Editing Economy of Malaysia

{{Short description|none}}
{{EngvarB|date=April 2015}}
{{Use dmy dates|date=June 2021}}
{{Infobox economy
| country = Malaysia
| image = The Twins SE Asia 2019 (49171985716) (3to4-1).jpg
| image_size = 290px
| caption = [[Kuala Lumpur]], Malaysia's capital city and the country's major financial hub.
| currency = [[Malaysian ringgit|Ringgit]] (MYR, RM)
| year = [[Calendar year]]
| organs = [[Asia-Pacific Economic Cooperation|APEC]], [[Association of Southeast Asian Nations|ASEAN]], [[Indian Ocean Rim Association for Regional Cooperation|IOR-ARC]], [[World Trade Organization|WTO]], [[Japan External Trade Organization|JETRO]], [[Regional Comprehensive Economic Partnership|RCEP]], [[Comprehensive and Progressive Agreement for Trans-Pacific Partnership|CPTPP]], [[East Asia Summit|EAS]], [[ASEAN Free Trade Area|AFTA]]
| group = {{plainlist|
* [[Developing country|Developing]]<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2022/April |title=World Economic Outlook Database, April 2022 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=April 20, 2022 |archive-date=19 April 2022 |archive-url=https://web.archive.org/web/20220419134621/https://www.imf.org/en/Publications/WEO/weo-database/2022/April |url-status=live }}</ref>
* [[List of countries by GNI (nominal) per capita| Upper-middle income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=10 May 2024 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live }}</ref>
*[[Newly industrialized country]]
}}
| population = {{increase}} 34,100,000 (2024)<ref>{{cite web |url=https://data.worldbank.org/indicator/SP.POP.TOTL?locations=MY |title=Population, total - Malaysia |access-date=8 July 2024 |archive-date=9 June 2023 |archive-url=https://web.archive.org/web/20230609045900/https://data.worldbank.org/indicator/SP.POP.TOTL?locations=MY |url-status=live }}</ref>
| gdp = {{plainlist|
*{{increase}}  $488.7 billion ([[GDP (nominal)|nominal]]; 2025 est.)<ref name="IMFWEODE">{{cite web |url=https://www.imf.org/en/Countries/MYS |title=Malaysia and the IMF }}</ref> 
*{{increase}} $1.43 trillion ([[Purchasing power parity|PPP]]; 2025 est.)<ref name="IMFWEODE"/> 
}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|34th (nominal; 2025)]]
*[[List of countries by GDP (PPP)|31st (PPP; 2025)]]
}}
| growth = {{plainlist|
*3.6%&nbsp;(2023)
*5.1%&nbsp;(2024 est.)
*5.0%&nbsp;(2025 est.)<ref name="Global Economic Prospects">{{cite web |title=WORLD ECONOMIC OUTLOOK 2022 OCT Countering the Cost-of-Living Crisis|url=https://www.imf.org/-/media/Files/Publications/WEO/2022/October/English/text.ashx |website=www.imf.org  |publisher=[[International Monetary Fund]] |page=43|access-date=11 October 2022}}</ref>
}}
| per capita = {{plainlist| 
*{{increase}} $14,423 (nominal; 2025 est.)<ref name="IMFWEODE"/>
*{{increase}} $43,095 (PPP; 2025 est.)<ref name="IMFWEODE"/> 
}}
| per capita rank = {{plainlist|
*[[List of countries by GDP per capita (nominal)|66th (nominal; 2025)]]
*[[List of countries by GDP per capita (PPP)|50th (PPP; 2025)]] 
}}
| components = {{plainlist|
* Household consumption: 60.4% 
* Government consumption: 12.0% 
* Investment in fixed capital: 19.2% 
* Investment in inventories: 3.3% 
* Exports of goods and services: 68.4% 
* Imports of goods and services: -63.4%
* (2023 est.)<ref>{{cite web|url= https://www.cia.gov/the-world-factbook/countries/malaysia/#economy|title= CIA World Factbook|access-date= 21 October 2024|archive-date= 8 November 2021|archive-url= https://archive.today/20211108232943/https://www.cia.gov/the-world-factbook/countries/malaysia/#economy|url-status= live}}</ref>}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: {{increase}} 7.7%
*[[Secondary sector of the economy|industry]]: {{increase}} 37.7%
*[[Tertiary sector of the economy|services]]: {{decrease}} 53.5%
*(2023 est.)<ref>{{cite web|url= https://www.cia.gov/the-world-factbook/countries/malaysia/#economy|title= CIA World Factbook|access-date= 21 October 2024|archive-date= 8 November 2021|archive-url= https://archive.today/20211108232943/https://www.cia.gov/the-world-factbook/countries/malaysia/#economy|url-status= live}}</ref>}}
| inflation = {{decreasepositive}} 2.67% (2024)<ref name="IMFWEODE"/>
| poverty = {{plainlist|
*6.2% (2021 est.)<ref name="CIAWFMY">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/malaysia/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=21 October 2024 |archive-date=8 November 2021 |archive-url=https://archive.today/20211108232943/https://www.cia.gov/the-world-factbook/countries/malaysia/ |url-status=live }}</ref>
*2.3% on less than $6.85/day (2021)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.UMIC?locations=MY |title=Poverty headcount ratio at $6.85 a day (2017 PPP) (% of population) - Malaysia |publisher=[[World Bank]] |website=data.worldbank.org |access-date=3 October 2019 |archive-date=12 June 2020 |archive-url=https://web.archive.org/web/20200612075158/https://data.worldbank.org/indicator/SI.POV.UMIC?locations=MY |url-status=live }}</ref>}}
| gini = 40.7 {{color|darkorange|medium}} (2021)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=MY |title=GINI index (World Bank estimate) |publisher=[[World Bank]] |website=data.worldbank.org |access-date=16 May 2023 |archive-date=12 January 2018 |archive-url=https://web.archive.org/web/20180112042739/https://data.worldbank.org/indicator/SI.POV.GINI?locations=MY |url-status=live }}</ref>
| hdi = {{plainlist|
*{{increase}} 0.807 {{color|darkgreen|very high}} (2022)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=5 November 2022 |archive-date=19 March 2022 |archive-url=https://web.archive.org/web/20220319173759/http://hdr.undp.org/en/indicators/137506 |url-status=live }}</ref> ([[List of countries by Human Development Index|58th]])
*{{increase}} 0.692 {{color|darkorange|medium}} [[List of countries by inequality-adjusted HDI|IHDI]] (2022, [[List of countries by inequality-adjusted HDI|59th]])<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=5 November 2022 |archive-date=12 December 2020 |archive-url=https://web.archive.org/web/20201212055527/http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |url-status=dead }}</ref>}}
| edbr = {{increase}} [[Ease of doing business index#Ranking|12th (very easy, 2022)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/malaysia |title=Ease of Doing Business in Malaysia |publisher=Doingbusiness.org |access-date=24 November 2017 |archive-date=22 August 2018 |archive-url=https://web.archive.org/web/20180822165707/http://www.doingbusiness.org/data/exploreeconomies/malaysia |url-status=live }}</ref>
| labour = {{plainlist|
*{{increase}} 17,307,639 (2023)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=MY&name_desc=false |title=Labor force, total - Malaysia |publisher=[[World Bank]] |website=data.worldbank.org |access-date=21 October 2024 |archive-date=9 December 2022 |archive-url=https://web.archive.org/web/20221209201549/https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=MY&name_desc=false |url-status=live }}</ref>
*75.1% employment rate (2024)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=MY&name_desc=false |title=Employment to population ratio, 15+, total (%) (national estimate) - Malaysia |publisher=[[World Bank]] |website=data.worldbank.org |access-date=3 October 2019 |archive-date=22 September 2022 |archive-url=https://web.archive.org/web/20220922114228/https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=MY&name_desc=false |url-status=live }}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 10.0%
*[[Secondary sector of the economy|industry]]: 28.13%
*[[Tertiary sector of the economy|services]]: 61.87%
*(2022)<ref>{{cite web|url= https://www.cia.gov/the-world-factbook/countries/malaysia/#economy|title= CIA World Factbook|access-date= 21 October 2024|archive-date= 8 November 2021|archive-url= https://archive.today/20211108232943/https://www.cia.gov/the-world-factbook/countries/malaysia/#economy|url-status= live }}</ref>}}
| unemployment = {{decreasePositive}} 2.925% (2025)<ref name="IMFWEODE"/>
| industries = [[Electronics]], [[semiconductor]]s, [[microchips]], [[integrated circuit]]s, [[Natural rubber|rubber]], [[oleochemicals]], [[Automotive industry in Malaysia|automotive]], [[optical devices]], [[pharmaceuticals]], [[medical equipment]], [[smelting]], [[timber]], [[wood pulp]], [[Islamic finance]], [[petroleum]], [[liquified natural gas]], [[petrochemicals]], [[telecommunications]]
| exports = {{plainlist|
*$340 billion (2024)<ref name="ASIA&PACIFIC ">{{cite web |url=https://english.news.cn/20250120/9cb45965c6df4b2c97e9d7bb82163846/c.html|title=Malaysia's exports rise 5.7 pct in 2024}}</ref>
*$310 billion (2024)
*$352 billion (2022)<ref name="matrade 2021">{{cite web |url=https://www.matrade.gov.my/en/malaysian-exporters/services-for-exporters/trade-market-information/trade-statistics/187-malaysian-exporters/trade-performance-2021#:~:text=Malaysia's%20external%20trade%20in%202021,Exports%20valued%20at%20RM1 |title=Trade Performance 2021 |publisher=Malaysia External Trade Development Corporation |access-date=2021-06-02 |archive-date=15 May 2022 |archive-url=https://web.archive.org/web/20220515130507/https://www.matrade.gov.my/en/malaysian-exporters/services-for-exporters/trade-market-information/trade-statistics/187-malaysian-exporters/trade-performance-2021#:~:text=Malaysia's%20external%20trade%20in%202021,Exports%20valued%20at%20RM1 |url-status=dead }}</ref>}}
| export-goods = [[electronic equipment|Electrical & electronic products]], [[palm oil|palm oil & palm oil based agriculture products]], [[petroleum products]], [[chemical industry|chemicals & chemical products]], [[machine industry|machinery, equipment & parts]], manufactures of metal, optical & scientific equipment, [[liquified natural gas]], palm oil-based manufactured products, [[food processing|processed food]]
| export-partners = {{plainlist|
*{{flag|Singapore}} 17.38%
*{{flag|United States}} 14.60%
*{{flag|China}} 13.30%
*{{flag|Hong Kong}} 6.77%
*{{flag|Japan}} 5.91%
*(2025)<ref name="matrade.gov.my">{{Cite web|url=https://www.matrade.gov.my/en/export-to-the-world/216-malaysian-exporters/trade-performance-2024|title=Trade Performance 2024 - MATRADE|language=en|access-date=24 October 2024|archive-date=23 October 2023|archive-url=https://web.archive.org/web/20231023094313/https://wits.worldbank.org/CountrySnapshot/en/MYS|url-status=live}}</ref>}}
| import-goods = [[electronics|Electrical & electronic products]], petroleum products, [[machine industry|machinery, equipment & parts]], [[chemical industry|chemicals & chemical products]], manufactures of metal, [[petroleum|crude petroleum]], transport equipment, [[food processing|processed food]], optical & scientific equipment, [[ferrous metallurgy|iron & steel products]]
| import-partners = {{plainlist|
*{{flag|China}} 30.29%
*{{flag|Singapore}} 16.18%
*{{flag|United States}} 14.18%
*{{flag|Taiwan}} 13.86%
*{{flag|Japan}} 10.23%
*(2025)<ref name="matrade.gov.my">{{Cite web|url=https://www.matrade.gov.my/en/export-to-the-world/216-malaysian-exporters/trade-performance-2024|title=Trade Performance 2024 - MATRADE|language=en|access-date=24 October 2024|archive-date=23 October 2023|archive-url=https://web.archive.org/web/20231023094313/https://wits.worldbank.org/CountrySnapshot/en/MYS|url-status=live}}</ref>}}
| imports = {{plainlist|
*$300 billion (2024)
*$264 billion (2024)
*$294 billion (2023)<ref name="atlas.media.mit.edu">{{Cite web|url=https://atlas.media.mit.edu/en/profile/country/mys/|title=OEC - Malaysia (MYS) Exports, Imports, and Trade Partners|website=atlas.media.mit.edu|language=en|access-date=24 March 2019|archive-date=24 March 2019|archive-url=https://web.archive.org/web/20190324100114/https://atlas.media.mit.edu/en/profile/country/mys/|url-status=dead}}</ref>}}
| current account = {{increasePositive}} $13.148 billion (2024)<ref name="IMFWEODE"/>
| FDI = {{increase}} $194 billion (2023 est.)<ref name="XINHUANET">{{cite web |url=https://english.news.cn/20240216/047cc201d46745f68d9494650a7a310c/c.html#:~:text=KUALA%20LUMPUR%2C%20Feb.,2023%2C%20official%20data%20showed%20Friday |title=Malaysia's FDI |publisher=Xinhua |website=news.cn |access-date=16 February 2024 |archive-date=16 February 2024 |archive-url=https://web.archive.org/web/20240216105009/https://english.news.cn/20240216/047cc201d46745f68d9494650a7a310c/c.html#:~:text=KUALA%20LUMPUR%2C%20Feb.,2023%2C%20official%20data%20showed%20Friday |url-status=live }}</ref>
| gross external debt = {{increaseNegative}} $273.9 billion (31 March 2022 est.)<ref name="CIAWFMY"/>
| debt = {{decreasePositive}} 66.86% of GDP (2024)<ref name="IMFWEODE"/>
| balance = {{decreasePositive}} −4.36% of GDP (2024)<ref name="IMFWEODE"/>
| revenue = 66.44 billion (2024 est.)<ref name="CIAWFMY"/>
| expenses = 83.92 billion (2024 est.)<ref name="CIAWFMY"/>
| aid = $40.5 million (2005 est.)
| domestic = $246.7 billion (31 December 2008)
| reserves = {{increase}} US$119.7 billion (September 2024)
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web | url=https://theedgemalaysia.com/article/sp-revises-malaysias-outlook-stable-negative | title=S&P revises Malaysia's outlook to stable from negative, expects 2022 GDP growth to hit 6.1% | access-date=16 May 2023 | archive-date=16 May 2023 | archive-url=https://web.archive.org/web/20230516134758/https://www.theedgemalaysia.com/article/sp-revises-malaysias-outlook-stable-negative | url-status=live }}</ref>
*{{steady}}A−
*Outlook: Stable
*[[Moody's]]:<ref>{{cite web | url=https://www.mof.gov.my/portal/en/news/press-release/moody-s-affirms-malaysia-s-sovereign-credit-rating-at-a3-outlook-stable | title=Moody's Affirms Malaysia's Sovereign Credit Rating At 'A3'; Outlook Stable | date=14 April 2023 | access-date=16 May 2023 | archive-date=30 May 2023 | archive-url=https://web.archive.org/web/20230530144246/https://www.mof.gov.my/portal/en/news/press-release/moody-s-affirms-malaysia-s-sovereign-credit-rating-at-a3-outlook-stable | url-status=live }}</ref>
*{{steady}}A3
*Outlook: Stable
*[[Fitch Group|Fitch]]:<ref>{{cite web | url=https://www.fitchratings.com/entity/malaysia-80442213#ratings | title=Malaysia | access-date=16 May 2023 | archive-date=26 June 2023 | archive-url=https://web.archive.org/web/20230626214503/https://www.fitchratings.com/entity/malaysia-80442213#ratings | url-status=live }}</ref>
*{{decrease}}BBB+
*Outlook: Stable}}
| cianame = [[malaysia]]
| spelling = 
| average gross salary = RM4000 / 923US$ monthly<ref>{{cite web | url=https://www.dosm.gov.my/portal-main/release-content/salaries-and-wages-survey-report-2025 | title=Department of Statistics Malaysia: Salaries and Wages Survey Report 2025 | access-date=23 October 2024 }}</ref> (2025)
}}
The [[economy]] of [[Malaysia]]<!-- DO NOT BOLD, see [[WP:SDE]] --> is an [[Developing country|emerging and developing]], [[List of countries by GNI (nominal) per capita|upper-middle income]], highly [[industrialized|industrialised]], [[mixed economy]]. It ranks the [[List of countries by GDP (nominal)|36th largest]] in the world in terms of [[nominal GDP]], however, when measured by purchasing power parity, its GDP climbs to the [[List of countries by GDP (PPP)|30th largest]]. Malaysia is forecasted to have a nominal GDP of nearly half a trillion [[US$]] by the end of 2024. <ref>{{Cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Publications/WEO/weo-database/2022/April/weo-report?c=512,914,612,171,614,311,213,911,314,193,122,912,313,419,513,316,913,124,339,638,514,218,963,616,223,516,918,748,618,624,522,622,156,626,628,228,924,233,632,636,634,238,662,960,423,935,128,611,321,243,248,469,253,642,643,939,734,644,819,172,132,646,648,915,134,652,174,328,258,656,654,336,263,268,532,944,176,534,536,429,433,178,436,136,343,158,439,916,664,826,542,967,443,917,544,941,446,666,668,672,946,137,546,674,676,548,556,678,181,867,682,684,273,868,921,948,943,686,688,518,728,836,558,138,196,278,692,694,962,142,449,564,565,283,853,288,293,566,964,182,359,453,968,922,714,862,135,716,456,722,942,718,724,576,936,961,813,726,199,733,184,524,361,362,364,732,366,144,146,463,528,923,738,578,537,742,866,369,744,186,925,869,746,926,466,112,111,298,927,846,299,582,487,474,754,698,&s=NGDPD,&sy=2022&ey=2022&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |access-date=2022-05-18 |website=IMF |language=en |archive-date=21 May 2022 |archive-url=https://web.archive.org/web/20220521132129/https://www.imf.org/en/Publications/WEO/weo-database/2022/April/weo-report?c=512,914,612,171,614,311,213,911,314,193,122,912,313,419,513,316,913,124,339,638,514,218,963,616,223,516,918,748,618,624,522,622,156,626,628,228,924,233,632,636,634,238,662,960,423,935,128,611,321,243,248,469,253,642,643,939,734,644,819,172,132,646,648,915,134,652,174,328,258,656,654,336,263,268,532,944,176,534,536,429,433,178,436,136,343,158,439,916,664,826,542,967,443,917,544,941,446,666,668,672,946,137,546,674,676,548,556,678,181,867,682,684,273,868,921,948,943,686,688,518,728,836,558,138,196,278,692,694,962,142,449,564,565,283,853,288,293,566,964,182,359,453,968,922,714,862,135,716,456,722,942,718,724,576,936,961,813,726,199,733,184,524,361,362,364,732,366,144,146,463,528,923,738,578,537,742,866,369,744,186,925,869,746,926,466,112,111,298,927,846,299,582,487,474,754,698,&s=NGDPD,&sy=2022&ey=2022&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live }}</ref> The [[labour productivity]] of Malaysian workers is the 62nd highest in the world and significantly higher than [[China]], [[Indonesia]], [[Vietnam]], and the [[Philippines]].<ref>{{Cite web|title=Regional Study on Labour Productivity|url=https://ilostat.ilo.org/topics/labour-productivity/}}</ref> 

