Malaysia: Since it became independent, Malaysia's economic record has been one of Asia's best. Real gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005. Performance peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid growth averaging almost 8% annually. High levels of foreign and domestic investment played a significant role as the economy diversified and modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today is a middle-income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world's largest exporters of semiconductor devices, electrical goods, and information and communication technology (ICT) products.

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national flag of malaysia
Flag Description of Malaysia: 14 equal horizontal stripes of red (top) alternating with white (bottom); there is a blue rectangle in the upper hoist-side corner bearing a yellow crescent and a yellow 14-pointed star; the crescent and the star are traditional symbols of Islam; the design was based on the flag of the US
map of malaysia
Map of Malaysia

Malaysia, Borneo, Sarawak, Kuching, Sarawak river
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Malaysia, Kuala Lumpur, cityscape at dusk
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OFFICIAL NAME:
Malaysia

Geography
Area: 329,749 sq. km. (127,316 sq. mi.); slightly larger than New Mexico.
Cities: Capital--Kuala Lumpur. Other cities--Penang, Ipoh, Malacca, Johor Baru, Shah Alam, Klang, Kuching, Kota Kinabalu
Terrain: Coastal plains and interior, jungle-covered mountains. The South China Sea separates peninsular Malaysia from East Malaysia on Borneo.
Climate: Tropical.

People
Nationality: Noun and adjective--Malaysian(s).
Population (2006): 26.9 million.
Annual growth rate: 1.8%.
Ethnic groups: Malay 50.2%, Chinese 24.5%, indigenous 11.0%, Indian 7.2%, non-Malaysian citizens 5.9%, others 1.2%.
Religions: Islam (60.4%), Buddhism (19.2%), Christianity (9.1%), Hinduism (6.3%), Confucianism (2.6%), tribal/folk (0.8%), other (0.4%), none/unknown (1.2%).
Languages: Bahasa Melayu (official), Chinese (various dialects), English, Tamil, indigenous.
Education: Years compulsory--6. Attendance--98.5% (primary), 82% (secondary). Literacy--93.5%.
Health: Infant mortality rate (2005)--5.1 /1,000. Life expectancy (2005)--female 76.2 yrs., male 71.8 yrs.
Work force (10.55 million, 2005): Services--51%; industry--36% (manufacturing--28.4%, mining and construction--7.6%); agriculture--13%.

Government
Type: Federal parliamentary democracy with a constitutional monarch.
Independence: August 31, 1957. (Malaya, which is now peninsular Malaysia, became independent in 1957. In 1963 Malaya, Sabah, Sarawak, and Singapore formed Malaysia. Singapore became an independent country in 1965.)
Constitution: 1957.
Subdivisions: 13 states and three federal territories (Kuala Lumpur, Labuan Island, Putrajaya federal administrative territory). Each state has an assembly and government headed by a chief minister. Nine of these states have hereditary rulers, generally titled "sultans," while the remaining four have appointed governors in counterpart positions.
Branches: Executive--Yang di-Pertuan Agong (head of state and customarily referred to as the king; has ceremonial duties), prime minister (head of government), cabinet. Legislative--bicameral parliament, comprising 70-member Senate (26 elected by the 13 state assemblies, 44 appointed by the king on the prime minister's recommendation) and 219-member House of Representatives (elected from single-member districts). Judicial--Federal Court, Court of Appeals, high courts, session's courts, magistrate's courts, and juvenile courts. Sharia courts hear cases on certain matters involving Muslims only.
Political parties: Barisan Nasional (National Front)--a coalition comprising the United Malays National Organization (UMNO) and 13 other parties, most of which are ethnically based; Democratic Action Party (DAP); Parti Islam se Malaysia (PAS); Parti Keadilan Rakyat (PKR). There are more than 30 registered political parties, including the foregoing, not all of which are represented in the federal parliament.
Suffrage: Universal adult (voting age 21).

Economy (2005)
Nominal GDP: $130.8 billion.
Annual real GDP growth rate: 7.1% (2004); 5.2% (2005).
Per capita (GDP) income: $5,042.
Natural resources: petroleum, liquefied natural gas (LNG), tin, minerals.
Agricultural products: palm oil, rubber, timber, cocoa, rice, tropical fruit, fish, coconut.
Industry: Types--electronics, electrical products, chemicals, food and beverages, metal and machine products, apparel.
Trade: Merchandise exports--$145.0 billion: electronics, electrical products, palm oil, petroleum, liquid natural gas, apparel, timber and logs, plywood and veneer, natural rubber. Major markets--U.S. 18.8%, Singapore 15.0%, Japan 10.1%. Merchandise imports--$118.0 billion: machinery, chemicals, manufactured goods, fuels, and lubricants. Major suppliers--Japan 16.1%, U.S. 14.6%, Singapore 11.2%.

