Word Count: 1797
As the world prepares to move into the twenty-first century, many nations are rapidly
developing their agricultural and manufacturing sectors. As these burgeoning industries
become a larger part of the nation’s economy, the nation finds its population restructuring
and streaming to the areas of growth. Just as the people are trying to compete for their
survival, the nation is fighting its way to center stage in the world economy. The
development of these countries is tied to the world’s economy, as is evidenced by the
uneven development within each of the nations. Malaysia’s growing role in the world
economy is likewise intertwined with the development of its industrial regions.
Malaysia’s economy is centered on the production of rubber, timber, tin, and petroleum.
Almost all of the country’s production of rubber and palm oil is raised solely for export.
Historically, rubber was the dominant export, but now it is palm oil in terms of square
miles used to cultivate it. Rubber, like “no other major commodity in the world,” was
subject to “dramatic and rapid shifts in sources and derivation of demand” (McHale, 9).
Thus, Malaysia has been moving away from its complete dependency on rubber for its
income, and begun to diversify its economy. The peninsula’s forests produce
approximately 1,100,000 tons of timber each year, and about two thirds of that is
exported. Up to 1965, Malaysia was producing 40% of the world’s tin supply. However,
with its quickly diversifying economy, Malaysia no longer depends on tin as a substantial
part of its income. Small amounts of other useful minerals can be found all over
Malaysia, as it is a naturally abundant land.
Its major exports are electronic equipment, machinery, petroleum, palm oil, rubber,
timber, and tin. The biggest trading partners are Japan, the United States, and Singapore.
Other trading partners include the United Kingdom and Russia. About two thirds of the
land on the peninsula is devoted to the cultivation of rubber, and Malaysia produces more
than a third of the world’s rubber. Tin is the second largest export, and has been mined
on the peninsula since the 17th century. Since Malaysia’s exports are mostly raw
materials, and raw materials are susceptible to wildly fluctuating market prices,
Malaysia’s economy is easily affected by market swings. For example, just a one cent
fall in the price of rubber would decrease Malaysia’s export earnings by $22,000,000 in
one year (Britannica Encyclopedia, 692A). Such fluctuations would damage its growing
economy, and until recently Malaysia has been slow in catching up with the industrial
world.
Recently, in an effort to balance the economy, Malaysia has put more emphasis on the
manufacturing of semiconductors for computers in an effort to lessen its reliance on
agriculture and mining. Growing manufacturing sectors include air conditioners, cement,
rubber, textiles, and food processing. The manufacturing sector has doubled its economic
impact in the last two decades, showing definite growth and progress as Malaysia grows
more important to the global economy.
Major imports are food, petroleum, non-electrical machinery, electrical equipment,
chemicals, steel, and textiles. Food, drinks, and tobacco comprise a quarter of the
imported goods. Manufactured goods are another quarter, and machinery and equipment
are just slightly less than twenty five percent (Britannica Encyclopedia, 692A).
The country’s economy is usually quite balanced—in 1990 its exports earned $45.6
million, while its imports totaled $47.1 million. Almost a third of Malaysia’s
international trade passes through Singapore, the gateway of Southeast Asia. Malaysia
achieved such balance by concentrating on exports and diversifying its products to
include petroleum and natural gas. Previously, the reliance on rubber and timber was
susceptible to too much market fluctuation, and Malaysia has strengthened its economic
base by expanding its markets.
Malaysia has among the best economies of Southeast Asia. From 1986 to 1990, its GDP
grew at 4.2% per year. This was because of the concentration on exports in the
development of its economy. It has also developed its palm oil exporting business to be
the leader in the world.
Peninsular Malaysia is the most developed area of the nation and comprises most of the
country’s GDP. However, in that prosperous region, economic and industrial
development is uneven. Most of the plantations, mines, ports, and cities are within thirty
miles of the west coast. Manufacturing is concentrated in the Kuala Lumpur area. Kuala
Lumpur also has the largest population of any Malaysian city—938,000 as estimated in
1993. It is quite clear that Kuala Lumpur’s sustained population growth is a result of a
constant flow of immigrants. The increase in manufacturing jobs is clearly the reason for
such growth.
Most of the poor people in Malaysia are Malays, and the majority of the rich
population is Chinese. Economic and political differences have caused trouble between
the two dominating groups. An income disparity has always existed between the urban
and rural areas of Malaysia. Generally, the Chinese “live in cities and…own a large
proportion of Malaysia’s businesses….Malays live in crowded, run-down areas”
(Chandler, 100). Throughout history, the mean income of the Chinese as compared with
that of the Malays has always been roughly about two times as much (Jomo, 90). .
However, the Malays control the political groups, but they “desire greater economic
opportunities, while Chinese and Indians want to obtain larger shares of political power
without losing their cultural identities” (Lin Jean Lim, 270).
