historical, contemporary and future Malaysian economy

Topics: Inflation, Economy of Malaysia, Money Pages: 3 (915 words) Published: March 28, 2014
1.What can you tell about historical, contemporary and future Malaysian economy? Historical:
After Malaysia gained her independence from Britain in 1957, 3 major races of Malaysia are living harmony. Most of the economy is on primary economic- agricultural such as planting, mining, fishing and all the production of raw material. Malaysia had focus on the production of tin during that time; most of the tin are export to foreign country to make foreign exchange. Before May 13 incident, Chinese are focus on business, Indians are focus on plantation/estate while Malays/ Bumiputra are focus on politics. After the May 13 incident, the 2nd Prime Ministry introduced the New Economy Policy (NEP). As such, quota system has been introduced to help the Malays/ Bumiputra.

Malaysia currently focuses on secondary activities which are manufacturing and heavy industry. The inflation rate becomes higher but the income still remains the same. As such, the government is more focus in reduction of income gap between the poor and the rich. The government focuses on regional development. Globalization has increase the trading among countries. The export has increased the foreign exchange of Malaysia. The introduction of 2013 budget also declare some issue such as the RM500 for all the senior citizen, RM250 for the book voucher, RM200 for the low payment 20-35 years old citizen to purchase a smart phone. This will increase the burden of government and may also increase the national debt.

The future economy will be on tertiary activities which is service industry. Currently we are depends on the foreign workers as most of the Malaysian are not willing to do the lower level job such as cleaner and builder. They cannot tolerant with the weather or dirty. Another reason is that foreign workers are cheaper in salary. The increasing of tourism industry also bring up a lot of job opportunity in service industry such as hotel, car rental services, tourist...
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