Emerging Market Essay Malaysia
Emerging Market Essay
(Malaysia)
Economic History (Pre-Independence)
Malaysia is situated along the Straits Of Malacca, connecting the Indian Ocean with the South China Sea and Pacific Ocean so trading in this area has been around for centuries. Spices were the main goods traded in the 15th century and as the Malacca Sultanate grew from strength to strength, it eventually gained a monopoly on all trade passing through the straits1. The Straits Of Malacca is still one of the most vital shipping lanes in the world.
Later centuries would see the Portuguese, Dutch and British dominating trade in Malaysia. The British invested and developed the tin mining industry for exports in Peninsular Malaysia during the 19th century, by 1883 Malaysia had become the largest tin producer in the world. By the end of the 19th century, it was supplying about 55% of the world's tin2. Rubber and palm oil are also significant exports during this period.
Economic Development After Independence
In 1963, Malaysia gained Independence from the British. At that time, Malaysia’s economy was still largely dependent on mining and agriculture, key resources being rubber, timber, palm oil and tin. At one time, Malaysia was the world largest producer of palm oil3. In the 1960s, economic resources was still largely in the hands of foreigners and ethnic Chinese, this led to discontentment among the Bumiputeras (Ethnic Malays) majority in the country. Things came to a head on May 1969 when racial riots erupted after a largely non-bumiputera political party did unexpectedly well in a federal election. In 1971 the New Economic Policy (NEP) was launched to redistribute corporate equity to bumiputeras and also to encourage them to move towards middle class occupations which pays a higher salary4.
In the 1970s, Malaysia started a transition to move away from mining and agriculture to manufacturing and export oriented industrialization. In 1982, then PM Mahathir started the Look East Policy
(Malaysia)
Economic History (Pre-Independence)
Malaysia is situated along the Straits Of Malacca, connecting the Indian Ocean with the South China Sea and Pacific Ocean so trading in this area has been around for centuries. Spices were the main goods traded in the 15th century and as the Malacca Sultanate grew from strength to strength, it eventually gained a monopoly on all trade passing through the straits1. The Straits Of Malacca is still one of the most vital shipping lanes in the world.
Later centuries would see the Portuguese, Dutch and British dominating trade in Malaysia. The British invested and developed the tin mining industry for exports in Peninsular Malaysia during the 19th century, by 1883 Malaysia had become the largest tin producer in the world. By the end of the 19th century, it was supplying about 55% of the world's tin2. Rubber and palm oil are also significant exports during this period.
Economic Development After Independence
In 1963, Malaysia gained Independence from the British. At that time, Malaysia’s economy was still largely dependent on mining and agriculture, key resources being rubber, timber, palm oil and tin. At one time, Malaysia was the world largest producer of palm oil3. In the 1960s, economic resources was still largely in the hands of foreigners and ethnic Chinese, this led to discontentment among the Bumiputeras (Ethnic Malays) majority in the country. Things came to a head on May 1969 when racial riots erupted after a largely non-bumiputera political party did unexpectedly well in a federal election. In 1971 the New Economic Policy (NEP) was launched to redistribute corporate equity to bumiputeras and also to encourage them to move towards middle class occupations which pays a higher salary4.
In the 1970s, Malaysia started a transition to move away from mining and agriculture to manufacturing and export oriented industrialization. In 1982, then PM Mahathir started the Look East Policy
References: 12. Tourism Malaysia http://corporate.tourism.gov.my/aboutus.asp 13. Asian financial crisis, 1997-1998 http://infopedia.nl.sg/articles/SIP_1530_2009-06-09.html