Malaysia excels above similar income group peers in terms of business competitiveness and innovation. [[Global Competitiveness Report]] 2024 ranks Malaysian economy as the 34th most competitive country economy in the world<ref>{{cite web|url=https://www.imd.org/centers/world-competitiveness-center/rankings/world-competitiveness/|title=The Global Competitiveness Report 2024|accessdate=2022-06-09|website=IMD World Competitiveness Center|language=en|archive-date=6 October 2023|archive-url=https://web.archive.org/web/20231006153740/https://www.imd.org/centers/world-competitiveness-center/rankings/world-competitiveness|url-status=live}}</ref> while [[Global Innovation Index]] 2024 ranks Malaysia as the 33rd most innovative nation globally.<ref>{{cite web|url=https://www.wipo.int/web-publications/global-innovation-index-2024/en/|title=Global Innovation Index 2024|accessdate=2024-09-28|website=World Intellectual Property Organization (WIPO)|language=en}}</ref>

Malaysia is the [[List of countries by trade-to-GDP ratio|35th most trade intensive economy]] globally; higher than [[Denmark]], [[Norway]], [[Germany]], and [[Sweden]] with total trade activities at 132% of its GDP.<ref>{{cite web|url=https://data.worldbank.org/indicator/NE.TRD.GNFS.ZS?locations=MY |title=Malaysia - Trade (% Of GDP) |accessdate=2024-06-20|website= data.worldbank.org|language=en}}</ref> In addition, the Malaysian economy has developed vertical and horizontal integration across several export linked industry while capturing a significant global market share for manufactured products and commodities ranging from [[integrated circuit]], [[semiconductor]], and [[palm oil]] to [[liquefied natural gas]]. Furthermore, Malaysia is an important nexus in the global semiconductor market and is the third largest exporter of semiconductor devices in the world.<ref>{{cite web|url=https://oec.world/en/profile/hs/semiconductor-devices/|title=Semiconductor Devices|accessdate=2024-06-20|website= Observatory for Economics Complexity |language=en}}</ref> Malaysia has unveiled plan to target over US$100 billion in investment for its semiconductor industry as it positions itself as a global manufacturing hub.<ref>{{cite news|url=https://www.reuters.com/world/asia-pacific/malaysia-pm-says-targeting-over-100-bln-investment-semiconductor-chips-2024-05-28/|title=Malaysia targets over $100 bln in semiconductor industry investment |accessdate=2024-06-20|website= reuters.com|language=en}}</ref> 

By mid-2024, the country attracted large [[foreign direct investment]] centered on the global [[artificial intelligence]] boom with foreign technology companies like [[Google]], [[Microsoft]] and [[ByteDance]] flocked to the country and invested US$2 billion,<ref>{{cite web|url=https://www.cnbc.com/2024/05/30/google-to-invest-2-billion-in-malaysia-and-build-data-center-to-meet-ai-demand.html|title= Google to invest $2 billion in Malaysia and build data center to capture rising AI demand|access-date=2024-06-20|website= [[CNBC]]|date= 30 May 2024|language=en}}</ref> US$2.2 billion,<ref>{{cite web|url=https://news.microsoft.com/apac/2024/05/02/microsoft-announces-us2-2-billion-investment-to-fuel-malaysias-cloud-and-ai-transformation/|title= Microsoft announces US$2.2 billion investment to fuel Malaysia's cloud and AI transformation
|accessdate=2024-06-20|website= news.microsoft.com|date= 2 May 2024
|language=en}}</ref> and US$2.1 billion,<ref>{{cite web|url=https://www.datacenterdynamics.com/en/news/tiktok-owner-bytedance-to-expand-malaysia-data-center-footprint-in-21bn-ai-deal/|title= TikTok owner ByteDance to expand Malaysia data center footprint in $2.1bn AI deal|accessdate=2024-06-20|website= datacenterdynamics.com|date= 10 June 2024|language=en}}</ref> respectively, to capitalise on Malaysia's competitive advantage in the [[data center]] and [[hyperscale]] construction due to its highly educated workforce, cheap land acquisition, low water and electricity cost, and the absence of [[natural disaster]]s.<ref>{{cite web|url=https://www.nst.com.my/business/corporate/2024/05/1054126/analyst-malaysia-magnet-data-centres-due-low-likelihood-natural|title= Analyst: Malaysia a 'magnet' for data centers due to low likelihood of natural disasters, cheap electricity and land|accessdate=2024-06-20|website= www.nst.com.my/business/corporate|date= 23 May 2024|language=en}}</ref> This is expected to consolidate Malaysia position as a [[cloud computing]] hub for wider Asia, increasing its high value sector and propel its economy to meet the government [[World Bank high-income economy|high-income economy]] goal.

Overall, the Malaysian economy is highly robust and diversified with the export value of [[high-tech]] products in 2022 standing around US$66 billion, the third highest in ASEAN.<ref>{{cite web|url=https://data.worldbank.org/indicator/TX.VAL.TECH.CD?locations=MY-SG-VN-TH-ID-PH|title= High-technology exports (current US$)|accessdate=2024-06-20|website= data.worldbank.org |language=en}}</ref> Malaysia [[exports]] the second largest volume and value of palm oil products globally, after [[Indonesia]].<ref>{{Cite web |url=http://atlas.media.mit.edu/en/profile/hs92/1511/ |title=OEC - Palm Oil (HS92: 1511) Product Trade, Exporters and Importers |access-date=19 August 2017 |archive-date=30 August 2017 |archive-url=https://web.archive.org/web/20170830002423/http://atlas.media.mit.edu/en/profile/hs92/1511/ |url-status=dead }}</ref>

[[Malaysians]] enjoy a relatively affluent lifestyle compared to many of its neighbours in [[Southeast Asia]]. This is due to a fast-growing export-oriented economy, a relatively low national [[income tax]], highly affordable local food and transport fuel, as well as a fully subsidized [[Single-payer healthcare|single-payer]] public healthcare system. Malaysia has a [[newly industrialised country|newly industrialised]] [[market economy]], which is relatively [[open economy|open]] and state-oriented.<ref>{{cite web |last1 = Boulton |first1 = WilliaM |last2 = Pecht |first2 = Michael |last3 = Tucker |first3 = William |last4 = Wennberg |first4 = Sam |url = http://www.wtec.org/loyola/em/04_07.htm |title = Electronics Manufacturing in the Pacific Rim, World Technology Evaluation Center, Chapter 4: Malaysia |publisher = Wtec.org |date = May 1997 |access-date = 1 November 2010 |archive-date = 15 October 2018 |archive-url = https://web.archive.org/web/20181015231249/http://www.wtec.org/loyola/em/04_07.htm |url-status = live }}</ref><ref>{{cite web |url=http://www.infernalramblings.com/articles/Malaysian_Economy/436/ |title=Malaysia, A Statist Economy |publisher=Infernalramblings.com |access-date=1 November 2010 |archive-date=7 October 2010 |archive-url=https://web.archive.org/web/20101007104445/http://www.infernalramblings.com/articles/Malaysian_Economy/436/ |url-status=dead }}</ref>

==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]].

==Economic policies==

===Monetary policy===
Prior to the [[1997 Asian financial crisis|1997 Asian Financial Crisis]], the [[Malaysian Ringgit]] (MYR) was a floating currency that traded at RM2.50 at the dollar. As speculative activities spread across the region, the Ringgit fell to as much as RM4.10 to the dollar in matter of weeks. 

An executive decision led by the then Prime Minister [[Mahathir Mohamad]] decided to peg the MYR to the dollar and impose capital controls to prevent excessive outflow of the Ringgit in the open market. The Ringgit became was pegged at RM3.80 to the US dollar and a traveller had to declare to the central bank if taking out more than RM10,000 out of the country and the Ringgit itself .

The [[Fixed exchange rate system|fixed exchange rate]] was abandoned in favour of the [[floating exchange rate]] in July 2005, hours after China announced the same move.<ref>{{cite news | url = http://www.theedgedaily.com/cms/contentPrint.jsp?id=com.tms.cms.article.Article_3f579c44-cb73c03a-1cf662f0-6b76946b&paging=0 | title = 22-07-2005: Ringgit depeg not likely to have immediate impact on sovereign, banks, corporates | work = The Edge | access-date = 10 March 2008 | archive-url = https://web.archive.org/web/20150318142607/http://www.theedgedaily.com/cms/contentPrint.jsp?id=com.tms.cms.article.Article_3f579c44-cb73c03a-1cf662f0-6b76946b&paging=0 | archive-date = 18 March 2015 | url-status = dead | df = dmy-all }}</ref> At this point, the Ringgit was still not internationalised. The Ringgit continued to strengthen to 3.18 to the dollar by March 2008 and appreciated as low as 2.94 to the dollar in May 2011. Meanwhile, many aspects of capital control have been slowly relaxed by [[Central Bank of Malaysia|Bank Negara Malaysia]]. However, the government continues to not internationalise the Ringgit. The government stated that the Ringgit will be internationalised once it is ready.<ref>{{cite news | work = Reuters | url = https://www.reuters.com/article/reutersEdge/idUSKLR5369320070319 | title = Malaysia says offshore ringgit trade not needed | author = Liau Y-Sing | date = 19 March 2007 | access-date = 2 July 2017 | archive-date = 6 July 2022 | archive-url = https://web.archive.org/web/20220706084745/https://www.reuters.com/article/reutersEdge/idUSKLR5369320070319 | url-status = live }}</ref>

Bank Negara Malaysia for the time being, uses interest rate targeting. The [[Overnight Policy Rate]] (OPR) is their policy instrument, and is used to guide the short term interbank rates which will hopefully influence inflation and economic growth.

===Affirmative action===
{{main|Malaysian New Economic Policy}}
Tun Abdul Razak, who was then Prime Minister, implemented the [[affirmative action]] policy named as [[Malaysian New Economic Policy|New Economic Policy (NEP)]] soon after [[13 May Incident]] in 1969.<ref>{{cite news|title=EPU:New Economic Policy|url=http://www.epu.jpm.my/new%20folder/development%20policies/cont%20key%20policies/NEP.htm|publisher=Economic Planning Unit, Prime Ministers Department Malaysia|access-date=28 July 2008|archive-url=https://web.archive.org/web/20080828045029/http://www.epu.jpm.my/new%20folder/development%20policies/cont%20key%20policies/NEP.htm|archive-date=28 August 2008|url-status=dead}}</ref> Prior to the incident, the poverty rates among [[Ethnic Malays|Malays]] were extremely high (65%) as was discontent between races, particularly towards the Chinese, who controlled 74% of the economy at the time.<ref name="econ stats 1970">{{cite news |title=Jabatan Penerangan Rakyat: Dasar Ekonomy Baru |language=ms |url=http://pmr.penerangan.gov.my/page.cfm?name=DasarEkonomiBaru |publisher=Ministry of Information Malaysia |access-date=28 July 2008 |archive-url=https://web.archive.org/web/20080623083028/http://pmr.penerangan.gov.my/page.cfm?name=DasarEkonomiBaru |archive-date=23 June 2008 |url-status=dead  }}</ref><ref>{{cite news| title=The New Economic Policy and Interethnic Relations in Malaysia| url=http://www.unrisd.org/unrisd/website/document.nsf/0/A20E9AD6E5BA919780256B6D0057896B?OpenDocument| publisher=United Nations Research Institute for Social Development| date=1 September 2004| access-date=28 July 2008| author=Jomo K.S.| archive-date=22 October 2008| archive-url=https://web.archive.org/web/20081022184208/http://www.unrisd.org/unrisd/website/document.nsf/0/A20E9AD6E5BA919780256B6D0057896B?OpenDocument| url-status=dead}}</ref> Through NEP, the [[Bumiputera (Malaysia)|Bumiputeras]] majority were given priority and special privileges in housing developments, scholarship admission and also for ownership of publicly listed companies.

The NEP was created in 1971 with the aim of bringing Malays a 30% share of the economy of Malaysia and eradicating poverty amongst Malays, primarily through encouraging enterprise ownership by Bumiputeras. After 40 years of the program, bumiputra equity ownership rose to 23% worth RM167.7 billion in 2010 against 2.4% in 1970.

The NEP was accused of creating an [[oligarchy]], and creating a 'subsidy mentality'.<ref>{{cite news| author=Thomas Fuller| url=http://www.iht.com/articles/2001/01/05/kuala.2.t.php| title=Criticism of 30-Year-Old Affirmative-Action Policy Grows in Malaysia| date=5 January 2001| access-date=7 March 2008| archive-date=14 March 2008| archive-url=https://web.archive.org/web/20080314223335/http://www.iht.com/articles/2001/01/05/kuala.2.t.php| url-status=dead}}</ref> Political parties such as [[Parti Keadilan Rakyat]] and [[Democratic Action Party (Malaysia)|Democratic Action Party]] proposed a new policy which will be equal for every Malaysian, regardless of race.<ref>{{cite news|title=A Malaysian Economic Agenda |url=http://www.keadilanrakyat.org/library/documents/mea.pdf |publisher=Parti Keadilan Rakyat |author=Anwar Ibrahim |access-date=28 July 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080908013110/http://www.keadilanrakyat.org/library/documents/mea.pdf |archive-date=8 September 2008 }}</ref> When the Democratic Action Party was elected in the state of [[Penang]] in 2008, it announced that it would do away with the NEP, claiming that it "...&nbsp;breeds [[nepotism]], corruption and systemic inefficiency".<ref>{{cite news| author= Niluksi Koswanage| title= Malaysia opposition takes aim at affirmative action| work= Reuters| url= https://www.reuters.com/article/worldNews/idUSKLR17040020080311| date= 11 March 2008| access-date= 2 July 2017| archive-date= 18 November 2020| archive-url= https://web.archive.org/web/20201118023906/https://www.reuters.com/article/worldNews/idUSKLR17040020080311| url-status= live}}</ref>

Wolfgang Kasper, a professor of economics at [[University of New South Wales]], and once an adviser to Malaysia's Finance Ministry, criticized the NEP, saying that "NEP handouts (are) making Malays lazy, corrupt & swell-headed. Worst of all, it keeps them poor." He also criticized the Federal Government giving cash-handouts and financial aid instead of providing equal access to education to help the marginalized poor to lift their income status.

On 21 April 2009, the prime minister [[Najib Tun Razak]] announced the liberalization of 27 services sub-sector by abolishing the 30% bumiputera requirement. The move was seen as a government effort to increase investment in the service sector of the economy. According to the premier, many more sectors of the economy would be liberalized.<ref>{{cite news| title=Bumi proviso removed to rope in more investments, says Najib| date=22 April 2009| work=The Star| url=http://thestar.com.my/news/story.asp?file=/2009/4/23/nation/3751636&sec=nation| access-date=23 April 2009| archive-url=https://web.archive.org/web/20090424063929/http://thestar.com.my/news/story.asp?file=%2F2009%2F4%2F23%2Fnation%2F3751636&sec=nation| archive-date=24 April 2009| url-status=dead| df=dmy-all}}</ref>

On 30 June 2009, the prime minister announced further liberation moves including the dismantling of the Bumiputera equity quotas and repealing the guidelines of the Foreign Investment Committee, which was responsible to monitor foreign shareholding in Malaysian companies. However, any Malaysian companies that wished to list in Malaysia would still need to offer 50 percent of public shareholding spread to Bumiputera investors.<ref>{{cite news|title=Foreign ownership in stockbroking firms raised to 70pc |url=http://www.nst.com.my/Current_News/NST/Tuesday/Frontpage/20090630104237/Article/index_html |work=New Straits Times |date=30 June 2009 |agency=Bernama }}{{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref>

===Subsidies and price controls===
{{See also|Petrol prices#Malaysia|Subsidy reform in Malaysia}}
The Malaysian government subsidises and controls prices on many essential items to keep the prices low. Prices of items such as palm oil, cooking oil, petrol, flour, bread, rice and other essentials have been kept under market prices to keep cost of living low.<ref>{{cite news|url=http://www.bt.com.bn/en/international_business/2008/02/25/malaysia_2007_fuel_subsidies_at_rm40b_pm |title=Malaysia 2007 fuel subsidies at RM40b: PM |url-status=dead |archive-url=https://web.archive.org/web/20090112222346/http://www.bt.com.bn/en/international_business/2008/02/25/malaysia_2007_fuel_subsidies_at_rm40b_pm |archive-date=12 January 2009 }}</ref> As of 2022, government expenditure on subsidies stood at RM70.3 billion (US$15.96 billion), with fuel alone taking up RM52 billion (US$11.8 billion) or 74% of total subsidies.<ref>{{Cite web |date=2024 |title=Section 3: Federal Government Expenditure |url=https://belanjawan.mof.gov.my/pdf/belanjawan2024/revenue/section3.pdf |access-date=22 October 2024}}</ref>

