REGIONAL STUDY & ANALYSIS

(MALAYSIA & THE PHILIPPINES)

 FOCAL POINTS
TO PRESENT ESSENTIAL INFORMATION ABOUT MALAYSIA
THAT CAN HELP THE PHILIPPINES IN ITS FUTURE ENGAGEMENTS WITH
MALAYSIA

TO PROVIDE RECOMMENDATIONS ON HOW THE PHILPPINES CAN

MAXIMIZEAND STRENGTHEN ITS RELATIONS WITH MALAYSIA
 APPROACH
CONDUCT REGIONAL STUDY & ANALYSIS WITH MALAYSIA AS TARGET
COUNTRY OF INTEREST & BE ABLE TO FOCUS ON THE PHYSICAL
ENVIRONMENT, INFRASTRUCTURE, INFORMATION TECHNOLOGY, SOCIAL,
POLITICAL, AND MILITARY COMPONENT.
 GEOGRAPHY  MALAYSIA
Location: South Asia, Peninsula bordering Thailand
  and northern one-third of the island of
Borneo, bordering Indonesia, Brunei, and
South China Sea, South of Vietnam.
PHILIPPINES
Southeastern Asia, archipelago
between the Philippine sea and the
South China Sea, east of Vietnam.

 Geographic coordinates:  2 30 N, 112 30 E  13 00 N, 122 00 E 

 Map references: Southeast Asia Southeast Asia
Area: total: 329,847 sq km total: 300,000 sq km
  land: 328,657 sq km land: 298,170 sq km
water: 1,190 sq km water: 1,830 sq km
country comparison to the world: 68  country comparison to the world: 74

Area - comparative: slightly larger than New Mexico slightly less than twice the size of
  Georgia; slightly larger than Arizona
Land boundaries: total: 2,742 km  0 km

MALAYSIA & THE PHILIPPINES ARE SOUTHEAST ASIAN COUNTRIES BOUNDED BY THE SOUTH CHINA SEA WITH
COMPARABLE LAND MASSES.
Natural resources: tin, petroleum, timber, copper, iron ore, timber, petroleum, nickel, cobalt,
natural gas, bauxite silver, gold, salt, copper
 
Land use: agricultural land: 23.2% agricultural land: 41%
  arable land 2.9%; permanent crops 19.4%; arable land 18.2%; permanent crops
permanent pasture 0.9% 17.8%; permanent pasture 5%
forest: 62% forest: 25.9%
other: 14.8% (2011 est.) other: 33.1% (2011 est.)
   

Environment - international agre party to: Biodiversity, Climate Change, party to: Biodiversity, Climate Change,
ements: Climate Change-Kyoto Protocol, Climate Change-Kyoto Protocol,
  Desertification, Endangered Species, Desertification, Endangered Species,
Hazardous Wastes, Law of the Sea, Marine Hazardous Wastes, Law of the Sea,
Life Conservation, Ozone Layer Protection, Marine Dumping, Ozone Layer
Ship Pollution, Tropical Timber 83, Tropical Protection, Ship Pollution, Tropical
Timber 94, Wetlands Timber 83, Tropical Timber 94,
signed, but not ratified: none of the selected Wetlands, Whaling
agreements signed, but not ratified: Air Pollution-
  Persistent Organic Pollutants
 

BOTH COUNTRIES POSSESS NATURAL RESOURCES & LAND DIVERSIFIED WITH LUMBER & AGRICULTURAL
PRODUCTS
Population: 31,381,992 (July 2017 est.)
Ethnic groups: Bumiputera 61.7% (Malays and
indigenous peoples, including Orang
Asli, Dayak, Anak Negeri), Chinese
20.8%, Indian 6.2%, other 0.9%, non-
citizens 10.4% (2017 est.)
104,256,076 (July 2017 est.)
Tagalog 28.1%, Cebuano 13.1%,
Ilocano 9%, Bisaya/Binisaya 7.6%,
Hiligaynon Ilonggo 7.5%, Bikol 6%,
Waray 3.4%, other 25.3% (2000
census)

Religions: Muslim (offi cial) 61.3%, Buddhist Catholic 82.9% (Roman Catholic
19.8%, Christian 9.2%, Hindu 6.3%, 80.9%, Aglipayan 2%), Muslim 5%,
Confucianism, Taoism, other Evangelical 2.8%, Iglesia ni Kristo
traditional Chinese religions 1.3%, 2.3%, other Christian 4.5%, other
other 0.4%, none 0.8%, unspecified 1.8%, unspecified 0.6%, none 0.1%
1% (2010 est.) (2000 census)
 

Population growth rate: 1.37% (2017 est.) 1.57% (2017 est.)

Birth rate: 19.1 births/1,000 population (2017 23.7 births/1,000 population (2017
est.) est.)
 

