Overview: In 1988 booming exports helped Malaysia continue to recover from the severe 1985-86 recession. Real output grew by 7.4%, helped by 15% growth in manufacturing output and further increases in foreign direct investment, particularly from Japanese and Taiwanese firms facing higher costs at home. Inflation remained low as unemployment stood at 8% of the labor force and as the government followed prudent fiscal/monetary policies. The country is not self-sufficient in food, and a majority of the rural population subsist at the poverty level. Although the government forecasts 7% real growth in 1989, Malaysia's high export dependence (merchandise exports are 64% of GNP) leaves it vulnerable to a recession in the OECD countries or a fall in world commodity prices.

GDP: $34.3 billion, per capita $2,092; real growth rate 7.4% (1988 est.)

Inflation rate (consumer prices): 2.7% (1988 est.)

Unemployment rate: 8.1% (1988)

Budget: revenues $8 billion; expenditures $10 billion, including capital expenditures of $2.2 billion (1988)

Exports: $20 billion (f.o.b., 1988); @m5commodities--natural rubber, palm oil, tin, timber, petroleum, light manufactures; @m5partners--Singapore, Japan, USSR, EC, Australia, US

Imports: $14.9 billion (f.o.b., 1988); @m5commodities--food, crude oil, consumer goods, intermediate goods, capital equipment, chemicals; @m5partners--Japan, Singapore, FRG, UK, Thailand, China, Australia, US

External debt: $17.4 billion (medium and long-term) (1988 est.)

Industrial production: growth rate 8.3% (1987)

Electricity: 5,551,000 kW capacity; 15,835 million kWh produced, 970 kWh per capita (1988)

Industries: Peninsular Malaysia--rubber and oil palm processing and manufacturing, light manufacturing industry, electronics, tin mining and smelting, logging and processing timber; Sabah--logging, petroleum production; Sarawak--agriculture processing, petroleum production and refining, logging

Agriculture: Peninsular Malaysia--natural rubber, palm oil, rice; Sabah--mainly subsistence, main crops are rubber, timber, coconut, rice; Sarawak--main crops are rubber, timber, pepper; there is a deficit of rice in all areas

Aid: NA

Currency: ringgit (plural--ringgits); 1 ringgit (M$) = 100 sen

Exchange rates: ringgits (M$) per US$1--2.7196 (January 1989), 2.6188 (1988), 2.5196 (1987), 2.5814 (1986), 2.4830 (1985)

Fiscal year: calendar year

NOTE: The information regarding Malaysia on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Malaysia Economy 1989 information contained here. All suggestions for corrections of any errors about Malaysia Economy 1989 should be addressed to the CIA.