Malaysia
The Country
Its’ People
Climate
Politics
Economy
Travel
July 2012
SQM
MALAYSIA
THE COUNTRY
Malaysia is made up of two geographical regions. Peninsular Malaysia or West Malaysia
comprising of eleven states and the Federal Territory of Kuala Lumpur and Putrajaya and East
Malaysia which has two states and the Federal Territory of Labuan.
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MALAYSIA
The West Malaysian states are
Johor
Kedah
Kelantan
Melaka
Negeri Sembilan
Pahang
Penang
Perak
Perlis
Selangor
Terengganu
The East Malaysian states are
Sabah
Sarawak
The Federal Territories are
Kuala Lumpur
Putrajaya
Labuan
Peninsular Malaysia is 7 degrees north of the equator and East Malaysia is situated on the island
of Borneo. The two regions are separated by about 640 kilometres of the South China Sea.
The total land area is 330,803 square kilometres. Peninsular Malaysia has a land mass of
132,631 square kilometres (40%), Sarawak with a land mass of 124,450 square kilometres (37%)
and Sabah with a land mass of 73,722 square kilometres (23%). 80% of the land area is covered
by tropical rainforest.
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MALAYSIA
ITS’ PEOPLE
Population
Malaysia has a population of approximately 28.6 million and 80% of them are in West Malaysia
and 73% of the population stays in urban areas.
Malaysia is a multi-racial, multi-religious and multi-cultural society.
Ethnic Composition
The Bumiputera (indigenous) population comprising of the Malays and the Aborigines account for
about 60.6% with the Chinese at about 22.8%, Indians at about 6.8% and the balance of 9.8%
represented by other races.
Religion
Islam is the national religion. However, the Constitution provides that every person has the right
to profess and practise his own religion and also the right to propagate his faith, although the right
to propagate other religions amongst the Muslims is prohibited. In addition to Islam other major
religions are Christianity, Buddhism: Chinese religions; Hinduism and Sikhism.
Language
The official language is Bahasa Melayu (although the official language is often referred to as
Bahasa Malaysia). English is widely used in business and Mandarin and other Chinese dialects,
Hindi and Tamil, are also widely used.
The literacy rate in Malaysia is about 93.9%.
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MALAYSIA
CLIMATE
Malaysia is in the tropics and enjoys an equatorial climate. The average temperature is 33
degrees celsius in the day and 24 degrees celsius in the night. The humidity is high and averages
80%. This is due to the high temperature and high evaporation. Rainfall is common throughout
the year with afternoon thunderstorm. The average annual rainfall is 2,500mm.
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MALAYSIA
POLITICS
Malaysia is a constitutional monarchy and practises parliamentary democracy with a Constitution,
the Judiciary, the Legislature and the Executive. It has a stable government since independence.
The present governing party is the Barisan Nasional comprising of all the major political parties.
The major political party is the United Malays National Organisation.
The Malaysian Parliament is made up of His Majesty Yang di-Pertuan Agong (the Monarch), the
Dewan Negara (Senate-upper house) and Dewan Rakyat (House of Representatives-lower
house). Each state, other than the Federal Territories, has its own Dewan Undangan Negeri
(State Legislative Assembly).
Members of Dewan Rakyat (House of Representatives) and Dewan Undangan Negeri (State
Legislative Assemblies) are elected and a general election for the House of Representatives and
the State Legislative Assemblies must be held every five years.
The majority of the members of the Senate are appointed by His Majesty Yang di-Pertuan Agong,
on the advice of the Prime Minister. Each State Legislative Assembly elects two members to the
Senate.
The Yang Di Pertuan Agong (the King) is elected by a Conference of Rulers comprising of all the
hereditary rulers of the nine Malay sultanates for a term of five years.
Information on the Malaysian Parliament may be obtained from http://www.parlimen.gov.my.
Malaysia has diplomatic relations with over 130 countries and there are over 130 diplomatic
missions in Kuala Lumpur.
For more information about the country, its government and government agencies visit the
following website : http://www.malaysia.gov.my.
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MALAYSIA
ECONOMY
The economic policies and strategies of the country are set out in the
New Economic Model. These are implemented as five yearly
economic action plans. The current action plan is the Tenth Malaysia
Plan (2011 - 2015). The average growth during the Ninth Malaysia
Plan (2006 – 2010) was 4.2% per annum and a per capita income of
RM26,420 in 2010.
Under the leadership of the Prime Minister, Dato’ Sri Mohd. Najib Bin
Tun Abdul Razak, he has introduced the Economic Transformation
Programme, driven by eight Strategic Reform Initiatives and has
targeted growth of at least 6% per annum under the Tenth Malaysia
Plan and a per capita income of RM38,850 by 2015 and to become a
high income, developed, resilient and competitive nation by 2020.
