Overview: In 1988-89 booming exports helped Malaysia continue to recover from the severe 1985-86 recession. Real output grew by 8.7% in 1988 and about 7.7% in 1989, helped by vigorous growth in manufacturing output and further increases in foreign direct investment, particularly from Japanese and Taiwanese firms facing higher costs at home. Malaysia has become the world's third-largest producer of semiconductor devices (after the US and Japan) and the world's largest exporter of semiconductor devices. Inflation remained low as unemployment stood at about 8% of the labor force and as the government followed prudent fiscal/monetary policies. The country is not self-sufficient in food, and a majority of the rural population subsists at the poverty level. Malaysia's high export dependence (merchandise exports are 63% of GDP) leaves it vulnerable to a recession in the OECD countries or a fall in world commodity prices.

GDP: $37.9 billion, per capita $2,270; real growth rate 7.7% (1989 est.)

Inflation rate (consumer prices): 3.6% (1989 est.)

Unemployment rate: 7.9% (1989 est.)

Budget: revenues $8.8 billion; expenditures $11.2 billion, including capital expenditures of $2.5 billion (1989 est.)

Exports: $24 billion (f.o.b., 1989 est.); commodities--natural rubber, palm oil, tin, timber, petroleum, electronics, light manufactures; partners--Singapore, Japan, USSR, EC, Australia, US

Imports: $20 billion (f.o.b., 1989 est.); commodities--food, crude oil, consumer goods, intermediate goods, capital equipment, chemicals; partners--Japan, Singapore, FRG, UK, Thailand, China, Australia, US

External debt: $16.3 billion (1989 est.)

Industrial production: growth rate 13.6% (1988)

Electricity: 5,600,000 kW capacity; 16,500 million kWh produced, 990 kWh per capita (1989)

Industries: Peninsular Malaysia--rubber and oil palm processing and manufacturing, light manufacturing industry, electronics, tin mining and smelting, logging and processing timber; Sabah--logging, petroleum production; Sarawak--agriculture processing, petroleum production and refining, logging

Agriculture: Peninsular Malaysia--natural rubber, palm oil, rice; Sabah--mainly subsistence; main crops--rubber, timber, coconut, rice; Sarawak--main crops--rubber, timber, pepper; there is a deficit of rice in all areas; fish catch of 608,000 metric tons in 1987

Aid: US commitments, including Ex-Im (FY70-84), $170 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-87), $3.8 billion; OPEC bilateral aid (1979-89), $42 million

Currency: ringgit (plural--ringgits); 1 ringgit (M$) = 100 sen

Exchange rates: ringgits (M$) per US$1--2.7038 (January 1990), 2.7087 (1989), 2.6188 (1988), 2.5196 (1987), 2.5814 (1986), 2.4830 (1985)

Fiscal year: calendar year

NOTE: The information regarding Malaysia on this page is re-published from the 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Malaysia Economy 1990 information contained here. All suggestions for corrections of any errors about Malaysia Economy 1990 should be addressed to the CIA.