IN TERMS OF POPULATION, THE PHILIPPINES IS HIGHER THAN THAT OF MALAYSIA WITH DIVERSE ETHNIC
GROUPINGS. MAJORITY OF MALAYSIANS ARE MUSLIMS WITH 61.3% WHEREAS CATHOLICS COMPOSE THE
MAJORITY OF FILIPINOS WITH 82.9%.
Death rate:
Population distribution:
5.1 deaths/1,000 population
(2017 est.)
a highly uneven distribution with over
80% of the population residing on the
Malay Peninsula
6.1 deaths/1,000 population (2017
est.)
population concentrated where
good farmlands lie; highest
concentrations are northwest and
south-central Luzon, the
southeastern extension of Luzon,
and the islands of the Visayan Sea,
particularly Cebu and Negros;
Manila is home to one-eighth of the
entire national population

Urbanization: urban population: 76% of total urban population: 46.9% of total

population (2018) population (2018)
rate of urbanization: 2.13% annual rate rate of urbanization: 1.99% annual
of change (2015-20 est.) rate of change (2015-20 est.) 

Major urban areas - populati KUALA LUMPUR (capital) 7.564 MANILA (capital) 13.482 million;
on: million; Johor Bahru 983,000; Ipoh Davao 1.745 million; Cebu City
786,000 (2018) 956,000; Zamboanga 894,000;
Antipolo 837,000 (2018)

MALAYSIAN URBAN CENTERS (76%) ARE UNEVENLY DISTRIBUTED, WITH AN URBANIZATION RATE OF 2.13%
WHEREAS 1.99% FOR THE PHILIPPINES.
Life expectancy at birth: total population: 75.2 years total population: 69.4 years
male: 72.4 years male: 65.9 years
female: 78.2 years (2017 est.) female: 73.1 years (2017 est.)
country comparison to the world:  country comparison to the world: 
109 162

Government type: Federal Parliamentary Presidential Republic

constitutional monarchy  
Capital: name: Kuala Lumpur; note - nearby name: Manila
Putrajaya is referred to as a geographic coordinates: 14 36 N,
federal government administrative 120 58 E
center but not the capital; time difference: UTC+8 (13 hours
Parliament meets in Kuala Lumpur ahead of Washington, DC, during
geographic coordinates: 3 10 N, 101 Standard Time)
42 E  
time difference: UTC+8 (13 hours
ahead of Washington, DC, during
Standard Time)

LIFE EXPECTANCY IN THE PHILIPPINES IS MUCH HIGHER THAN THAT OF MALAYSIA. THE PHILIPPINES IS
PRESEDENTIAL REPUBLIC WHILE MALAYSIA IS FEDERAL PARLIAMENTRAY CONSTITUTIONAL MONARCHY.
Administrati ve divisions: 13 states (negeri-negeri, singular - negeri); Johor, Kedah, Kelantan,
Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pulau Pinang,
Sabah, Sarawak, Selangor, Terengganu; and 1 federal territory
(Wilayah Persekutuan) with 3 components, Kuala Lumpur, Labuan,
and Putrajaya
80 provinces and 39 chartered citi es
provinces: Abra, Agusan del Norte, Agusan del Sur, Aklan, Albay,
Anti que, Apayao, Aurora, Basilan, Bataan, Batanes, Batangas,
Biliran, Benguet, Bohol, Bukidnon, Bulacan, Cagayan, Camarines
Norte, Camarines Sur, Camiguin, Capiz, Catanduanes, Cavite, Cebu,
Compostela, Cotabato, Davao del Norte, Davao del Sur, Davao
Oriental, Dinagat Islands, Eastern Samar, Guimaras, Ifugao, Ilocos
Norte, Ilocos Sur, Iloilo, Isabela, Kalinga, Laguna, Lanao del Norte,
Lanao del Sur, La Union, Leyte, Maguindanao, Marinduque,
Masbate, Mindoro Occidental, Mindoro Oriental, Misamis
Occidental, Misamis Oriental, Mountain, Negros Occidental,
Negros Oriental, Northern Samar, Nueva Ecija, Nueva Vizcaya,
Palawan, Pampanga, Pangasinan, Quezon, Quirino, Rizal, Romblon,
Samar, Sarangani, Siquijor, Sorsogon, South Cotabato, Southern
Leyte, Sultan Kudarat, Sulu, Surigao del Norte, Surigao del Sur,
Tarlac, Tawi-Tawi, Zambales, Zamboanga del Norte, Zamboanga del
Sur, Zamboanga Sibugay
chartered cities: Angeles, Anti polo, Bacolod, Baguio, Butuan,
Cagayan de Oro, Caloocan, Cebu, Cotabato, Dagupan, Davao,
General Santos, Iligan, Iloilo, Lapu-Lapu, Las Pinas, Lucena,
Makati , Malabon, Mandaluyong, Mandaue, Manila, Marikina,
Munti nlupa, Naga, Navotas, Olongapo, Ormoc, Paranaque, Pasay,
Pasig, Puerto Princesa, Quezon, San Juan, Santi ago, Tacloban,
Taguig, Valenzuela, Zamboanga (2012)

