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 Malaysia (2007)Malaysia (2008)
 MalaysiaMalaysia
Background During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore and the East Malaysian states of Sabah and Sarawak on the northern coast of Borneo joined the Federation. The first several years of the country's history were marred by Indonesian efforts to control Malaysia, Philippine claims to Sabah, and Singapore's secession from the Federation in 1965. During the 22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials, to expansion in manufacturing, services, and tourism. During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore and the East Malaysian states of Sabah and Sarawak on the northern coast of Borneo joined the Federation. The first several years of the country's history were marred by a Communist insurgency, Indonesian confrontation with Malaysia, Philippine claims to Sabah, and Singapore's secession from the Federation in 1965. During the 22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials, to expansion in manufacturing, services, and tourism.
Budget revenues: $33.68 billion


expenditures: $38.89 billion (2006 est.)
revenues: $41.01 billion


expenditures: $46.96 billion (2007 est.)
Constitution 31 August 1957; amended 16 September 1963 31 August 1957 (amended many times, latest in 2007)
Debt - external $50.47 billion (2006 est.) $57.83 billion (30 June 2007)
Diplomatic representation from the US chief of mission: Ambassador James KEITH


embassy: 376 Jalan Tun Razak, Kuala Lumpur 50440


mailing address: US Embassy Kuala Lumpur, APO AP 96535-8152


telephone: [60] (3) 2168-5000


FAX: [60] (3) 2142-2207
chief of mission: Ambassador James KEITH


embassy: 376 Jalan Tun Razak, Kuala Lumpur 50400


mailing address: US Embassy Kuala Lumpur, APO AP 96535-8152


telephone: [60] (3) 2168-5000


FAX: [60] (3) 2142-2207
Economic aid - recipient - $31.6 million (2005)
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 was almost exclusively driven by exports - particularly of electronics. As a result, Malaysia was hard hit by the global economic downturn and the slump in the information technology (IT) sector in 2001 and 2002. The economy grew 4.9% in 2003, notwithstanding a difficult first half, when external pressures from Severe Acute Respiratory Syndrome (SARS) and the Iraq War led to caution in the business community. Growth topped 7% in 2004 and 5% per year in 2005-06. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel forced Kuala Lumpur to reduce government subsidies, contributing to higher inflation. Malaysia "unpegged" the ringgit from the US dollar in 2005 and the currency appreciated 6% against the dollar in 2006. Healthy foreign exchange reserves and a small external debt greatly reduce the risk that Malaysia will experience a financial crisis over the near term similar to the one in 1997. The economy remains dependent on continued growth in the US, China, and Japan - top export destinations and key sources of foreign investment. The government presented its five-year national development agenda in April 2006 through the Ninth Malaysia Plan, a comprehensive blueprint for the allocation of the national budget from 2006-10. The plan targets the development of higher value-added manufacturing and an expansion of the services sector. Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Since coming to office in 2003, Prime Minister ABDULLAH has tried to move the economy farther up the value-added production chain by attracting investments in high technology industries, medical technology, and pharmaceuticals. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel forced Kuala Lumpur to reduce government subsidies. Malaysia "unpegged" the ringgit from the US dollar in 2005 and the currency appreciated 6% per year against the dollar in 2006-07. Although this has helped to hold down the price of imports, inflationary pressures began to build in 2007. Healthy foreign exchange reserves and a small external debt greatly reduce the risk that Malaysia will experience a financial crisis over the near term similar to the one in 1997. The government presented its five-year national development agenda in April 2006 through the Ninth Malaysia Plan, a comprehensive blueprint for the allocation of the national budget from 2006-10. With national elections expected within the year, ABDULLAH has unveiled a series of ambitious development schemes for several regions that have had trouble attracting business investment. Real GDP growth has averaged about 6% per year under ABDULLAH, but regions outside of Kuala Lumpur and the manufacturing hub Penang have not fared as well.
Exchange rates ringgits per US dollar - 3.6683 (2006), 3.8 (2005), 3.8 (2004), 3.8 (2003), 3.8 (2002) ringgits per US dollar - 3.46 (2007), 3.6683 (2006), 3.8 (2005), 3.8 (2004), 3.8 (2003)
Executive branch chief of state: Paramount Ruler Sultan MIZAN Zainal Abidin (since 13 December 2006)


head of government: Prime Minister ABDULLAH bin Ahmad Badawi (since 31 October 2003); Deputy Prime Minister Mohamed NAJIB bin Abdul Razak (since 7 January 2004)


cabinet: Cabinet appointed by the prime minister from among the members of Parliament with consent of the paramount ruler