Of the estimated 19 million people in Malaysia in 1994, about 80% reside on the
more developed peninsula, with 50% being Malays, 35% Chinese, and 10% Asian
Indians
(Britannica, 686). It is estimated that Malaysia has the third highest standard of living in
Asia. The majority of the Malays live in rural areas of the peninsula as farmers. Those
farmers live in kampongs, which are rural residences with small houses made of wood.
The Malays who live in large cities mostly work in government positions. Large
percentages of both groups now live in big cities because of the job opportunities
available. However, throughout history, many more Chinese than Malays have lived in
the cities, and the Chinese continue to “participate” in the “booming urban economy.”
(Colliers) The Chinese work in shops, banks, or business offices, while a large part of
the civil service is composed of Malays. The job disparity between the Chinese and
Malays has been cause for much racial strife
In Sarawak and Sabah, formerly known as East Malaysia, most of the people live
on the western coastal plain. Generally, the standard of living on the eastern side is lower
than on peninsular Malaysia. The area is clearly less urbanized and the population is
scattered. A major product in this area is timber, evenly produced by both states on this
eastern section of Malaysia. The Chinese there reside in towns and urban areas, much
like the peninsular Chinese. They dominate the timber industry there. The Malays in
that region live in the inland areas where they have tiny farms. These farmers live in
“long houses” along the rivers, and struggle to produce enough food for subsistence.
Up to the turn of the century, Malaysia saw mostly international immigration rather than
internal migration. Most of the migrants came from Malays, Chinese, and Asian Indians.
Most non-Malay immigrants went to Malaysia in search of a quick fortune from the tin
mines and rubber plantations, and planned to return to their homelands. However, most
Malays had permanent settlement intentions and came as families. Since about 1930, the
percentage of foreign-born population has “decline[d] steadily to barely one-tenth by
1970” (Lin Jean Lim, 161). This shows that Malaysia has retained most of its
immigrants, and international immigrants and internal migrants outnumber migrants.
The biggest draw has been the state of Selangor, of which Kuala Lumpur is the
capital. Malaysia’s internal migrant patterns have remained consistent—with people
streaming to developed areas such as Kuala Lumpur in hopes of finding a job, and fleeing
the less developed states. Lim states that there has been “a strong gravitational pull
toward the Kuala Lumpur area where the bulk of modern sector development has been
located” (Lin Jean Lim 168). The migration into the Kuala Lumpur region is estimated to
have increased by 30,000 per year. One study found that an overwhelming eighty four
percent of migrants to Kuala Lumpur were searching for jobs (Lin Jean Lim, 176). Firms
from around the world have made substantial investments in Malaysia by relocating
manufacturing plants there. This trend has “altered Malaysia’s role in the world
economy, and it has contributed to [its] economic advance” (Clark and Chan, 169).
Another study showed that migrants to the area had a lower unemployment rate than the
native labor force (Lim, David, 146). Clearly, the migrants to the Kuala Lumpur area
were qualified workers in search of work. The influx of immigrants to rapidly
developing areas is thus unmistakably tied to the availability of jobs.
Clearly, Malaysia’s expanding and diversifying economy is steering it onto the
world economy stage. Malaysia stands ready to benefit from the rapidly growing
manufacturing sector, and with its new economic resilience, should become stronger in
the world economy. The country’s growing involvement with manufacturing and other
international businesses, along with many skilled workers streaming to those
manufacturing plants, will make Malaysia successful in fully integrating with the highly
competitive world economy.
Works Cited
Andaya, Leonard Y. “Malaysia.” Collier’s Encyclopedia. 1997.
Chandler, David P. “Malaysia.” The World Book Encyclopedia. 1997.
Chan, Steve, and Cal Clark, eds. The Evolving Pacific Basin in the Global Political
Economy.
United States: Lynne Rienner Publishers, Inc., 1992.
Cheok, Cheong Kee and Lin Lean Lim. Demographic Impact on Socio-Economic
Development
The Malaysia Experience. Canberra, Australia: The Australian National University,
1982.
Drabble, J.H. Rubber in Malaya 1876-1922. Malaysia: Oxford University Press, 1973.
Jomo, K.S. Growth and structural Change in the Malaysian Economy. London: The
MacMillan
Press Ltd., 1990.
Lim, David, ed. Further Readings on Malaysian Economic Development. Malaysia:
Oxford
University Press, 1983.
Lim, Lin Lean. Population and Development: Theory and Empirical Evidence.
Malaysia:
International Book Service, 1983.
“Malaysia.” Encyclopedia Britannica: Macropaedia. 1973.
McHale, T.R. Rubber and the Malaysian Economy. Singapore: M.P.H. Publications,
1966.
Peng, Khor Kok. Recession and the Malaysian Economy. Malaysia: Institut Masyarakat,
1983.