Legal system: mixed legal system of English common law, Islamic law, mixed legal system of civil, common, Islamic, and
and customary law; judicial review of legislati ve acts in customary law
the Federal Court at request of supreme head of the  
federation
 

Internati onal law organ has not submitted an ICJ jurisdiction declarati on; non- accepts compulsory ICJ jurisdicti on with reservati ons;
izati on parti cipati on: party state to the ICCt accepts ICCt jurisdiction
   

THE PHILIPPINES IS ADMINISTRATIVELY DIVIDED THAN MALAYSIA BUT BOTH WITH MIXED LEGAL SYSTEMS ONLY
THAT ISLAMIC AND CUSTOMARY LAW ARE MORE RECOGNIZED IN THE LATTER.
Legislati ve branch: description: bicameral Parliament or Parlimen consists of: description: bicameral Congress or Kongreso consists of:
Senate or Dewan Negara (70 seats; 44 members appointed by Senate or Senado (24 seats; members directly elected in multi -seat
the king and 26 indirectly elected by 13 state legislatures; consti tuencies by majority vote; members serve 6-year terms with
members serve 3-year terms) one-half of the membership renewed every 3 years)
House of Representati ves or Dewan Rakyat (222 seats; House of Representati ves or Kapulungan Ng Mga Kinatawan (297
members directly elected in single-seat consti tuencies by seats; 238 members directly elected in single-seat consti tuencies by
simple majority vote to serve 5-year terms) simple majority vote and 59 representi ng minoriti es directly elected
  by party-list proporti onal representati on vote; members serve 3-
year terms)
elections: Senate - electi ons last held on 9 May 2016 (next to be held
in May 2019); House of Representati ves - electi ons last held on 9
May 2016 (next to be held in May 2019)
election results: Senate - percent of vote by party - LP 31.3%, NPC
10.1%, UNA 7.6%, Akbayan 5.0%, other 30.9%, independent 15.1%;
seats by party - LP 6, NPC 3, UNA 4, Akbayan 1, other 10; House of
Representati ves - percent of vote by party - LP 41.7%, NPC 17.0%,
UNA 6.6%, NUP 9.7%, NP 9.4%, independent 6.0%, others 10.1%;
seats by party - LP 115, NPC 42, NUP 23, NP 24, UNA 11, other 19,
independent 4, party-list 59

Judicial branch: highest court(s): Federal Court (consists of the chief justi ce, highest court(s): Supreme Court (consists of a chief justi ce and 14
president of the Court of Appeal, chief justi ce of the High Court associate justi ces)
of Malaya, chief judge of the High Court of Sabah and Sarawak, 8 judge selection and term of office: justi ces are appointed by the
judges, and 1 "additi onal" judge); note - Malaysia has a dual president on the recommendati on of the Judicial and Bar Council, a
judicial hierarchy of civil and religious (sharia) courts consti tuti onally created, 6-member body that recommends Supreme
judge selection and term of office: Federal Court justi ces appointed Court nominees; justi ces serve unti l age 70
by the monarch on advice of the prime minister; judges serve subordinate courts: Court of Appeals; Sandiganbayan (special court for
unti l mandatory reti rement at age 66 with the possibility of 6- corrupti on cases of government offi cials); Court of Tax Appeals;
month extensions regional, metropolitan, and municipal trial courts; sharia courts
subordinate courts: Court of Appeal; High Court; Sessions Court;
Magistrates' Court