Since 2010, the government has been gradually reforming Malaysia's subsidy system, via a series of reductions in subsidies for fuel and sugar to improve government finances and to improve economic efficiency. As a result, in December 2014, the government officially ended all fuel subsidies and implemented a 'managed float' system,<ref>{{Cite web|url=http://www.thestar.com.my/news/nation/2014/11/22/fuel-subsidies-to-be-removed-prices-for-ron95-and-diesel-to-be-determined-by-float-system/|title=Prices for RON95 and diesel to be determined by float system - Nation {{!}} The Star Online|website=thestar.com.my|date=22 November 2014 |access-date=24 August 2017|archive-date=24 August 2017|archive-url=https://web.archive.org/web/20170824221402/http://www.thestar.com.my/news/nation/2014/11/22/fuel-subsidies-to-be-removed-prices-for-ron95-and-diesel-to-be-determined-by-float-system/|url-status=live}}</ref> taking advantage of low oil prices at the time, potentially saving the government almost RM20 billion ringgit (US$5.72 billion) annually.<ref>{{cite web | url=http://www.establishmentpost.com/malaysias-fuel-subsidy-removal-unpopular-necessary/ | title=Establishment Post | access-date=4 April 2015 | url-status=dead | archive-url=https://web.archive.org/web/20150406063651/http://www.establishmentpost.com/malaysias-fuel-subsidy-removal-unpopular-necessary/ | archive-date=6 April 2015 | df=dmy-all }}</ref>

On 10 June 2024, the Malaysian government ended the previously reimplementation of blanket subsidies on diesel fuel. Instead, a more selective, targeted subsidy was implemented, where cash assistance was directly disbursed to qualified individuals or fleet cards to eligible logistics vehicles.<ref>{{Cite web |title=Government Implements Targeted Diesel Subsidy For Peninsular Malaysia Effective 10 June 2024 |url=https://www.mof.gov.my/portal/en/news/press-release/government-implements-targeted-diesel-subsidy-for-peninsular-malaysia-effective-10-june-2024 |access-date=2024-10-22 |website=www.mof.gov.my}}</ref> Plans for removal of petrol subsidies have yet to be announced but it is expected to take place in 2025. The withdrawal of said subsidies will target the top 15% of income earners, while the remaining 85% will continue to enjoy the status quo.<ref>{{Cite web |url=https://www.malaymail.com/news/malaysia/2024/10/21/rafizi-once-in-generation-ron95-subsidy-reform-painful-but-needed-for-malaysias-fiscal-health/154303 |title=Rafizi: 'Once-in-generation' RON95 subsidy reform painful but needed for Malaysia's fiscal health |access-date=2024-10-22 |website=www.malaymail.com}}</ref>

===Sovereign wealth funds===

The government owns and operates several [[sovereign wealth fund]]s that invest in local companies and also foreign companies. One such fund is [[Khazanah Nasional]] [[Berhad]], established in 1993, and as of 31 December 2023, had an asset size of RM126.2 billion (US$27.46 billion).<ref>{{Cite web |date=31 December 2023 |title=Khazanah Nasional Berhad - Our Portfolio |url=https://www.khazanah.com.my/our-performance/our-portfolio/ |access-date=22 October 2024}}</ref> The fund invests in major companies in Malaysia such as [[CIMB]] in the banking sector, [[UEM Group]] in the construction sector, [[Telekom Malaysia]] and [[Axiata]] in the communications industry, [[Malaysia Airports]] and [[Malaysia Airlines]] in the aerospace industry, as well as [[Tenaga Nasional]] in the energy sector<ref>{{cite web | url=http://www.khazanah.com/docs/KAR2015_Brochure.pdf | title=Khazanah Nasional | access-date=4 April 2015 | archive-url=https://web.archive.org/web/20150409025321/http://www.khazanah.com/docs/KAR2015_Brochure.pdf | archive-date=9 April 2015 | url-status=dead | df=dmy-all }}</ref>

Another fund owned by the Malaysian government is the [[Employees Provident Fund (Malaysia)|Employees Provident Fund]], a retirement fund that as of 31 March 2024, had an asset size of RM1.19 trillion (US$251.61 billion), of which overseas investments account for 38% of total assets,<ref>{{Cite web |date=12 June 2024 |title=EPF Records Distributable Income Of RM19.20 Billion For Q1 2024 |url=https://www.kwsp.gov.my/en/w/epf-records-distributable-income-of-rm19-20-billion-for-q1-2024 |access-date=22 October 2024}}</ref> making it the 4th largest pension fund in Asia and 13th largest in the world.<ref>{{Cite web |title=World's largest pension funds return to growth |url=https://www.wtwco.com/en-au/news/2024/09/worlds-largest-pension-funds-return-to-growth |access-date=2024-10-22 |website=WTW |language=en-AU}}</ref> Like [[Khazanah Nasional]], EPF invests and owns several major companies in Malaysia such as [[RHB Bank]].<ref name="epf overseas">{{cite news|title=EPF to double overseas investments |url=http://www.btimes.com.my/Current_News/BTIMES/Wednesday/Latest/EPFBB.xml/Article/index_html |work=Business Times |url-status=dead |archive-url=https://web.archive.org/web/20080312070654/http://www.btimes.com.my/Current_News/BTIMES/Wednesday/Latest/EPFBB.xml/Article/index_html |archive-date=12 March 2008 }}</ref> EPF investment is diversified over a number of sectors but almost 40% of their investment are in the services sector.<ref>{{cite news|title=EPF's Investment Income Increases To RM3.6 Billion in Q2 |url=http://www.kwsp.gov.my/index.php?ch=p2news&pg=en_p2news_press&ac=1431 |publisher=Kumpulan Wang Simpanan Pekerja |url-status=dead |archive-url=https://web.archive.org/web/20120508002654/http://www.kwsp.gov.my/index.php?ch=p2news&pg=en_p2news_press&ac=1431 |archive-date=8 May 2012 }}</ref>

[[Permodalan Nasional Berhad]] is another major fund manager controlled by the Malaysian Government. It offers [[capital guarantee]]d mutual funds such as Amanah Saham Bumiputera and Amanah Saham Wawasan 2020 which are open only to Malaysian and in some cases, Bumiputeras.<ref>{{cite news| title=Eligibility to Invest| url=http://www.asnb.com.my/english/eligibility.htm| publisher=Amanah Saham Nasional Berhad| access-date=9 June 2008| archive-url=https://web.archive.org/web/20080415231705/http://www.asnb.com.my/english/eligibility.htm| archive-date=15 April 2008| url-status=dead| df=dmy-all}}</ref>

===Government influence===
Although the federal government promotes private enterprise and ownership in the economy, the economic direction of the country is heavily influenced by the government through five years development plans since independence. The economy is also influenced by the government through agencies such as the Economic Planning Unit and government-linked wealth funds such as [[Khazanah Nasional]] [[Berhad]], [[Employees Provident Fund (Malaysia)|Employees Provident Fund]] and [[Permodalan Nasional Berhad]].

The government's development plans, called the Malaysian Plan, currently the [[Twelfth Malaysia Plan]], started in 1950 during the British colonial rule.<ref name="planbook">{{cite news| title=Growth, Structural Change, and Regional Inequality in Malaysia| author=Asan Ali Golam| year=2004| page=67| publisher=Ashgate| isbn=9780754643326| url=https://books.google.com/books?id=TtKxDem7CrsC&q=malaysia+five+years+development+plans&pg=PA67}}</ref> The plans were largely centred around accelerating the growth of the economy by selectively investing in sectors of the economy and building infrastructure to support said sectors.<ref name="planbook" /> For example, in the current national plan, three primary aspects of the nation are being focused, consisting of strategies to energise and maintain economic empowerment, environmental sustainability and social reengineering.<ref>{{Cite web |title=RMK12: Twelfth Malaysia Plan 2021-2025 |url=https://rmke12.ekonomi.gov.my/en |access-date=22 October 2024 |archive-date=16 January 2024 |archive-url=https://web.archive.org/web/20240116011359/https://rmke12.ekonomi.gov.my/en |url-status=dead }}</ref>

Government-linked investment vehicles such as [[Khazanah Nasional]] [[Berhad]], [[Employees Provident Fund (Malaysia)|Employees Provident Fund]] and [[Permodalan Nasional Berhad]] invest in and own companies in major sectors of the Malaysian economy.

== Data ==
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is in green. <ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=548,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects | access-date=26 October 2022 | archive-date=26 October 2022 | archive-url=https://web.archive.org/web/20221026214242/https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=548,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | url-status=live }}</ref> 
{| class="wikitable" style="text-align:center;"
!Year
!GDP
<small>(in Bil. US$PPP)</small>
!GDP per capita
<small>(in US$ PPP)</small>
!GDP
<small>(in Bil. US$nominal)</small>
!GDP per capita
<small>(in US$ nominal)</small>
!GDP growth
<small>(real)</small>
!Inflation rate
<small>(in Percent)</small>
!Unemployment
<small>(in Percent)</small>
!Government debt
<small>(in % of GDP)</small>
|-
|1980
|46.3
|3,337.8
|26.8
|1,927.0
|{{Increase}}7.4%
|{{IncreaseNegative}}6.7%
|n/a
|n/a
|-
|1981
|{{Increase}}54.3
|{{Increase}}3,813.0
|{{Increase}}27.3
|{{Decrease}}1,920.1
|{{Increase}}6.9%
|{{IncreaseNegative}}9.7%
|n/a
|n/a
|-
|1982
|{{Increase}}61.0
|{{Increase}}4,182.4
|{{Increase}}29.3
|{{Increase}}2,006.5
|{{Increase}}5.9%
|{{IncreaseNegative}}5.8%
|n/a
|n/a
|-
|1983
|{{Increase}}67.4
|{{Increase}}4,505.6
|{{Increase}}32.7
|{{Increase}}2,189.6
|{{Increase}}6.3%
|{{Increase}}3.7%
|n/a
|n/a
|-
|1984
|{{Increase}}75.2
|{{Increase}}4,908.0
|{{Increase}}37.1
|{{Increase}}2,419.5
|{{Increase}}7.8%
|{{Increase}}3.9%
|n/a
|n/a
|-
|1985
|{{Increase}}76.9
|{{Decrease}}4,862.0
|{{Decrease}}34.1
|{{Decrease}}2,154.5
|{{Decrease}}-0.9%
|{{Increase}}2.6%
|6.9%
|n/a
|-
|1986
|{{Increase}}79.4
|{{Increase}}4,883.2
|{{Decrease}}30.3
|{{Decrease}}1,864.0
|{{Increase}}1.2%
|{{Increase}}0.4%
|{{IncreaseNegative}}8.3%
|n/a
|-
|1987
|{{Increase}}85.7
|{{Increase}}5,139.6
|{{Increase}}34.5
|{{Increase}}2,070.0
|{{Increase}}5.4%
|{{Increase}}0.7%
|{{DecreasePositive}}8.2%
|n/a
|-
|1988
|{{Increase}}97.6
|{{Increase}}5,708.0
|{{Increase}}37.8
|{{Increase}}2,213.9
|{{Increase}}9.9%
|{{Increase}}0.3%
|{{DecreasePositive}}8.1%
|n/a
|-
|1989
|{{Increase}}110.6
|{{Increase}}6,316.4
|{{Increase}}41.7
|{{Increase}}2,380.5
|{{Increase}}9.1%
|{{Increase}}2.6%
|{{DecreasePositive}}6.7%
|n/a
|-
|1990
|{{Increase}}125.1
|{{Increase}}6,846.2
|{{Increase}}47.2
|{{Increase}}2,585.8
|{{Increase}}9.0%
|{{Increase}}3.0%
|{{DecreasePositive}}5.1%
|74.1%
|-
|1991
|{{Increase}}141.6
|{{Increase}}7,636.5
|{{Increase}}53.5
|{{Increase}}2,885.1
|{{Increase}}9.5%
|{{Increase}}4.3%
|{{DecreasePositive}}4.3%
|{{DecreasePositive}}67.3%
|-
|1992
|{{Increase}}157.7
|{{Increase}}8,272.5
|{{Increase}}64.5
|{{Increase}}3,380.2
|{{Increase}}8.9%
|{{Increase}}4.8%
|{{DecreasePositive}}3.7%
|{{DecreasePositive}}59.1%
|-
|1993
|{{Increase}}177.5
|{{Increase}}9,053.0
|{{Increase}}72.9
|{{Increase}}3,717.4
|{{Increase}}9.9%
|{{Increase}}3.5%
|{{DecreasePositive}}3.0%
|{{DecreasePositive}}51.1%
|-
|1994
|{{Increase}}197.9
|{{Increase}}9,827.3
|{{Increase}}81.1
|{{Increase}}4,028.4
|{{Increase}}9.2%
|{{Increase}}3.7%
|{{DecreasePositive}}2.9%
|{{DecreasePositive}}43.7%
|-
|1995
|{{Increase}}222.0
|{{Increase}}10,731.8
|{{Increase}}96.6
|{{Increase}}4,672.1
|{{Increase}}9.8%
|{{Increase}}3.5%
|{{IncreaseNegative}}3.1%
|{{DecreasePositive}}38.2%
|-
|1996
|{{Increase}}248.6
|{{Increase}}11,715.0
|{{Increase}}109.9
|{{Increase}}5,176.3
|{{Increase}}10.0%
|{{Increase}}3.5%
|{{DecreasePositive}}2.5%
|{{DecreasePositive}}32.8%
|-
|1997
|{{Increase}}271.4
|{{Increase}}12,469.0
|{{Decrease}}108.8
|{{Decrease}}4,997.0
|{{Increase}}7.3%
|{{Increase}}2.7%
|{{DecreasePositive}}2.4%
|{{DecreasePositive}}29.6%
|-
|1998
|{{Decrease}}254.3
|{{Decrease}}11,386.4
|{{Decrease}}78.6
|{{Decrease}}3,520.9
|{{Decrease}}-7.4%
|{{IncreaseNegative}}5.3%
|{{IncreaseNegative}}3.2%
|{{IncreaseNegative}}33.6%
|-
|1999
|{{Increase}}273.7
|{{Increase}}11,946.7
|{{Increase}}86.2
|{{Increase}}3,762.8
|{{Increase}}6.1%
|{{Increase}}2.7%
|{{IncreaseNegative}}3.4%
|{{IncreaseNegative}}34.4%
|-
|2000
|{{Increase}}304.2
|{{Increase}}12,945.8
|{{Increase}}102.1
|{{Increase}}4,347.7
|{{Increase}}8.7%
|{{Increase}}1.6%
|{{DecreasePositive}}3.1%
|{{DecreasePositive}}32.5%
|-
|2001
|{{Increase}}312.6
|{{Increase}}12,959.3
|{{Decrease}}101.1
|{{Decrease}}4,189.1
|{{Increase}}0.5%
|{{Increase}}1.4%
|{{IncreaseNegative}}3.7%
|{{IncreaseNegative}}38.1%
|-
|2002
|{{Increase}}334.6
|{{Increase}}13,532.2
|{{Increase}}109.8
|{{Increase}}4,441.8
|{{Increase}}5.4%
|{{Increase}}1.8%
|{{DecreasePositive}}3.5%
|{{IncreaseNegative}}39.5%
|-
|2003
|{{Increase}}361.0
|{{Increase}}14,256.3
|{{Increase}}120.0
|{{Increase}}4,740.3
|{{Increase}}5.8%
|{{Increase}}1.1%
|{{IncreaseNegative}}3.6%
|{{IncreaseNegative}}41.4%
|-
|2004
|{{Increase}}395.8
|{{Increase}}15,278.8
|{{Increase}}135.9
|{{Increase}}5,244.9
|{{Increase}}6.8%
|{{Increase}}1.4%
|{{DecreasePositive}}3.6%
|{{IncreaseNegative}}42.0%
|-
|2005
|{{Increase}}428.5
|{{Increase}}16,184.8
|{{Increase}}150.4
|{{Increase}}5,678.7
|{{Increase}}5.0%
|{{Increase}}3.0%
|{{Steady}}3.6%
|{{DecreasePositive}}40.8%
|-
|2006
|{{Increase}}466.4
|{{Increase}}17,383.1
|{{Increase}}170.5
|{{Increase}}6,355.0
|{{Increase}}5.6%
|{{Increase}}3.6%
|{{DecreasePositive}}3.3%
|{{DecreasePositive}}39.7%
|-
|2007
|{{Increase}}509.2
|{{Increase}}18,789.4
|{{Increase}}202.9
|{{Increase}}7,485.9
|{{Increase}}6.3%
|{{Increase}}2.0%
|{{DecreasePositive}}3.2%
|{{DecreasePositive}}39.3%
|-
|2008
|{{Increase}}544.0
|{{Increase}}19,711.4
|{{Increase}}242.1
|{{Increase}}8,771.0
|{{Increase}}4.8%
|{{IncreaseNegative}}5.4%
|{{IncreaseNegative}}3.3%
|{{IncreaseNegative}}39.4%
|-
|2009
|{{Decrease}}539.2
|{{Decrease}}19,202.1
|{{Decrease}}212.0
|{{Decrease}}7,550.3
|{{Decrease}}-1.5%
|{{Increase}}0.6%
|{{IncreaseNegative}}3.7%
|{{IncreaseNegative}}50.4%
|-
|2010
|{{Increase}}586.8
|{{Increase}}20,525.5
|{{Increase}}258.8
|{{Increase}}9,054.1
|{{Increase}}7.5%
|{{Increase}}1.7%
|{{DecreasePositive}}3.3%
|{{IncreaseNegative}}51.2%
|-
|2011
|{{Increase}}630.7
|{{Increase}}21,701.7
|{{Increase}}302.6
|{{Increase}}10,413.7
|{{Increase}}5.3%
|{{Increase}}3.2%
|{{DecreasePositive}}3.1%
|{{IncreaseNegative}}51.9%
|-
|2012
|{{Increase}}677.6
|{{Increase}}22,963.3
|{{Increase}}319.2
|{{Increase}}10,815.1
|{{Increase}}5.5%
|{{Increase}}1.7%
|{{DecreasePositive}}3.0%
|{{IncreaseNegative}}53.8%
|-
|2013
|{{Increase}}701.7
|{{Increase}}23,224.6
|{{Increase}}328.1
|{{Increase}}10,858.4
|{{Increase}}4.7%
|{{Increase}}2.1%
|{{IncreaseNegative}}3.1%
|{{IncreaseNegative}}55.7%
|-
|2014
|{{Increase}}745.4
|{{Increase}}24,273.0
|{{Increase}}343.1
|{{Increase}}11,172.4
|{{Increase}}6.0%
|{{Increase}}3.1%
|{{DecreasePositive}}2.9%
|{{DecreasePositive}}55.4%
|-
|2015
|{{Increase}}750.8
|{{Decrease}}24,074.1
|{{Decrease}}301.4
|{{Decrease}}9,663.3
|{{Increase}}5.0%
|{{Increase}}2.1%
|{{IncreaseNegative}}3.2%
|{{IncreaseNegative}}57.0%
|-
|2016
|{{Increase}}783.9
|{{Increase}}24,779.9
|{{Increase}}301.9
|{{Decrease}}9,544.2
|{{Increase}}4.5%
|{{Increase}}2.1%
|{{IncreaseNegative}}3.5%
|{{DecreasePositive}}55.8%
|-
|2017
|{{Increase}}829.3
|{{Increase}}25,897.2
|{{Increase}}319.2
|{{Increase}}9,969.5
|{{Increase}}5.8%
|{{Increase}}3.8%
|{{DecreasePositive}}3.4%
|{{DecreasePositive}}54.4%
|-
|2018
|{{Increase}}890.2
|{{Increase}}27,491.3
|{{Increase}}359.0
|{{Increase}}11,086.1
|{{Increase}}4.8%
|{{Increase}}1.0%
|{{DecreasePositive}}3.3%
|{{IncreaseNegative}}55.6%
|-
|2019
|{{Increase}}946.1
|{{Increase}}29,091.6
|{{Increase}}365.3
|{{Increase}}11,231.5
|{{Increase}}4.4%
|{{Increase}}0.7%
|{{Steady}}3.3%
|{{IncreaseNegative}}57.1%
|-
|2020
|{{Decrease}}904.6
|{{Decrease}}27,760.7
|{{Decrease}}337.6
|{{Decrease}}10,361.3
|{{Decrease}}-5.5%
|{{Increase}}-1.1%
|{{IncreaseNegative}}4.5%
|{{IncreaseNegative}}67.7%
|-
|2021
|{{Increase}}971.3
|{{Increase}}29,702.4
|{{Increase}}373.0
|{{Increase}}11,407.7
|{{Increase}}3.1%
|{{Increase}}2.5%
|{{IncreaseNegative}}4.7%
|{{IncreaseNegative}}69.0%
|-
|2022
|{{Increase}}1,096.5
|{{Increase}}33,112.7
|{{Increase}}434.1
|{{Increase}}13,107.9
|{{Increase}}5.4%
|{{Increase}}3.2%
|{{DecreasePositive}}4.5%
|{{IncreaseNegative}}69.6%
|-
|2023
|{{Increase}}1,185.3
|{{Increase}}35,353.6
|{{Increase}}467.5
|{{Increase}}13,942.6
|{{Increase}}4.4%
|{{Increase}}2.8%
|{{DecreasePositive}}4.3%
|{{IncreaseNegative}}70.0%
|-
|2024
|{{Increase}}1,269.7
|{{Increase}}37,416.1
|{{Increase}}503.1
|{{Increase}}14,826.0
|{{Increase}}4.9%
|{{Increase}}2.4%
|{{DecreasePositive}}4.2%
|{{Steady}}70.0%
|-
|2025
|{{Increase}}1,350.5
|{{Increase}}39,335.8
|{{Increase}}539.6
|{{Increase}}15,717.8
|{{Increase}}4.4%
|{{Increase}}2.4%
|{{Steady}}4.2%
|{{IncreaseNegative}}70.2%
|-
|2026
|{{Increase}}1,437.2
|{{Increase}}41,395.7
|{{Increase}}577.2
|{{Increase}}16,623.9
|{{Increase}}4.4%
|{{Increase}}2.4%
|{{Steady}}4.2%
|{{Steady}}70.2%
|-
|2027
|{{Increase}}1,522.7
|{{Increase}}43,387.1
|{{Increase}}615.0
|{{Increase}}17,523.6
|{{Increase}}3.9%
|{{Increase}}2.5%
|{{Steady}}4.2%
|{{IncreaseNegative}}70.6%
|}