Schatzl, Ludwig H., ed. Growth and Spatial Equity in West Malaysia. Singapore:
Institute of
Southeast Asian Studies, 1988.
Yee, Lo Sum. The Development Performance of West Malaysia 1955-1967. Malaysia:
Heinemann Educational Books, 1972.
Keywords:
word count world prepares move into twenty first century many nations rapidly
developing their agricultural manufacturing sectors these burgeoning industries become
larger part nation economy nation finds population restructuring streaming areas growth
just people trying compete their survival nation fighting center stage world economy
development these countries tied world economy evidenced uneven development within
each nations malaysia growing role likewise intertwined with development industrial
regions malaysia centered production rubber timber petroleum almost country production
rubber palm raised solely export historically rubber dominant export palm terms square
miles used cultivate like other major commodity subject dramatic rapid shifts sources
derivation demand mchale thus malaysia been moving away from complete dependency
income begun diversify peninsula forests produce approximately tons timber each year
about thirds that exported producing supply however with quickly diversifying longer
depends substantial part income small amounts other useful minerals found over naturally
abundant land major exports electronic equipment machinery petroleum palm timber
biggest trading partners japan united states singapore other trading partners include
united kingdom russia about thirds land peninsula devoted cultivation produces more
than third second largest export been mined peninsula since century since exports mostly
materials materials susceptible wildly fluctuating market prices easily affected market
swings example just cent fall price would decrease earnings year britannica encyclopedia
such fluctuations would damage growing until recently been slow catching with
industrial recently effort balance more emphasis manufacturing semiconductors
computers effort lessen reliance agriculture mining growing manufacturing sectors
include conditioners cement textiles food processing sector doubled economic impact last
decades showing definite growth progress grows more important global major imports
food petroleum electrical machinery electrical equipment chemicals steel textiles food
drinks tobacco comprise quarter imported goods manufactured goods another quarter
machinery equipment just slightly less than twenty five percent britannica encyclopedia
country usually quite balanced exports earned million while imports totaled million
almost third international trade passes through singapore gateway southeast asia achieved
such balance concentrating diversifying products include natural previously reliance
susceptible much market fluctuation strengthened economic base expanding markets
among best economies southeast asia from grew year this because concentration also
developed exporting business leader peninsular most developed area comprises most
country however that prosperous region economic industrial uneven most plantations
mines ports cities within thirty miles west coast concentrated kuala lumpur area kuala
lumpur also largest population malaysian city estimated quite clear that kuala lumpur
sustained population growth result constant flow immigrants increase jobs clearly reason
such poor people malays majority rich chinese political differences have caused trouble
between dominating groups income disparity always existed between urban rural areas
generally chinese live cities large proportion businesses malays live crowded down areas
chandler throughout history mean chinese compared malays always roughly about times
much jomo however control political groups they desire greater opportunities while
indians want obtain larger shares political power without losing their cultural identities
jean estimated million people reside developed being asian indians britannica estimated
third highest standard living asia majority live rural farmers those farmers kampongs
which rural residences small houses made wood large cities mostly work government
positions large percentages both groups because opportunities available throughout
history many than have lived continue participate booming urban colliers work shops
banks business offices while part civil service composed disparity between cause much
racial strife sarawak sabah formerly known east western coastal plain generally standard
living eastern side lower peninsular area clearly less urbanized scattered product this
evenly produced both states this eastern section there reside towns urban like peninsular
they dominate industry there region inland where they have tiny farms these farmers long
houses along rivers struggle produce enough subsistence turn century mostly
international immigration rather internal migration migrants came from asian indians
malay immigrants went search quick fortune mines plantations planned return homelands
permanent settlement intentions came families since percentage foreign born decline
steadily barely tenth jean shows retained immigrants international internal migrants
outnumber migrants biggest draw state selangor which capital internal migrant patterns
remained consistent streaming hopes finding fleeing less states there strong gravitational
pull toward where bulk modern sector located jean migration into region increased study
found overwhelming eighty four percent were searching jobs firms around made
substantial investments relocating plants trend altered role contributed advance clark chan
another study showed lower unemployment rate native labor force david clearly were
qualified workers search work influx rapidly developing thus unmistakably tied
availability jobs expanding diversifying steering onto stage stands ready benefit rapidly
sector resilience should become stronger involvement businesses along many skilled
workers streaming those plants will make successful fully integrating highly competitive
works cited andaya leonard collier encyclopedia chandler david book chan steve clark
evolving pacific basin global united lynne rienner publishers cheok cheong lean
demographic impact socio experience canberra australia australian national university
drabble malaya oxford university press jomo structural change malaysian london
macmillan press david further readings malaysian oxford university press lean theory
empirical evidence book service macropaedia mchale singapore publications peng khor
recession institut masyarakat schatzl ludwig spatial equity west institute southeast asian
studies performance west heinemann educational books
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