Editing Economy of Malaysia (section)

==History==
{{Main|Economic history of Malaysia}}
As one of three countries that control the [[Strait of Malacca]], international trade plays a very significant role in Malaysia's economy.<ref>The Prime Minister's Office. [http://www.pmo.gov.my/WebNotesApp/tpmmain.nsf/10542456114e04a748256c36001576f6/09ee4377fd049191482572aa00144782?OpenDocument The Security of the Straits of Malacca and its implications to the Southeast Asia regional security]. Retrieved 26 November 2007. {{webarchive |url=https://web.archive.org/web/20080405101626/http://www.pmo.gov.my/WebNotesApp/tpmmain.nsf/10542456114e04a748256c36001576f6/09ee4377fd049191482572aa00144782?OpenDocument |date=5 April 2008 }}</ref> At one time, it was the largest producer of [[tin]], [[Natural rubber|rubber]] and [[palm oil]] in the world.<ref>[[American University]]. [http://www.american.edu/TED/tin.htm Tin Mining in Malaysia]. Retrieved 14 November 2007. {{webarchive |url=https://web.archive.org/web/20140807053631/http://www.american.edu/TED/tin.htm |date=7 August 2014 }}</ref>
Manufacturing has a large influence in the country's economy, accounting for over 40% of the GDP.<ref>[[Bank Negara Malaysia|Bank Negara]]. [http://www.bnm.gov.my/index.php?ch=111 BNM National Summary Data Page] {{Webarchive|url=https://web.archive.org/web/20100206205012/http://www.bnm.gov.my/index.php?ch=111 |date=6 February 2010 }}. Retrieved 8 November 2007</ref>

In the 1980s, Malaysia began to imitate the four [[Four Asian Tigers|Asian Tiger]] economies ([[British Hong Kong|Hong Kong]], [[Singapore]], [[South Korea]], and [[Taiwan]]) and committed itself to a transition from being reliant on [[mining]] and [[agriculture]] to an economy that depends more on manufacturing. The predominantly mining and agricultural based Malaysian economy began a transition towards a more multi-sector economy. Since the 1980s the industrial sector has led Malaysia's growth. High levels of investment played a significant role in this. With Japanese investment, heavy industries flourished and within several years, Malaysian exports became the country's primary growth engine. Malaysia consistently achieved more than 7% GDP growth along with low inflation in the 1980s and the 1990s.

In 1991, Prime Minister [[Mahathir Mohamad]] outlined his ideal, [[Wawasan 2020|Vision 2020]] in which Malaysia would become a self-sufficient industrialised nation by 2020.<ref name="Mahathir's Speech">{{cite news| title=The Way Forward| url=http://www.pmo.gov.my/?menu=page&page=1904| publisher=Prime Minister's Office| author=Mahathir Bin Mohamad| date=17 November 2008| access-date=12 April 2013| archive-date=3 December 2008| archive-url=https://web.archive.org/web/20081203071129/http://www.pmo.gov.my/?menu=page&page=1904| url-status=dead}}</ref> In 2013, Minister in the Prime Minister's Department [[Nor Mohamed Yakcop|Tan Sri Nor Mohamed Yakcop]] said Malaysia could attain developed country status in 2018 if the country's economic growth remains constant or increases.<ref>[http://www.theedgemalaysia.com/political-news/230848-malaysia-may-be-developed-nation-by-2018-says-minister.html Malaysia may be developed nation by 2018, says minister<!-- Bot generated title -->] {{webarchive|url=https://archive.today/20130411230614/http://www.theedgemalaysia.com/political-news/230848-malaysia-may-be-developed-nation-by-2018-says-minister.html |date=11 April 2013 }}</ref> In 2023, the Malaysian government unveiled an industrial policy, the New Industrial Master Plan (NIMP) 2030, a guideline for the nation's manufacturing sector to grow and achieve macroeconomic targets, aiming for RM587.5 billion (from RM364.1 billion) contribution to Malaysia's GDP, 3.3 million (from 2.7 million) employed persons and a median salary of RM4,510 (from RM1,976) by 2030.<ref>{{Cite web |last=Shahril |first=Md |date=2023-10-30 |title=Launch of the New Industrial Master Plan 2030 (NIMP 2030) |url=https://www.mida.gov.my/launch-of-the-new-industrial-master-plan-2030-nimp-2030/ |access-date=2024-10-24 |website=MIDA {{!}} Malaysian Investment Development Authority |language=en-US}}</ref>

