• GDP: US$103.7 billion (2003).
• Main exports: Electrical equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles and chemicals.
• Main imports: Electronics, machinery, petroleum products, plastics, vehicles, iron and steel products and chemicals.
• Main trade partners: USA, Japan, Singapore, Taiwan (China), Hong Kong (SAR), Thailand, Korea (Rep), Germany and Indonesia.

A fully-fledged ‘tiger’ economy, from the 1970s onwards Malaysia grew rapidly at around 10 per cent annually. This extraordinary economic development had been achieved through the familiar East Asian combination of a strong state allied to unfettered capitalism. The government plays a central role in guiding the country’s economic progress – the New Development Policy was unveiled in 1991 as the country’s economic blueprint for the following 20 years. However, in 1997 the Asian financial crisis brought this process to a shuddering halt. Malaysia has recovered reasonably well since then, although the headlong pre-1997 expansion has been replaced by a more measured pace of growth of between 4 and 4.5 per cent per annum in 2002 and 2003. Inflation was a respectable 1.8 per cent in 2002 and Malaysia enjoys a substantial trade surplus ($18 billion in 2002). Growth topped 7 per cent in 2004. Healthy foreign exchange reserves, low inflation and a small external debt are all strengths that make it unlikely that a financial crisis similar to 1997 will re-occur. The Ringgit/US Dollar peg was abolished in July 2005. This has not resulted in any significant change to the exchange rate. The manufacturing sector produces electronics, transport equipment, machinery steel and textiles. There are also reserves of oil and natural gas and mineral deposits of tin (of which it is a major producer), bauxite, copper, iron and gold. In the agricultural sector palm oil, of which Malaysia is the world’s leading producer, is a major export commodity. Timber production remains important although it has been limited by the introduction of conservation measures in the mid-1990s. Other cash crops include rubber (again, Malaysia is one of the world’s top producers), cocoa and pepper. Tourism dominates the service sector.
Malaysia is a member of the Pacific Rim organisation APEC (Asia-Pacific Economic Forum), which is assuming an increasingly important role in the regional economy. The essential stability of Malaysia’s financial sector meant that, although it suffered short-term damage, it was able to recover quickly. Over the last five years, Malaysia has averaged annual growth of 3 per cent.

Suits or safari suits are acceptable for business meetings. Business visitors should remember that the Malay population is predominantly Muslim and religious customs should be respected and normal courtesies observed, eg appointments, punctuality and calling cards. Office hours: These vary between Peninsular Malaysia and East Malaysia. In general most private sector offices are open Mon-Fri 0900-1700 and Sat 0900-1300. Government office hours: 0830-1630. Many private sector companies operate a five-day week.

Many conferences and conventions are held in Malaysia each year. Apart from the dedicated facilities at the Putra World Trade Centre in Kuala Lumpur, many hotels have facilities. Further information can be obtained from Tourism Malaysia, Convention Promotion Division (see Top Things To Do).

Malaysian Trade Commission in the UK
17 Curzon Street, London W1J 5HR, UK
Tel: (020) 7499 5255.

National Chamber of Commerce and Industry of Malaysia
37 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia
Tel: (3) 241 9600.
Website: www.nccim.org.my

Malaysian International Chamber of Commerce and Industry (MICCI)
PO Box 12921, 50792 Kuala Lumpur, Malaysia
Tel: (3) 6201 7708.
Website: www.micci.com

Malaysian Industrial Development Authority (MIDA)
Block 4, Plaza Sentral, Jalan Stesen Sentral 5, 50470 Kuala Lumpur, Malaysia
Tel: (3) 2267 3633.
Website: www.mida.gov.my