==Currency==
{{main|Malaysian ringgit}}
<!-- [[WP:NFCC]] violation: [[File:New Malaysian Currency Design.jpg|thumb|The Malaysian ringgit]] -->
The only legal tender in Malaysia is the [[Malaysian ringgit]]. As of September 2024, the ringgit traded at MYR 4.12 to the US dollar.<ref>{{Cite web |title=XE: Convert USD/MYR. United States Dollar to Malaysia Ringgit |url=https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=MYR |url-status=live |archive-url=https://web.archive.org/web/20201112214950/https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=MYR |archive-date=12 November 2020 |access-date=22 October 2024 |website=xe.com |language=en}}</ref> This was a significant change from the rate of MYR 4.80 to the dollar recorded in February 2024, an appreciation of 16.5%.

The ringgit is not internationalised.<ref>{{Cite web |url=https://www.bnm.gov.my/-/bnm-stance-on-ringgit-currency-derivatives-products-in-offshore-market |title=BNM Stance on Ringgit Currency Derivatives Products in Offshore Market |access-date=2024-10-22 |website=www.bnm.gov.my}}</ref> Since September 1998, due to the [[1997 Asian financial crisis]] in which then Prime Minister [[Mahathir Mohamad]] imposed capital controls on the currency, due to speculative short-selling of the ringgit.<ref>{{cite news|title=Did the Malaysia Capital Controls Work? |author1=Ethan Kaplan |author2=Dani Rodrik |url=http://ksghome.harvard.edu/~drodrik/Malaysia%20controls.PDF |url-status=dead |archive-url=https://web.archive.org/web/20091013185913/http://ksghome.harvard.edu/~drodrik/Malaysia%20controls.PDF |archive-date=13 October 2009 }}</ref> Due to a series of capital controls, the currency was pegged between September 1998 and July 2005 at MYR 3.80 to the dollar after dropping from MYR 2.50 to the dollar, and at one point, MYR 4.80 to the dollar.<ref>{{cite news| title= Malaysia's Economic Growth Moderating But Improvement in Second Half Expected| url= http://www.asli.com.my/DOCUMENTS/asli_sep05.pdf| publisher= Asian Strategy & Leadership Institute| access-date= 20 March 2008| archive-date= 8 April 2008| archive-url= https://web.archive.org/web/20080408212523/http://www.asli.com.my/DOCUMENTS/asli_sep05.pdf| url-status= dead}}</ref>

In recent years, Bank Negara Malaysia has begun to relax certain rules on capital controls, although the currency itself is still not traded internationally. According to the Bank Governor, the ringgit will be internationalised when it is ready.<ref>{{cite news| agency=Reuters| title=Malaysia may liberalize ringgit if forex market 'vibrant'| url=http://business.inquirer.net/money/breakingnews/view_article.php?article_id=79224| access-date=21 March 2008| archive-url=https://web.archive.org/web/20070920020508/http://business.inquirer.net/money/breakingnews/view_article.php?article_id=79224| archive-date=20 September 2007| url-status=dead| df=dmy-all}}</ref>

In September 2010, in an interview with [[CNBC]], Dato' Seri [[Najib Tun Razak]], who was then Prime Minister of Malaysia and also held the position of Finance Minister, said that the government was open to enabling the ringgit to offshore trading if the move would help the economy. He added that before such a move could be made, it would ensure that rules and regulation were in place to avoid abuse of the currency.<ref>{{cite news|title=All eyes on ringgit after PM's remarks |url=http://www.btimes.com.my/Current_News/BTIMES/articles/rup0133-2/Article/ |publisher=Business Times Malaysia |author=Rupe Damodaron |date=13 September 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100916025219/http://www.btimes.com.my/Current_News/BTIMES/articles/rup0133-2/Article/ |archive-date=16 September 2010 }}</ref>

==Natural resources==
[[File:Oilpalm malaysia.jpg|thumb|Palm oil estate in Malaysia.]]
Malaysia is well-endowed with natural resources in areas such as agriculture, forestry and minerals. It is an exporter of natural and agricultural resources, the most valuable exported resource being petroleum.<ref name="state.gov">{{cite web |url=https://2009-2017.state.gov/r/pa/ei/bgn/2777.htm |title=Malaysia |publisher=State.gov |date=14 July 2010 |access-date=14 September 2010 |archive-date=4 June 2019 |archive-url=https://web.archive.org/web/20190604190416/https://2009-2017.state.gov/r/pa/ei/bgn/2777.htm |url-status=live }}</ref> In the agricultural sector, Malaysia is one of the top exporters of natural rubber and [[palm oil]], which together with timber and timber products, [[Cocoa bean|cocoa]], [[black pepper|pepper]], [[pineapple]] and tobacco dominate the growth of the sector.<ref>{{cite web | url=http://www.anzbusiness.com/content/anz-superregional/countries/malaysia.html#.VR_NavmUeSo | title=ANZ Business | access-date=4 April 2015 | archive-url=https://web.archive.org/web/20150409085013/http://www.anzbusiness.com/content/anz-superregional/countries/malaysia.html#.VR_NavmUeSo | archive-date=9 April 2015 | url-status=dead }}</ref> As of 2023, the percentage arable land in Malaysia was 9.7%. Croplands consists of 17.49% while other land uses consists of 77.07%.<ref name=worldbank>{{cite web|publisher=World Bank|title=Environment at a Glance 2004: Malaysia|url=http://siteresources.worldbank.org/INTEEI/Data/20857122/Malaysia.pdf|access-date=31 July 2008|archive-date=10 September 2008|archive-url=https://web.archive.org/web/20080910042908/http://siteresources.worldbank.org/INTEEI/Data/20857122/Malaysia.pdf|url-status=live}}</ref> As of 2009, irrigated land covered 3,800&nbsp;km<sup>2</sup>. Total renewable water resources made up 580 cubic km as of 2011.

[[Tin]] and petroleum are the two main mineral resources that are of major significance in the Malaysian economy. Malaysia was once the world's largest producer of tin until the collapse of the tin market in the early 1980s.<ref>{{cite web | url=http://www1.american.edu/ted/tin.htm | title=TED Case Studies | access-date=4 April 2015 | url-status=dead | archive-url=https://web.archive.org/web/20150407152010/http://www1.american.edu/ted/tin.htm | archive-date=7 April 2015 | df=dmy-all }}</ref> In the 19th and 20th century, tin played a predominant role in the Malaysian economy, with Malaysia accounting for over 31% of global output. It was only in 1972 that petroleum and natural gas took over from tin as the mainstay of the mineral extraction sector. Other minerals of some importance or significance include copper, bauxite, iron-ore and coal together with industrial minerals like clay, [[kaolin]], [[silica]], [[limestone]], [[barite]], [[phosphates]] and dimension stones such as [[granite]] as well as marble blocks and slabs. Small quantities of gold are produced.

In 2019, the country was the 11th largest world producer of [[manganese]];<ref>{{Cite web |url=https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-manganese.pdf |title=USGS Manganese Production Statistics |access-date=29 April 2021 |archive-date=25 June 2021 |archive-url=https://web.archive.org/web/20210625143322/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-manganese.pdf |url-status=live }}</ref> the 11th largest world producer of [[tin]],<ref>{{Cite web |url=https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-tin.pdf |title=USGS Tin Production Statistics |access-date=29 April 2021 |archive-date=13 August 2021 |archive-url=https://web.archive.org/web/20210813153917/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-tin.pdf |url-status=live }}</ref> the 12th largest world producer of [[bauxite]],<ref>{{Cite web |url=https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-bauxite-alumina.pdf |title=USGS Bauxite Production Statistics |access-date=29 April 2021 |archive-date=8 December 2021 |archive-url=https://web.archive.org/web/20211208035529/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-bauxite-alumina.pdf |url-status=live }}</ref> and the 19th largest world producer of [[Lime (material)|lime]].<ref>{{Cite web |url=https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-lime.pdf |title=USGS Lime Production Statistics |access-date=29 April 2021 |archive-date=19 April 2021 |archive-url=https://web.archive.org/web/20210419153024/https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-lime.pdf |url-status=live }}</ref>

=== Energy resources ===
Malaysia held [[proven oil reserves]] of 6.9 billion barrels as of January 2022,<ref>{{Cite web |last1=Daim |first1=Nuradzimmah |last2=Basyir |first2=Mohamed |date=2023-03-29 |title=M'sia has 15yrs of petroleum reserves left, can last up to 40 with right tech, investment {{!}} New Straits Times |url=https://www.nst.com.my/news/nation/2023/03/894080/msia-has-15yrs-petroleum-reserves-left-can-last-40-right-tech-investment |access-date=2024-10-22 |website=NST Online |language=en}}</ref> the fourth-highest reserves in [[Asia-Pacific]] after China, India, and [[Vietnam]]. Nearly all of Malaysia's oil comes from offshore fields. The continental shelf is divided into three producing basins: the basin offshore Eastern [[Peninsular Malaysia]] in the west and the [[Sarawak]] and [[Sabah]] basins in the east. Most of the country's oil reserves are located in the Peninsular basin and tend to be light and sweet crude. Malaysia's benchmark crude oil, [[Tapis crude|Tapis Blend]], is a light and sweet crude oil, with an [[API gravity]] of 42.7° and a sulphur content of 0.04% by weight.

Malaysia held 87.8 trillion cubic feet (Tcf) of [[List of countries by proven natural gas reserves|proven natural gas reserves]] as of 2021, and was the third-largest natural gas reserve holder in the Asia-Pacific region after China and [[Indonesia]]. More than half of the country's natural gas reserves are located in its eastern areas, predominantly offshore Sarawak. Most of Malaysia's gas reserves are associated with oil basins, although Sarawak and Sabah have an increasing amount of non-associated gas reserves that have offset some of the declines from mature oil and gas basins offshore Peninsular Malaysia.<ref>{{cite web | url=http://www.eia.gov/countries/cab.cfm?fips=my | title=EIA | access-date=4 April 2015 | archive-date=12 April 2015 | archive-url=https://web.archive.org/web/20150412003519/http://www.eia.gov/countries/cab.cfm?fips=MY | url-status=live }}</ref>

==Business environment==
{{see also|Malaysia and the World Bank}}
In 2015, Malaysia's economy was one of the most competitive in the world, ranking 14th in the world and 5th for countries with a population of over 20 million, higher than countries like [[Australia]], [[United Kingdom]], [[South Korea]] and [[Japan]].<ref name="imd2015">{{cite web | url=http://www.imd.org/news/IMD-releases-its-2015-World-Competitiveness-Ranking.cfm | title=IMD competitiveness index | access-date=28 May 2015 | archive-date=30 May 2015 | archive-url=https://web.archive.org/web/20150530004038/http://www.imd.org/news/IMD-releases-its-2015-World-Competitiveness-Ranking.cfm | url-status=dead }}</ref>

In 2015, Malaysia was the 6th most attractive country for foreign investors, ranked in the Baseline Profitability Index (BPI) published by Foreign Policy Magazine.<ref>{{Cite web |url=http://www.therakyatpost.com/business/2015/07/13/big-jump-in-malaysia-ranking-for-foreign-investments/ |title=Big jump in Malaysia's ranking for foreign investments - the Rakyat Post - the Rakyat Post |access-date=13 July 2015 |archive-url=https://web.archive.org/web/20150713181833/http://www.therakyatpost.com/business/2015/07/13/big-jump-in-malaysia-ranking-for-foreign-investments/ |archive-date=13 July 2015 |url-status=dead }}</ref>

The government is moving towards a more business friendly environment by setting up a special task force to facilitate business called PEMUDAH, which means "simplifier" in Malay.<ref>[http://www.pemudah.gov.my/bg.asp Permudah Background] {{webarchive |url=https://web.archive.org/web/20081023151637/http://www.pemudah.gov.my/bg.asp |date=23 October 2008 }}</ref> Highlights includes easing restrictions and requirement to hire expatriates, shorten time to do land transfers and increasing the limit of sugar storage (a controlled item in Malaysia) for companies.<ref>[http://www.pemudah.gov.my/prhigh.asp Permudah Highlights] {{webarchive |url=https://web.archive.org/web/20081201151848/http://www.pemudah.gov.my/prhigh.asp |date=1 December 2008 }}</ref>

Malaysia was ranked 33rd in the [[Global Innovation Index]] in 2020, up from 35th in 2019.<ref>{{Cite web|title=Release of the Global Innovation Index 2020: Who Will Finance Innovation?|url=https://www.wipo.int/global_innovation_index/en/2020/index.html|access-date=2021-09-02|website=www.wipo.int|language=en|archive-date=3 June 2021|archive-url=https://web.archive.org/web/20210603121259/https://www.wipo.int/global_innovation_index/en/2020/index.html|url-status=live}}</ref><ref>{{Cite web|title=Global Innovation Index 2019|url=https://www.wipo.int/global_innovation_index/en/2019/index.html|access-date=2021-09-02|website=www.wipo.int|language=en|archive-date=2 September 2021|archive-url=https://web.archive.org/web/20210902101818/https://www.wipo.int/global_innovation_index/en/2019/index.html|url-status=live}}</ref><ref>{{Cite web|title=RTD - Item|url=https://ec.europa.eu/newsroom/rtd/items/691898|access-date=2021-09-02|website=ec.europa.eu|archive-date=2 September 2021|archive-url=https://web.archive.org/web/20210902140715/https://ec.europa.eu/newsroom/rtd/items/691898|url-status=live}}</ref><ref>{{Cite web|date=2013-10-28|title=Global Innovation Index|url=https://knowledge.insead.edu/entrepreneurship-innovation/global-innovation-index-2930|access-date=2021-09-02|website=INSEAD Knowledge|language=en|archive-date=2 September 2021|archive-url=https://web.archive.org/web/20210902101622/https://knowledge.insead.edu/entrepreneurship-innovation/global-innovation-index-2930|url-status=dead}}</ref>

== Taxation ==
In 2016, the Inland Revenue Board of Malaysia lowered the effective tax rate to 24% for businesses with capital exceeding RM2.5 million (approximately US$550,000). For smaller companies, the rate was 19%.<ref>{{Cite web|url=http://www.hasil.gov.my/pdf/pdfam/11_BROCHURE_2016.pdf|title=Inland Revenue Board of Malaysia 2016 Taxation Rates|publisher=Inland Revenue Board of Malaysia}}{{Dead link|date=May 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

The Malaysian government also imposes government taxes such as the Sales and Services tax (SST) and real estate taxes. The current rate of SST is at 6% while disposal of property is subject to a schedule of period holding the property.<ref>{{Cite web |url=https://www.mysst.customs.gov.my/About |title=MySST |access-date=13 April 2019 |archive-date=13 April 2019 |archive-url=https://web.archive.org/web/20190413112947/https://www.mysst.customs.gov.my/About |url-status=dead }}</ref>

==External trade==

{{see also|List of Malaysian states and municipalities by exports}}In 2021, Malaysia's total [[external trade]] totaled RM2,227 billion (approximately US$530 billion), made up of RM1,239 billion (approximately US$295 billion) of exports and RM987 billion (approximately US$235 billion) of imports, making Malaysia the world's [[List of countries by exports|21st largest exporter]] and the world's [[List of countries by imports|25th largest importer]].

