Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity. ++ The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia's current account surplus and weighed heavily on the Malaysian ringgit, which was among the region's worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets. ++ Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia's competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays. ++ Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

Fitch rating: BBB+ (2020)

Moody's rating: A3 (2004)

Standard & Poors rating: A- (2003)

Peninsular Malaysia - palm oil, rubber, cocoa, rice;Sabah - palm oil, subsistence crops; rubber, timber;Sarawak - palm oil, rubber, timber; pepper

Peninsular Malaysia - rubber and oil palm processing and manufacturing, petroleum and natural gas, light manufacturing, pharmaceuticals, medical technology, electronics and semiconductors, timber processing;Sabah - logging, petroleum and natural gas production;Sarawak - agriculture processing, petroleum and natural gas production, logging

calendar year

Singapore 15.1%, China 12.6%, US 9.4%, Japan 8.2%, Thailand 5.7%, Hong Kong 4.5% (2017)

semiconductors and electronic equipment, palm oil, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals, solar panels

electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

China 19.9%, Singapore 10.8%, US 8.4%, Japan 7.6%, Thailand 5.8%, South Korea 4.5%, Indonesia 4.4% (2017)

ringgits (MYR) per US dollar -

general assessment: one of the most advanced telecom networks in the developing world; strong commitment to developing a technological society; Malaysia is promoting itself as an information tech hub in the Asian region; closing the urban rural divide; 4G and 5G networks with strong competition, mobile dominance over fixed-broadband; roll-out of a national broadband network (2020)

domestic: fixed-line 20 per 100 and mobile-cellular teledensity exceeds 140 per 100 persons; domestic satellite system with 2 earth stations (2019)

international: country code - 60; landing points for BBG, FEA, SAFE, SeaMeWe-3 & 4 & 5, AAE-1, JASUKA, BDM, Dumai-Melaka Cable System, BRCS, ACE, AAG, East-West Submarine Cable System, SEAX-1, SKR1M, APCN-2, APG, BtoBe, BaSICS, and Labuan-Brunei Submarine and MCT submarine cables providing connectivity to Asia, the Middle East, Southeast Asia, Australia and Europe; satellite earth stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean); launch of Kacific-1 satellite in 2019 (2019)

state-owned TV broadcaster operates 2 TV networks with relays throughout the country, and the leading private commercial media group operates 4 TV stations with numerous relays throughout the country; satellite TV subscription service is available; state-owned radio broadcaster operates multiple national networks, as well as regional and local stations; many private commercial radio broadcasters and some subscription satellite radio services are available; about 55 radio stations overall (2019)

.my

9M (2016)

354 km condensate, 6439 km gas, 155 km liquid petroleum gas, 1937 km oil, 43 km oil/gas/water, 114 km refined products, 26 km water (2013)

by type: bulk carrier 15, container ship 22, general cargo 176, oil tanker 140, other 1,395 (2019)

主要海港: Bintulu, Johor Bahru, George Town (Penang), Port Kelang (Port Klang), Tanjung Pelepas

集装箱港口 (吞吐量TEU): Port Kelang (Port Klang) (11,978,000), Tanjung Pelepas (8,260,000) (2017)

液化天然气接收站 (export): Bintulu (Sarawak)

液化天然气接收站 (import): Sungei Udang