elections: paramount ruler elected by and from the hereditary rulers of nine of the states for five-year terms; election last held on 3 November 2006 (next to be held in 2011); prime minister designated from among the members of the House of Representatives; following legislative elections, the leader of the party that wins a plurality of seats in the House of Representatives becomes prime minister


election results: Sultan MIZAN Zainal Abidin elected paramount ruler
chief of state: Paramount Ruler Sultan MIZAN Zainal Abidin (since 13 December 2006)


head of government: Prime Minister ABDULLAH bin Ahmad Badawi (since 31 October 2003); Deputy Prime Minister Mohamed NAJIB bin Abdul Razak (since 7 January 2004)


cabinet: Cabinet appointed by the prime minister from among the members of Parliament with consent of the paramount ruler


elections: paramount ruler elected by and from the hereditary rulers of nine of the states for five-year terms; election last held on 3 November 2006 (next to be held in 2011); prime minister designated from among the members of the House of Representatives; following legislative elections, the leader of the party that wins a plurality of seats in the House of Representatives becomes prime minister


election results: Sultan MIZAN Zainal Abidin elected paramount ruler


note: position of paramount ruler is primarily ceremonial; in practice, selection is based on principle of rotation among rulers of states
GDP - composition by sector agriculture: 8.8%


industry: 47.1%


services: 44.1% (2006 est.)
agriculture: 8.6%


industry: 47.8%


services: 43.6% (2007 est.)
GDP - real growth rate 5.9% (2006 est.) 5.7% (2007 est.)
Imports NA bbl/day 278,600 bbl/day (2004)
Industrial production growth rate 5.8% (2006 est.) 2.6% (2007 est.)
Inflation rate (consumer prices) 3.6% (2006 est.) 2.1%


note: approximately 30% of goods are price-controlled (2007 est.)
International organization participation APEC, APT, ARF, AsDB, ASEAN, BIS, C, CP, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUC, NAM, OIC, OPCW, PCA, PIF (partner), UN, UNCTAD, UNESCO, UNIDO, UNMEE, UNMIL, UNMIS, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO ADB, APEC, APT, ARF, ASEAN, BIS, C, CP, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUC, NAM, OIC, OPCW, PCA, PIF (partner), UN, UNCTAD, UNESCO, UNIDO, UNIFIL, UNMEE, UNMIL, UNMIS, UNMIT, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Labor force 10.68 million (2006 est.) 10.91 million (2007 est.)
Legislative branch bicameral Parliament or Parlimen consists of the Senate or Dewan Negara (70 seats; 44 appointed by the paramount ruler, 26 elected by the 13 state legislatures; to serve three-year terms) and the House of Representatives or Dewan Rakyat (219 seats; members elected by popular vote to serve five-year terms)


elections: House of Representatives - last held on 21 March 2004 (next must be held by 2009)


election results: House of Representatives - percent of vote by party - BN 91%, DAP 5%, PAS 3%, other 1%; seats by party - BN 199, DAP 12, PAS 6, PKR 1, independent 1
bicameral Parliament or Parlimen consists of Senate or Dewan Negara (70 seats; 44 appointed by paramount ruler, 26 elected by 13 state legislatures; to serve three-year terms with limit of two terms) and House of Representatives or Dewan Rakyat (219 seats; members elected by popular vote to serve five-year terms); note - after next election House will have 222 seats


elections: House of Representatives - last held on 21 March 2004 (next to be held on 8 March 2008)


