History

1945 to 1957

The British returned to the Second World War to Malaya and wanted to again develop the old on low wages which is based and on export aligned plan day economy. That this succeeded was because of the india rubber boom at the war and the British divide and rule politics. The economy Malayas/Malaysia depended after the end of the war still for approximately two decades - thus also still after independence - strongly on the export of india rubber and tin and the import on rice. The Pro-Kopf-Einkommen Malayas, which was for a long time one the highest region, rose in the post-war period again by the high Rohstoffpreise and the fast reconstruction of the export trade and industry.

Some nationalists weighted that a large part of the profits from the india rubber trade for the reconstruction of Great Britain was used, could not their compatriots however not convince to demand immediately independence.

In the fifties production was impaired by the communist rebellion and the Pro-Kopf-Einkommen grew on the average only by 1%. The colonial gentlemen prevented however larger effects on the economy.

1957 to 1971

The economic conditions after independence 1957 appeared promising for a fast and continuous growth. To the inheritance from the Kolionalzeit belongs a well developed infrastructure, efficient administrative mechanisms and a flourishing export sector of agricultural products with large potential to the advancement. At this time Malaysia most was its neighbour states already in regard to its Pro-Kopf-Einkommen, education and health service ahead.

About 52% of the population of the federation Malaya were Malaien, which dominated the policy and administration, but were relatively poor. Most Malaien attended to comparatively unlukrativen activities in the agriculture. The Chinese (about 37% of the population) had against it more economic power and dominated in most modern occupational groups. They did not approach however to political power and the ethnical solidarity of the Malaien. From it resulted a problem, which pulled itself by the whole history of the federation Malaya and late Malaysia: the dilemma to have to reach on side the politico-economic goals of having to receive on the other side in addition, political stability and the harmony under the Ethnien.

In the first decade after independence the policy was characterized above all to suppress budding rivalries between the Ethnien. Regarding trade and industry the policy of the open door from the colonial age was continued. At the same time one tried to adjust the inequalities between the Ethnien. Some problems like rising unemployment in the cities, renewed controversies over education and language and arising doubts of the not malaiischen population, whether its interests in the new state will represent Malaysia appropriately, led to disappointment in all parts of the population. These found to their high points in bloody excesses to 13. May 1969. The reaction of the government to these events was a clear change of direction away from one mainly from economic considerations coined/shaped economic policy to positivier discrimination.

starting from 1971: New Economic Policy

This new adjustment in the policy was embodied 1971 by those new Economic Policy (NEP). Purpose of the NEP was the maintenance of the national unit by two goals:

• Removal of the poverty in the entire population
• To switch off restructuring of the society with the goal the identification of Ethnien with economic functions

For the reaching of the first goal the development strategy should be reformulated. After the economy of Malaysia relied in the sechtziger years still quite strongly on the primary sector, now the poverty should be fought by an export-oriented industrialization and an ambitious program for the development of rural areas. The second goal meant concretely a good position of the Malaien. They should be received by a redistribution of wealth more economic power and be granted privilege in economics and education.

Small and medium sized enterprises

In Malaysia there are more than 100,000 small and middle enterprises. The government grants high priority to them. 1996 stressed the prime minister at that time Mahathir its importance for the lasting and dynamic development of the Malaysian industry and explained the export orientation of small and middle enterprises as the goal. One of government organization Small and medium Industry development corporation (SMIDEC) accomplished study from the year 1998 came to the result that they operate over 90% of the manufacturing plants of Malaysia that however only about 20% of it are export-oriented.

SMIDEC offers credits and support for medium-size enterprises. Since April 2000 also the bank made available Negara Malaysia over different financial institutions capital for medium-size and new enterprises. The problem with the expansion lies less to the extent of the offered credits and supports, but in consciousness lacking over the availability the same and the fear forwards complicated bureaucratic procedures. The large parts of the economy dominating Chinese are after decades of discrimination since the introduction that new Economic Policy sceptically in relation to support, those from the government. The strong support, which the Malaien Malaien enjoyed, arranges many to the assumption that the national support applies only for these.

There are two kinds of small and medium-size enterprises in Malaysia. First covers enterprise, which is stated by a generation of young entrepreneurs. These are well formed and have good knowledge of computers and technology. These companies are still quite rare, but a large part of the support offered by the government addresses itself to them. Against it traditional family businesses constitute the large majority. They are usually less modern. Their success is based rather on hard work and long work times as on innovation. Many this entrepreneur have a relatively small measure of training and university education, which impairs its and the effectiveness of their management and their marketing. Some of them had to break off even the school, in order to cooperate in the family business. Many of them depend on personal contacts and far recommendations, because they do not operate modern marketing. They try to keep labor costs as low as possible and also hardly invest therefore in further training.

Economic policy

Budget

Malaysia had 2003 a budget deficit of 5,4%. Between 2000 and 2003 the public expenditures of 10,41% to 14,53% GROS DOMESTIC PRODUCT and the state indebtedness of 36,67% to 48,1% GROS DOMESTIC PRODUCT rose. High priority is granted to the decrease of the deficit.

Currency

After the Malaysian Ringgit (MR) was pleased 1997 of 2,5 MR for US a dollar on 5 MR for a USD, he was bound on 1 September 1998 with a rate of exchange by 3,8 MR at US dollar. On 21 July 2005 the rates of exchange were released, are however further controlled and to be based on a basket of several currencies. Most experts of economic politics in Malaysia welcome making flexible and expect as consequence a stabilization of the Malaysian economy.

Articles in category "Economics of Malaysia"

We found here 15 articles.