International Market Development

International market development | Comprehensive analysis of Malaysia's economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-30 14:18:19

In this article, we mainly introduce the basic situation of the Malaysian market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, GDP, foreign exchange reserves, employment, prices, taxes, etc.


  Introduction

Malaysia (Malay, English: Malaysia), referred to as Malaysia, is a constitutional monarchy federal state with its capital Kuala Lumpur and Putrajaya, the administrative center of the federal government. The country is divided into 13 states and 3 federal territories, covering a total area of 330,000 square kilometers. Malaysia is located in Southeast Asia, and its territory is divided into east and west parts by the South China Sea, namely the Malay Peninsula (West Malaysia) and the northern part of Kalimantan Island (East Malaysia).

Malaysia is a capitalist country. Its economy has grown by leaps and bounds in the 1990s. It is one of the four tigers in Asia. It has become an eye-catching diversified emerging industrial country in Asia and an emerging market economy in the world. The country implements a new economic policy that gives priority to Malays and indigenous people.

  Capital

Kuala Lumpur (English: Kuala Lumpur, referred to as "Long City" or "KL", full name "Kuala Lumpur Federal Territory") is the capital and largest city of Malaysia. Kuala Lumpur is a cosmopolitan city with great influence on culture, education, sports, finance, economy, commerce and finance in Southeast Asia.

  Main City

Kuala Lumpur

Kuala Lumpur is the capital and largest city of Malaysia. The city covers an area of 243 square kilometers and has a population of approximately 1.6 million people. The Kuala Lumpur metropolitan area in a broad sense includes the Klang River Basin, a metropolitan area with 7.8 million people, and the fastest growing population and economy in Malaysia. Kuala Lumpur is located on the west coast of the Malay Peninsula, surrounded by the state of Selangor.

Kuala Lumpur - Photo | Google

Johor Bahru

Johor Bahru is the second largest city in Malaysia. Located in the "last city" of the Malay Peninsula, Johor Bahru is also the southernmost city in Eurasia. It faces the neighboring country Singapore across the Strait of Johor, and is also known as the "Southern Gateway of Malaysia". Johor Bahru is the capital of Johor State and one of the 10 counties in the state, covering an area of 220 square kilometers.

Ipoh City

Perak, Ipoh, was formerly known as Balo. In 1988, after Georgetown and Kuala Lumpur, it became the third Malaysian "city" area. Ipoh is also the capital of the state of Perak, Malaysia, located about 200 kilometers north of Kuala Lumpur. Ipoh City is Malaysia’s fourth largest urban population cluster after Kuala Lumpur, Penang and Johor Bahru. Surrounded by rocky mountains, Ipoh is known as the "Mountain City". The area of the city is 643 square kilometers.

George Town

George Town is Malaysia’s second largest and busiest city and the capital of Malaysia’s Penang state (Penang). In 1957, it became Malaysia’s first large city.

Malacca City

Malacca City is the capital of the state of Malacca, Malaysia. On July 8, 2008, Malacca City and George Town, the capital of Penang State, were jointly included in the World Cultural Heritage List. The area is 303 square kilometers.

Iconic red buildings in Malacca's Dutch Square - Photo | Google

  Jet Lag

There is no time difference between China and Malaysia.

  Population and Ethnicity

32.68 million. Among them, 69.1% are Malays, 23% are Chinese, 6.9% are Indians, and 1.0% are of other races.

  Language

Malay is the national language, general English and Chinese are widely used.

  Main Holiday

There are hundreds of large and small festivals throughout the country, and there are 10 national festivals stipulated by the government, namely:
1. National Day (also known as Independence Day, August 31),
2. New Year's Day,
3. Eid al-Fitr,
4. Spring Festival,
5. Haji Festival,
6. Deepavali,
7. May Day,
8. Christmas Day,
9. Vesak Day,
10. the birthday of the current Supreme Head of State.
Except for a few festivals with fixed dates, the specific dates of other festivals were announced by the government in the previous year.

Malaysia's National Day - Photo | Google

Natural Resources

Rich in natural resources. The output and export volume of rubber, palm oil and pepper are among the highest in the world. It used to be a large tin producer in the world, and its output has been decreasing year by year in recent years. Malaysia is rich in oil reserves, in addition to iron, gold, tungsten, coal, bauxite, manganese and other minerals. Rich in tropical hardwoods.

Competitive Industries

Most of the resources of Malaysia's new economy come from the following services:

1) Malaysia is a disk drive producer in the world
2) Both latex and rubber industries are Malaysia’s economic strengths
3) Domestic and foreign sales of Proton Motors are also increasing day by day
4) Malaysian steel and other heavy industries are still one of Malaysia’s economic pillars

Industry

Malaysia's industry profile. The government encourages processing industries based on domestic raw materials, focusing on the development of electronics, petrochemicals, automobiles, steel, and textiles. Most of the Malaysian industries are developed by heavy industries, which are part of the Malaysian economic expenditure.

Malaysia is a leading country producing and exporting semiconductors, audio-visual equipment, air conditioners, rubber products and artificial oil products. After years of rapid development, Malaysian industry has formed a fairly large-scale and complete industrial system. Malaysian industry is relatively developed in automobiles, electronics, and machinery manufacturing. Domestically produced cars enjoy a high reputation in East Asia. Malaysia has also focused on the promotion of information technology. It has opened up the communications market, online information services, and digital broadcasting technology with the Multimedia Super Corridor ambitious plan.