Malaysia's largest trading partner is China. Malaysia has been China's top trading partner within [[ASEAN]] for five years in a row since 2008. The two-way trade volume between China and Malaysia in 2013 reached $106 billion, making Malaysia China's third-largest trade partner in Asia, just behind Japan and South Korea and eighth largest overall.<ref>{{Cite web|url=http://www.chinadaily.com.cn/business/2014-01/21/content_17247588.htm|title=Malaysia becomes China's 3rd largest trade partner in Asia - Business - Chinadaily.com.cn|website=www.chinadaily.com.cn|access-date=17 October 2014|archive-date=17 October 2014|archive-url=https://web.archive.org/web/20141017103331/http://www.chinadaily.com.cn/business/2014-01/21/content_17247588.htm|url-status=live}}</ref> On 31 May 2014, during [[Najib Razak]]'s visit to China where he was welcomed by China's [[Premier]] [[Li Keqiang]], China and Malaysia pledged to increase bilateral trade to US$160 billion by 2017. They also agreed to upgrade economic and financial co-operation, especially in the production of halal food, water processing and railway construction.<ref>{{Cite web|url=http://www.chinadaily.com.cn/business/2014-06/01/content_17556223.htm|title=China, Malaysia target 60b trade volume[1]- Chinadaily.com.cn|website=www.chinadaily.com.cn|access-date=17 October 2014|archive-date=28 December 2018|archive-url=https://web.archive.org/web/20181228035107/http://www.chinadaily.com.cn/business/2014-06/01/content_17556223.htm|url-status=live}}</ref>

Malaysia's second largest trading partner is [[Singapore]] and Malaysia is Singapore's biggest trading partner, with bilateral trade totalling roughly US$91 billion in 2012, accounting for over a fifth of total trade within [[ASEAN]].<ref>{{cite web|url=http://www.pmo.gov.sg/content/pmosite/mediacentre/speechesninterviews/primeminister/2009/May/speeches_by_primeministerleehsienloongandmalaysianprimeministern.html#.VDvFfPmSxXY |title=Speeches by Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Tun Razak at the official dinner at the Istana on 22 May 2009 |access-date=26 October 2014 |url-status=dead |archive-url=https://web.archive.org/web/20141019145833/http://www.pmo.gov.sg/content/pmosite/mediacentre/speechesninterviews/primeminister/2009/May/speeches_by_primeministerleehsienloongandmalaysianprimeministern.html |archive-date=19 October 2014  }}</ref><ref>{{cite web|url=http://www.singstat.gov.sg/statistics/visualising_data/visualiser/trade/trade.html |title=Statistics Singapore - Trade with Major Trading Partners |access-date=13 October 2014 |url-status=dead |archive-url=https://web.archive.org/web/20141021082312/http://www.singstat.gov.sg/statistics/visualising_data/visualiser/trade/trade.html |archive-date=21 October 2014  }}</ref>

Malaysia's third largest trading partner is Japan, amounting RM137.45 billion (US$42 billion) of trade in 2014, an increase of 1.4% compared with to 2013. Out of this, exports totalled RM82.71 billion (US$25.6 billion), a growth of 4.4% cent while imports contracted 2.9% to RM54.75 billion (US$16.74 billion). Malaysian Ambassador to Japan Datuk Ahmad Izlan Idris said the main exports from Malaysia to Japan were [[liquefied natural gas]] (LNG), electrical and electronics as well as chemical-based products. He said Malaysia's main imports from Japan were electrical and electronics, machines and equipment as well as spare parts and accessories for vehicles and cars.<ref>{{cite web | url=http://www.themalaysianinsider.com/business/article/malaysia-and-japan-booming-trade-partners | title=MalaysianInsider | access-date=4 April 2015 | archive-url=https://web.archive.org/web/20150410022439/http://www.themalaysianinsider.com/business/article/malaysia-and-japan-booming-trade-partners | archive-date=10 April 2015 | url-status=dead | df=dmy-all }}</ref>

Malaysia is an important trading partner for the United States. In 1999, two-way bilateral trade between the US and Malaysia totalled US$30.5 billion, with US exports to Malaysia totalling US$9.1 billion and US imports from Malaysia increasing to US$21.4 billion. Malaysia was the United States' 10th-largest trading partner and its 12th-largest export market. During the first half of 2000, US exports totalled US$5 billion, while US imports from Malaysia reached US$11.6 billion.

=== Statistics ===
{| class="wikitable"
!Year
!Goods exports<br /><small>(billion US$)</small><ref>{{Cite web |title=Goods exports (BoP, current US$) - Malaysia. |url=https://data.worldbank.org/indicator/BX.GSR.MRCH.CD?end=2023&locations=MY&most_recent_value_desc=true&start=1974 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
!Goods imports<br /><small>(in</small> b<small>illion US$)</small><ref>{{Cite web |title=Goods imports (BoP, current US$) - Malaysia |url=https://data.worldbank.org/indicator/BM.GSR.MRCH.CD?end=2023&locations=MY&most_recent_value_desc=true&start=1974 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
!Net trade<br /><small>(in</small> b<small>illion US$)</small><ref>{{Cite web |title=Net trade in goods (BoP, current US$) - Malaysia |url=https://data.worldbank.org/indicator/BN.GSR.MRCH.CD?end=2023&locations=MY&most_recent_value_desc=true&start=1974 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
|-
|2023
|{{Increase}}$231.4
|{{Increase}}$201.5
|{{Increase}}$30.0
|-
|2020
|{{Increase}}$186.1
|{{Increase}}$153.2
|{{Increase}}$32.8
|-
|2015
|{{Increase}}$174.6
|{{Increase}}$146.7
|{{Increase}}$27.9
|-
|2010
|{{Increase}}$187.3
|{{Increase}}$148.9
|{{Increase}}$28.4
|-
|2005
|{{Increase}}$141.6
|{{Increase}}$108.7
|{{Increase}}$33.0
|-
|2000
|{{Increase}}$98.2
|{{Increase}}$77.5
|{{Increase}}$20.7
|-
|1990
|{{Increase}}$28.8
|{{Increase}}$26.3
|{{Increase}}$2.5
|-
|1980
|{{Increase}}$13.0
|{{Increase}}$10.6
|{{Increase}}$2.3
|-
|1975
|$3.8
|$3.6
|{{Increase}}$0.2
|}

== Agriculture sector ==
[[File:Rubbertrees malaysia.jpg|thumb|Rubber plantation in Malaysia]]
{{Main|Agriculture in Malaysia}}
Agriculture is now a minor sector of the Malaysian economy, accounting for 7.1% of Malaysia's GDP in 2014 and employing 11.1% of Malaysia's labour force, contrasting with the 1960s when agriculture accounted for 37% of Malaysia's GDP and employed 66.2% of the labour force. The crops grown by the agricultural sector has also significantly shifted from food crops like [[Paddy field|paddy]] and [[coconut]] to industrial crops like [[Palm oil production in Malaysia|palm oil]] and [[Natural rubber|rubber]], which in 2005 contributed to 83.7% of total agricultural land use, compared to 68.5% in 1960.<ref>{{cite web | url=http://www.agrojournal.org/19/01-08.pdf | title=AgroJournal | access-date=5 April 2015 | archive-date=10 April 2015 | archive-url=https://web.archive.org/web/20150410140615/http://www.agrojournal.org/19/01-08.pdf | url-status=live }}</ref>

===Palm Oil Industry===

Despite its minor contribution to Malaysia's [[GDP]], Malaysia has a significant foothold in the world's agricultural sector, being the world's second largest producer of palm oil in 2012<ref name="Pakiam">{{cite news |title=Palm Oil Advances as Malaysia's Export Tax May Boost Shipments |last1=Pakiam |first1=Ranjeetha |url=https://www.bloomberg.com/news/2013-01-04/palm-oil-advances-as-malaysia-s-export-tax-may-boost-shipments.html |newspaper=Bloomberg |date=3 January 2013 |access-date=29 January 2013 |archive-date=5 January 2013 |archive-url=https://web.archive.org/web/20130105085751/http://www.bloomberg.com/news/2013-01-04/palm-oil-advances-as-malaysia-s-export-tax-may-boost-shipments.html |url-status=live }}</ref> producing 18.79 million tonnes of crude palm oil on roughly {{convert|5000000|ha|sqmi}} of land.<ref name="The Star January 2013">{{cite news |title=MPOB expects CPO production to increase to 19 million tonnes this year |url=http://biz.thestar.com.my/news/story.asp?file=/2013/1/15/business/12576771&sec=business |newspaper=The Star Online |date=15 January 2013 |access-date=29 January 2013 |archive-date=27 January 2013 |archive-url=https://web.archive.org/web/20130127140157/http://biz.thestar.com.my/news/story.asp?file=%2F2013%2F1%2F15%2Fbusiness%2F12576771&sec=business |url-status=live }}</ref><ref name="USDA2012">{{cite web |url=http://www.pecad.fas.usda.gov/highlights/2012/12/Malaysia/ |title=MALAYSIA: Stagnating Palm Oil Yields Impede Growth |date=11 December 2012 |work=usda.gov |publisher=USDA Foreign Agricultural Service |access-date=29 January 2013 |archive-date=18 February 2013 |archive-url=https://web.archive.org/web/20130218012050/http://www.pecad.fas.usda.gov/highlights/2012/12/Malaysia/ |url-status=dead }}</ref> Though [[Indonesia]] produces more palm oil, Malaysia is the world's largest exporter of palm oil having exported 18 million tonnes of palm oil products in 2011.<ref name="AOCS">{{cite web |url=http://www.aocs.org/Membership/FreeCover.cfm?itemnumber=18340 |title=Malaysia: economic transformation advances oil palm industry |last1=May |first1=Choo Yuen |date=September 2012 |work=aocs.org |publisher=American Oil Chemists' Society |access-date=29 January 2013 |archive-date=13 November 2012 |archive-url=https://web.archive.org/web/20121113145720/http://www.aocs.org/Membership/FreeCover.cfm?itemnumber=18340 |url-status=live }}</ref>

In March 2019, the [[European Commission]] concluded that palm oil [[Agriculture|cultivation]] results in excessive [[deforestation]] and its use in transport fuel should be phased out by 2030. In response, [[Mahathir Mohamad]] alleged that the [[European Union]] is at risk of starting a [[trade war]] with Malaysia regarding its "grossly unfair" policies geared towards decreasing the use of palm oil, which Mahathir stated was "unfair" and an example of "rich people...[trying] to impoverish poor people".<ref>{{Cite news|url=https://www.reuters.com/article/us-malaysia-politics-mahathir-exclusive-idUSKCN1R917W|title=Exclusive: EU risks 'trade war' with Malaysia over palm oil - Mahathir|date=29 March 2019|work=Reuters|access-date=2 May 2019|language=en|archive-date=5 June 2022|archive-url=https://web.archive.org/web/20220605195410/https://www.reuters.com/article/us-malaysia-politics-mahathir-exclusive-idUSKCN1R917W|url-status=live}}</ref>

==Industry sector==
[[Science and technology in Malaysia|Science policies in Malaysia]] are regulated by the Ministry of Science, Technology, and Innovation. The country is one of the world's largest exporters of semiconductor devices, electrical devices, and IT and communication products.<ref name="state.gov" />

Malaysia's industrial sector accounts for 36.8%, over a third of the country's GDP in 2014, and employs 36% of the labour force in 2012. The industrial sector mostly contributed by the [[electronics industry]], [[automotive industry]] and [[construction industry]].

=== Electrical and electronics ===
The electrical & electronics (E&E) industry is the leading sector in Malaysia's manufacturing sector, contributing significantly to the country's exports and employment. The E&E industry produces 13% of global back-end semiconductors, driving 40% of the nation's export output and contributing about 5.8% to the GDP in 2023.<ref>{{Cite web |title=E&E sector presents new key growth areas with the rise of tech and high-value sectors |url=https://www.mida.gov.my/mida-news/ee-sector-presents-new-key-growth-areas-with-the-rise-of-tech-and-high-value-sectors/ |access-date=2024-10-21 |website=MIDA {{!}} Malaysian Investment Development Authority |language=en-US}}</ref> Malaysia benefits from the global demand in the usage of [[mobile device]]s (smartphones, tablets), [[Data storage device|storage devices]] (cloud computing, data centers), [[optoelectronics]] (photonics, fibre optics, LEDs) and embedded technology ([[integrated circuits]], [[Printed circuit board|PCBs]], [[LED]]s).<ref name="MIDA">{{cite web | url=http://www.mida.gov.my/home/electrical-and-electronic/posts/ | title=MIDA | access-date=5 April 2015 | archive-date=10 April 2015 | archive-url=https://web.archive.org/web/20150410105123/http://www.mida.gov.my/home/electrical-and-electronic/posts/ | url-status=dead }}</ref>

==== Electronic components ====
<!-- Deleted image removed: [[File:Intel Penang.jpeg|thumb|[[Intel]] building in [[Penang]]]] -->
Products/activities which fall under this sub-sector include [[semiconductor devices]], [[passive components]], [[printed circuits]] and other components such as media, substrates and connectors.

Within the electronic components sub-sector, the semiconductor devices is the leading contributor of exports for the E&E industry. Exports of semiconductor devices were RM111.19 billion or 47% of the total E&E products exported in 2013.

Malaysia is a major hub for electrical component manufacturing, with factories of international companies like [[Intel]], [[AMD]], [[Freescale Semiconductor]], [[Advanced Semiconductor Engineering|ASE]], [[Infineon]], [[STMicroelectronics]], [[Texas Instruments]], [[Fairchild Semiconductor]], [[Renesas]], [[X-Fab]] and major Malaysian-owned companies such as [[Green Packet]], Silterra, Globetronics, Unisem and Inari which have contributed to the steady growth of the semiconductor industry in Malaysia. To date, there are more than 50 companies, largely MNCs producing semiconductors devices in Malaysia.<ref name="MIDA"/>

==== Photovoltaics ====
{{see also|Photovoltaics manufacturing in Malaysia}}Malaysia is a major hub for solar equipment manufacturing, with factories of companies like [[First Solar]], [[Panasonic]], TS Solartech, [[Jinko Solar]], JA Solar, [[SunPower]], [[Hanwha Q Cells]], and [[SunEdison]] in locations like [[Kulim]], [[Penang]], [[Malacca]], [[Cyberjaya]] and [[Ipoh]].<ref name="NYT">{{cite news|url=https://www.nytimes.com/2014/12/12/business/energy-environment/solar-rises-in-malaysia-during-trade-wars-over-panels.html?_r=0|title=NYTimes|newspaper=The New York Times|date=12 December 2014|access-date=25 July 2015|last1=Bradsher|first1=Keith|archive-date=16 March 2021|archive-url=https://web.archive.org/web/20210316095048/https://www.nytimes.com/2014/12/12/business/energy-environment/solar-rises-in-malaysia-during-trade-wars-over-panels.html?_r=0|url-status=live}}</ref><ref>{{cite web|url=http://www.jinkosolar.com/press_detail_1056.html|title=Jinkosolar|access-date=25 July 2015|archive-url=https://web.archive.org/web/20150725175111/http://www.jinkosolar.com/press_detail_1056.html|archive-date=25 July 2015|url-status=dead}}</ref>[[File:FirstSolarKulim.jpg|thumb|[[First Solar]]'s factory in [[Kulim]]]]
In 2013, Malaysia's total production capacity for [[solar wafer]]s, [[solar cells]] and [[solar panel]]s totalled 4,042 [[Watt#Megawatt|MW]].<ref>{{cite web | url=http://www.exim.com.my/sites/default/files/industry_assessment_-_solar_panel_industry_in_malaysia_january_2015.pdf | title=eximbank | access-date=26 July 2015 | url-status=dead | archive-url=https://web.archive.org/web/20150904001602/http://www.exim.com.my/sites/default/files/industry_assessment_-_solar_panel_industry_in_malaysia_january_2015.pdf | archive-date=4 September 2015 | df=dmy-all }}</ref> By 2014, Malaysia was the world's third largest manufacturer of [[photovoltaics]] equipment, behind [[China]] and the [[European Union]].<ref name="NYT" />

Many international companies have the majority of production capacity located in [[Malaysia]], such as the American company [[First Solar]] which has over 2,000 [[Watt#Megawatt|MW]] of production capacity located in [[Kulim]] and only 280 [[Watt#Megawatt|MW]] located in [[Ohio]],<ref>{{cite web | url=http://www.greentechmedia.com/articles/read/what-does-first-solars-plant-closures-say-about-thin-film-pvs-competitivene | title=Ohio | access-date=26 July 2015 | archive-date=16 October 2015 | archive-url=https://web.archive.org/web/20151016010329/http://www.greentechmedia.com/articles/read/what-does-first-solars-plant-closures-say-about-thin-film-pvs-competitivene | url-status=live }}</ref> and formerly German-based [[Hanwha Q Cells]] which produces 1,100 [[Watt#Megawatt|MW]] worth of solar cells in [[Cyberjaya]] while producing only 200 [[Watt#Megawatt|MW]] worth of solar cells in [[Germany]]. [[SunPower]]'s largest manufacturing facility with a capacity of 1,400 [[Watt#Megawatt|MW]] is also located in [[Malacca]].<ref name="NYT"/><ref>{{cite web | url=http://www.pv-tech.org/news/sunpower_plotting_next_gen_gigawatt_scale_fab | title=PV Tech | access-date=25 July 2015 | archive-date=25 July 2015 | archive-url=https://web.archive.org/web/20150725162707/http://www.pv-tech.org/news/sunpower_plotting_next_gen_gigawatt_scale_fab | url-status=dead }}</ref>

