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Malaysia: Economy in Transformation

By:
H.E. Dato’ Tajul Aman Mohammad
Ambassador of Malaysia to Romania
Bucharest Business School
7 October 2017

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Outline of Presentation

•Malaysian economic progress


•Malaysian trade and challenges
•Malaysia Romania bilateral trade
•ASEAN

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2010 –
current –
service and
2010s – k economy
focus on
2000s - moving
growing up the
1990s emphasis global
1970s – 1980s – increasing on ICT chain
Labour and high
31 August intensive
focus on FDI,
1957 – Low industry heavy tech
income
Agro- manufacturing
Middle income
based economy
economy

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MALAYSIA: Vital Statistics

YEAR GDP SOURCE OF INCOME

31 AUGUST 1957 USD226.00 Rubber and Tin

1960 - 1970 USD266 - USD Commodity producer, Starts Malaysia


350 Plan (every 5 years)
1970 - 1980 USD550 – 1,600 Import substitutions, FTZ

1990 plus USD1,700 – 4,300 Heavy machinery, electronic

2000 plus USD5.500 plus Services, banking, petrochemical


2010 plus USD10,000 plus K economy Current USD12,300

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MALAYSIA’S TRADE

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EU China
USD 38.1 billion USD 58.1 billion Japan
USA 10.1% share 16.2% share USD 29 billion
USD 33 billion 8.1% share
9.2 % share
ASEAN
2 billion
USD 102.87
27.4% share

Australia
USD 10.2 billion
2.9% share

Malaysia’s 2016 Global 21st Largest Exporter


Trade Ranking 24th Largest Importer
(Total trade:USD 358.8 billion) 23rd Largest Trading Nation 6
Malaysia is among the world’s largest for:
Product Value Share Ranking
(USD mil) (%)
Petroleum gases (HS271129) 354.3 74 1st
Sawn timber (Red Meranti, Bakau, Lauan, Seraya)
128.8 68.3 1st
(HS440725)
Rubber gloves (HS401519) 3,020 58.3 1st
Vegetable fats & oils (HS151620) 1,552.4 44.5 1st
Fibreboard of wood (HS441193) 142.3 29.5 1st
Surgical rubber gloves (HS401511) 342 26.4 1st
Primary cells & batteries (HS850680) 136.8 18.5 1st
Parts of electronic integrated circuits and micro-
2,463 18.8 2nd
assemblies (HS854290)
Transmission apparatus for radio-broadcasting or
429.9 10.4 2nd
television (HS852560)
Microwave ovens (HS851650) 355.3 9.2 2nd
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Metal &
Metal Products

Palm Oil Based Products


Rubber-Based Products

Petrochemicals
Electrical &
Electronics
Machinery
Medical Devices & & Equipment Wood-Based
Pharmaceuticals Products
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Sabah Economic Development
Investment Authority
(SEDIA)

• Agro-based Industry
• Tourism
East Coast Economic Region • Logistics
Development Council • Manufacturing
• Modern (ECERDC)
Agriculture • Tourism
• Manufacturing & •Oil & Gas
Design • Manufacturing
• Tourism • Agriculture
• Logistics • Education
• Education & Health

Regional Corridor
Development Authority
(RECODA)

• Resource Based Industry


• Aluminum, Glass, Steel,
Oil-based Industry, Palm
Oil, Fishing& Aquaculture,
Livestock, Timber-based,
Iskandar Region Development Marine
Authority (IRDA)
• Energy
• Financial Services • Tourism
• Petrochemical and Maritime
• Healthcare
• Tourism and Logistic Industry
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• Manufacturing & Services
CHALLENGES

Commodities
Globalisation price
fluctuation

Protectionist Financial
crisis

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MALAYSIA & FTAs

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Malaysia has implemented
13 Free Trade Agreements
ASEAN BILATERAL
1. ASEAN Free Trade Area 1. Japan (2005)
(1992) 2. Pakistan (2007)
2. ASEAN-China (2004) 3. New Zealand (2009)
3. ASEAN-Korea (2006) 4. Chile (2010)
4. ASEAN-Japan (2008) 5. India (2011)
5. ASEAN-India (2009) 6. Australia (2012)
6. ASEAN-Australia-New 7. Turkey (1.8.2015)
Zealand (2009)
On-going FTA Negotiations
ASEAN-Hong Kong Malaysia-EU

RCEP Malaysia-EFTA 12
MALAYSIA-ROMANIA

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Capital Kuala Lumpur Bucharest

Land Area (sq km) 330,396 238,391

Population 31 million 19.5 million

GDP (current price) USD 296.2 billion USD 187 billion

GDP Growth 4.2 % 4.8 %

Per capita Income USD 9,556 USD 9,589


Total Trade
USD 358.8 billion USD 138.1 billion
(Merchandise)
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RM
700,000,000
Total Trade
RM 592.15 mil
US$142.9 mil
600,000,000

500,000,000 Total Export


RM 424.09 mil
US$102.7 mil
400,000,000
Trade Balance
RM 256.03 mil
300,000,000 US$62.5 mil
Total Import
RM 168.06 mil
200,000,000 US$40.2 mil

100,000,000

0
2012 2013 2014 2015 2016
Data : Department of Statistic Malaysia
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Major Export Products 2016 Major Import Products 2016
(share %) (share %)

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• Malaysia’s total trade with Romania grew by 20.6% to
US$93.6 million from US$77.6 million in the same
period of 2016.
• Total exports to Romania: manufactured goods
87.4%, followed by agriculture goods 12.3%.
• Total imports from Romania: Electrical and electronic
products 29.6%; machinery, equipment & parts
(17.8%); manufactures of metal 9.6%;and textile,
apparel & footwear 7.1%.

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MALAYSIA – GATEWAY TO ASEAN MARKET

Malaysia is
strategically
located in the very
heart of Southeast
Asia; between
India and China

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The ASEAN Economic Community (AEC)
is now a reality. It is no longer a myth. Step-by-step integration has
driven both political development and economic growth 19
2014 2015 2016 2017
Huge Market: GDP:
(%) (%) (%) (%)
625 million USD 2.5 trillion,
people, 7th largest
3rd largest market World 3.4 3.1 3.2 3.5 economy
Advanced 1.8 1.9 1.9 2.0
Economies Young,
educated labour
External Trade: Developing 4.6 4.0 4.1 4.6
force
USD2.5 trillion Economies
70% < 35 years
ASEAN 4.6 4.4 4.5 4.8 of Age

Steady
Highly Connected Region and
FDI: economic
Globally Engaged: Free Trade Agreements
USD 136 billion growth rate
with major regional economies.
2007-2015: 5.1%

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ASEAN GDP 2015:
USD 885.5 Bil

 ASEAN was the seventh-


USD 404.8 Bil

USD2.43 Tri
USD 338.1 Bil

largest economy in the world,


USD 307.9 Bil
USD 284.8 Bil
with a combined GDP of $2.43
USD 186.2 Bil
trillion in 2015
USD 64.3 Bil
USD 17.1 Bil
USD 16.8 Bil
USD 12 Bil
 Intraregional trade could
significantly deepen with
implementation of the ASEAN
1.36B  ASEAN is a growing hub of
POPULATION 2015

1.29B consumer demand


625M
508M  ASEAN is home to many
globally competitive
318.9M companies
127.1M 21
Thank You
Terima kasih
Multumim

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