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We are surrounded by the economybut never really see it.

How much total retail sales? How big is the dimensions of e-commerce? How much oil consumptions? National income compared to neighboring

countries?

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Prior 1970 Agro and mining based economy.- Rubber, timber, oil palm

- producer of raw materials: tin

- Petroleum industry

1980s manufacturing especially electronics

1990s - multi-sector economy

- service sectors(banking and tourism)

Exports became the country's primary growth engine.

Consistently achieved more than 7% GDP growthalong with low inflation in the 1980s and the 1990s.

Malaysia Economy : What MalaysiaProduces

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Measurement of Output

Gross Domestic Product (GDP)

An estimated value of the total worth of a countrys production

and services, on its land, by its nationals and foreigners,calculated over the course on one year.

To see the strength of a countrys local economy

GDP = consumption + investment + (governmentspending) + (exports imports)

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Malaysia GDP The Gross Domestic Product (GDP) in Malaysia was worth

278.67 billion US dollars in 2011.

The GDP value of Malaysia represents 0.45 percent of theworld economy.(source: world bank report)

From 1960 until 2011, Malaysia GDP averaged 59.9 USDBillion

- Reaching an all time high of 278.7 USD Billion in

December of 2011

- A record low of 2.4 USD Billion in December of 1961.

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Measurement of Output

Gross National Product (GNP)

An estimated value of the total worth of production and

services, by citizens of a country, on its land or onforeign land, calculated over the course on one year.

To see how the nationals of a country are doingeconomically

GNP = GDP + NR (Net income inflow from assetsabroad or Net Income Receipts) - NP (Net paymentoutflow to foreign assets)

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Measurement of Output

Gross Domestic Product per Capita

The GDP per capita is obtained by dividing the countrys

gross domestic product, adjusted by inflation, by thetotal population.

Norway = $98k Japan = $46k Congo = $216Qatar = $92k S Korea = $ 23k Ethiopia= $326Spore = $49 Mexico = $ 10.2k Togo = $524U.S.A = $48k Malaysia = $ 5.4k

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Malaysia GDP per Capita

TheGDP per capita was last recorded at5,364.50 US dollars in 2011.

Msia GDP per capita is equivalent to 43 percentof the world's average.

From 1960 until 2011, Malaysia GDP per capita

averaged 2594.3 USD .

A record low of 814.6 USD in December of1960.

GDP per capita grew 36% in the Eighties, and59% in the Nineties led primarily by export-oriented industries

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Businessinvestment(20%)

HouseholdConsumption

(48%)

GovtPurchases(12%)

NetExports

(20%)

GrossDomesticProduct

Components of Malaysia GDP

-Capital equipment- inventories

- structures

- Goods and services- Exports byimports.

-Local municipal,state and Federalspending- public works

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How Malaysia Produces

Abundant natural resources give Malaysia a decided advantage.

Superior resources alone not necessarily provide a nationseconomic dominance.

Capital intensive vs labor intensive.

Factor quality capital and labor.

The high productivity of developed economy results from using

highly educated workers in capital intensive productionprocesses.

Factor Mobility reallocating resources from one industry to

another.

Corporatization/Privatization

Govt. regulation

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For Whom Malaysia Produces

Sharing of the economic pie.

Distribution of Income as countries develop, the personaldistribution income tends to become more equal.