Manufacturing

The Malaysian manufacturing industry is the largest production-oriented sector in Malaysia. In the past 30 years, the Malaysian manufacturing industry has developed rapidly. The Malaysian manufacturing industry is dominated by food manufacturing, electronics and electrical appliances, wood products, oil refining, rubber products and non-metallic mineral products. For Malaysian manufacturing, please click Malaysian Manufacturing Overview. Among the various industries in the Malaysian manufacturing industry, refined petroleum products, chemical products, electronic components and circuit board manufacturing, and animal and vegetable oil manufacturing (mainly palm oil products).

Malaysia's electronics manufacturing industry has developed rapidly and has grown into an important pillar industry of the national economy. The electronics manufacturing industry in Malaysia mainly covers electronic components and circuit board manufacturing, consumer electronics manufacturing, computer and peripheral equipment, and communication equipment manufacturing. One third of the world's semiconductors are assembled in Penang, Malaysia. Numerous electronic suppliers, buyers and manufacturers gather in Penang.

In Malaysia, the automotive industry is considered one of the most strategic industries. In 2011, Malaysia's car sales reached 600,000 units, ranking behind Indonesia and Thailand, making it the third largest car market in ASEAN. There are three main car manufacturers in Malaysia: Proton, Perodua and South Korea KIA. Among them, Proton is the symbol of Malaysia's national automobile industry and is the largest automobile company in Malaysia. Paloto was established in Malaysia in 1993. It mainly cooperates with Japan's Daihatsu and Toyota. It is Malaysia's second largest national automobile brand. The Malaysian automobile market is controlled by Malaysian National Automobiles. Proton and Palo-Do occupy 90% of the country's automobile market share each year. This is a major feature of the Malaysian automobile market. For the Malaysian automobile industry, please click on the Malaysian automobile industry overview.

Tourism

The third major economic pillar of the Malaysian country is its tourism industry. About 2500 restaurants have been checked, and the hotel occupancy rate is 65.00%. According to statistics from the Malaysian Ministry of Tourism, Malaysia's tourism industry data, there were 30 million tourists to Malaysia in 2014, with an income of 80 billion ringgit. For information on Malaysia's tourism industry, please click on the Malaysia Tourism Industry Overview and Malaysia Property Categories.

Service Industry

The service industry in Malaysia covers a wide range of services, including water, electricity, transportation, communications, wholesale, retail, restaurants, restaurants, finance, insurance, real estate, and services provided by government departments. In Malaysia's service industry, the Malaysian government has continuously adjusted the industrial structure, which has enabled the Malaysian service industry to develop rapidly and become one of the pillar industries for the development of the national economy. The corresponding tourism industry has also made great progress in the local service industry. Wholesale, retail, finance, accommodation, etc., all show that Malaysia has rapid development in the service industry, and the service industry promotes local employment. Almost half of the country’s population Engaged in the service industry.

Economic Contraction

Malaysia’s economy grew by 4.3% in real terms in 2019, a 0.4 percentage point slower than the previous year. The completed nominal GDP was 1.510.765 billion ringgits, or about 364.695 billion US dollars-lower than Indonesia, Thailand, and Singapore in the same period, but higher than the Philippines and Vietnam.

Malaysia GDP growth rate trend chart over the years | TRADING ECONOMICS

Singapore’s largest commercial bank, DBS Bank, predicts that Malaysia’s GDP will shrink by 6.8% in 2020 and resume growth to 6.0% in 2021. Malaysia's real GDP can only recover to its pre-epidemic level in early 2022.

Foreign exchange reserves fell sharply

Malaysia's foreign exchange reserves trends over the years | TRADING ECONOMICS

As of April 30 this year, Malaysia’s international foreign exchange reserves have increased by US$500 million, or 0.49%, from US$102 billion on April 15, reaching a total of US$102.5 billion. Currently, Malaysia’s foreign exchange reserves are sufficient to cover 7.9 months of imports, which is equivalent to 1.1 times the short-term foreign debt.

Unemployment rate hits a new high since the Asian financial crisis

Malaysia's employment population trend map over the years | TRADING ECONOMICS

Malaysia Unemployment Rate Trends over the Years | TRADING ECONOMICS

According to data from the Malaysian government on July 15, the unemployment rate in the country climbed to 5.3% in May, a 2% increase from the same period last year, a record high since the 1998 "Asian Financial Crisis".

The unemployment rate in 2021 is expected to be 3.5%.

Prices continue to rise, and the inflation rate is hovering at a long-term low

Malaysian Consumer Price Index CPI Trend Chart | TRADING ECONOMICS

Malaysia's inflation rate trend chart over the years | TRADING ECONOMICS

The Bank of Malaysia expects the overall inflation rate in 2020 to average between -1.5% and 0.5%.

Corporate income tax rate 24%

Malaysia's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Malaysian corporate income tax rate is 24%.

Personal income tax rate 30%

Malaysia's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, Malaysia's personal income tax rate is 30%.

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