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Economics can be best defined as a research on how individuals and society choose to utilize limited resources to fulfill their

unlimited material needs in the best or most optimum manner. Economic system is a regulated way practiced by a particular country in managing its economic. Malaysia is currently adopting Mixed Economy System. Mixed economy system is adopted adversely by most countries like Malaysia however the level of mixture varies depending on the level of government intervention in the economic system. Evaluation of the system ECONOMY Since it became independent in 1957, Malaysia's economic record has been one of Asia's best. Real gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005. Performance peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid growth averaging almost 8% annually. High levels of foreign and domestic private investment played a significant role as the economy diversified and modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today is a middle-income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world's largest exporters of semiconductor devices, electrical goods, solar panels, and information and communication technology (ICT) products. Malaysia struggled economically during the 1997-1998 Asian financial crisis and applied several valuable lessons to its economic management strategies that contributed to the economys resilience to the 2008-2009 global financial crisis. Malaysias GDP grew 7.2% in 2010 and 5.1% in 2011. Malaysian banks are well capitalized, conservatively managed, and had no measurable exposure to the U.S. sub-prime market. The central bank maintains a conservative regulatory environment, having prohibited some of the riskier assets in vogue elsewhere. Malaysia maintains high levels of foreign exchange reserves and has relatively little external debt. The government continues to actively manage the economy with state-owned enterprises heavily involved in the oil and gas, plantation, ship building, steel, telecommunications, utilities, automotive, mining, and other sectors. Since 1971, ethnic preferences have been given to Bumiputras (ethnic Malays and indigenous peoples) by requiring 30% Bumiputra ownership in new businesses. Prime Minister Najibs New Economic Model reform program includes measures and proposals to modify these ethnic preferences and to divest state enterprises while increasing the private sectors role in the economy. The reforms and projects are intended to boost growth to enable Malaysia to meet its goal of becoming a high-income, developed nation by 2020. However, opposition from within Najibs own party has slowed the reform agenda, blocking progress for now in some areas. Malaysia has a managed float currency exchange regime. It gives flexibility for the ringgit to adjust to global economic and financial developments and has accorded a level of stability against the currencies of Malaysias major trading partners.

Utility maximization for distribution of goods and services Pricing mechanism for distribution of goods and services Conclusion to conclude the discussion and suggestion References The Office of Electronic Information, Bureau of Public Affairs, manages this site as a portal for information from the U.S. State Department. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein.