Malaysia Overview

After a sustainable revival cycle since 2002 but the activity slackened in 2005 : GDP growth rate was 7.1% in 2004 and 5.5% in 2005. The IMF forecasts a 6% growth in 2006. Domestic demand and exports dynamism are two major growth factors.

Malaysia is characterized by its economy's large openness (foreign trade accounts for over twice the GDP) and favourable behaviour towards foreign investments (average customs tariff is lower than 8%). The most dynamic activity sector is electronics, given that the country is one of the world's major exporters of semi-conductors and electronic components. The economic activity relies on this sector and the country must find growth-generating new activities especially regarding the soaring competition between countries of this area.

Malaysia is classified among the world's very first largest producers of palm oil, cocoa and rubber. The country is also the leader exporter of tropical woods. The United States, Singapore and Japan are Malaysia's major trade partners. The country mainly imports manufactured products, machine tools and transport equipment.