PEOPLE
Malaysia's multi-racial society contains many ethnic groups. Malays comprise a majority of just over 50%. By constitutional definition, all Malays are Muslim. About a quarter of the population is ethnic Chinese, a group which historically played an important role in trade and business. Malaysians of Indian descent comprise about 7% of the population and include Hindus, Muslims, Buddhists, and Christians. Non-Malay indigenous groups combine to make up approximately 11% of the population.

Population density is highest in peninsular Malaysia, home to some 20 million of the country's 27 million inhabitants. The remaining 7 million live on the Malaysian portion of the island of Borneo in the large but less densely-populated states of Sabah and Sarawak. More than half of Sarawak's residents and about two-thirds of Sabah's are from indigenous groups.

HISTORY
The early Buddhist Malay kingdom of Srivijaya, based at what is now Palembang, Sumatra, dominated much of the Malay peninsula from the 9th to the 13th centuries AD. The powerful Hindu kingdom of Majapahit, based on Java, gained control of the Malay peninsula in the 14th century. Conversion of the Malays to Islam, beginning in the early 14th century, accelerated with the rise of the state of Malacca under the rule of a Muslim prince in the 15th century. Malacca was a major regional commercial center, where Chinese, Arab, Malay, and Indian merchants traded precious goods.

Drawn by this rich trade, a Portuguese fleet conquered Malacca in 1511, marking the beginning of European expansion in Southeast Asia. The Dutch ousted the Portuguese from Malacca in 1641. The British obtained the island of Penang in 1786 and temporarily controlled Malacca with Dutch acquiescence from 1795 to 1818 to prevent it from falling to the French during the Napoleonic war. The British gained lasting possession of Malacca from the Dutch in 1824, through the Anglo-Dutch treaty, in exchange for territory on the island of Sumatra in what is today Indonesia.

In 1826, the British settlements of Malacca, Penang, and Singapore were combined to form the Colony of the Straits Settlements. From these strongholds, in the 19th and early 20th centuries the British established protectorates over the Malay sultanates on the peninsula. During their rule the British developed large-scale rubber and tin production and established a system of public administration. British control was interrupted by World War II and the Japanese occupation from 1941 to 1945.

Popular sentiment for independence swelled during and after the war. The territories of peninsular Malaysia joined together to form the Federation of Malaya in 1948 and eventually negotiated independence from the British in 1957. Tunku Abdul Rahman became the first prime minister. In 1963 the British colonies of Singapore, Sarawak, and Sabah joined the Federation, which was renamed Malaysia. Singapore's membership was short-lived, however; it left in 1965 and became an independent republic.

Neighboring Indonesia objected to the formation of Malaysia and began a program of economic, political, diplomatic, and military "confrontation" against the new country in 1963, which ended only after the fall of Indonesia's President Sukarno in 1966. Internally, local communists, nearly all Chinese, carried out a long, bitter insurgency both before and after independence, prompting the imposition of a state of emergency from 1948 to 1960. Small bands of guerrillas remained in bases along the rugged border with southern Thailand, occasionally entering northern Malaysia. These guerrillas finally signed a peace accord with the Malaysian Government in December 1989. A separate, small-scale communist insurgency that began in the mid-1960s in Sarawak also ended with the signing of a peace accord in October 1990.

GOVERNMENT
Malaysia is a constitutional monarchy, nominally headed by the Yang di-Pertuan Agong, customarily referred to as the king. Kings are elected for 5-year terms from among the nine sultans of the peninsular Malaysian states. The king also is the leader of the Islamic faith in Malaysia.

Executive power is vested in the cabinet led by the prime minister; the Malaysian constitution stipulates that the prime minister must be a member of the lower house of parliament who, in the opinion of the Yang di-Pertuan Agong, commands a majority in parliament. The cabinet is chosen from among members of both houses of parliament and is responsible to that body.

The bicameral parliament consists of the Senate (Dewan Negara) and the House of Representatives (Dewan Rakyat). All 70 Senate members sit for 3-year terms, which are normally extended for an additional 3 years; 26 are elected by the 13 state assemblies, and 44 are appointed by the king. Representatives of the House are elected from single-member districts by universal adult suffrage. The 219 members of the House of Representatives are elected to parliamentary terms lasting up to 5 years. Legislative power is divided between federal and state legislatures.

The Malaysian legal system is based on English common law. The Federal Court reviews decisions referred from the Court of Appeal; it has original jurisdiction in constitutional matters and in disputes between states or between the federal government and a state. Peninsular Malaysia and the East Malaysian states of Sabah and Sarawak each have a high court.

The federal government has authority over external affairs, defense, internal security, justice (except civil law cases among Malays or other Muslims and other indigenous peoples, adjudicated under Islamic and traditional law), federal citizenship, finance, commerce, industry, communications, transportation, and other matters.