Over the last ten years Malaysia enjoyed positive growth rate with an
average growth rate of 4.8% in the gross domestic product (GDP) of
the country. Unfortunately Malaysia is not immune to the global
economic downturn. The global economic recession resulting from the
bursting of the housing bubble in the United States of America,
followed by the global financial crisis of 2007-2008 adversely affected
the country’s performance which is export oriented. These adverse
events resulted in a contraction of -1.7% in the GDP in 2009 but the
country rebounded with a 7.2% expansion in 2010. The European sovereign debt crisis
accompanied with slowing growth in developed economies and China add to the continuing
uncertainty in the global economy. This has dampened the growth of the country’s economy. The
growth in 2011 was 5.1% with a GDP of RM709.3 billion and per capita GDP of RM29,661. The
growth forecast for 2012 is between 4% and 5%.
For the five years between 2006-2010 inflation averages 2.7% with unemployment at 3.3%. The
economic turmoil of 2007 – 2008 followed by the European sovereign debt crisis has resulted in a
higher than average inflation rate. For 2011 inflation was at 3.2% with an unemployment rate of
3.1%.
The last five years saw an increased growth in the service sector with slower growth in the
manufacturing sector. In 2011 manufacturing account for 25.2% of the GDP (2006-31%), services
account for 54.2% (2006-52%), mining account for 8.8% (2002-8.9%), construction account for
3.1% (2006-3.1%) and agriculture for 7.7% (2006-8%).
Manufacturing goods continues to be the major exports at 67.7%, with agriculture at 13.6% and
mining at 18.1% of total exports.
The main export continues to be electrical and electronic goods.
Agriculture remains an important economic sector in this resource rich country.
The major agricultural produce is as follows :
Oil Palm (world's second largest producer and exporter of palm oil)
Rubber (world’s third largest producer of natural rubber)
Cocoa (world’s fifteenth largest producer)
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MALAYSIA
Other agricultural produce and minerals and resources are Tin (world’s eighth largest producer),
Pepper, Pineapple, Rice, Coconut, Tobacco, Forestry and Timber, Fisheries, Livestock, Fruits
and Petroleum and Natural Gas.
The largest trading partner of Malaysia is China, followed by Singapore, Japan, the European
Union and the United States of America. China together with the other East Asian countries, such
as Korea and Japan, account for 37% of Malaysia’s trade. The European Union continued to be a
major trading partner. Germany together with France, the Netherlands and the United Kingdom
are the major trading partners of Malaysia in Europe accounting for more than half of the total
trade with the European Union.
Intra-regional trade is growing within ASEAN. Currently it accounts for 25% of Malaysia’s trade,
with Singapore accounting for almost half of that trade within ASEAN.
The currency in Malaysia is Ringgit Malaysia (RM). It is issued in notes of denominations of 100,
50, 20, 10, 5, and 1. There are coins of 50 sen, 20 sen, 10 sen and 5 sen.
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MALAYSIA
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MALAYSIA
TRAVEL
Gateway to Malaysia
The major international air gateway into Malaysia is the Kuala
Lumpur International Airport at Sepang, situated about 75
kilometres from the City of Kuala Lumpur. Other international
airports are Penang and Johor Bahru in Peninsular Malaysia
and Kuching and Kota Kinabalu in East Malaysia.
Peninsular Malaysia can be accessed by road and rail from
Singapore in the south and Thailand in the north. The country
has an extensive network of roads and toll-ways. Driving is
on the left.
The major seaport is Port Klang, 48 kilometres from Kuala
Lumpur.
Malaysia receives 24 million visitors in 2011.
Local Time
Standard Malaysian Time is 8 hours ahead of Greenwich Mean (GMT)
Electricity and Water
There is piped water and drinking from the tap is safe. Electricity supply is 240 volts and 50
cycles.
Working Day
Working days are from Mondays to Fridays and half-day on Saturdays with the exception of
Kedah, Kelantan, Perlis and Terengganu where the working days are from Saturdays to
Wednesdays and half-day on Thursday. (The working days for the state government of Kelantan
and Terengganu are from Sunday to Thursday.) Banking hours during weekdays is between
9.30am to 4.00pm (or 10.00am to 3.00pm) and 9.30am to 11.30am on half-days.
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MALAYSIA
Public Holidays
These have to be gazetted and there are many public holidays reflecting the multi-cultural and
multi-religious society. On average there are about 16 days per annum and holidays differ from
state to state.
