Malaysia's economic growth has been a major factor why the country has been able to climb up the ranks of the fastest growing developed countries in the world. With the continued support from its government as well as private sectors, businesses as well as individuals are seeing the potential that the country holds. Aside from that, a lot of local and foreign investors have already witnessed the benefits that the country can offer. As a result, a lot of these people are now planning on making investments in Malaysia which is sure to give them with substantial returns.
A Malaysia Economic growth history is quite diverse which can be attributed to the different economic policies that the country has implemented. These policies have helped the economy develop in a smooth manner especially during the past years since the government has made sure that it would stay competitive in the market. These policies have helped the country to attain a higher level of economic development. With this, the country has experienced a lot of positive changes and improvements. Some of these positive changes include the gradual increase of consumer spending, higher employment rate, the liberalization of the trade, and the opening of more foreign investment.
To better understand the Malaysia's economic growth history, it would be best if we try to gain a complete overview over the past few decades. In this way, it will be easier for us to analyze the current standing of the country and our current position as an economic power. Starting from the time when the country gained independence from England, the period of its economic and political development can be divided into three distinct phases. All these phases brought a significant change to the economy but there was a remarkable stability prevailing until the mid-1990s. During this time, the country's economy managed to grow at a moderate pace. In fact, the growth in the economy during this time was one of the biggest drivers behind the creation of numerous industries in the country.
As early as 1957, a massive effort was put forth by the Malaysian Government to promote foreign direct investment. This policy of attraction attracted many businessmen from other countries that were looking to enter into business in Malaysia. In the succeeding years, the economy experienced a rapid economic growth with an average annual growth rate of 4.3%. All these factors, including the aforementioned government policy and the establishment of a number of industries, played an important role in the development of the Malaysia economic growth history.
As indicated earlier, the major drivers of the country's economic growth were the inflow of external funds and the liberalization policy implemented by the Government. The inflow of foreign funds is considered to be the primary driving force that helped the economy to flourish. There were many multinational companies from developed countries such as the UK and USA that were enticed to invest in Malaysia. This resulted in the establishment of many new industries in the country. There was also an influx of skilled workers that came from various parts of the world to work in Malaysia.
Another significant aspect of the Malaysia growth history is the establishment of various industries, which in turn led to the growth of the local economy. One of the most important sectors of the economy was the Information Technology, which was later followed by the manufacturing, retailing and wholesale clothing industries. After the entry of large international corporations into the country, the demand for educated manpower became very high. This led to the growth of tertiary education institutions in the country. The gradual increase in the number of universities and colleges in the country . . . . . . over the last few years has helped improve the quality of education that is provided by schools.
The government policy of encouraging investment in the domestic industry has also played a major role in the improvement of the economy. During the early days of the nation, foreign trade was not allowed and so the economy relied mainly on the inflow of imports from other countries. However, after the passage of various legislations, all kinds of non-discriminatory trade agreements were made between nations. This helped the economy to attain a balanced growth rate. The establishment of the Asian Financial Supermarket, the Malay Monetary Unit and various policies related to the issue of foreign direct investment have also played their part in boosting the economy of the country.
There are many economic indicators that one must keep an eye on while looking at the Malaysia economic growth history. The Gross Domestic Product (GDP) per capita in Malaysia is around USD 24 thousand, which is significantly lower than the national GDP per capita of the United States of America of course. However, when you compare the value of money against the real estate and raw material costs, the monetary policy of Malaysia certainly scores high. Also, the fact that the currency is highly functional in the global market has resulted in a great appreciation of the currency. In simple words, the currency exchange rates in Malaysia to work in favour of the buyer. If you are planning to purchase property here, then you can take a loan with a fixed interest rate and a long repayment period at low rates of interests.