Principal Government Officials
Prime Minister--Datuk Seri Utama Abdullah bin Ahmad Badawi
Foreign Minister--Datuk Seri Syed Hamid Albar
Ambassador to the U.S.--Datin Paduka Rajmah Hussein
Ambassador to the UN--Datuk Hamidon bin Ali

Malaysia maintains an embassy in the U.S. at 3516 International Court NW, Washington, DC 20008, tel. (202) 572-9700; a Consulate General at 550 South Hope Street, Suite 400, Los Angeles, CA 90071, tel. (213) 892-1238; and a Consulate General at 313 East 43rd Street, New York City, NY 10017, tel. (212) 490-2722/23.

POLITICAL CONDITIONS
Malaysia's predominant political party, the United Malays National Organization (UMNO), has held power in coalition with other parties since independence in 1957. The UMNO coalition's share of the vote declined in national elections held in May 1969, after which riots broke out in Kuala Lumpur and elsewhere, mainly between Malays and ethnic Chinese. Several hundred people were killed or injured. The government declared a state of emergency and suspended all parliamentary activities.

In the years that followed, Malaysia undertook several initiatives that became integral parts of its socioeconomic model. The New Economic Policy (NEP), launched in 1971, contained a series of affirmative action policies designed to benefit Malays and certain indigenous groups (together known as bumiputera or "sons of the soil"). The Constitution was amended to limit dissent against the specially-protected and sensitive portions of the Constitution pertaining to the social contract. The government identified intercommunal harmony as one of its official goals. The previous alliance of communally based parties was replaced with a broader coalition--the Barisan Nasional (BN) or National Front. The BN won large majorities in the 1974 federal and state elections.

Dr. Mahathir Mohamad was Prime Minister between 1981 and 2003, leading UMNO and BN to successive election victories. Mahathir emphasized economic development during his tenure, in particular the export sector, as well as large scale infrastructure projects. Mahathir attributed the success of the Asian tiger economies to the "Asian values" of its people, which he believed were superior to those of the West. Mahathir sharply criticized the International Monetary Fund (IMF), international financiers such as George Soros, and Western governments during the sharp economic and financial crisis that affected Asia in 1997-8, and denied that the downturn was due to the failures of corruption and "crony capitalism."

The end of Mahathir's tenure was marred by a falling out with his deputy and presumed successor, Anwar Ibrahim. In September 1998, Mahathir dismissed Anwar and accused him of immoral and corrupt conduct. Although Anwar was convicted on both charges in 1999 and 2000, the trials were viewed as seriously flawed. Malaysia's Federal Court eventually freed Anwar after overturning his immoral conduct conviction in September 2004.

Mahathir stepped down as prime minister in October 2003 after 22 years in power, and his successor, Deputy Prime Minister Abdullah Ahmad Badawi, was sworn into office. Abdullah called elections and won an overwhelming victory in March 2004, with Barisan Nasional taking 199 of 219 seats in the lower house of parliament. UMNO itself won 110 seats. The Islamic opposition party (PAS), which had made electoral inroads in 1999, was reduced to six seats in parliament and lost control of the state of Terengganu. The left of center Democratic Action Party (DAP), with predominately urban ethnic Chinese support, won 12 seats in parliament, and party chairman Lim Kit Siang became Leader of the Opposition in parliament.

Since taking office, Abdullah, an Islamic scholar, has promoted the concept of "Islam Hadhari" or "civilizational Islam," emphasizing the importance of education, social harmony, and economic progress. His relationship with Mahathir eventually soured, and the former prime minister now expresses regret at supporting Abdullah to be his successor. Under the terms of the constitution Abdullah must next call elections no later than March 2009.

ECONOMY
Since it became independent, Malaysia's economic record has been one of Asia's best. Real gross domestic product (GDP) grew by an average of 6.5% per year from 1957 to 2005. Performance peaked in the early 1980s through the mid-1990s, as the economy experienced sustained rapid growth averaging almost 8% annually. High levels of foreign and domestic investment played a significant role as the economy diversified and modernized. Once heavily dependent on primary products such as rubber and tin, Malaysia today is a middle-income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world's largest exporters of semiconductor devices, electrical goods, and information and communication technology (ICT) products.

The government has taken an active role in guiding the nation's economic development. Malaysia's New Economic Policy (NEP), first established in 1971, sought to eradicate poverty and to enhance the economic standing of ethnic Malays and other indigenous peoples (collectively known as "bumiputeras"). One NEP goal was to expand the share of corporate equity owned by ethnic Malays. In June 1991, after the NEP expired, the government unveiled its National Development Policy, which contained many of the NEP's goals. In April 2001, the government released a new plan, the "National Vision Policy," to guide development over the period 2001-2010. The National Vision Policy targets education for budget increases and seeks to refocus the economy toward higher-technology production. The stated goal is for Malaysia to be a fully developed economy by 2020.

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial crisis, which affected countries throughout the region, including South Korea, Indonesia, and Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a return to recession in 2001 when its economy was negatively impacted by the bursting of the dot-com bubble (which hurt the ICT sector) and slow growth or recession in many of its important export markets.

