MALAYSIAN ECONOMY

Malaysian Economy



Malaysian Economy

Introduction

The main purpose of this paper is to make an analysis on the economic trends of Malaysia. The paper mainly makes discussion on the political system of Malaysia along with the legal and economic systems. The paper is an analysis of the imports and exports of the country. The country Malaysia has been established by Great Britain during the late 18th and 19th century. Since 1942 till 1945, these areas have been occupied by Japan. Since 1945, the territories of Malaysia have been ruled by Britishers. In 1957, Malaysia got independence. Malaysia came into independence in 1963.

Political System of Malaysia

A Federation of Malaysia was formed in 1948 with the states of the peninsula, but it was not until 1957 that it obtains its full independence. The integration of the British colonies of Sabah and Sarawar, on Borneo, and Singapore, involves the creation of a Federation of Great Malaysia in 1963. Two years later, it is reduced by Singapore, which proclaims its own independence. Between 1957 and 1976, the country's political life is dominated by the prime ministers Abdul Rahman and Abdul Razak who are spearheading coalitions (Amy, 2000, p. 231). Despite the conflict with communist guerrillas and the tensions between the Chinese minority and the Malay majority, including the riots of 1969-1970, the Malaysian economic development has continued. The Prime Minister Mahathir Mohammad, serving since 1981, embodies the country's stability is still shaken by some political controversy and a severe financial crisis in 1997. The Malaysia maintains close links with Britain and is part of the Commonwealth. The creation of the Federation of Great Malaysia in 1963, creates strong tensions with Indonesia and the Philippines who have their sights on the States annexed. The government led by Abdul Rahman from 1957 to 1971 firmly opposed to communism and maintains close relations with Western countries. A turn is initiated under Abdul Razak (1970-1976), which advocates neutrality and nonalignment. The Malaysian example restores diplomatic relations with the Republic People's China. Economic considerations are important in foreign policy being developed by the Prime Minister Mahathir Mohammad from the 80s. His country, which relies heavily on foreign investment, is an influential member of the Association of Southeast Asian Nations (ASEAN) (Shamsul, 2004, p. 282).

The dominant political organization in Malaysia has long been the National Unity Organization Malaya (UMNO), which is allied with other smaller political formations to create the Barisan Nasional or National Front (FN). In 1982, the FN won the general election under the new leadership of Mahathir Mohammed. Mahathir's style was characterized by political dissent, a scathing rhetoric, a strident nationalism and a fierce intolerance of any opposition. During the two decades that remained in power, he left his mark on the Malaysian political scene. His cruelty was evident after his fall with a former deputy and heir apparent, Anwar Ibrahim, caused by the mismanagement of the Asian financial crisis of 1997. Anwar was later accused of practicing homosexuality (illegal in Malaysia) and corruption and, after being tried, ...