in 2000 then moderated to expand 3.7% year-on-year in the first quarter of 2001. Manufacturing accounted for 33% of GDP in 2000. Principal manufactured products include semiconductors, consumer electronic and electrical products, textiles, and apparel. Malaysia is the world's third-largest producer and one of world's largest exporters of semiconductors. The U.S. absorbed 26% of Malaysia's electronic products in 2000, and electronics exports to Asia, as economic recovery takes hold, and to Europe are increasing. A quarter of Malaysia's manufactured exports went to the U.S.

The Government of Malaysia has taken an active role in guiding the nation's economic development. Malaysia's New Economic Policy (NEP), first established in 1971, sought to eradicate poverty and end the identification of economic function with ethnicity. In particular, it was designed to enhance the economic standing of ethnic Malays and other indigenous peoples (collectively known as "Bumiputeras" in Bahasa Malaysia). Rapid growth through the mid-1990s made it possible to expand the share of the economy for Bumiputeras without reducing the economic attainment of other groups. One controversial NEP goal was to alter the pattern of ownership of corporate equity in Malaysia, with the government providing funds to purchase foreign-owned shareholdings on behalf of the Bumiputera population. In June 1991, after the NEP expired, the government unveiled its National Development Policy, which contained many of the NEP's goals, although without specific equity targets and timetables. In April 2001, the government released a new plan, the "National Vision Policy," to guide development over the period 2001-10. The National Vision Policy targets education for budget increases and seeks to refocus the economy toward higher-technology production.

Building and Construction:

In 2001, construction accounted for 3.4% of GDP, at RM7.3 billion. From 1994 to 1996, annual growth in the construction industry averaged 15.2%. However, after the country's financial collapse in 1998, the sector experienced a dramatic 23% contraction. Over the last four years, industry has shown increasing signs of having stabilized, helped by an extensive governmental expansion program that has emphasized infrastructural projects and low-cost housing. Construction of Malaysia's new administrative capital, Putrajaya, has been a key aspect of the government-backed rescue package for the industry. In 2001, the industry grew by 4.9% and is forecast to grow by a further 4.9% in 2002.

There was additional good news for the construction sector in 2001, with the volume of residential property loans continuing to increase. The banking system showed an 18% increase in residential property mortgages in the first half of the year. Following a relaxation of property ownership laws, the purchase of property by foreign nationals also increased to over US$1 Billion in value by July 2001, a 30.5% increase on the same period in 2000.(Courtesy: HSBC http://www.hsbc.com.hk)

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Working times:

Monday to Friday 9.30 am to 3.00 pm
Saturday 9.30 am to 11.30 am
Note: Banks in Sabah open at 8.00 am and take a lunch break from 12.00 pm - 2.00 pm

National Holidays:

Jan 1 New Year's Day
Feb 1 - 2 Chinese New Year
Feb 1 Federal Territory Day
Feb 12 - 13 Eid Al-Adha
Mar 4 Maal Hijarah
May 1 Labour Day
May 26 Wesak Day (Birth of the Buddha)
May 14 Birth of the Prophet Muhammad
May 15 Wesak Day
Jun 7 Official Birthday of HM the Yang di-Pertuan Agong
Aug 31 National Day
Oct 24 Deepavali
Nov 25 - 26 Eid Al-Fitr
Dec 25 Christmas

Note: Muslim festivals are timed according to local sightings of various phases of the moon and the dates given above are approximations.

Travel:

The Federation of Malaysia is situated at one of the most important crossroads in the world. From antiquity, its strategic geographical position made Malaysia a natural meeting point for traders from East and West, riding on the North-East monsoon from November till March and the South-West monsoon from May till September.

Malaysia comprises two major land masses facing each other across the South China Sea: Peninsular Malaysia and the Bornean states of Sabah and Sarawak.

Communications:

Telephones - main lines in use   4.6 million (2000)
Telephones - mobile cellular   5 million (2000)
Televisions   10.8 million (1999)
Internet country code   .my
Internet Service Providers (ISPs)   7 (2000)
Internet users   4.1 million (2001)

Transportation:

Railwaystotal: 1,801 km
Narrow gauge: 1,801 km 1.000-m gauge (148 km electrified) (2001)
Highwaystotal: 64,672 km

paved: 48,707 km (including 1,192 km of expressways)
note: in addition to these national and main regional roads, Malaysia has thousands of kilometers of local roads that are maintained by local jurisdictions (1999)

unpaved: 15,965 km

Waterways7,296 km
note: Peninsular Malaysia 3,209 km, Sabah 1,569 km, Sarawak 2,518 km
Pipelines Crude oil 1,307 km; natural gas 379 km

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Airline Services:

Lufthansa-Malaysia - http://www.lufthansa-malaysia.com/

Malaysia Airlines - http://www.malaysiaairlines.com.my/

Air Asia - http://www.airasia.com/

Air France - www.airfrance.com

Air India - www.airindia.com

Air Mauritius - www.airmauritius.com

Air New Zealand - www.airnz.co.nz

China Airlines - www.china-airlines.com

Eva Air - http://www.evaair.com

Garuda Indonesia - www.garuda-indonesia.com

Japan Airlines - www.jal.co.jp

Philippine Airlines - www.philippineair.com

Qantas Airways - www.qantas.com.au

Royal Brunei Airlines - www.bruneiair.com

Royal Dutch Airlines - www.klm.com

Saudi Arabian Airlines - www.saudiairlines.com

Singapore Airlines - www.singaporeair.com

Thai International - www.thaiair.com

AIR:
The national airline is Malaysia Airlines (MH), which is Southeast Asia's biggest airline and flies to over 110 cities across six continents. Further details can be obtained from the website: www.malaysiaairlines.com. Singapore Airlines, Royal Brunei and Thai International operate flights to certain Malaysian destinations.

Approximate flight times:
From Kuala Lumpur to London is 12 hours and 25 minutes.

International airports:
The main gateway to Malaysia is through the new KL International Airport at Sepang located approximately 50km South of Kuala Lumpur. The Sultan Abdul Aziz Shah Airport in Subang serves a few domestic and regional airlines. Other major airports, which serve as entry points, are located in Penang, Kuching, Kota Kinabalu and Langkawi.

Dress Code:

Malaysia is a mix of many religions but predominantly Muslim, so dress fairly modestly. Away from the beach, clothes should not be too short and the shoulders should be covered. When visiting government offices, be sure to dress smartly, as casual dress will be taken as an affront.

Useful Links:

Tourism Malaysia - The official tourism site provided by the Malaysian Government.

Builders Infonet - Malaysia's Builders and Construction directory presenting the most vital and comprehensive reference of building and construction products, services and technical information.

Malaysian Industrial Development Authority - Information on doing business, publications, joint venture and approvals of manufacturing projects.

Kelantan State Economic Development Corporation (KSEDC) - State economic agency involved in manufacturing, property development, plantation, oil, gas and tourism. Provides information about subsidiaries and news.

World Factbook - Demographic information and statistics for Malaysia from the CIA.

Search Malaysia Directory - Provides searchable links by categories, daily news, city guide and Kuala Lumpur traffic.

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