election results: House of Representatives - percent of vote by coalition/party - BN 63.9%, BA 24.1%, DAP 9.9%, others 2.1%; seats by coalition/party - BN 199, BA 8, DAP 12
Military branches Malaysian Armed Forces (Angkatan Tentera Malaysia, ATM): Malaysian Army (Tentera Darat Malaysia), Royal Malaysian Navy (Tentera Laut Diraja Malaysia, TLDM), Royal Malaysian Air Force (Tentera Udara Diraja Malaysia, TUDM) (2006) Malaysian Armed Forces (Angkatan Tentera Malaysia, ATM): Malaysian Army (Tentera Darat Malaysia), Royal Malaysian Navy (Tentera Laut Diraja Malaysia, TLDM), Royal Malaysian Air Force (Tentera Udara Diraja Malaysia, TUDM) (2008)
Pipelines condensate 282 km; gas 5,372 km; oil 1,715 km; oil/gas/water 19 km; refined products 114 km (2006) condensate 282 km; gas 5,273 km; oil 1,750 km; oil/gas/water 19 km; refined products 114 km (2007)
Political parties and leaders National Front (Barisan Nasional) or BN (ruling coalition) (consists of the following parties: Gerakan Rakyat Malaysia Party or PGRM [KOH Tsu Koon - acting]; Liberal Democratic Party (Parti Liberal Demokratik - Sabah) or LDP [LIEW Vui Keong]; Malaysian Chinese Association (Persatuan China Malaysia) or MCA [ONG Ka Ting]; Malaysian Indian Congress (Kongresi India Malaysia) or MIC [S. Samy VELLU]; Parti Bersatu Rakyat Sabah or PBRS [Joseph KURUP]; Parti Bersatu Sabah or PBS [Joseph PAIRIN Kitingan]; Parti Pesaka Bumiputera Bersatu or PBB [Patinggi Haji Abdul TAIB Mahmud]; Parti Rakyat Sarawak or PRS [James MASING]; Sabah Progressive Party (Parti Progresif Sabah) or SAPP [YONG Teck Lee]; Sarawak United People's Party (Parti Bersatu Rakyat Sarawak) or SUPP [George CHAN Hong Nam]; United Malays National Organization or UMNO [ABDULLAH bin Ahmad Badawi]; United Pasokmomogun Kadazandusun Murut Organization (Pertubuhan Pasko Momogun Kadazan Dusun Bersatu) or UPKO [Bernard DOMPOK]; People's Progressive Party (Parti Progresif Penduduk Malaysia) or PPP [M.Keyveas]; Sarawak Progressive Democratic Party or SPDP [William MAWANI]); opposition parties: Alternative Front (Barisan Alternatif) or BA (consists of PAS and PKR); Democratic Action Party (Parti Tindakan Demokratik) or DAP [KARPAL Singh]; Islamic Party of Malaysia (Parti Islam se Malaysia) or PAS [Abdul HADI Awang]; People's Justice Party (Parti Keadilan Rakyat) or PKR [WAN AZIZAH Wan Ismael]; Sarawak National Party or SNAP [Edwin DUNDANG] National Front (Barisan Nasional) or BN (ruling coalition) consists of the following parties: Gerakan Rakyat Malaysia Party or PGRM [KOH Tsu Koon - acting]; Liberal Democratic Party (Parti Liberal Demokratik - Sabah) or LDP [LIEW Vui Keong]; Malaysian Chinese Association (Persatuan China Malaysia) or MCA [ONG Ka Ting]; Malaysian Indian Congress (Kongres India Malaysia) or MIC [S. Samy VELLU]; Parti Bersatu Rakyat Sabah or PBRS [Joseph KURUP]; Parti Bersatu Sabah or PBS [Joseph PAIRIN Kitingan]; Parti Pesaka Bumiputera Bersatu or PBB [Abdul TAIB Mahmud]; Parti Rakyat Sarawak or PRS [James MASING]; Sabah Progressive Party (Parti Progresif Sabah) or SAPP [YONG Teck Lee]; Sarawak United People's Party (Parti Bersatu Rakyat Sarawak) or SUPP [George CHAN Hong Nam]; United Malays National Organization or UMNO [ABDULLAH bin Ahmad Badawi]; United Pasokmomogun Kadazandusun Murut Organization (Pertubuhan Pasko Momogun Kadazan Dusun Bersatu) or UPKO [Bernard DOMPOK]; People's Progressive Party (Parti Progresif Penduduk Malaysia) or PPP [M.Kayveas]; Sarawak Progressive Democratic Party or SPDP [William MAWAN]); opposition parties: Alternative Front (Barisan Alternatif) or BA (consists of PAS and PKR); Democratic Action Party (Parti Tindakan Demokratik) or DAP [KARPAL Singh]; Islamic Party of Malaysia (Parti Islam se Malaysia) or PAS [Abdul HADI Awang]; People's Justice Party (Parti Keadilan Rakyat) or PKR [WAN AZIZAH Wan Ismael]; Sarawak National Party or SNAP [Edwin DUNDANG]
Telephone system general assessment: modern system; international service excellent


domestic: good intercity service provided on Peninsular Malaysia mainly by microwave radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei; domestic satellite system with 2 earth stations


international: country code - 60; submarine cables to India, Hong Kong, and Singapore; satellite earth stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean) (2001)
general assessment: modern system; international service excellent


domestic: good intercity service provided on Peninsular Malaysia mainly by microwave radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei; domestic satellite system with 2 earth stations; combined fixed-line and mobile cellular teledensity approaching 100 per 100 persons


international: country code - 60; landing point for several major international submarine cable networks that provide connectivity to Asia, Middle East, and Europe; satellite earth stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean) (2001)
Telephones - mobile cellular 19,464 (2006) 19.464 million (2006)
Unemployment rate 3.5% (2006 est.) 3.1% (2007 est.)
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