=== Automotive ===
[[File:2013 Proton Prevé Premium (Test Drive Car) in Glenmarie, Malaysia.jpg|thumb|The [[Proton Prevé]], a car made by Malaysian car company [[PROTON Holdings|Proton]].]]
{{See also|Automotive industry in Malaysia}}

The automotive industry in Malaysia consists of 27 vehicle producers and over 640 component manufacturers.<ref name="Malaysia auto industry mai.org.my">{{cite web |url=http://www.mai.org.my/index.php?option=com_content&view=article&id=32&Itemid=111&lang=en |title=The Automotive Industry |publisher=mai.org.my |date=20 May 2017 |access-date=20 May 2017 |archive-url=https://web.archive.org/web/20170519160932/http://www.mai.org.my/index.php?option=com_content&view=article&id=32&Itemid=111&lang=en |archive-date=19 May 2017 |url-status=dead }}</ref> The Malaysian automotive industry is the third largest in [[Southeast Asia]], and the [[List of countries by motor vehicle production|23rd largest in the world]], with an annual production output of over 500,000 vehicles.<ref>{{cite web | url=http://www.maa.org.my/info_summary.htm | title=Malaysia automotive association | access-date=5 April 2015 | archive-url=https://web.archive.org/web/20150329081427/http://www.maa.org.my/info_summary.htm | archive-date=29 March 2015 | url-status=dead }}</ref> The automotive industry contributes 4% or RM 40 billion to Malaysia's [[Gross domestic product|GDP]], and employs a workforce of over 700,000 throughout a nationwide ecosystem.<ref name="Malaysia auto industry mai.org.my"/>

The Malaysian automotive industry is Southeast Asia's sole pioneer of indigenous car companies, namely [[PROTON Holdings|Proton]] and [[Perodua]]. In 2002, Proton helped Malaysia become the 11th country in the world with the capability to fully design, engineer and manufacture cars from the ground up.<ref name="Proton facts proton.com">{{cite web |url=http://www.proton.com:80/about_proton/facts_figures/astonishing_facts.php |title=Astonishing facts |publisher=proton.com |date=5 August 2007 |access-date=20 May 2017 |archive-url=https://web.archive.org/web/20070805223038/http://www.proton.com/about_proton/facts_figures/astonishing_facts.php |archive-date=5 August 2007 |url-status=dead  }}</ref> The Malaysian automotive industry also hosts several domestic-foreign joint venture companies, which assemble a large variety of vehicles from imported complete knock down (CKD) kits.

Malaysia's first tech unicorn startup, automotive e-commerce platform Carsome, raised $290 million in a Series E funding round to expand its product, technology and infrastructure in Malaysia, Indonesia and Thailand. This latest funding round values the used-car online marketplace at $1.7 billion.<ref>{{Cite web |last=Vaswani |first=Simran |title=Malaysian Unicorn Carsome Raises $290 Million To Fund Southeast Asia Expansion Plans |url=https://www.forbes.com/sites/simranvaswani/2022/01/10/malaysian-unicorn-carsome-raises-290-million-to-fund-southeast-asia-expansion-plans/ |access-date=2022-04-27 |website=Forbes |language=en |archive-date=27 April 2022 |archive-url=https://web.archive.org/web/20220427093018/https://www.forbes.com/sites/simranvaswani/2022/01/10/malaysian-unicorn-carsome-raises-290-million-to-fund-southeast-asia-expansion-plans/ |url-status=live }}</ref>

=== Construction ===
[[File:Penang Bridge in extension.jpg|thumb|[[Penang Bridge]]]]
Malaysia has a large construction industry of over RM102.2 billion (US$32 billion). The highest percentage share was contributed by construction of non-residential buildings which recorded 34.6 per cent. This was followed by [[civil engineering]] sub-sector (30.6%), [[residential buildings]] (29.7%), and special trades (5.1%).<ref name="Statistics">{{cite web | url=http://www.statistics.gov.my/index.php?r=column/cthemeByCat&cat=77&bul_id=WkxHdXZhK3grREJPSndEY3dSeFBwQT09&menu_id=OEY5SWtFSVVFVUpmUXEyaHppMVhEdz09 | title=Statistics | access-date=5 April 2015 | archive-url=https://web.archive.org/web/20150411095214/http://www.statistics.gov.my/index.php?r=column%2FcthemeByCat&cat=77&bul_id=WkxHdXZhK3grREJPSndEY3dSeFBwQT09&menu_id=OEY5SWtFSVVFVUpmUXEyaHppMVhEdz09 | archive-date=11 April 2015 | url-status=dead | df=dmy-all }}</ref>

[[Selangor]] recorded the highest value of construction work done at 24.5% among the states, followed by [[Johor]] at 16.5%, [[Kuala Lumpur]] at 15.8%, [[Sarawak]] at 8.6% and [[Penang]] at 6.4%. The contribution of these five states accounted for 71.8% of the total value of construction work in Malaysia.

The expansion of the construction industry has been catalysed by major capital expenditure projects, and a key factor has been the government's Economic Transformation Programme (ETP) and public-private partnership (PPP) mega-projects like [[Tun Razak Exchange]], [[KVMRT]] and [[Iskandar Malaysia]].<ref name="Statistics"/>

=== Defence ===
[[File:Perak F173.jpg|thumb|A [[Kedah class offshore patrol vessel|Kedah-class]] warship, with another unit being built in the background]]
Malaysia has a relatively new [[defence industry]] that was created after the government created the [[Malaysia Defence Industry Council]] to encourage local companies to participate in the country's defence sector in 1999.

The land sector of the defence industry is dominated by [[DRB-HICOM Defence Technologies|DefTech]], a subsidiary of Malaysia's largest automotive manufacturer, [[DRB-HICOM]]. The company focuses on manufacturing [[armoured vehicles]] and specialised logistics vehicles. The company has supplied [[ACV-15]] infantry fighting vehicles to the Malaysian Army in the past and is currently supplying the [[DefTech AV8]] amphibious multirole armoured vehicle to the [[Malaysian Army]].

The sea sector of the defence industry is dominated by [[Boustead Heavy Industries Corporation|Boustead Heavy Industries]], who builds warships for the [[Royal Malaysian Navy]] (RMN) through [[transfer of technology]] with foreign companies. The company has built 4 [[Kedah-class offshore patrol vessel]]s for the RMN in the past and is currently undertaking a project to build 6 more [[Second Generation Patrol Vessel]]s for the RMN.

== Services sector ==

===Finance and banking===
[[File:Maybank Tower Kuala Lumpur.jpg|thumb|Headquarters of [[Maybank]], Malaysia's largest bank]]
Kuala Lumpur has a large financial sector, and is ranked the 22nd in the world in the Global Financial Centres Index.<ref>{{cite web | url=http://www.longfinance.net/images/GFCI14_30Sept2013.pdf | title=GFCI | access-date=5 April 2015 | archive-url=https://web.archive.org/web/20150904001601/http://www.longfinance.net/images/GFCI14_30Sept2013.pdf | archive-date=4 September 2015 | url-status=dead | df=dmy-all }}</ref>
There are currently 27 [[commercial bank]]s (8 domestic and 19 foreign), 16 [[Islamic bank]]s (10 domestic and 6 foreign), 15 investment banks (all domestic) and 2 other financial institutions (both domestic) operating in Malaysia.

Commercial banks are the largest and most significant providers of funds in the banking system. The largest banks in Malaysia's finance sector are [[Maybank]], [[CIMB]], [[Public Bank Berhad]], followed by [[RHB Bank]], [[Hong Leong Bank]] and [[AmBank]].

Malaysia is currently also the world's largest [[Islamic finance in Malaysia|centre of Islamic Finance]]. Malaysia has 16 fully-fledged Islamic banks including five foreign ones, with total Islamic bank assets of US$168.4 billion, which accounts for 25% of the Malaysia's total banking assets.<ref name="Theconversation">{{cite web | url=http://theconversation.com/malaysia-plans-to-be-the-first-islamic-financial-superpower-19922 | title=Theconversation | date=11 November 2013 | access-date=5 April 2015 | archive-date=10 April 2015 | archive-url=https://web.archive.org/web/20150410043326/http://theconversation.com/malaysia-plans-to-be-the-first-islamic-financial-superpower-19922 | url-status=live }}</ref> This in turn accounts for over 10% of the world's total Islamic banking assets. In comparison, Malaysia's main rival [[UAE]], has US$95 billion of assets.<ref>{{cite web | url=http://theconversation.com/islamic-finance-goes-global-but-malaysia-still-leads-the-way-27347 | title=Theconversation | date=18 September 2014 | access-date=5 April 2015 | archive-date=10 April 2015 | archive-url=https://web.archive.org/web/20150410072548/http://theconversation.com/islamic-finance-goes-global-but-malaysia-still-leads-the-way-27347 | url-status=live }}</ref>

Malaysia is the global leader in terms of the [[sukuk]] (Islamic bond) market, issuing RM62 billion (US$17.74 billion)<ref>{{cite web | url=http://www.institutionalinvestor.com/article/3443653/banking-and-capital-markets-emerging-markets/can-malaysia-sustain-its-growth-despite-economic-obstacles.html?ArticleId=3443653&p=3#.VSkH1_mUeSo | title=Institutional Investor | access-date=11 April 2015 | archive-date=17 April 2015 | archive-url=https://web.archive.org/web/20150417052008/http://www.institutionalinvestor.com/article/3443653/banking-and-capital-markets-emerging-markets/can-malaysia-sustain-its-growth-despite-economic-obstacles.html?ArticleId=3443653&p=3#.VSkH1_mUeSo | url-status=dead }}</ref> worth of sukuk in 2014 - over 66.7%<ref>{{cite web | url=http://www.thestar.com.my/Business/Business-News/2014/09/27/Bond-market-seen-to-rebound-Malaysia-remains-leading-sukuk-issuer/?style=biz | title=The Star | date=27 September 2014 | access-date=11 April 2015 | archive-date=11 April 2015 | archive-url=https://web.archive.org/web/20150411143549/http://www.thestar.com.my/Business/Business-News/2014/09/27/Bond-market-seen-to-rebound-Malaysia-remains-leading-sukuk-issuer/?style=biz | url-status=live }}</ref> of the global total of US$26.6 billion<ref name="Theconversation"/><ref>{{cite web | url=http://www.homilychart.com/my/my_content/en_9842.html | title=HomilyChart | access-date=12 April 2015 | archive-url=https://web.archive.org/web/20151016010330/http://www.homilychart.com/my/my_content/en_9842.html | archive-date=16 October 2015 | url-status=dead | df=dmy-all }}</ref> Malaysia also accounts for around two-thirds of the global outstanding sukuk market, controlling $178 billion of $290 billion, the global total.<ref>{{cite web | url=https://www.moodys.com/research/Moodys-Malaysias-sukuk-market-to-grow-10-over-2014-and--PR_300889 | title=Moody's | date=5 June 2014 | access-date=11 April 2015 | archive-date=14 April 2015 | archive-url=https://web.archive.org/web/20150414112751/https://www.moodys.com/research/Moodys-Malaysias-sukuk-market-to-grow-10-over-2014-and--PR_300889 | url-status=live }}</ref>

The Malaysian government is planning to transform the country's capital Kuala Lumpur into a major financial centre in a bid to raise its profile and spark greater international trade and investment through the construction of the [[Tun Razak Exchange]] (TRX). The government believes the project will allow Malaysia to compete with regional financial superpowers such as [[Singapore]] and Hong Kong, by leveraging on the country's established strength in the rapidly growing Islamic financial marketplace.<ref name="Theconversation"/>

Based in Kuala Lumpur, [[Bursa Malaysia]] serves as the country's sole national stock exchange. Trading of shares started in 1960 and it is today one of the largest bourses in Southeast Asia.<ref>{{Cite web |title=Overview |url=https://www.bursamalaysia.com/about_bursa/about_us/overview |access-date=2022-03-30 |website=www.bursamalaysia.com |archive-date=13 August 2023 |archive-url=https://web.archive.org/web/20230813093149/http://www.bursamalaysia.com/about_bursa/about_us/overview |url-status=live }}</ref><ref>{{cite web |title=Bursa Malaysia history |url=http://www.klse.com.my/website/bm/about_us/the_organisation/history.html |url-status=dead |archive-url=https://web.archive.org/web/20070419190041/http://www.klse.com.my/website/bm/about_us/the_organisation/history.html |archive-date=19 April 2007 |df=dmy}}</ref>

===Tourism===
{{Main|Tourism in Malaysia}}
[[File:SouthBeach Curve.JPG|thumb|South Beach at [[Perhentian Islands|Perhentian Besar]]]]
Tourism is a huge sector of the Malaysian economy, with 20.14 million tourists generating RM71.3 billion (US$15.5 billion) in tourist receipts in 2023,<ref>{{Cite web |title=Malaysia Tourism Statistics |url=https://data.tourism.gov.my/ |access-date=2024-10-21 |website=data.tourism.gov.my}}</ref><ref>{{Cite web |title=Malaysia Tourism Key Performance Indicators 2023 |url=https://www.tourism.gov.my/files/uploads/Malaysia-Tourism-Key-Performance-Indicators-2023.pdf}}</ref> Total tourist receipts increased by 9% when compared to the 2013 figure of RM65.4 billion (US$20 billion).<ref>http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/malaysia_country_report_2014.pdf{{dead link|date=April 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

Malaysia is ranked 14th of the most visited country in the world in 2024 at 26.1 million tourists.<ref>{{Cite web |title=Most Visited Countries 2024 |url=https://www.datapandas.org/ranking/most-visited-countries |access-date=2024-10-21 |website=www.datapandas.org |language=en}}</ref>

Malaysia is rich with diverse natural attractions which become an asset to the country's tourism industry. This was recognised by the World Travel & Tourism Council (WTTC), who declared Malaysia as "a destination full of unrealised potential" with the main strength as the availability of a vast range of diverse attractions to suit all tastes relatively affordable prices and; largely unspoilt destination.<ref>{{cite web | url=https://www.academia.edu/1421294 | title=Tourism Industry In Malaysia The Experience and Challenge | last1=Suratman | first1=Robiah | access-date=5 April 2015 | archive-date=3 October 2021 | archive-url=https://web.archive.org/web/20211003101035/https://www.academia.edu/1421294 | url-status=live }}{{self-published inline|date=June 2021}}</ref>

Malaysia's top tourist destinations are the [[Mulu Caves]], [[Perhentian Islands]], [[Langkawi]], [[Petronas Towers]] and [[Mount Kinabalu]].<ref>{{cite web | url=http://www.touropia.com/tourist-attractions-in-malaysia/ | title=Tourupia | access-date=5 April 2015 | archive-date=8 April 2015 | archive-url=https://web.archive.org/web/20150408051200/http://www.touropia.com/tourist-attractions-in-malaysia/ | url-status=live }}</ref>

==== Medical tourism ====
{{See also|Medical tourism in Malaysia}}
[[File:Tuaran Sabah Malaysia Tuaran-Hospital-06.jpg|thumb|Tuaran Hospital in [[Sabah]]]]
Medical tourism is a significant sector of Malaysia's economy, with around 850,000 individuals travelling to Malaysia specifically for medical treatments alone in 2022, contributing RM1.3 billion (US$295 million) in revenue to the economy.<ref>{{Cite web |title=Healthcare Traveller Statistics |url=https://www.mhtc.org.my/statistics/ |access-date=2024-10-21 |website=Malaysia Healthcare Travel Council (MHTC) |language=en-US}}</ref> This is down from pre-pandemic numbers of 1.2 million individuals and a total contribution of RM1.7 billion (US$416 million) but the Malaysia Healthcare Travel Council (MHTC) already expects the figures to surpass by 2024, with an expected revenue of RM2.4 billion (US$558 million).<ref>{{Cite web |title=Attracting more medical tourists to Malaysia |url=https://www.thestar.com.my/lifestyle/travel/2024/02/16/attracting-more-medical-tourists-to-malaysia |access-date=2024-10-21 |website=The Star |date=16 February 2024 |language=en}}</ref>

Malaysia is reputed as one of the most preferred medical tourism destinations with modern private healthcare facilities and highly efficient medical professionals.<ref name="Wong et al 2014">{{cite journal |last1=Wong |first1=Kee Mun |last2=Velasamy |first2=Peramarajan |last3=Tengku Arshad |first3=Tengku Nuraina |title=Medical Tourism Destination SWOT Analysis: A Case Study of Malaysia, Thailand, Singapore and India |journal=SHS Web of Conferences |date=2014 |volume=12 |pages=01037 |doi=10.1051/shsconf/20141201037 |doi-access=free }}</ref> In 2014, Malaysia was ranked the world's best destination for medical tourism by the [[Andrew Henderson (Nomad Capitalist)|Nomad Capitalist]].<ref>{{cite web | url=http://nomadcapitalist.com/2014/01/05/top-5-best-countries-medical-tourism/ | title=NomadCapitalist | date=5 January 2014 | access-date=7 April 2015 | archive-date=19 April 2015 | archive-url=https://web.archive.org/web/20150419095626/http://nomadcapitalist.com/2014/01/05/top-5-best-countries-medical-tourism/ | url-status=live }}</ref> Malaysia was also included in the top 10 medical tourism destinations list by CNBC.<ref>{{cite web | url=https://www.cnbc.com/2014/03/12/top-destinations-for-health-tourism.html | title=CNBC | website=[[CNBC]] | date=14 March 2014 | access-date=7 April 2015 | archive-date=15 April 2015 | archive-url=https://web.archive.org/web/20150415190041/http://www.cnbc.com/id/101487998/page/7 | url-status=live }}</ref>

In 2014, Prince Court Medical Centre, a Malaysian hospital, was ranked the world's best hospital for medical tourists by MTQUA.<ref>{{cite web | url=http://www.mtqua.org/media-center/prince-court-named-top-10-worlds-best-hospitals-2014/ | title=MTQUA | access-date=7 April 2015 | archive-date=14 April 2015 | archive-url=https://web.archive.org/web/20150414094241/http://www.mtqua.org/media-center/prince-court-named-top-10-worlds-best-hospitals-2014/ | url-status=dead }}</ref> MHTC announced that two Malaysian Hospitals were recognised in the Newsweek & Statista's World's Best Hospitals 2024, [[Gleneagles Hospital Kuala Lumpur|Gleneagles Kuala Lumpur]] and [[Sunway Medical Centre]].

