Malaysian Economy Overview

Flashcards based on the Malaysian Economy lecture notes.

What were the main economic activities in Malaysia before independence (prior to 1957)?

Agriculture (rubber, oil palm, paddy, coconut, pineapples, coffee, tea) and Mining (tin).

What was the composition of GDP by sector in Malaysia in 1970?

31.8% Agriculture, 29.2% Services, 24.5% Mining, 8.8% Manufacturing, 1.9% Construction

What economic policies were implemented in Malaysia between 1960-1970?

Diversification policy to reduce dependence on rubber and tin; Import substitution policy to reduce imported consumption goods.

What economic policies were implemented in Malaysia between 1970-1980?

Export-oriented economic strategy and New Economic Policy.

What economic policies were implemented in Malaysia between 1980-1990?

Heavy industry policy focused on steel, cement, car manufacturing, and electronic industry.

What were the main economic problems Malaysia faced after its independence in 1957?

Unemployment, Low per capita income, Unequal income distribution, Unbalanced regional development, Limited natural resources.

What is the primary structural change that has occurred in the Malaysian economy?

From an agricultural-based economy to an industrial and service-based economy.

What are the main determinants or factors of structural change in the Malaysian economy?

Changes in economy and development, unstable prices in the international market for agricultural goods, the ability of the industrial sector to absorb manpower, and availability of resources for the industrial sector.

What was the focus of economic development in Malaysia around 1957-1970?

Reliance on primary industries and mining.

What was the focus of economic development in Malaysia around 1980-1990?

Encouragement of heavy industries and domestic production.

What was the focus of economic development in Malaysia around 2000?

Increasing focus on FDI, information and communication technology.

What was the focus of economic development in Malaysia around 2010?

Growing emphasis on global value chains, services, and skills.

What does Malaysia aim to increase regarding its economic complexity?

The diversity and complexity of products it makes and exports.

What are the characteristics of complex economies?

Creation of high-skilled jobs, production of diversified and complex products, more sophisticated supporting ecosystem, and higher per capita GDP.

What are the key aspects of the current economic scenario in Malaysia?

Middle-income trap, managing health and economic crises, emergence of vulnerable groups, employment issues, rising cost of living, technologies and digital gap, and sustainable development.

What are the main challenges facing the Malaysian economy?

Technological disruption, global challenges, demographic changes, and lower returns from past growth strategies.

What are the key reform areas for Malaysia's transition to high-income status?

Revitalizing long-term growth, boosting competitiveness, modernizing institutions, creating jobs, promoting inclusion, and financing shared prosperity.