Malaysia experienced an economic boom and underwent rapid development during the late 20th century and had a GDP per capita (nominal) of US$11,648.70 in 2023, and is considered a [[newly industrialised country]].<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/malaysia/|title=The World Factbook|access-date=3 March 2015|archive-date=8 November 2021|archive-url=https://archive.today/20211108232943/https://www.cia.gov/the-world-factbook/countries/malaysia/|url-status=live}}</ref><ref name="Globalization">{{cite book|title=Globalization and the Transformation of Foreign Economic Policy|author=Paweł Bożyk|chapter=Newly Industrialized Countries|page=164|publisher=Ashgate Publishing, Ltd|year=2006|isbn=0-7546-4638-6}}</ref><ref name=Principles>{{cite book|title=Principles of Economics|author=N. Gregory Mankiw|year=2007|publisher=Cengage Learning |edition=4th|isbn=978-0-324-22472-6}}</ref> In 2009, the GDP (PPP) was US$378.5 billion and GDP per capita (PPP) was US$13,468.00, about one third of the 2023 figures.<ref>{{cite web |url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html |title=COUNTRY COMPARISON :: GDP (PURCHASING POWER PARITY) |publisher=CIA |access-date=26 October 2010 |archive-date=4 June 2011 |archive-url=https://web.archive.org/web/20110604195034/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html |url-status=dead }}</ref>

In 2022, the Household Income Survey undertaken by the government indicated that there were 7.9 million households in Malaysia, with an average of 3.8 members in each household. The average household income of Malaysia increased by 69.6% to RM8,479 a month, compared to RM5,000 in 2012.<ref>{{Cite web |date=31 December 2022 |title=Household Income, Poverty and Household Expenditure |url=https://www.ekonomi.gov.my/en/socio-economic-statistics/household-income-poverty-and-household-expenditure |access-date=22 October 2024 |archive-date=17 April 2024 |archive-url=https://web.archive.org/web/20240417014911/https://ekonomi.gov.my/en/socio-economic-statistics/household-income-poverty-and-household-expenditure |url-status=dead }}</ref>

According to a [[HSBC]] report in 2012, Malaysia is expected to become the world's 21st largest economy by 2050, with a GDP of $1.2 trillion (Year 2000 dollars) and a GDP per capita of $29,247 (Year 2000 dollars). The report also says "The electronic equipment, petroleum, and liquefied natural gas producer will see a substantial increase in income per capita. Malaysian life expectancy, relatively high level of schooling, and above average fertility rate will help in its rapid expansion." Viktor Shvets, the managing director in [[Credit Suisse]], has said "Malaysia has all the right ingredients to become a developed nation."<ref>{{cite web|url=http://thestar.com.my/news/story.asp?file=/2012/5/7/business/11241892&sec=|archive-url=https://web.archive.org/web/20120508055553/http://thestar.com.my/news/story.asp?file=%2F2012%2F5%2F7%2Fbusiness%2F11241892&sec=|url-status=dead|archive-date=8 May 2012|title=Malaysia got what it takes to be developed nation|author=Wong Wei-Shen|work=The Star|date=7 May 2012|access-date=25 June 2013}}</ref>

In early 2020, the Malaysian economy was severely afflicted by the [[COVID-19 pandemic in Malaysia|COVID-19 pandemic]] that eventually expanded to the rest of the world, causing an economic shutdown and downturn in the country, the worst since 2008.{{fact|date=April 2024}} In early December 2020 during the pandemic, [[Fitch Ratings]] downgraded the country's rating from A− to BBB+. Some, such as Hoo Ke Ping at the Kingsley Strategic Institute, suggested that this was because of a lack of communication between the new government and the ratings agency. Others, such as Carmelo Ferlito, from the Centre for Market Education, said it might require something more substantial as the recent budget lacked a strategy for the recovery as well as addressing the political tensions, and also, Shan Saeed at Juwai IQI suggested that the agency had lost its relevance as the analysis was "behind the curve".{{Citation Needed|date=January 2022}} However, the COVID-19 recession in the country ended by 1 April 2022 as the COVID-19 [[SARS-CoV-2 Omicron variant|Omicron]] infection rate continued to fall ahead of the [[Endemic phase of COVID-19|endemic phase]].