Page 10 - Preview (MYS)

SBG
ECONOMIC OVERVIEW
,
Monorail, Kuala Lumpur
CROWNING
GLORY
describes Malaysia as “a country on the move.” Five decades of spectacular economic evolution explains why this might be an understatement.
The year was 2008. As the rest of the world struggled with the worst economic recession in decades, South East Asia was witnessing an economic miracle.
once an economy dominated by agriculture and primary commodities— marked a record growth of 7.9% in the first 9 months of the year, making short work of the turbulence all around. Not to be far outdone, even the manufacturing industry grew
accounted for 29.9% of the gross domestic product (GDP) during this period, while exports of manufactured goods constituted the lion’s share of
right through to March 2010, with the economy seeing a 36.4% year-on- year surge in exports. Malaysia’s new export-driven, high-tech, knowledge- based and capital-intensive economy had emphatically arrived on the world stage.
A REMARKABLE EVOLUTION
From being the world’s largest producer of rubber and tin, Malaysia is now one of the world’s leading exporters of semiconductor devices, computer hard disks, audio and video products
age economic bandwagon carried much of the impetus behind the GDP growth of 4.6% in 2008, with support from robust domestic demand and uninterrupted growth in private and public consumption. Its 5 flagship economic areas cover the entire gamut of industrial activities—from real estate to manufacturing to luxury tourism and high-tech businesses, naming only a very few. Viewed as an agrarian and mining economy in the 1960s, Malaysia today proudly sports a Multimedia Super Corridor (MSC), bolstered by a solid legislative and telecommunications infrastructure in an eco-friendly environment. No wonder the country is increasingly becoming a preferred outsourcing
destination as well as a hub for various research and development (R&D) activities.
GLOBAL RECOGNITION
A tribute to Malaysia’s breathtaking economic march came earlier this year in the form of a position among the 10 most competitive countries in the world, according to the 2010 World Competitiveness Yearbook (WCY) published by the reputed Switzerland- based Institute of Management
stride up from the 18th place last year, especially in view of the fact that the country gained 9 places to stand 4th in the Business Efficiency sub-ratings, edging out competition from the likes of Luxembourg, Canada and Sweden. Together with its number 1 ranking in addressing financial risk factors, this performance augurs splendidly well for the future.
KEY STRENGTHS
As identified in the WCY, the fundamental strengths of the economy include diversification, an educated workforce, low inflation, low unemployment, protection of shareholder rights, high resilience to economic cycles, adaptability of companies to market changes, an unobtrusive bureaucracy, timely execution of government decisions and political stability.
INFRASTRUCTURE
invested handsomely to create
WCY 2010
(n=58 economies)
WCY 2009
(n=57 economies)
WCY 2008
(n =55 economies)
WCY 2007
(n=55 economies)
WCY 2006
(n=53 economies)
Overall Scoreboard
Rank
Index
10
18
19
23
22
70.080
Economic Performance
87.228
77.162
73.199
74.091
Government Efficiency
Rank
Rank
8
9
9
19
8
12
21
10
19
Business Efficiency
Rank
4
13
19
14
15
19
Infrastructure
Rank
25
26
25
26
27
Malaysia’s Competitiveness Ranking
08