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We are surrounded by the economy but never really see it.

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

Malaysia Economy : What Malaysia Produces


Prior 1970 Agro and mining based economy. - Rubber, timber, oil palm - producer of raw materials: tin - Petroleum industry 1980s manufacturing especially electronics 1990s - multi-sector economy - service sectors(banking and tourism) Exports became the country's primary growth engine. Consistently achieved more than 7% GDP growth along with low inflation in the 1980s and the 1990s.

Measurement of Output
Gross Domestic Product (GDP) An estimated value of the total worth of a countrys production and services, on its land, by its nationals and foreigners, calculated over the course on one year. To see the strength of a countrys local economy

GDP = consumption + investment + (government spending) + (exports imports)

Malaysia GDP
The Gross Domestic Product (GDP) in Malaysia was worth 278.67 billion US dollars in 2011. The GDP value of Malaysia represents 0.45 percent of the world economy.(source: world bank report)

From 1960 until 2011, Malaysia GDP averaged 59.9 USD Billion - Reaching an all time high of 278.7 USD Billion in December of 2011 - A record low of 2.4 USD Billion in December of 1961.

Measurement of Output
Gross National Product (GNP) An estimated value of the total worth of production and services, by citizens of a country, on its land or on foreign land, calculated over the course on one year. To see how the nationals of a country are doing economically

GNP = GDP + NR (Net income inflow from assets abroad or Net Income Receipts) - NP (Net payment outflow to foreign assets)

Measurement of Output
Gross Domestic Product per Capita The GDP per capita is obtained by dividing the countrys gross domestic product, adjusted by inflation, by the total population.

Norway Qatar Spore U.S.A

= $98k = $92k = $49 = $48k

Japan = $46k S Korea = $ 23k Mexico = $ 10.2k Malaysia = $ 5.4k

Congo = $216 Ethiopia= $326 Togo = $524

Malaysia GDP per Capita


TheGDP per capita was last recorded at
5,364.50 US dollars in 2011.
Msia GDP per capita is equivalent to 43 percent of the world's average. From 1960 until 2011, Malaysia GDP per capita averaged 2594.3 USD .

A record low of 814.6 USD in December of 1960.


GDP per capita grew 36% in the Eighties, and 59% in the Nineties led primarily by exportoriented industries

Components of Malaysia GDP


Govt Purchases (12%)
-Local municipal, state and Federal spending - public works

Household Consumption (48%)

Gross Domestic Product


Business investment (20%)
-Capital equipment - inventories - structures

Net Exports (20%)

- Goods and services

- Exports by imports.

How Malaysia Produces


Abundant natural resources give Malaysia a decided advantage. Superior resources alone not necessarily provide a nations economic dominance. Capital intensive vs labor intensive. Factor quality capital and labor. The high productivity of developed economy results from using highly educated workers in capital intensive production processes. Factor Mobility reallocating resources from one industry to another. Corporatization/Privatization Govt. regulation

For Whom Malaysia Produces


Sharing of the economic pie. Distribution of Income as countries develop, the personal distribution income tends to become more equal.