In July 2005, the government removed the 7-year old peg linking the ringgit's value to the U.S. dollar at an exchange rate of RM 3.8/U.S.$1.0. The dollar peg was replaced by a managed float against an undisclosed basket of currencies. The new exchange rate policy was designed to keep the ringgit more broadly stable and to avoid uncertain currency swings which could harm exports.

FOREIGN RELATIONS
Regional cooperation is a cornerstone of Malaysia's foreign policy. It was a founding member of the Association of Southeast Asian Nations (ASEAN) and served as the group's chair most recently in 2005-2006. It hosted the ASEAN Summit and East Asia Summit in December 2005, as well as the ASEAN Ministerial and the ASEAN Regional Forum in July 2006.

Malaysia is an active member of the Asia Pacific Economic Cooperation (APEC), the Organization of the Islamic Conference (OIC), the Non-Aligned Movement (NAM), and the United Nations. It is the current chair of the OIC and has also chaired the NAM. Malaysia hosted the APEC Leaders' Meeting in 1998.

Malaysia is a frequent contributor to UN and other peacekeeping missions, including recent deployments to East Timor, Indonesia, Pakistan, Sierra Leone, Kosovo, and Lebanon.

U.S.-MALAYSIAN RELATIONS
The United States and Malaysia share a diverse and expanding partnership. Economic ties are robust. The United States is Malaysia's largest trading partner and Malaysia is the tenth-largest trading partner of the U.S. Annual two-way trade amounts to $49 billion. The United States and Malaysia launched negotiations for a bilateral free trade agreement (FTA) in June 2006.

The United States is the largest foreign investor in Malaysia. American companies are particularly active in the energy, electronics, and manufacturing sectors. The cumulative value of U.S. private investment in Malaysia exceeds $10 billion.

The United States and Malaysia enjoy strong security cooperation. Malaysia hosts the Southeast Asia Regional Center for Counterterrorism (SEARCCT), where over 1,100 officials from multiple countries have received training. The United States is the largest foreign provider of training courses at the center. The U.S. and Malaysia share a strong military-to-military relationship with numerous exchanges, training, joint exercises, and visits.

Secretary of State Condoleezza Rice visited Kuala Lumpur in July 2006.