LEGISLATIVE BRANCHES OF BOTH COUNTRIES ARE SIMILAR IN COMPOSITION WITH JUDICIAL BRANCHES HAVING
REPRESENTATIONS ON SHARIA COURTS (INLY DIFFERENCE IS THAT MUSLIMS ARE A MINORITY IN THE PHILIPPINES
Politi cal parti es and leaders: National Front (Barisan Nasional) or BN: Malaysian Chinese Associati on Akbayon [Machris CABREROS]
(Persatuan China Malaysia) or MCA [LIOW Tiong Lai] Laban ng Demokrati kong Pilipino (Struggle of
Malaysian Indian Congress (Kongres India Malaysia) or MIC [S. Filipino Democrats) or LDP [Edgardo ANGARA]
SUBRAMANIAM] Lakas ng EDSA-Christi an Muslim Democrats or
United Malays Nati onal Organizati on or UMNO [Ahmad ZAHID Hamidi] Lakas-CMD [Ferdinand Marti n ROMUALDEZ]
Coalition of Hope (Pakatan Harapan) or PH (formerly the People's Liberal Party or LP [Francis PANGILINAN]
Alliance):: Democrati c Acti on Party (Parti Tindakan Demokrati k) or DAP Nacionalista Party or NP [Manuel "Manny"
[TAN Kok Wai] VILLAR]
Malaysian United Indigenous Party (Parti Pribumi Bersatu Malaysia) or Nati onalist People's Coaliti on or NPC [Eduardo
PPBM [MAHATHIR Mohamad] COJUNGCO, Jr.]
Nati onal Trust Party (Parti Amanah Negara) or AMANAH [Mohamad SABU] Nati onal Unity Party or NUP [Albert GARCIA]
People's Justi ce Party (Parti Keadilan Rakyat) or PKR [WAN AZIZAH Wan PDP-Laban [Aquilino PIMENTEL III]
Ismail] People's Reform Party or PRP [Narcisco
Other: Homeland Solidarity Party or STAR [Jeff rey KATINGAN] SANTIAGO]
Pan-Malaysian Islamic Party (Parti Islam se Malaysia) or PAS [Abdul HADI Puwersa ng Masang Pilipino (Force of the
Awang] Philippine Masses) or PMP [Joseph ESTRADA]
Progressive Democrati c Party or PDP [TIONG King Sing] United Nati onalist Alliance or UNA
Sabah Heritage Party (Parti Warisan Sabah) or WARISAN [Shafi e APDAL]  
Sarawak Parti es Alliance (Gabungan Parti Sarawak) or GPS [ABANG JOHARI
Openg] (includes PBB, SUPP, PRS, PDP)
Sarawak People's Party (Parti Rakyat Sarawak) or PRS [James MASING]
Sarawak United People's Party (Parti Bersatu Rakyat Sarawak) or SUPP
[Dr. SIM Kui Hian]
United Pasokmomogun Kadazandusun Murut Organizati on (Pertubuhan
Pasko Momogun Kadazan Dusun Bersatu) or UPKO [Wilfred Madius
TANGAU]
United Sabah Party (Parti Bersatu Sabah) or PBS [Joseph PAIRIN Kiti ngan]
United Sabah People's (Party Parti Bersatu Rakyat Sabah) or PBRS [Joseph
KURUP]
United Traditi onal Bumiputera Party (Parti Pesaka Bumiputera Bersata) or
PBB
 

POLITICAL PARTIES IN MALAYSIA ARE MORE DIVERSIFIED AND COULD BE CONSTRUED AS HAVING
REPRESENTATIONS FOR ALL OF ITS POPULATION (THE PHILIPPINES HAS THE PARTYLIST REPRESENTATION
FOR THAT PURPOSE)
Internati onal organization parti c ADB, APEC, ARF, ASEAN, BIS, C, CICA (observer), ADB, APEC, ARF, ASEAN, BIS, CD, CICA (observer), CP,
ipati on: CP, D-8, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, EAS, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC (national
ICC (nati onal committees), ICRM, IDA, IDB, IFAD, committees), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, IHO,
IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO,
IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, ITSO, ITU, ITUC (NGOs), MIGA, MINUSTAH, NAM, OAS
MONUSCO, NAM, OIC, OPCW, PCA, PIF (partner), (observer), OPCW, PCA, PIF (partner), UN, UNCTAD,
UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNESCO, UNHCR, UNIDO, Union Latina, UNMIL,
UNISFA, UNMIL, UNWTO, UPU, WCO, WFTU UNMOGIP, UNOCI, UNWTO, UPU, WCO, WFTU (NGOs),
(NGOs), WHO, WIPO, WMO, WTO WHO, WIPO, WMO, WTO
   
Diplomati c representation in the chief of mission: Ambassador (vacant); Charge chief of mission: Ambassador Jose Manuel del Gallego
US: d'Affaires MURNI Abdul Hamid (since April 2018) ROMUALDEZ (since 29 November 2017)
chancery: 3516 International Court NW, Washington, chancery: 1600 Massachusett s Avenue NW,
DC 20008 Washington, DC 20036
telephone: [1] (202) 572-9700 telephone: [1] (202) 467-9300
FAX: [1] (202) 572-9882 FAX: [1] (202) 328-7614
consulate(s) general: Los Angeles, New York consulate(s) general: Chicago, Honolulu, Los Angeles,
New York, Saipan (Northern Mariana Islands), San
Francisco, Tamuning (Guam)
 
