Economy - overview:
Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2013-17. The ringgit hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

GDP (purchasing power parity):
$933.3 billion (2017 est.)
$881.3 billion (2016 est.)
$845.6 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 26
[see also: GDP country ranks ]

GDP (official exchange rate):
$312.4 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
5.9% (2017 est.)
4.2% (2016 est.)
5.1% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 37
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$29,100 (2017 est.)
$27,900 (2016 est.)
$27,100 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 71
[see also: GDP - per capita country ranks ]

Gross national saving:
28.5% of GDP (2017 est.)
28.3% of GDP (2016 est.)
28.2% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 38
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 55.3% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 12.2% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 25.3% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.3% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 71.4% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -64.4% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 8.8% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 37.6% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 53.6% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
Peninsular Malaysia - palm oil, rubber, cocoa, rice;Sabah - palm oil, subsistence crops; rubber, timber;Sarawak - palm oil, rubber, timber; pepper

Industries:
Peninsular Malaysia - rubber and oil palm processing and manufacturing, petroleum and natural gas, light manufacturing, pharmaceuticals, medical technology, electronics and semiconductors, timber processing;Sabah - logging, petroleum and natural gas production;Sarawak - agriculture processing, petroleum and natural gas production, logging

Industrial production growth rate:
5% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 55
[see also: Industrial production growth rate country ranks ]

Labor force:
14.94 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 39
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 11%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 36%
[see also: Labor force - by occupation - industry country ranks ]
services: 53% (2012 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
3.4% (2017 est.)
3.5% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 41
[see also: Unemployment rate country ranks ]

Population below poverty line:
3.8% (2009 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.8%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 34.7% (2009 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
46.2 (2009)
49.2 (1997)
country comparison to the world (CIA rank, may be based on non-current data): 32
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 51.25 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 60.63 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
16.4% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 180
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 133
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
54.1% of GDP (2017 est.)
56.2% of GDP (2016 est.)
note: this figure is based on the amount of federal government debt, RM501.6 billion ($167.2 billion) in 2012; this includes Malaysian Treasury bills and other government securities, as well as loans raised externally and bonds and notes issued overseas; this figure excludes debt issued by non-financial public enterprises and guaranteed by the federal government, which was an additional $47.7 billion in 2012
country comparison to the world (CIA rank, may be based on non-current data): 86
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
3.8% (2017 est.)
2.1% (2016 est.)
note: approximately 30% of goods are price-controlled
country comparison to the world (CIA rank, may be based on non-current data): 151
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
3% (31 December 2011)
2.83% (31 December 2010)
country comparison to the world (CIA rank, may be based on non-current data): 111
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
4.61% (31 December 2017 est.)
4.52% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 155
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$107.5 billion (31 December 2017 est.)
$84.9 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 37
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$107.5 billion (31 December 2017 est.)
$84.9 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 37
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$482.7 billion (31 December 2017 est.)
$398.3 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 26
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$383 billion (31 December 2015 est.)
$459 billion (31 December 2014 est.)
$500.4 billion (31 December 2013 est.)
country comparison to the world (CIA rank, may be based on non-current data): 27
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$9.296 billion (2017 est.)
$7.236 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 24
[see also: Current account balance country ranks ]

Exports:
$187.9 billion (2017 est.)
$165.3 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 28
[see also: Exports country ranks ]

Exports - partners:
Singapore 15.1%, China 12.6%, US 9.4%, Japan 8.2%, Thailand 5.7%, Hong Kong 4.5% (2017)

Exports - commodities:
semiconductors and electronic equipment, palm oil, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals, solar panels

Imports:
$160.7 billion (2017 est.)
$141 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 27
[see also: Imports country ranks ]

Imports - commodities:
electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

Imports - partners:
China 19.9%, Singapore 10.8%, US 8.4%, Japan 7.6%, Thailand 5.8%, South Korea 4.5%, Indonesia 4.4% (2017)

Reserves of foreign exchange and gold:
$102.4 billion (31 December 2017 est.)
$94.5 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 25
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$217.2 billion (31 December 2017 est.)
$195.3 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 33
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$139.5 billion (31 December 2017 est.)
$121.6 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 39
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$128.5 billion (31 December 2017 est.)
$126.9 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 31
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
ringgits (MYR) per US dollar -
4.343 (2017 est.)
4.15 (2016 est.)
4.15 (2015 est.)
3.91 (2014 est.)
3.27 (2013 est.)