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Introduction Malaysia
Background:
During the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore and the East Malaysian states of Sabah and Sarawak on the northern coast of Borneo joined the Federation. The first several years of the country's history were marred by Indonesian efforts to control Malaysia, Philippine claims to Sabah, and Singapore's secession from the Federation in 1965. During the 22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials, to expansion in manufacturing, services, and tourism.
Geography Malaysia
Location:
Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and the South China Sea, south of Vietnam
Geographic coordinates:
2 30 N, 112 30 E
Map references:
Southeast Asia
Area:
total: 329,750 sq km
land: 328,550 sq km
water: 1,200 sq km
Area - comparative:
slightly larger than New Mexico
Land boundaries:
total: 2,669 km
border countries: Brunei 381 km, Indonesia 1,782 km, Thailand 506 km
Coastline:
4,675 km (Peninsular Malaysia 2,068 km, East Malaysia 2,607 km)
Maritime claims:
territorial sea: 12 nm
exclusive economic zone: 200 nm
continental shelf: 200 m depth or to the depth of exploitation; specified boundary in the South China Sea
Climate:
tropical; annual southwest (April to October) and northeast (October to February) monsoons
Terrain:
coastal plains rising to hills and mountains
Elevation extremes:
lowest point: Indian Ocean 0 m
highest point: Gunung Kinabalu 4,100 m
Natural resources:
tin, petroleum, timber, copper, iron ore, natural gas, bauxite
Land use:
arable land: 5.46%
permanent crops: 17.54%
other: 77% (2005)
Irrigated land:
3,650 sq km (2003)
Natural hazards:
flooding, landslides, forest fires
Environment - current issues:
air pollution from industrial and vehicular emissions; water pollution from raw sewage; deforestation; smoke/haze from Indonesian forest fires
Environment - international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands
Geography - note:
strategic location along Strait of Malacca and southern South China Sea
People Malaysia
Population:
24,821,286 (July 2007 est.)
Age structure:
0-14 years: 32.2% (male 4,118,086/female 3,884,403)
15-64 years: 62.9% (male 7,838,166/female 7,785,833)
65 years and over: 4.8% (male 526,967/female 667,831) (2007 est.)
Median age:
total: 24.4 years
male: 23.8 years
female: 25 years (2007 est.)
Population growth rate:
1.759% (2007 est.)
Birth rate:
22.65 births/1,000 population (2007 est.)
Death rate:
5.05 deaths/1,000 population (2007 est.)
Net migration rate:
0 migrant(s)/1,000 population
note: does not reflect net flow of an unknown number of illegal immigrants from other countries in the region (2007 est.)
Sex ratio:
at birth: 1.07 male(s)/female
under 15 years: 1.06 male(s)/female
15-64 years: 1.007 male(s)/female
65 years and over: 0.789 male(s)/female
total population: 1.012 male(s)/female (2007 est.)
Infant mortality rate:
total: 16.62 deaths/1,000 live births
male: 19.26 deaths/1,000 live births
female: 13.8 deaths/1,000 live births (2007 est.)
Life expectancy at birth:
total population: 72.76 years
male: 70.05 years
female: 75.65 years (2007 est.)
Total fertility rate:
3.01 children born/woman (2007 est.)
HIV/AIDS - adult prevalence rate:
0.4% (2003 est.)
HIV/AIDS - people living with HIV/AIDS:
52,000 (2003 est.)
HIV/AIDS - deaths:
2,000 (2003 est.)
Major infectious diseases:
degree of risk: high
food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever
vectorborne diseases: dengue fever and malaria are high risks in some locations (2007)
Nationality:
noun: Malaysian(s)
adjective: Malaysian
Ethnic groups:
Malay 50.4%, Chinese 23.7%, indigenous 11%, Indian 7.1%, others 7.8% (2004 est.)
Religions:
Muslim 60.4%, Buddhist 19.2%, Christian 9.1%, Hindu 6.3%, Confucianism, Taoism, other traditional Chinese religions 2.6%, other or unknown 1.5%, none 0.8% (2000 census)
Languages:
Bahasa Malaysia (official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai
note: in East Malaysia there are several indigenous languages; most widely spoken are Iban and Kadazan
Literacy:
definition: age 15 and over can read and write
total population: 88.7%
male: 92%
female: 85.4% (2000 census)
Government Malaysia
Country name:
conventional long form: none
conventional short form: Malaysia
local long form: none
local short form: Malaysia
former: Federation of Malaya
Government type:
constitutional monarchy
note: nominally headed by paramount ruler and a bicameral Parliament consisting of a nonelected upper house and an elected lower house; all Peninsular Malaysian states have hereditary rulers except Melaka and Pulau Pinang (Penang); those two states along with Sabah and Sarawak in East Malaysia have governors appointed by government; powers of state governments are limited by federal constitution; under terms of federation, Sabah and Sarawak retain certain constitutional prerogatives (e.g., right to maintain their own immigration controls); Sabah holds 25 seats in House of Representatives; Sarawak holds 28 seats in House of Representatives
Capital:
name: Kuala Lumpur
geographic coordinates: 3 10 N, 101 42 E
time difference: UTC+8 (13 hours ahead of Washington, DC during Standard Time)
note: Putrajaya is referred to as administrative center not capital; Parliament meets in Kuala Lumpur
Administrative divisions:
13 states (negeri-negeri, singular - negeri) Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pulau Pinang, Sabah, Sarawak, Selangor, and Terengganu; and one federal territory (wilayah persekutuan) with three components, city of Kuala Lumpur, Labuan, and Putrajaya
Independence:
31 August 1957 (from UK)
National holiday:
Independence Day/Malaysia Day, 31 August (1957)
Constitution:
31 August 1957; amended 16 September 1963
Legal system:
based on English common law; judicial review of legislative acts in the Supreme Court at request of supreme head of the federation; Islamic law is applied to Muslims in matters of family law and religion; has not accepted compulsory ICJ jurisdiction
Suffrage:
21 years of age; universal
Executive branch:
chief of state: Paramount Ruler Sultan MIZAN Zainal Abidin (since 13 December 2006)
head of government: Prime Minister ABDULLAH bin Ahmad Badawi (since 31 October 2003); Deputy Prime Minister Mohamed NAJIB bin Abdul Razak (since 7 January 2004)
cabinet: Cabinet appointed by the prime minister from among the members of Parliament with consent of the paramount ruler
elections: paramount ruler elected by and from the hereditary rulers of nine of the states for five-year terms; election last held on 3 November 2006 (next to be held in 2011); prime minister designated from among the members of the House of Representatives; following legislative elections, the leader of the party that wins a plurality of seats in the House of Representatives becomes prime minister
election results: Sultan MIZAN Zainal Abidin elected paramount ruler
Legislative branch:
bicameral Parliament or Parlimen consists of the Senate or Dewan Negara (70 seats; 44 appointed by the paramount ruler, 26 elected by the 13 state legislatures; to serve three-year terms) and the House of Representatives or Dewan Rakyat (219 seats; members elected by popular vote to serve five-year terms)
elections: House of Representatives - last held on 21 March 2004 (next must be held by 2009)
election results: House of Representatives - percent of vote by party - BN 91%, DAP 5%, PAS 3%, other 1%; seats by party - BN 199, DAP 12, PAS 6, PKR 1, independent 1
Judicial branch:
Civil Courts include Federal Court, Court of Appeal, High Court of Malaya on peninsula Malaysia, and High Court of Sabah and Sarawak in states of Borneo (judges appointed by the paramount ruler on the advice of the prime minister); Sharia Courts include Sharia Appeal Court, Sharia High Court, and Sharia Subordinate Courts (at state-level and deal with religious and family matters such as custody, divorce, and inheritance, only for Muslims; decisions of Sharia courts cannot be appealed to civil courts
Political parties and leaders:
National Front (Barisan Nasional) or BN (ruling coalition) (consists of the following parties: Gerakan Rakyat Malaysia Party or PGRM [KOH Tsu Koon - acting]; Liberal Democratic Party (Parti Liberal Demokratik - Sabah) or LDP [LIEW Vui Keong]; Malaysian Chinese Association (Persatuan China Malaysia) or MCA [ONG Ka Ting]; Malaysian Indian Congress (Kongresi India Malaysia) or MIC [S. Samy VELLU]; Parti Bersatu Rakyat Sabah or PBRS [Joseph KURUP]; Parti Bersatu Sabah or PBS [Joseph PAIRIN Kitingan]; Parti Pesaka Bumiputera Bersatu or PBB [Patinggi Haji Abdul TAIB Mahmud]; Parti Rakyat Sarawak or PRS [James MASING]; Sabah Progressive Party (Parti Progresif Sabah) or SAPP [YONG Teck Lee]; Sarawak United People's Party (Parti Bersatu Rakyat Sarawak) or SUPP [George CHAN Hong Nam]; United Malays National Organization or UMNO [ABDULLAH bin Ahmad Badawi]; United Pasokmomogun Kadazandusun Murut Organization (Pertubuhan Pasko Momogun Kadazan Dusun Bersatu) or UPKO [Bernard DOMPOK]; People's Progressive Party (Parti Progresif Penduduk Malaysia) or PPP [M.Keyveas]; Sarawak Progressive Democratic Party or SPDP [William MAWANI]); opposition parties: Alternative Front (Barisan Alternatif) or BA (consists of PAS and PKR); Democratic Action Party (Parti Tindakan Demokratik) or DAP [KARPAL Singh]; Islamic Party of Malaysia (Parti Islam se Malaysia) or PAS [Abdul HADI Awang]; People's Justice Party (Parti Keadilan Rakyat) or PKR [WAN AZIZAH Wan Ismael]; Sarawak National Party or SNAP [Edwin DUNDANG]
Political pressure groups and leaders:
NA
International organization participation:
APEC, APT, ARF, AsDB, ASEAN, BIS, C, CP, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUC, NAM, OIC, OPCW, PCA, PIF (partner), UN, UNCTAD, UNESCO, UNIDO, UNMEE, UNMIL, UNMIS, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Diplomatic representation in the US:
chief of mission: Ambassador RAJMAH binti Hussain
chancery: 3516 International Court NW, Washington, DC 20008
telephone: [1] (202) 572-9700
FAX: [1] (202) 572-9882
consulate(s) general: Los Angeles, New York
Diplomatic representation from the US:
chief of mission: Ambassador Christopher J. LAFLEUR
embassy: 376 Jalan Tun Razak, Kuala Lumpur 50440
mailing address: US Embassy Kuala Lumpur, APO AP 96535-8152
telephone: [60] (3) 2168-5000
FAX: [60] (3) 2142-2207
Flag description:
14 equal horizontal stripes of red (top) alternating with white (bottom); there is a blue rectangle in the upper hoist-side corner bearing a yellow crescent and a yellow 14-pointed star; the crescent and the star are traditional symbols of Islam; the design was based on the flag of the US
Economy Malaysia
Economy - overview:
Malaysia, a middle-income country, transformed itself from 1971 through the late 1990s from a producer of raw materials into an emerging multi-sector economy. Growth was almost exclusively driven by exports - particularly of electronics. As a result, Malaysia was hard hit by the global economic downturn and the slump in the information technology (IT) sector in 2001 and 2002. The economy grew 4.9% in 2003, notwithstanding a difficult first half, when external pressures from Severe Acute Respiratory Syndrome (SARS) and the Iraq War led to caution in the business community. Growth topped 7% in 2004 and 5% per year in 2005-06. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel forced Kuala Lumpur to reduce government subsidies, contributing to higher inflation. Malaysia "unpegged" the ringgit from the US dollar in 2005 and the currency appreciated 6% against the dollar in 2006. Healthy foreign exchange reserves and a small external debt greatly reduce the risk that Malaysia will experience a financial crisis over the near term similar to the one in 1997. The economy remains dependent on continued growth in the US, China, and Japan - top export destinations and key sources of foreign investment. The government presented its five-year national development agenda in April 2006 through the Ninth Malaysia Plan, a comprehensive blueprint for the allocation of the national budget from 2006-10. The plan targets the development of higher value-added manufacturing and an expansion of the services sector.
GDP (purchasing power parity):
$313.8 billion (2006 est.)
GDP (official exchange rate):
$132.3 billion (2006 est.)
GDP - real growth rate:
5.9% (2006 est.)
GDP - per capita (PPP):
$12,900 (2006 est.)
GDP - composition by sector:
agriculture: 8.3%
industry: 48.1%
services: 43.6% (2006 est.)
Labor force:
10.73 million (2006 est.)
Labor force - by occupation:
agriculture: 13%
industry: 36%
services: 51% (2005 est.)
Unemployment rate:
3.5% (2006 est.)
Population below poverty line:
5.1% (2002 est.)
Household income or consumption by percentage share:
lowest 10%: 1.4%
highest 10%: 39.2% (2003 est.)
Distribution of family income - Gini index:
46.1 (2002)
Inflation rate (consumer prices):
3.8% (2006 est.)
Investment (gross fixed):
19.9% of GDP (2006 est.)
Budget:
revenues: $31.63 billion
expenditures: $37 billion; including capital expenditures of $9.4 billion (2006 est.)
Public debt:
46.7% of GDP (2006 est.)
Agriculture - products:
Peninsular Malaysia - rubber, palm oil, cocoa, rice; Sabah - subsistence crops, rubber, timber, coconuts, rice; Sarawak - rubber, pepper, timber
Industries:
Peninsular Malaysia - rubber and oil palm processing and manufacturing, light manufacturing, electronics, tin mining and smelting, logging, timber processing; Sabah - logging, petroleum production; Sarawak - agriculture processing, petroleum production and refining, logging
Industrial production growth rate:
5.8% (2006 est.)
Electricity - production:
78.24 billion kWh (2004)
Electricity - production by source:
fossil fuel: 89.5%
hydro: 10.5%
nuclear: 0%
other: 0% (2001)
Electricity - consumption:
72.71 billion kWh (2004)
Electricity - exports:
50 million kWh (2004)
Electricity - imports:
0 kWh (2004)
Oil - production:
770,000 bbl/day (2005 est.)
Oil - consumption:
515,000 bbl/day (2004 est.)
Oil - exports:
230,200 bbl/day (2003)
Oil - imports:
NA bbl/day
Oil - proved reserves:
3.1 billion bbl (2006 est.)
Natural gas - production:
62.43 billion cu m (2004 est.)
Natural gas - consumption:
32.97 billion cu m (2004 est.)
Natural gas - exports:
29.46 billion cu m (2004 est.)
Natural gas - imports:
0 cu m (2004 est.)
Natural gas - proved reserves:
2.124 trillion cu m (1 January 2005 est.)
Current account balance:
$17.86 billion (2006 est.)
Exports:
$158.7 billion f.o.b. (2006 est.)
Exports - commodities:
electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals
Exports - partners:
US 18.8%, Singapore 15.4%, Japan 8.9%, China 7.2%, Thailand 5.3%, Hong Kong 4.9% (2006)
Imports:
$127.3 billion f.o.b. (2006 est.)
Imports - commodities:
electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals
Imports - partners:
Japan 13.3%, US 12.6%, China 12.2%, Singapore 11.7%, Thailand 5.5%, Taiwan 5.5%, South Korea 5.4%, Germany 4.4% (2006)
Reserves of foreign exchange and gold:
$82.3 billion (2006 est.)
Debt - external:
$57.77 billion (30 June 2006 est.)
Currency (code):
ringgit (MYR)
Currency code:
MYR
Exchange rates:
ringgits per US dollar - 3.6683 (2006), 3.8 (2005), 3.8 (2004), 3.8 (2003), 3.8 (2002)
Fiscal year:
calendar year
Communications Malaysia
Telephones - main lines in use:
4.366 million (2005)
Telephones - mobile cellular:
19.545 million (2005)
Telephone system:
general assessment: modern system; international service excellent
domestic: good intercity service provided on Peninsular Malaysia mainly by microwave radio relay; adequate intercity microwave radio relay network between Sabah and Sarawak via Brunei; domestic satellite system with 2 earth stations
international: country code - 60; submarine cables to India, Hong Kong, and Singapore; satellite earth stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean) (2001)
Radio broadcast stations:
AM 35, FM 391, shortwave 15 (2001)
Radios:
10.9 million (1999)
Television broadcast stations:
88 (mainland Malaysia 51, Sabah 16, and Sarawak 21) (2006)
Televisions:
10.8 million (1999)
