Federation of Malaysia

Malaysia

Federation

←

Since 1963

→

Motto
Bersekutu Bertambah Mutu
Unity Is Strength

Anthem
Negaraku
My Country

Capital

Kuala Lumpur

Government

Constitutional monarchy and parliamentary democracy

Yang di-Pertuan Agong

- From 2006

Mizan Zainal Abidin

Prime Minister

- From 2009

Najib Tun Razak

Legislature

Parliament

- Upper house

Senate

- Lower house

House of Representatives

History

- September 15, 1963

Established

- August 9, 1965

Withdrawal of Singapore

Commonwealth accession

September 15, 1963

Area

329,847 km²

Population

- 2010

27,565,821

Density

83.5/km²

GDP

2010 (PPP)

- Total

US$ 393.5 billion

- Per capita

US$ 14,275.371

Currency

Ringgit

Malaya

Singapore

v

Malaysia is a constitutional monarchy and a federal parliamentary democracy in Asia.

Background

During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore and the East Malaysian states of Sabah and Sarawak on the northern coast of Borneo joined the Federation. The first several years of the country's history were marred by a Communist insurgency, Indonesian confrontation with Malaysia, Philippine claims to Sabah, and Singapore's secession from the Federation in 1965. During the 22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials to expansion in manufacturing, services, and tourism. Current Prime Minister Mohamed NAJIB bin Abdul Razak (in office since April 2009) has continued these pro-business policies.^[1]

Economy

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas, which supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves and its well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, decreasing worldwide demand for consumer goods hurt Malaysia's exports and economic growth in 2009, although both showed signs of recovery in 2010. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.^[2]