===Oil and gas===
[[File:E8664-Pattaya-Sukhumvit-Road.jpg|thumb|[[Petronas]] petrol station in [[Thailand]]]]
Malaysia has a vibrant [[oil and gas industry]]. The national oil company, [[Petronas]] was ranked 216th in the [[Fortune 500]] list in 2022, generating revenue of over RM171 billion (US$36.5 billion) and possessing total assets of over RM798 billion (US$169 billion) in the first half of 2024.<ref>{{Cite web |title=Reports {{!}} PETRONAS Global |url=https://www.petronas.com/media/reports |access-date=2024-10-21 |website=www.petronas.com}}</ref> Petronas accounted for more than 20% of the Malaysian government's revenue from 2018 to 2023. The Malaysian government has been actively cutting down on its reliance of petroleum with an expected contribution of approximately RM32 billion (around US$7 billion) from Petronas and RM64 billion (US$13.9 billion) from petroleum-derived revenues, with the latter figure down from RM69.8 billion (US$15.2 billion).<ref>{{Cite web |url=https://www.malaymail.com/news/malaysia/2023/10/12/malaysia-further-reduces-dependency-on-petronas-dividends-in-2024-to-grow-non-petroleum-based-revenue/95900 |title=Malaysia further reduces dependency on Petronas dividends in 2024 to grow non-petroleum based revenue |access-date=2024-10-21 |website=www.malaymail.com}}</ref>

Petronas is also the custodian of oil and gas reserves for Malaysia. Hence, all oil and gas activities are regulated by Petronas. Malaysia encourages foreign oil company participation through production sharing contracts, in which significant amount of oil will be given away to the foreign oil company until it reaches a production milestone. Currently, many major oil companies such as [[ExxonMobil]], [[Royal Dutch Shell]], [[Nippon Oil]], and [[Murphy Oil]] are involved in such contracts.<ref>{{cite news| title=Petronas Corporate Milestones 1974–2002| author=Petronas| access-date=28 June 2008| url=http://www.petronas.com.my/internet/corp/centralrep2.nsf/0ddc209ca3aa90e848256e9900178727/ebe8f95b4e4b83db48256a9900456959?OpenDocument| archive-url=https://web.archive.org/web/20110716191531/http://www.petronas.com.my/internet/corp/centralrep2.nsf/0ddc209ca3aa90e848256e9900178727/ebe8f95b4e4b83db48256a9900456959?OpenDocument| archive-date=16 July 2011| url-status=dead| df=dmy-all}}</ref> As a result, 40% of oil fields in Malaysia are developed.<ref>{{cite news| title=Oil and Gas opportunity in Malaysia| url=http://www.malaysiamission.com/team.php?id=19| author=Malaysia Trade Mission to US| access-date=27 June 2008| year=2005| archive-date=10 August 2007| archive-url=https://web.archive.org/web/20070810135254/http://malaysiamission.com/team.php?id=19| url-status=dead}}</ref>

There are over 3,500 oil and gas (O&G) businesses in Malaysia comprising international oil companies, independents, services and manufacturing companies that support the needs of the O&G value chain both domestically and regionally. Many major global machinery & equipment (M&E) manufacturers have set up bases in Malaysia to complement home-grown M&E companies, while other Malaysian oil and gas companies are focused on key strategic segments such as marine, drilling, engineering, fabrication, offshore installation and operations and maintenance (O&M).

== Infrastructure ==
Malaysia's infrastructure is one of the most developed in Asia.<ref>{{Cite web |title=Malaysia's economy to grow by 4-5% this year, central bank says – GE63 |date=2 April 2023 |url=https://ge63.com/malaysia-economy-2023 |access-date=2023-04-02 |language=en-US |archive-date=2 April 2023 |archive-url=https://web.archive.org/web/20230402123418/https://ge63.com/malaysia-economy-2023 |url-status=live }}</ref><ref name="MIDAweb">{{cite web |url=http://www.mida.gov.my/env3/index.php?page=developed-infrastructure |title=Why Malaysia |publisher=Malaysia Industrial Development Authority |access-date=20 August 2011 |archive-date=23 July 2011 |archive-url=https://web.archive.org/web/20110723213941/http://www.mida.gov.my/env3/index.php?page=developed-infrastructure |url-status=dead }}</ref> In 2016, Malaysia was ranked 18th out of 140 countries in the World Economic Forum's Global Competitiveness Report, the highest among of all developing economies in Asia. Its [[telecommunications network]] is second only to Singapore's in Southeast Asia, with 4.5 million fixed-broadband subscribers, 8.4 million fixed-line subscribers and 50.1 million cellular subscribers in 2023.<ref>{{Cite web |title=World Bank Open Data |url=https://data.worldbank.org/indicator/IT.NET.BBND?locations=MY |access-date=2024-10-21 |website=World Bank Open Data}}</ref><ref>{{Cite web |title=Malaysia Number of Subscriber Fixed Line, 1960 – 2024 {{!}} CEIC Data |url=https://www.ceicdata.com/en/indicator/malaysia/number-of-subscriber-fixed-line#:~:text=Line%20in%202023?-,Malaysia%20Number%20of%20Subscriber%20Fixed%20Line%20was%20reported%20at%208,401,800.000,table%20below%20for%20more%20data. |access-date=2024-10-21 |website=www.ceicdata.com}}</ref><ref>{{Cite web |title=World Bank Open Data |url=https://data.worldbank.org/indicator/IT.CEL.SETS?locations=MY |access-date=2024-10-21 |website=World Bank Open Data}}</ref> The country has 7 international ports, the major one being the [[Port Klang]]. There are 200 [[industrial park]]s along with specialised parks such as [[Technology Park Malaysia]] and [[Kulim Hi-tech Park|Kulim Hi-Tech Park]].<ref name="MIDA"/> Fresh water is available to over 95% of the population. During the colonial period, development was mainly concentrated in economically powerful cities and in areas forming security concerns. Although rural areas have been the focus of great development, they still lag behind areas such as those in the west coast of Peninsular Malaysia.<ref>{{cite web |url=http://www.cirdap.org.sg/Paper3_KKLWDoc.pdf |archive-url=https://web.archive.org/web/20110514133723/http://www.cirdap.org.sg/Paper3_KKLWDoc.pdf |archive-date=14 May 2011 |title=Infrastructure and Rural Development in Malaysia |publisher=Centre on Integrated Rural Development for Asia and the Pacific |access-date=25 May 2011 |url-status=dead  }}</ref> The telecommunication network, although strong in urban areas, is less available to the rural population.<ref name="Tele">{{cite web |title=Malaysian Telecommunications Overview |url=http://www1.american.edu/initeb/ym6974a/telecom.htm |url-status=dead |archive-url=https://web.archive.org/web/20110504165602/http://www1.american.edu/initeb/ym6974a/telecom.htm |archive-date=4 May 2011 |access-date=25 May 2011 |publisher=American University}}</ref>

=== Energy ===
[[File:BakunDam.jpg|thumb|[[Bakun Dam]] under construction in 2009]]
{{See also|Energy policy of Malaysia|Tenaga Nasional|List of power stations in Malaysia|National Grid (Malaysia)}}
Malaysia's energy infrastructure sector is largely dominated by [[Tenaga Nasional]], the largest [[electric utility]] company in [[Southeast Asia]], with over RM99.03 billion in assets. Customers are connected to electricity through the [[National Grid (Malaysia)|National Grid]], with more than 420 [[Electrical substation#Transmission substation|transmission substations]] in the Peninsular linked together by approximately 11,000 km<ref>{{cite web|title=Tenaga Nasional Berhad 500kV Transmission System, Phase 1 |url=http://www.ranhill.com.my/tenaganasional.asp |publisher=Ranhill Berhad |access-date=23 May 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090227183633/http://www.ranhill.com.my/tenaganasional.asp |archive-date=27 February 2009 }}</ref> of transmission lines operating at 132, 275 and 500 [[kilovolts]].

In 2013, Malaysia's total power generation capacity was over 29,728 [[megawatts|MW]]. Total electricity generation was 140,985.01 [[GWh]] and total electricity consumption was 116,087.51 GWh.<ref>{{cite web | url=http://www.st.gov.my/index.php/industry/statistics-reports.html | title=Energy Commission | access-date=11 April 2015 | url-status=dead | archive-url=https://web.archive.org/web/20150509023944/http://www.st.gov.my/index.php/industry/statistics-reports.html | archive-date=9 May 2015 | df=dmy-all }}</ref>

Energy production in Malaysia is largely based on oil and natural gas, owing to Malaysia's oil reserves and natural gas reserves, which is the fourth largest in [[Asia-Pacific]] after China, India and [[Vietnam]].<ref name="Unimap">{{cite web|url=http://ppkas.unimap.edu.my/index.php/news/articles/29-renewable-energy-and-kyoto-protocol-adoption-in-malaysia |title=Renewable Energy and Kyoto Protocol: Adoption in Malaysia |author1=Selamat, Salsuwanda |author2=Abidin, Che Zulzikrami Azner |publisher=Universiti Malaysia Perlis |access-date=15 October 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130904032630/http://ppkas.unimap.edu.my/index.php/news/articles/29-renewable-energy-and-kyoto-protocol-adoption-in-malaysia |archive-date=4 September 2013  }}</ref>

Malaysia has also significant renewable energy resources and has high potential for the development of large-scale solar power and it has one of the most advanced legal frameworks in the ASEAN region for promoting renewables.<ref name="Vakulchuk et al 2020">{{cite web |last1=Vakulchuk |first1=Roman |last2=Kresnawan |first2=Muhammad Rizki |last3=Merdekawati |first3=Monika |last4=Overland |first4=Indra |last5=Sagbakken |first5=Haakon Fossum |last6=Suryadi |first6=Beni |last7=Yurnaidi |first7=Zulfikar |title=Malaysia: How to Scale Up Investment in Renewable Energy |date=2020 |doi=10.13140/RG.2.2.32870.45124 |url=https://www.researchgate.net/publication/341793894 |publisher=ASEAN Centre for Energy}}</ref> The country set a 20% target of renewable energy in its energy mix by 2025 and to achieve this the government will need to improve its renewable energy governance, investment policy and market entry for foreign investors as well to develop a framework for easier grid connection and use.<ref name="Vakulchuk et al 2020" /> As of 2021, Malaysia is one of the major producers of solar panels for the international market, but paradoxically it has yet to fully capitalize on this for domestic electricity generation.<ref>{{cite journal |last1=Overland |first1=Indra |last2=Sagbakken |first2=Haakon Fossum |last3=Chan |first3=Hoy-Yen |last4=Merdekawati |first4=Monika |last5=Suryadi |first5=Beni |last6=Utama |first6=Nuki Agya |last7=Vakulchuk |first7=Roman |title=The ASEAN climate and energy paradox |journal=Energy and Climate Change |date=December 2021 |volume=2 |pages=100019 |doi=10.1016/j.egycc.2020.100019 |hdl=11250/2734506 |doi-access=free |hdl-access=free }}</ref>

=== Transport network ===
{{See also|Transport in Malaysia}}

==== Road network ====
[[File:North South Expressway 1.jpg|thumb|The [[North–South Expressway (Malaysia)|North–South Expressway]], the longest highway in Malaysia]]
Malaysia's road network is one of the most comprehensive in Asia and covers approximately {{convert|280000|km|mi|0}}.<ref>{{Cite web |title=Transport and infrastructure in Malaysia |url=https://www.worlddata.info/asia/malaysia/transport.php |access-date=2024-10-21 |website=Worlddata.info |language=en}}</ref>

The main national road network is the [[Malaysian Federal Roads System]], which spans over {{convert|41930|km|mi|abbr=on}}. Most of the federal roads in Malaysia are 2-lane roads. In town areas, federal roads may become 4-lane roads to accommodate to increased traffic. Nearly all federal roads are paved with [[Tarmacadam|tarmac]] except parts of the [[Skudai–Pontian Highway]] which is paved with [[concrete]], while parts of the [[Federal Highway, Malaysia|Federal Highway]] linking [[Klang (city)|Klang]] to Kuala Lumpur, is paved with [[Asphalt concrete|asphalt]].

Malaysia has approximately {{convert|5027|km|mi|0}} of highways and the longest highway, the [[North–South Expressway (Malaysia)|North–South Expressway]], extends {{convert|772|km|mi|0}} on the West Coast of [[Peninsular Malaysia]], connecting major urban centres like [[Kuala Lumpur]] and [[Johor Bahru]]. The [[Pan-Borneo Highway]], which connects [[Sabah]] and [[Sarawak]] on [[Borneo|Borneo Island]] of [[East Malaysia]], is undergoing a major upgrade to [[dual carriageway]] since 2015. A total of {{convert|1663|km|mi|0}} of the road length is being reconstructed, bringing the standard of East Malaysian highways to the same level of quality of Peninsular highways.<ref>{{Cite book |last=Mody |first=Ashoka |url=https://books.google.com/books?id=jSVNQi3UZKgC |title=Infrastructure strategies in East Asia: the untold story |publisher=The World Bank |year=1997 |isbn=0-8213-4027-1 |page=35}}</ref><ref>{{cite web |author=Pim, Lim How |date=17 October 2014 |title=Fadillah says Pan Borneo Highway to be built under Ukas initiative |url=http://www.theborneopost.com/2014/10/17/fadillah-says-pan-borneo-highway-to-be-built-under-ukas-initiative/ |url-status=live |archive-url=https://web.archive.org/web/20141019124934/http://www.theborneopost.com/2014/10/17/fadillah-says-pan-borneo-highway-to-be-built-under-ukas-initiative/ |archive-date=19 October 2014 |access-date=19 October 2014 |work=Borneo Post}}</ref>

==== Rail network ====

{{See also|Rail transport in Malaysia}}
There is currently more than {{convert|2900|km|mi}} of railway in Malaysia, {{convert|767|km|mi|abbr=on}} are [[double track]]ed and [[Electrified railways|electrified]].

Rail transport in Malaysia comprises [[heavy rail]] ([[Keretapi Tanah Melayu|KTM]]), [[light rapid transit]] and [[monorail]] ([[Rapid Rail]]), and a [[funicular]] railway line ([[Penang Hill Railway]]). Heavy rail is mostly used for intercity passenger and freight transport as well as some urban public transport, while LRTs are used for intra-city urban public transport. There two [[commuter rail]] services linking [[Kuala Lumpur]] with the [[Kuala Lumpur International Airport]]. The sole [[monorail]] line in the country is also used for public transport in Kuala Lumpur, while the only funicular railway line is in [[Penang]]. A [[rapid transit]] project, the [[KVMRT]], is currently under construction to improve Kuala Lumpur's public transport system.

The railway network covers most of the 11 states in [[Peninsular Malaysia]]. In East Malaysia, only the state of [[Sabah]] has railways. The network is also connected to the [[State Railway of Thailand|Thai railway]] {{RailGauge|1000mm}} network in the north. If the [[Burma Railway]] is rebuilt, services to Myanmar, India, and China could be initiated.

==== Air network ====
{{See also|List of airports in Malaysia|List of airlines of Malaysia|List of the busiest airports in Malaysia}}
[[File:KLIA MTB&Tower.jpg|thumb|[[Kuala Lumpur International Airport]]]]
Malaysia has 118 airports, of which 38 are paved. Most of the airports are managed by [[Malaysia Airports Holdings Berhad|Malaysia Airports Holdings Berhad (MAHB)]]. The [[flag carrier|national airline]] is [[Malaysia Airlines]], providing international and domestic air services. Major international routes and domestic routes crossing between [[West Malaysia]] and [[East Malaysia]] are served by [[Malaysia Airlines]] and [[AirAsia]] while smaller domestic routes are supplemented by smaller airlines like [[MASwings]], [[Firefly (airline)|Firefly]] and [[Berjaya Air]]. Major cargo airlines include [[MASkargo]] and [[Transmile Air Services]].

[[Kuala Lumpur International Airport|Kuala Lumpur International Airport (KLIA)]] is the main and busiest airport of Malaysia. In 2019, it was the world's [[List of the world's busiest airports by international passenger traffic|12th busiest airport by international passenger traffic]], recording over 44.8 million international passengers. In 2023, it was the world's [[List of the world's busiest airports by passenger traffic|35th busiest airport by passenger traffic]], recording over 47.2 million passengers. As of 2024, KLIA is the second most connected airport globally, following [[Heathrow Airport|London Heathrow Airport]] and preceding [[Haneda Airport]] in terms of international connectivity.<ref>{{Cite web |last=Lane |first=Mark |date=2024-09-11 |title=OAG Megahubs 2024: London Heathrow remains world's number one internationally connected airport |url=https://moodiedavittreport.com/oag-megahubs-2024-london-heathrow-remains-worlds-number-one-internationally-connected-airport/ |access-date=2024-10-21 |website=Moodie Davitt Report |language=en-US}}</ref>

Other major airports include [[Kota Kinabalu International Airport]], which is also Malaysia's second busiest airport and busiest airport in [[East Malaysia]] with over 9 million passengers in 2019, and [[Penang International Airport]], with approximately 6.8 million passengers in 2023.

====Sea network====
[[File:Northport Malaysia Wharve.JPG|thumb|[[Port Klang]]]]
{{See also|Transport in Malaysia#Waterways}}
Malaysia is strategically located on the [[Strait of Malacca]], one of the most important shipping lanes in the world. Boasting a highly developed maritime shipping sector, Malaysia has been ranked by UNCTAD as the fifth-best linked country in the world, in terms of shipping trade route connectivity, better than the developed economies of Germany and the Netherlands.<ref>{{Cite web |last=Joshi |first=Rishab |date=2022-03-26 |title=7 Major Ports in Malaysia |url=https://www.marineinsight.com/know-more/7-major-ports-in-malaysia/ |access-date=2024-10-21 |website=Marine Insight |language=en-US}}</ref>

Malaysia has 2 ports that are listed in the top 20 busiest ports in the world, [[Port Klang]] and [[Port of Tanjung Pelepas]], which are respectively the second and third busiest ports in Southeast Asia after the [[Port of Singapore]].