Internet country code:
.my
Internet hosts:
158,650 (2006)
Internet Service Providers (ISPs):
7 (2000)
Internet users:
11.016 million (2005)
Transportation Malaysia
Airports:
117 (2006)
Airports - with paved runways:
total: 37
over 3,047 m: 5
2,438 to 3,047 m: 9
1,524 to 2,437 m: 8
914 to 1,523 m: 8
under 914 m: 7 (2006)
Airports - with unpaved runways:
total: 80
1,524 to 2,437 m: 1
914 to 1,523 m: 7
under 914 m: 72 (2006)
Heliports:
2 (2006)
Pipelines:
condensate 282 km; gas 5,372 km; oil 1,715 km; oil/gas/water 19 km; refined products 114 km (2006)
Railways:
total: 1,890 km
standard gauge: 57 km 1.435-m gauge (57 km electrified)
narrow gauge: 1,833 km 1.000-m gauge (150 km electrified) (2005)
Roadways:
total: 98,721 km
paved: 80,280 km (includes 1,821 km of expressways)
unpaved: 18,441 km (2004)
Waterways:
7,200 km
note: Peninsular Malaysia 3,200 km; Sabah 1,500 km; Sarawak 2,500 km (2005)
Merchant marine:
total: 312 ships (1000 GRT or over) 5,542,727 GRT/7,544,154 DWT
by type: bulk carrier 19, cargo 99, chemical tanker 38, container 48, liquefied gas 27, livestock carrier 1, passenger/cargo 8, petroleum tanker 61, roll on/roll off 5, vehicle carrier 6
foreign-owned: 66 (China 1, Germany 2, Hong Kong 14, Japan 4, South Korea 1, Singapore 44)
registered in other countries: 68 (Bahamas 12, Belize 1, Cayman Islands 1, Mongolia 1, Panama 13, Philippines 1, Singapore 35, US 4) (2006)
Ports and terminals:
Bintulu, Johor, Labuan, Lahad Datu, Lumut, Miri, George Town (Penang), Port Kelang, Tanjung Pelepas
Military Malaysia
Military branches:
Malaysian Armed Forces (Angkatan Tentera Malaysia, ATM): Malaysian Army (Tentera Darat Malaysia), Royal Malaysian Navy (Tentera Laut Diraja Malaysia, TLDM), Royal Malaysian Air Force (Tentera Udara Diraja Malaysia, TUDM) (2006)
Military service age and obligation:
18 years of age for voluntary military service (2005)
Manpower available for military service:
males age 18-49: 5,584,231
females age 18-49: 5,510,345 (2005 est.)
Manpower fit for military service:
males age 18-49: 4,574,854
females age 18-49: 4,613,321 (2005 est.)
Manpower reaching military service age annually:
males age 18-49: 244,418
females age 18-49: 231,896 (2005 est.)
Military expenditures - percent of GDP:
2.03% (2005 est.)
Transnational Issues Malaysia
Disputes - international:
Malaysia has asserted sovereignty over the Spratly Islands together with China, Philippines, Taiwan, Vietnam, and possibly Brunei; while the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions over the Spratly Islands, it is not the legally binding "code of conduct" sought by some parties; Malaysia was not party to the March 2005 joint accord among the national oil companies of China, the Philippines, and Vietnam on conducting marine seismic activities in the Spratly Islands; disputes continue over deliveries of fresh water to Singapore, Singapore's land reclamation, bridge construction, and maritime boundaries in the Johor and Singapore Straits; in November 2007, the ICJ will hold public hearings in response to the Memorials and Countermemorials filed by the parties in 2003 and 2005 over sovereignty of Pedra Branca Island/Pulau Batu Puteh, Middle Rocks and South Ledge; ICJ awarded Ligitan and Sipadan islands, also claimed by Indonesia and Philippines, to Malaysia but left maritime boundary and sovereignty of Unarang rock in the hydrocarbon-rich Celebes Sea in dispute; separatist violence in Thailand's predominantly Muslim southern provinces prompts measures to close and monitor border with Malaysia to stem terrorist activities; Philippines retains a dormant claim to Malaysia's Sabah State in northern Borneo; Brunei and Malaysia are still considering international adjudication over their disputed offshore and deepwater seabeds, where hydrocarbon exploration was terminated in 2003; Malaysia's land boundary with Brunei around Limbang is in dispute; piracy remains a problem in the Malacca Strait
Refugees and internally displaced persons:
refugees (country of origin): 19,153 (Indonesia), 14,208 (Burma) (2006)
Trafficking in persons:
current situation: Malaysia is a destination and, to a lesser extent, a source and transit country for men and women trafficked for the purposes of sexual exploitation and forced labor; foreign victims, mostly women and girls from China, Indonesia, Thailand, the Philippines, and Vietnam, are trafficked to Malaysia for commercial sexual exploitation; economic migrants from countries in the region who work as domestic servants or laborers in the construction and agricultural sectors face exploitative conditions in Malaysia that meet the definition of involuntary servitude; some Malaysian women, primarily of Chinese ethnicity, are trafficked abroad for sexual exploitation
tier rating: Tier 2 Watch List - Malaysia is placed on Tier 2 Watch List for its failure to provide evidence of increasing efforts to combat trafficking, particularly its failure to provide protection for victims of trafficking
Illicit drugs:
drug trafficking prosecuted vigorously and carries severe penalties; heroin still primary drug of abuse, but synthetic drug demand remains strong; continued ecstasy and methamphetamine producer for domestic users and, to a lesser extent, the regional drug market
 

Information gathered from the Central Intelligence Agency

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