Immigration
Travellers must possess valid travel documents. This also applies to travels between East and
West Malaysia.
No visa is required for nationals of Commonwealth countries (except Bangladesh, India, Pakistan,
Sri Lanka and Nigeria).
No visa is required for a visit not exceeding more than one month for nationals of ASEAN
(Association of South East Asian Nations) countries.
Generally nationals of other countries (other than specific country restrictions) are allowed to
enter Malaysia without a visa for a visit not exceeding one month.
A Social or Tourist Visit is normally granted for a period of 14 days to three months.
Visas must be obtained before entering Malaysia.
Citizens of Israel are not allowed to enter Malaysia. Special approval must first be obtained.
Specific passes are required for employment, business or professional work in Malaysia.
Visitors are advised to check with the nearest Malaysian diplomatic mission before they start their
journey.
Health
Yellow fever vaccination is required for all arrivals from infected areas and from Yellow Fever
Endemic Zones.
Capital Punishment
The trafficking of illicit drugs and the unlawful possession of live ammunition and explosives are
serious offences in Malaysia. Upon conviction, capital punishment (death) is the penalty for such
crimes.
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MALAYSIA
Sources of information :
Department of Statistics, Malaysia
Bank Negara Malaysia
Ministry of Foreign Affairs of Malaysia
Ministry of International Trade and Industry Malaysia
Tourism Malaysia
Economic Planning Unit, Prime Minister’s Department, Malaysia
Other useful links and references
Government
Legislation
Finance
Banking
Investments
Income Tax
Customs
Statistics
Business
Securities
Stock Exchange
Kerajaan Malaysia
Malaysian Government
Jabatan Peguam Negara
Attorney General’s Chambers
Kementerian Kewangan
(Perbendaraan)
Treasury
Bank Negara Malaysia
Central Bank
Kementerian Perdagangan
Antarabangsa dan Industri
Ministry of International Trade and
Industry (MITI)
Lembaga Kemajuan Perindustriaan
Malaysia
Malaysian Industrial Development
Authority (MIDA)
Lembaga Hasil Dalam Negeri
Malaysia
Inland Revenue Board
Jabatan Kastam Diraja Malaysia
Customs
Jabatan Perangkaan
Department of Statistics
Suruhanjaya Syarikat Malaysia
Companies Commission of Malaysia
Suruhanjaya Securiti
Securities Commission
Bursa Malaysia
Kuala Lumpur Stock Exchange
www.malaysia.gov.my
www.federalgazette.agc.gov.my
www.treasury.gov.my
www.bnm.gov.my
www.miti.gov.my
www.mida.gov.my
www.hasil.gov.my
www.customs.gov.my
www.statistics.gov.my
www.ssm.com.my
www.sc.com.my
www.bursamalaysia.com
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MALAYSIA
Other useful links and references
Labour
Kementrian Sumber Manusia
Ministry of Human Resources
Pertubuhan Keselamatan Sosial
(PERKESO)
Social Security Organisation (SOCSO)
Kumpulan Wang Simpanan Pekerja
(KWSP)
Employees Provident Fund (EPF)
Jabatan Keselamatan dan Kesihatan
Pekerjaan
Department of Safety and Health
Pembangunan Sumber Manusia Bhd
www.mohr.gov.my
Jabatan Imigresen
Immigration Department
Kementerian Pengajian Tinggi
Ministry of Higher Education
Kementerian Pelajaran
Ministry of Education
Kementerian Kesihatan
Ministry of Health
Tourism Malaysia
www.imi.gov.my
Polis Diraja Malaysia
Police
www.rmp.gov.my
Lawyers
Accountants
Malaysian Bar
Malaysian Institute of Accountants
www.malaysianbar.org.my
www.mia.org.my
Tax Professionals
Chartered Tax Institute of Malaysia
www.ctim.org.my
Employees Social Security
Employees Provident Fund
Occupational Safety and
Health
Human Resources
Development
Immigration
Education
Health
Tourism
Public Security
www.perkeso.gov.my
www.kwsp.gov.my
www.dosh.gov.my
www.hrdf.com.my
www.mohe.gov.my
www.moe.gov.my
www.moh.gov.my
www.tourism.gov.my
Professional Bodies
Disclaimer
The information contained in the article is for guidance only and is not exhaustive.
The information is provided gratuitously and without liability.
SQM and the ASQ group of companies shall not be liable for any loss or damage caused
by the usage of or reliance on the information and guidance provided in this article and
other information provided on the SQM and ASQ websites.
Professional advice and assistance must always be obtained before you act on any of the
guidance provided.
Please refer to the respective source of information, legislation and the regulatory
authorities for authoritative guidance.
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