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The Economy of Malaysia

Malaysia at a Glance

Malaysia is a multi-ethnic upper-middle-income economy in Southeast Asia that moved from rubber and tin to electronics, palm oil and services.

Malaysia is a federation of thirteen states and three federal territories, split between the Malay Peninsula and northern Borneo.

People

Its population of around 34 million includes Malays and other indigenous groups, Chinese, Indians and others.

Economy

It is a trading economy with exports of electronics, palm oil, petroleum and gas, and a growing services sector.

Position

Malaysia is richer than most of its neighbours but has struggled to reach high-income status.

A varied basket

Malaysia exports computer chips, cooking oil, liquefied natural gas and rubber gloves.

Thinking Malaysia depends on one industry

It has a diverse export base.

Key takeaways
  • Malaysia is a multi-ethnic federation.
  • Exports are diverse.
  • Services are growing.
  • High-income status remains a goal.
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