[[Port Klang]] is Malaysia's busiest port, and the [[List of world's busiest container ports|12th busiest port in the world]], handling over 14 million [[Twenty-foot equivalent unit|TEUs]]. [[Port of Tanjung Pelepas]] is Malaysia's second busiest port, and the [[List of world's busiest container ports|16th busiest port in the world]], handling over 10.4 million TEUs.

==Free trade efforts==
{{See also|Malaysia–United States Free Trade Agreement}}

=== International trade agreements ===
{{citations needed section|date=March 2021}}
{| class="wikitable"
|+
!Economy
!Agreement
!Abbreviation
!Concluded
!Signed
!Effective
!Legal
Text
|-
|{{Flag|Japan}}
|Malaysia–Japan Economic Partnership Agreement
|MJEPA
|13 December 2005
|13 December 2005
|13 July 2006
|[https://fta.miti.gov.my/miti-fta/resources/auto%20download%20images/55894af110378.pdf] {{Webarchive|url=https://web.archive.org/web/20220308055624/https://fta.miti.gov.my/miti-fta/resources/auto%20download%20images/55894af110378.pdf |date=8 March 2022 }}
|-
|{{Flag|Pakistan}}
|Malaysia–Pakistan Closer Economic Partnership Agreement
|MPCEPA
|8 November 2007
|8 November 2007
|1 January 2008
|[https://fta.miti.gov.my/miti-fta/resources/auto%20download%20images/55892379ea5d1.pdf] {{Webarchive|url=https://web.archive.org/web/20220207103120/https://fta.miti.gov.my/miti-fta/resources/auto%20download%20images/55892379ea5d1.pdf |date=7 February 2022 }}
|-
|{{Flag|New Zealand}}
|Malaysia–New Zealand Free Trade Agreement
|MNZFTA
|30 May 2009
|26 October 2009
|1 August 2010
|[https://fta.miti.gov.my/index.php/dl/516d6c734c5535344c7a45755830314f576b5a55515639685a334a6c5a57316c626e52664c6d527659773d3d] {{Webarchive|url=https://web.archive.org/web/20220626165416/https://fta.miti.gov.my/index.php/dl/516d6c734c5535344c7a45755830314f576b5a55515639685a334a6c5a57316c626e52664c6d527659773d3d |date=26 June 2022 }}
|-
|{{Flag|India}}
|Malaysia–India Comprehensive Economic Cooperation Agreement
|MICECA
|
|18 February 2011
|1 July 2011
|[https://fta.miti.gov.my/miti-fta/resources/Malaysia-India/MICECA.pdf] {{Webarchive|url=https://web.archive.org/web/20220404121411/https://fta.miti.gov.my/miti-fta/resources/Malaysia-India/MICECA.pdf |date=4 April 2022 }}
|-
|{{Flag|Chile}}
|Malaysia–Chile Free Trade Agreement
|MCFTA
|May 2010
|13 November 2010
|25 February 2012
|[https://fta.miti.gov.my/miti-fta/resources/Malaysia-Chile/MCFTA.pdf] {{Webarchive|url=https://web.archive.org/web/20220308122350/https://fta.miti.gov.my/miti-fta/resources/Malaysia-Chile/MCFTA.pdf |date=8 March 2022 }}
|-
|{{Flag|Australia}}
|Malaysia–Australia Free Trade Agreement
|MAFTA
|30 March 2012
|
|1 January 2013
|[https://fta.miti.gov.my/miti-fta/resources/Malaysia-Australia/MAFTA.pdf] {{Webarchive|url=https://web.archive.org/web/20220621075341/https://fta.miti.gov.my/miti-fta/resources/Malaysia-Australia/MAFTA.pdf |date=21 June 2022 }}
|-
|{{Flag|Turkey}}
|Malaysia–Turkey Free Trade Agreement
|MTFTA
|15 January 2014
|17 April 2014
|1 August 2015
|[https://fta.miti.gov.my/miti-fta/resources/Malaysia%20-%20Turkey/MTFTA_Main_Agreement.pdf] {{Webarchive|url=https://web.archive.org/web/20220324043856/https://fta.miti.gov.my/miti-fta/resources/Malaysia%20-%20Turkey/MTFTA_Main_Agreement.pdf |date=24 March 2022 }}
|-
|{{Flag|China}}
|ASEAN-China Free Trade Agreement|ASEAN–China Free Trade Agreement
|ATFTA
|
|November 2002
|1 January 2010
|[https://fta.miti.gov.my/index.php/pages/view/asean-china] {{Webarchive|url=https://web.archive.org/web/20220411115028/https://fta.miti.gov.my/index.php/pages/view/asean-china |date=11 April 2022 }}
|-
|{{Flag|Japan}}
|ASEAN–Japan Comprehensive Economic Partnership Agreement
|AJCEP
|
|14 April 2008
|1 February 2009
|[https://fta.miti.gov.my/index.php/pages/view/asean-japan] {{Webarchive|url=https://web.archive.org/web/20220411115021/https://fta.miti.gov.my/index.php/pages/view/asean-japan |date=11 April 2022 }}
|-
|{{Flag|South Korea}}
|ASEAN–Korea Free Trade Agreement
|AKFTA
|
|
|1 January 2010
|[https://fta.miti.gov.my/miti-fta/resources/auto%20download%20images/558b9ea8df8ce.pdf] {{Webarchive|url=https://web.archive.org/web/20220207103239/https://fta.miti.gov.my/miti-fta/resources/auto%20download%20images/558b9ea8df8ce.pdf |date=7 February 2022 }}
|-
|{{Flag|India}}
|ASEAN–India Free Trade Agreement
|AIFTA
|
|13 August 2009
|1 January 2010
|[https://fta.miti.gov.my/miti-fta/resources/ASEAN-India/ASEAN-India_Trade_in_Goods_Agreement.pdf] {{Webarchive|url=https://web.archive.org/web/20220621074406/https://fta.miti.gov.my/miti-fta/resources/ASEAN-India/ASEAN-India_Trade_in_Goods_Agreement.pdf |date=21 June 2022 }}
|-
|{{Flag|Australia}}<br />{{Flag|New Zealand}}
|ASEAN–Australia-New Zealand Free Trade Area Agreement
|AANZFTA
|
|27 February 2009
|1 January 2010
|[https://fta.miti.gov.my/miti-fta/resources/ASEAN-Australia-New%20Zealand/Agreement.pdf] {{Webarchive|url=https://web.archive.org/web/20220617093042/https://fta.miti.gov.my/miti-fta/resources/ASEAN-Australia-New%20Zealand/Agreement.pdf |date=17 June 2022 }}
|-
|{{Flag|Hong Kong}}
|ASEAN–Hong Kong Free Trade Agreement
|AHKFTA
|
|12 November 2017
|13 October 2019
|[https://fta.miti.gov.my/miti-fta/resources/ASEAN%20-%20Hong%20Kong,%20China/AHKFTA_and_Annexes_AHKFTA_Agreement_(Final)_(11.11_.17)_.pdf] {{Webarchive|url=https://web.archive.org/web/20220411115038/https://fta.miti.gov.my/miti-fta/resources/ASEAN%20-%20Hong%20Kong,%20China/AHKFTA_and_Annexes_AHKFTA_Agreement_(Final)_(11.11_.17)_.pdf |date=11 April 2022 }}
|-
|{{Flag|ASEAN}}<br />{{Flag|China}}<br />{{Flag|Japan}}<br />{{Flag|South Korea}}<br />{{Flag|Australia}}<br />{{Flag|New Zealand}}
|[[Regional Comprehensive Economic Partnership]]
|RCEP
|
|15 November 2020
|18 March 2022
|[https://rcepsec.org/legal-text/] {{Webarchive|url=https://web.archive.org/web/20201126115357/https://rcepsec.org/legal-text/ |date=26 November 2020 }}
|}

=== Trade agreements under negotiation ===
* Malaysia-EFTA Economic Partnership Agreement since 2012<ref>[European Free Trade Association - Malaysia], EFTA.int. Retrveied 29 January 2019.</ref>
* [[Malaysia–European Union Free Trade Agreement]] (MEUFTA)
* [[Trans-Pacific Partnership|Trans-Pacific Partnership Agreement]] (TPP)
* [[COMCEC#The Trade Preferential System (TPS-OIC)|Trade Prefential System-Organisation of Islamic Conference]] (TPS-OIC)
* [[Developing Eight]] (D-8) Preferential Tariff Agreement (PTA)

==Investments==
{{Update|part=section|date=April 2022}}
Malaysia's total accumulated investments in 2014 was RM235.9 billion, with 72.6 per cent (RM171.3 billion) being contributed by domestic sources and 27.4 per cent (RM64.6 billion) coming from foreign sources.<ref>{{cite web | url=http://www.mida.gov.my/env3/uploads/PerformanceReport/2014/IPR2014 | title=MIDA | access-date=4 April 2015 | archive-url=https://web.archive.org/web/20150331094731/http://www.mida.gov.my/env3/uploads/PerformanceReport/2014/IPR2014 | archive-date=31 March 2015 | url-status=dead | df=dmy-all }}</ref>

According to [[A.T. Kearney]], a global management consulting firm, Malaysia was ranked 15th in the 2014 Foreign Direct Investment Confidence Index, 9th in 2012, 16th in 2007 and 21st in 2010. The index assesses the impact of political, economic and regulatory changes on the FDI intentions and preferences of the leaders of top companies around the world.
<ref>{{cite web|url=http://1-million-dollar-blog.com/2012-top-25-foreign-direct-investment-fdi-confidence-index-countries/|title=2012 Top 25 Foreign Direct Investment (FDI) Confidence Index Countries|date=8 December 2011|work=1-million-dollar-blog|access-date=3 March 2015|archive-date=9 March 2015|archive-url=https://web.archive.org/web/20150309034754/http://1-million-dollar-blog.com/2012-top-25-foreign-direct-investment-fdi-confidence-index-countries/|url-status=live}}</ref><ref>{{Cite web|url=https://www.kearney.com/service/global-business-policy-council/foreign-direct-investment-confidence-index|title=The 2023 Kearney Foreign Direct Investment Confidence Index: Cautious optimism|website=www.kearney.com|accessdate=2024-03-27|archive-date=27 March 2024|archive-url=https://web.archive.org/web/20240327231906/https://www.kearney.com/service/global-business-policy-council/foreign-direct-investment-confidence-index|url-status=live}}</ref>

{| class="wikitable sortable"
|- style="background:#efefef;"
!Rank <br /> 2007 !!Rank <br /> 2010 !!Rank <br /> 2012 !!Rank <br /> 2014 !! Country !! FDI Confidence <br /> Index
|-
|3|| 2 || 4 || 1 || {{flag|United States}} || 2.16
|-
|1|| 1 || 1 || 2 || {{flag|China}} || 1.95
|-
| – || 9 || 20 || 3 || {{flag|Canada}} || 1.93
|-
|4|| 10 || 8 || 4 || {{flag|United Kingdom}} || 1.91
|-
|6|| 4 || 3 || 5 || {{flag|Brazil}} || 1.91
|-
|10|| 5 || 5 || 6 || {{flag|Germany}} || 1.84
|-
| 5|| 3 || 2 || 7 || {{flag|India}} || 1.81
|-
|11|| 7 || 6 || 8 || {{flag|Australia}} || 1.76
|-
|7|| 24 || 7 || 9 || {{flag|Singapore}} || 1.75
|-
|8|| 13 || 17 || 10 || {{flag|France}} || 1.74
|-
|20|| 11 || 15 || 11 || {{flag|United Arab Emirates}} || 1.74
|-
| 19 || 8 || – || 12 || {{flag|Mexico}} || 1.72
|-
|18 || – || 11 || 13 || {{flag|South Africa}} || 1.70
|-
| – || – || 22 || 14 || {{flag|Switzerland}} || 1.68
|- bgcolor=#CED4F2
|16|| 21|| 10 || 15 || {{flag|Malaysia}} || 1.65
|-
| – || – || – || 16 || {{flag|Sweden}} || 1.64
|-
| – || – || – || 17 || {{flag|Chile}} || 1.64
|-
| -|| – || 24 || 18 || {{flag|Spain}} || 1.63
|-
| – || – || 21 || 19 || {{flag|Japan}} || 1.62
|-
| – || – || – || 20 || {{flag|Italy}} || 1.61
|-
| 12 || – || 16 || 21 || {{flag|Belgium}} || 1.61
|-
| 6 || 6 || 23 || 22 || {{flag|Netherlands}} || 1.61
|-
| – || – || 18 || 23 || {{flag|Denmark}} || 1.61
|-
| 13|| – || 19 || 24 || {{flag|Turkey}} || 1.60
|-
|18|| 23 || 13 || 25 || {{flag|Indonesia}} || 1.60
|}

== Largest public Malaysian companies ==
{{See also|List of largest companies in Malaysia}}

=== Fortune Global 500 ===
Malaysia has 1 company that rank in the [[Fortune Global 500]] ranking for 2022.<ref>{{Cite web |title=Fortune Global 500 List 2022: See Who Made It |url=https://fortune.com/ranking/global500/2022/search/?Country+%2F+Territory=Malaysia |access-date=2022-12-28 |website=Fortune |language=en}}</ref>
{| class="wikitable"
|+
!World Rank
!Company
!Industry
!Sales ($M)
!Profits ($M)
!Assets ($M)
!Employees
|-
|216
|[[Petronas]]
|[[Oil and gas]]
|59,873
|10,091
|152,498
|46,884
|}

=== Forbes Global 2000 ===
Malaysia has 8 companies that rank in the [[Forbes Global 2000]] ranking for 2022.<ref>{{Cite web |title=The Global 2000 2021 |url=https://www.forbes.com/lists/global2000/ |access-date=2022-03-22 |website=Forbes |language=en |archive-date=13 May 2021 |archive-url=https://web.archive.org/web/20210513204015/https://www.forbes.com/lists/global2000/ |url-status=live }}</ref>

{| class="wikitable sortable"
|- style="background:#efefef;"
!World rank !! Company !! Industry !! Sales <br /> (billion $) !! Profits <br /> (billion $) !! Assets <br /> (billion $) !! Market value <br /> (billion $)
|-
|485|| [[Maybank]] || Banking || 9.2 || 2.0 || 213.2 || 24.7
|-
|837|| [[Tenaga Nasional]] || Utilities || 12.7 || 0.883 || 43.8 || 11.8
|-
|751|| [[Public Bank Berhad]]|| Banking || 4.5|| 1.4 || 111.1 || 21.2
|-
|895|| [[CIMB]] Group Holdings || Banking || 5.7|| 1.0 || 149.3 || 12.2
|-
|1525|| [[RHB Bank|RHB Capital]]|| Banking || 2.6 || 0.631 || 69.5 || 5.7
|-
|1641|| [[Hong Leong]] Financial Group || Business services & supplies || 1.9 || 0.567 || 66.7 || 5.1
|-
|1448|| [[Top Glove]]|| Health care equipment & services || 3.6 || 1.6 || 3.1 || 10.8
|-
|1236|| [[Petronas Chemicals]] || Chemicals || 5.6|| 1.8 || 11.5|| 19.1
|}

==See also==
* [[List of Malaysian states by GDP]]
* [[List of Malaysian states by household income|List of Malaysian states by mean household income and median household income]]
* [[List of Malaysian states by mean wage and median wage]]
* [[Bamboo network]]
* [[Malaysian Green Transition]]

==Notes==
{{reflist|group=note}}

==References==
{{reflist}}

*{{Cite web|url=https://atlas.media.mit.edu/en/profile/country/mys/|title=OEC - Malaysia (MYS) Exports, Imports, and Trade Partners|website=atlas.media.mit.edu|language=en|access-date=24 March 2019|archive-date=24 March 2019|archive-url=https://web.archive.org/web/20190324100114/https://atlas.media.mit.edu/en/profile/country/mys/|url-status=dead}}

==Further reading==
* {{cite book |last1=Drabble |first1=John |title=An Economic History of Malaysia, c.1800-1990: The Transition to Modern Economic Growth |date=15 May 2000 |publisher=Springer |isbn=9780230389465 |url=https://books.google.com/books?id=t46FDAAAQBAJ}}

==External links==
* [https://www.pbs.org/wgbh/commandingheights/shared/minitextlo/int_mahathirbinmohamad.html Mahathir bin Mohamad's interview with the PBS series "Commanding Heights" on the subject of East Asian economic development.] {{Webarchive|url=https://web.archive.org/web/20071222184145/http://www.pbs.org/wgbh/commandingheights/shared/minitextlo/int_mahathirbinmohamad.html |date=22 December 2007 }}
* [https://web.archive.org/web/20060824165517/http://www.statistics.gov.my/english/frameset_keystats.php Key Statistics for Malaysia]
* [http://www.viewswire.com/index.asp?layout=VWCountryVW3&region_id=&country_id=1600000160 Economic Outlook by Economist Intelligence Unit] {{Webarchive|url=https://web.archive.org/web/20071020130154/http://www.viewswire.com/index.asp?layout=VWCountryVW3&region_id=&country_id=1600000160 |date=20 October 2007 }}
* [https://www.swfinstitute.org/profile/598cdaa50124e9fd2d05b58c Khazanah Nasional Berhad SWF Profile] {{Webarchive|url=https://web.archive.org/web/20221203063905/https://www.swfinstitute.org/profile/598cdaa50124e9fd2d05b58c |date=3 December 2022 }}
* [http://wits.worldbank.org/CountryProfile/Country/MYS/Year/2012/Summary World Bank Summary Trade Statistics Malaysia] {{Webarchive|url=https://web.archive.org/web/20151016010329/http://wits.worldbank.org/CountryProfile/Country/MYS/Year/2012/Summary |date=16 October 2015 }}
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