Diplomati c representation from chief of mission: Ambassador Kamala Shirin chief of mission: Ambassador Sung KIM (since 6
the US: LAKHDHIR (since 21 February 2017) December 2016)
embassy: 376 Jalan Tun Razak, 50400 Kuala Lumpur embassy: 1201 Roxas Boulevard, Manila 1000
mailing address: US Embassy Kuala Lumpur, APO AP mailing address: PSC 500, FPO AP 96515-1000
96535-8152 telephone: [63] (2) 301-2000
telephone: [60] (3) 2168-5000 FAX: [63] (2) 301-2017
FAX: [60] (3) 2142-2207

BOTH COUNTRIES ARE WITH ACTIVE PARTICIPATION TO DIPLOMATIC RELATIONS WITH THE US & INTERNATIONAL
ORGANIZATIONS.
ECONOMY Malaysia, an upper middle-income country, has transformed itself since the 1970s from The economy has been relati vely resilient to global economic shocks due to less exposure to
Economy - overvi a producer of raw materials into a multi -sector economy. Under current Prime Minister troubled internati onal securiti es, lower dependence on exports, relati vely resilient domesti c
ew: NAJIB, Malaysia is att empti ng to achieve high-income status by 2020 and to move consumpti on, large remitt ances from about 10 million overseas Filipino workers and migrants, and
further up the value-added producti on chain by att racti ng investments in high a rapidly expanding services industry. During 2017, the current account balance fell into the
technology, knowledge-based industries and services. NAJIB's Economic Transformati on negati ve range, the fi rst ti me since the 2008 global fi nancial crisis, in part due to an ambiti ous new
Program is a series of projects and policy measures intended to accelerate the infrastructure spending program announced this year. However, internati onal reserves remain at
country's economic growth. The government has also taken steps to liberalize some comfortable levels and the banking system is stable.
services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a Eff orts to improve tax administrati on and expenditures management have helped ease the
general slowdown in global economic acti vity. Philippines' debt burden and ti ght fi scal situati on. The Philippines received investment-grade
The NAJIB administrati on is conti nuing eff orts to boost domesti c demand and reduce credit rati ngs on its sovereign debt under the former AQUINO administrati on and has had litt le
the economy's dependence on exports. Domesti c demand conti nues to anchor diffi culty fi nancing its budget defi cits. However, weak absorpti ve capacity and implementati on
economic growth, supported mainly by private consumpti on, which accounts for 53% of bott lenecks have prevented the government from maximizing its expenditure plans. Although it
GDP. Nevertheless, exports - parti cularly of electronics, oil and gas, and palm oil - has improved, the low tax-to-GDP rati o remains a constraint to supporti ng increasingly higher
remain a signifi cant driver of the economy. In 2015, gross exports of goods and services spending levels and sustaining high and inclusive growth over the longer term.
were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of Economic growth has accelerated, averaging over 6% per year from 2011 to 2017, compared with
government revenue in 2015, down signifi cantly from prior years amid a decline in 4.5% under the MACAPAGAL-ARROYO government; and competi ti veness rankings have improved.
commodity prices and diversifi cati on of government revenues. Malaysia has embarked Although 2017 saw a new record year for net foreign direct investment infl ows, FDI to the
on a fi scal reform program aimed at achieving a balanced budget by 2020, including Philippines has conti nued to lag regional peers, in part because the Philippine consti tuti on and
rati onalizati on of subsidies and the 2015 introducti on of a 6% value added tax. other laws limit foreign investment and restrict foreign ownership in important acti viti es/sectors -
Sustained low commodity prices throughout the period not only strained government such as land ownership and public uti liti es.
fi nances, but also shrunk Malaysia’s current account surplus and weighed heavily on Although the economy grew at a rapid pace under the AQUINO government, challenges to
the Malaysian ringgit, which was among the region’s worst performing currencies achieving more inclusive growth remain. Wealth is concentrated in the hands of the rich. The
during 2013-17. The ringgit hit new lows following the US presidenti al electi on amid a unemployment rate declined from 7.3% to 5.7% between 2010 and 2017; while there has been
broader selloff of emerging market assets. some improvement, underemployment remains high at around 17% to 18% of the employed
Bank Negara Malaysia (the central bank) maintains adequate foreign exchange populati on. At least 40% of the employed work in the informal sector. Poverty affl icts more than a
reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier fi ft h of the total populati on but is as high as 75% in some areas of the southern Philippines. More
fi nancial instruments, although it remains vulnerable to volati le global capital fl ows. In than 60% of the poor reside in rural areas, where the incidence of poverty (about 30%) is more
order to increase Malaysia’s competi ti veness, Prime Minister NAJIB raised possible severe - a challenge to raising rural farm and non-farm incomes. Conti nued eff orts are needed to
revisions to the special economic and social preferences accorded to ethnic Malays improve governance, the judicial system, the regulatory environment, the infrastructure, and the
under the New Economic Policy of 1970, but retreated in 2013 aft er he encountered overall ease of doing business.
signifi cant oppositi on from Malay nati onalists and other vested interests. In September 2016 saw the electi on of President Rodrigo DUTERTE, who has pledged to make inclusive growth
2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies and poverty reducti on his top priority. DUTERTE believes that illegal drug use, crime and
that favor and advance the economic conditi on of ethnic Malays. corrupti on are key barriers to economic development. The administrati on wants to reduce the
Malaysia signed the 12-nati on Trans-Pacifi c Partnership (TPP) free trade agreement in poverty rate to 17% and graduate the economy to upper-middle income status by the end of
February 2016, although the future of the TPP remains unclear following the US President DUTERTE’s term in 2022. Key themes under the government ’s Ten-Point Socioeconomic
withdrawal from the agreement. Along with nine other ASEAN members, Malaysia Agenda include conti nuity of macroeconomic policy, tax reform, higher investments in
established the ASEAN Economic Community in 2015, which aims to advance regional infrastructure and human capital development, and improving competi ti veness and the overall
economic integrati on. ease of doing business. The administrati on sees infrastructure shortcomings as a key barrier to
  sustained economic growth and has pledged to spend $165 billion on infrastructure by 2022.
Although the fi nal outcome has yet to be seen, the current administrati on is shepherding
legislati on for a comprehensive tax reform program to raise revenues for its ambiti ous
infrastructure spending plan and to promote a more equitable and effi cient tax system. However,
the need to fi nance rehabilitati on and reconstructi on eff orts in the southern region of Mindanao
following the 2017 Marawi City siege may compete with other spending on infrastructure.

