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MALAYSIA TRULY ASIA

INTRODUCTION
Malaysia is located in Southeast Asia and is near the equator.
It has two distinct parts- Peninsular Malaysia to the west and
East Malaysia to the east.
Malaysia consist of 11 states and 2 federal territories- Kuala
Lumpur and Putrajaya spread over total area of 329,847 km
2
.
Sarawak-one of the area of Malaysia is covered with tropical
forests and consists of alluvial flats, making up the main
rubber and rice land.
Since 1968, because of strong national economic policies,
nations economy shifted from agriculturally based to
manufacturing and industry based.



INTRODUCTION CONTD
Current literacy rate in Malaysia is 93.1%.
Political system of Malaysia is federal representative
democratic constitutional monarchy.
Malaysia follows dual justice system- Common Law and
Sharia Law.
Malaysia is a multicultural, multiethnic, and multilingual
society.
ECONOMIC ANALYSIS
Currency is Malaysian Ringgit.
It has launched the New Economic Model in 2010, which
aims for Malaysia to attain the high income status by 2020
with GNI per capita of $15000.
It can be classified as upper middle income economy with
GNI per capita at $9970 at end of 2012.
It has controlled poverty successfully, which has reduced
from over 50% in 1960s to less than 2% currently (Poverty line
in 2012 was at 8.50 USD per day).
Income Distribution highly distorted. Top 20% people control
51.45% of wealth as of 2009.
One of the most well developed infrastructure among newly
industrializing countries of Asia.

GDP
Sector wise percentage contribution of GDP is agriculture 11.2%,
industry 40.6% and services 48.1% for the year 2013. . Major industries
include Electronic, Petroleum and LNG, Wood, Palm Oil and Rubber.
Electronic industry has major contribution in GDP. Palm Oil contributes 5-
6% whereas rubber industry contributes to about 8% of the total GDP.

INFLATION
FOREIGN DIRECT INVESTMENT
0
2000
4000
6000
8000
10000
12000
14000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Foreign direct investment, net inflows (BoP,in millionUS$)

Series2
EXPORTS
IMPORTS
MAJOR ISSUES
POLITICS
ECONOMY
EDUCATION

TRADE RESTRICTIONS
AND ITS IMPACT
Embargoes
Quotas
Import Taxes
Tariffs
Licensing
Custom Duties

Embargoes:-
Trade embargo on Philippines very recently.

Quotas
Malaysian government maintains tariff-rate quota systems for 17 tariff lines
in-quota duties between 10 %and 25 % and out-of-quota duties between 40 %
and 168 %.

Import Taxes
imposed ad valorem although some specific duties are imposed on a number of
items
all industrial goods traded within ASEAN are imposed import duties of 0% to 5%

Tariffs
tariff rate of 7.4 percent
level of tariffs is lower on raw materials than for value-added goods
agricultural goods, Malaysia charges specific duties that represent extremely high
effective tariff rates 392%.. 500%
Malaysian tariff lines related to import-sensitive or strategic industries
License
for premise license and signboard license to do business in Malaysia.
Foreign investors have to get approval from FIC also
The 100% foreign owned company may not be allowed where licenses may
require local directorship and shareholding
Custom Duties
Malaysias import duty rates can be anything from 0% to 50%
The average duty rate is around 6%.


MALAYSIA TRADE : BALANCE OF
PAYMENT

MALAYSIAS MEMBERSHIP OF TRADE
ORGANIZATIONS
World Trade Organization(WTO)
Association of Southeast Asian Nations (ASEAN)
MALAYSIAS TRADE
AGREEMENTS
The Malaysia-Japan Economic Partnership Agreement
(MJEPA), 2005
The Malaysia-Pakistan Closer Economic Partnership
Agreement (MPCEPA), 2008
The Malaysia-Chile Free Trade Agreement (MCFTA),
2010
The Malaysia-New Zealand Free Trade Agreement
(MNZFTA), 2009
The Malaysia-India Comprehensive Economic
Cooperation Agreement (MICECA), 2011
The Malaysia-Australia Free Trade Agreement (MAFTA),
2013
CURRENT EVENTS
Water Crisis
MH370 flight missing case
RECOMMENDATIONS
Maintain Innovation in new technologies, sustainable
production and trade liberalization.
Raising education quality will be critical for Malaysia.
Malaysia needs to be extra vigilant, minimizing
downside risks to growth and employment.
Fiscal structural adjustment, if properly sequenced and
implemented in a credible manner will result in long-
term benefits.
Political corruption should be depressed.
Properly addressing the religious issues among different
ethnic group.

Group 4:-
AGAM AGARWAL 1302-010
APOORV RASTOGI 1302-030
ARPIT SINGH 1302-034
HARSHAL PAHADIA 1302-060
JATIN GOYAL 1302-064
PRASHANT MISHRA 1302-193
CHINALEE GARG 1302-196
Thank You!!