BOTH COUNTRIES ARE WITH ACTIVE ECONOMIES & ARE DEVELOPING PROGRESSIVELY.
Industries: Peninsular Malaysia - rubber and oil palm semiconductors and electronics assembly,
processing and manufacturing, petroleum and business process outsourcing, food and beverage
natural gas, light manufacturing, manufacturing, construction, electric/gas/water
pharmaceuticals, medical technology, supply, chemical products,
electronics and semiconductors, timber radio/television/communications equipment and
processing; Sabah - logging, petroleum and apparatus, petroleum and fuel, textile and
natural gas production; Sarawak - agriculture garments, non-metallic minerals, basic metal
processing, petroleum and natural gas industries, transport equipment 
production, logging 
Industrial production gr 4.6% (2017 est.) 7.2% (2017 est.)
owth rate: country comparison to the world: 60 country comparison to the world: 27
Budget: revenues: $51.23 billion revenues: $49.07 billion
expenditures: $60.26 billion (2017 est.) expenditures: $56.03 billion (2017 est.)
Inflation rate (consume 3.8% (2017 est.) 3.2% (2017 est.)
r prices): 2.1% (2016 est.) 1.8% (2016 est.)
country comparison to the world: 137
Exports - partners: Singapore 15.1%, China 12.6%, US 9.4%, Japan Japan 16.4%, US 14.6%, Hong Kong 13.7%, China
8.2%, Thailand 5.7%, Hong Kong 4.5% (2017) 11%, Singapore 6.1%, Thailand 4.3%, Germany
  4.1%, South Korea 4% (2017)
Debt - external: 213 billion (31 December 2017 est.) $73.1 billion (31 December 2017 est.)
$195.3 billion (31 December 2016 est.) $74.76 billion (31 December 2016 est.)
country comparison to the world: 34 country comparison to the world: 60

THE PHILIPPINES IS HIGHER IN TERMS OF INDUSTRIAL PRODUCTION GROWTH RATE AT 7.2% WITH MALAYSIA AT 4.6%.
INFLATION RATES ARE SLIGHTLY COMPARABLE AT 3% WITH EXTERNAL DEBT AT 213B FOR MALAYSIA WHILE 73.1B FOR
THE PHILIPPINES.
Ports and termin major seaport(s): Bintulu, Johor Bahru, major seaport(s): Batangas,
als: George Town (Penang), Port Kelang (Port Cagayan de Oro, Cebu, Davao,
Klang), Tanjung Pelepas Liman, Manila
container port(s) (TEUs): George Town container port(s) (TEUs): Manila
(Penang) (1,317,000), Port Kelang (Port (3,976,000) (2015)
Klang) (11,887,000), Tanjung Pelepas  
(8,797,000) (2015)
LNG terminal(s) (export): Bintulu (Sarawak)
LNG terminal(s) (import): Sungei Udang

Military expendit 1.41% of GDP (2016) 1.28% of GDP (2016)

ures: 1.53% of GDP (2015) 1.14% of GDP (2015)
1.46% of GDP (2014) 1.09% of GDP (2014)
1.52% of GDP (2013) 1.24% of GDP (2013)
1.43% of GDP (2012) 1.16% of GDP (2012)
country comparison to the world: 83 country comparison to the world: 
90
 

MALAYSIA IS WITH A HIGHER NUMBER OF SEAPORTS THAN THE PHILIPPINES. BOTH COUNTRIES HAVE LOW MILITARY
EXPENDITURES AT 1.41% & 1.28% RESPECTIVELY.
Maritime threats: the International Maritime Bureau reports that the
territorial and offshore waters in the Strait of
Malacca and South China Sea remain high risk for
piracy and armed robbery against ships; in the past,
commercial vessels have been attacked and
hijacked both at anchor and while underway;
hijacked vessels are often disguised and cargo
diverted to ports in East Asia; crews have been
murdered or cast adrift; seven attacks were
reported in 2016 including five ships boarded, two
hijacked, and 47 crew taken hostage, this is down
from 13 attacks in 2015; during the first half of
2017, three attacks were reported including two
ships that were boarded and one that was hijacked
 
BOTH COUNTRIES ARE WITH MARITIME THREATS IN THE SOUTH CHINA SEA.
the International Maritime Bureau reports the
territorial and offshore waters in the South China
Sea as high risk for piracy and armed robbery
against ships; during 2016, 10 attacks were
reported in and around the Philippines including
six ships that were boarded, one hijacked, one
fired upon, and 18 crew were kidnapped for
ransom; an emerging threat area lies in the
Celebes and Sulu Seas between the Philippines
and Malaysia where 12 crew were kidnapped in
three incidents during the last quarter of 2016; it
is believed the pirates involved are associated
with the Abu Sayyaf Group (ASG) terrorist
organization; during the first six months of 2017,
13 attacks were reported including 10 ships that
were boarded, one was fired upon, 10 crew were
kidnapped for ransom and two killed; numerous
commercial vessels have been attacked and
hijacked both at anchor and while underway;
hijacked vessels are often disguised and cargo
diverted to ports in East Asia; crews have been
murdered or cast adrift
TERRORIST GROUPS Islamic State of Iraq and ash-Sham (ISIS) aim(s): replace the Malaysian
Terrorist groups - foreign based Government with an Islamic state and implement ISIS's strict
: interpretati on of sharia
area(s) of operati on: maintains a covert operati onal presence, mostly
concentrated in the northeast province of Sabah
Jemaah Islamiyah (JI):
aim(s): enhance networks in Malaysia and, ulti mately, overthrow the
secular Malaysian Government and establish a pan-Islamic state
across Southeast Asia
area(s) of operati on: maintains a recruitment and operati onal
presence, primarily in major citi es (April 2018)
 
BOTH COUNTRIES ARE PLAGUED WITH FOREIGN-BASED TERRORIST GROUPS MOSTLY OF ISIS LINEAGE & MINORITY
GROUPS ENDEMIC TO ITS TERRITORIES.
Abu Sayyaf Group (ASG):
aim(s): establish an Islamic State in the Philippines'
Mindanao Island and the Sulu Archipelago, and
ulti mately, an Islamic caliphate across Southeast Asia
area(s) of operati on: southern Philippines in Mindanao
and the Sulu Archipelago region
Communist Party of the Philippines/New People's Army
(CPP/NPA):
aim(s): destabilize the Philippines' economy to inspire
the populace to revolt against the government and,
ulti mately, overthrow the Philippine Government
area(s) of operati on: operates throughout most of the
country, primarily in rural regions, with its strongest
presence in the Sierra Madre Mountains, rural Luzon,
Visayas, and parts of northern and eastern Mindanao;
maintains cells in Manila, Davao City, and other
metropolitan areas
Islamic State of Iraq and ash-Sham (ISIS) network in
Philippines:
aim(s): replace the Philippine Government with an
Islamic state and implement ISIS's strict interpretati on
of sharia
area(s) of operati on: Mindanao and the Sulu
Archipelago region (April 2018)
Terrorist groups - foreign based:
Jemaah Islamiyah (JI):
aim(s): enhance its networks in the Philippines and,
ulti mately, overthrow the Philippine Government and
establish a pan-Islamic state across Southeast Asia
area(s) of operati on: maintains an operati onal and
recruitment presence, especially in the south (April
2018)
TRANSNATIONAL DISPUTES while the 2002 "Declarati on on the Conduct of Parti es in the
Disputes - internati onal: South China Sea" has eased tensions over the Spratly Islands,
it is not the legally binding "code of conduct" sought by some
parties; Malaysia was not party to the March 2005 joint
accord among the nati onal oil companies of China, the
Philippines, and Vietnam on conducti ng marine seismic
activiti es in the Spratly Islands; disputes continue over
deliveries of fresh water to Singapore, Singapore's land
reclamati on, bridge constructi on, and mariti me boundaries in
the Johor and Singapore Straits; in 2008, ICJ awarded
sovereignty of Pedra Branca (Pulau Batu Puteh/Horsburgh
Island) to Singapore, and Middle Rocks to Malaysia, but did
not rule on mariti me regimes, boundaries, or dispositi on of
South Ledge; land and mariti me negoti ati ons with Indonesia
are ongoing, and disputed areas include the controversial
Tanjung Datu and Camar Wulan border area in Borneo and
the mariti me boundary in the Ambalat oil block in the
Celebes Sea; separati st violence in Thailand's predominantly
Muslim southern provinces prompts measures to close and
monitor border with Malaysia to stem terrorist activities;
Philippines retains a dormant claim to Malaysia's Sabah State
in northern Borneo; per Letters of Exchange signed in 2009,
Malaysia in 2010 ceded two hydrocarbon concession blocks to
Brunei in exchange for Brunei's sultan dropping claims to the
Limbang corridor, which divides Brunei; piracy remains a
problem in the Malacca Strait
BOTH COUNTRIES CLAIM SOVERIEGNTY OVER ISLANDS & MARITIME DISPOSITIONS ON AREAS IN PROXIMITY TO ITS
JURISDICTION.
Philippines claims sovereignty over Scarborough
Reef (also claimed by China together with
Taiwan) and over certain of the Spratly Islands,
known locally as the Kalayaan (Freedom)
Islands, also claimed by China, Malaysia,
Taiwan, and Vietnam; the 2002 "Declarati on on
the Conduct of Parti es in the South China Sea,"
has eased tensions in the Spratly Islands but
falls short of a legally binding "code of conduct"
desired by several of the disputants; in March
2005, the national oil companies of China, the
Philippines, and Vietnam signed a joint accord
to conduct marine seismic acti viti es in the
Spratly Islands; Philippines retains a dormant
claim to Malaysia's Sabah State in northern
Borneo based on the Sultanate of Sulu's
granti ng the Philippines Government power of
att orney to pursue a sovereignty claim on his
behalf; mariti me delimitati on negotiations
conti nue with Palau 
 OBSERVATIONS
MALAYSIA & THE PHILIPPINES ARE WITH ACTIVE DIPLOMATIC TIES AND
RESPECTS ITS MEMBERSHIP TO INTERNATIONAL ORGANIZATIONS WHICH
ALSO COMPOSE THE INTERNATIONAL TRIBUNAL TO WHICH DECISIONS OVER
LAND & MARITIME DISPUTES MAY BE GAINED FROM.

IF BOTH COUNTRIES ARE TO ASSERT JURISDICTION OVER ISLANDS AND

SEAS CLAIMED BY CHINA, BOTH HAS TO AGREE ON DRASTIC MILITARY AND
NAVAL DEVELOPMENT.
 IF THE PHILIPPINES IS TO BECOME A FEDERAL GOVERNMENT, MALAYSIA
BEING ITS CLOSEST NEIGHBOR WILL BECOME AN ALLY AND MAY IN THE NEAR
FUTURE BE AT PAR IN TERMS OF JURISDICTION OVER DISPUTED LAND AND
MARITIME CLAIMS.

IF THE PHILIPPINES IS TO ADAPT FEDERALISM AND THE MUSLIM MINORITY

BECOME WIDELY RECOGNIZED, THE BANGSAMORO BASIC LAW WILL
BECOME INSTITUTIONALIZED AND SHARIA COURTS WILL BE INCORPORATED
TO THE WIDELY RECOGNIZED PHILIPPINE JUDICIAL SYSTEM.
ENHANCE CULTURAL EXCHANGE BETWEEN POPULATIONS OF
BOTH COUNTRIES AND STRENGTHEN COMMUNAL TIES.

TOURISM EXCHANGE MAY ALSO PLAY ITS ROLE IN ENHANCING

SOCIAL COHESION BETWEEN PEOPLES OF NATIONS.
 RECOMMENDATION
MALAYSIA & THE PHILIPPINES MUST BUILD RESILIENT DIPLOMATIC TIES
AND STRENGTHEN THE MILITARY, NAVY, & AIRFORCE IN ORDER TO DEFEND
BOTH ITS SOVEREIGNTIES.

FEDERALISM IN THE PHILIPPINES MUST BE STUDIED EXTENSIVELY &

IMPLEMENTED (IF EVER) WITH UTMOST CARE AS THIS MAY CAUSE CIVIL
WAR INVOLVING MUSLIM MINORITIES & SPREAD CHAOS IN PROVINCES &
REGIONS WHERE CULTURAL DISPUTES ARE ALREADY PREVALENT.