BUS 600 Week 9 Assignment 1

Assignment 1
Chapter 8 – Economics

When we read history books, we get to know that the success of a country or empire is related to the strength of the economy itself.

I would like to share some story telling (country economic analysis) about my home-country, Malaysia's economy history.

Hope you don't fall asleep! Hang on with me!

Malaysia Yesterday

Malaysia is situated right at the middle of South East Asia nation.

Long time ago during the 14th century.... during Malacca empire (one of the state in Malaysia) lead by a Sultanate named Parameswara transformed Malacca and Southeast Asia as a centre of trade that lasted for centuries. Various items such as porcelain and spices were actively traded during that time mainly with Europe, East Asia and China empire.

Parameswara

Malacca became an important international trading port in the far east during the 14th to 16th century. It became so rich that the Portuguese writer and trader Tome Pires said "Whoever is lord of Malacca shall have his hands on the throat of Venice".

Malaysia is known to be a source of gold, tin, birds’ nests, aromatic woods, tree resins and etc. The importance of the country mainly boosted by its strategic location. Many European traders made way into the nation in the 16th century. All begins with Portugese that came in 1511.

Bristish empire during 18th to 19th century.

Malaysia continued to attract and last conquer by English with their expansion of the British in the Malay Peninsula from 1870, Sarawak from 1841 and Sabah (Borneo) from 1882. British took over as administrators of Malaya (Malaysia's old name) and , rubber and palm oil trees were introduced for commercial purposes. Over time, Malaysia became the world's largest major producer of tin, rubber, and palm oil. These three commodities, along with other raw materials, firmly set Malaysia's economic tempo well into the mid-20th century.

With this economic expansion opportunities during that time, attracted the Chinese and Indian migrants. They work in the mines, plantations and fill up the void in professional expertise.

Malaysia national flag

Malaysia became independent in 1957. In the 1960s there was an increase in the export of hardwood timber log. The primary exports switched and came from the discovery of large deposits of oil and natural gas in East Malaysia and off the east coast of the Peninsula in the 1970s.

During 1970s, Malaysia began to imitate the four Asian Tiger economies Taiwan, South Korea, Hong Kong and Singapore. Malaysia committed itself to a transition from being reliant on mining and agriculture to an economy that depends more on manufacturing.

With Japanese investment, heavy industries flourished and in a matter of years, Malaysian exports became the country's primary growth engine. Malaysia consistently achieved more than 7% GDP growth along with low inflation in the 1980s and the 1990s.

The development was assisted by improving health, service and education sectors. Malaysia economy continued to boom for much of the 1990s.

Malaysia Today

Manufacturing sector in Malaysia

Today, Malaysia is one of the world's largest computer hard disk manufacturing sites and involved in alot of heavy industry such as car manufacturing and high technology industry - nano technology.

The National Vision Policy (NVP) was launched in the new century. The NVP focuses on building a resilient and competitive nation. It uses key strategies of its previous policies, while summing up new policy dimensions. These dimensions include developing Malaysia into a knowledge-based society.

The ethnic Chinese continue to control the locally owned sector of the country's economy, meanwhile, has been ceded largely in favour of the Malays in many essential or strategic industries such as petroleum retailing, transportation, agriculture, automobile manufacturing, and other industries and with the support of Indian community and others ethnic group further develop and strengthen Malaysia market economy demand.

Malaysia is now one of the region's top education and healthcare destinations. Malaysia also have strong support and foundation in ICT sector. The world class ICT hub infrastructure and service - Multimedia Super Corridor (MSC) initiative manage to attract leading ICT companies to locate in the MSC and undertake research, development of new products and technology. Malaysia also attracted flows of foreign investment in this sector.

Malaysia is recognised as a newly industrialised country. In 2008, GDP per capita (PPP) of Malaysia stands at US$14,215, ranking 48th in the world, and 2nd in Southeast Asia.


Malaysia Tomorrow

Malaysia's Vision 2020

Vision 2020 is a Malaysian ideal that calls for the nation to achieve a self-sufficient industrial, Malaysian-centric economy by 2020. The nation required an annual growth 7% (in real terms) in order to achieve that vision, that allow the economy to be eightfold stronger than its 1990 GDP of RM115 billion (US$38 billion). This would translate to a GDP of RM920 billion (US$290 billion) in 2020.
Globalization is also one of the key element in Vision 2020.

Conclusion:

In short, The old day economic sector of agriculture is still important for Malaysia as a backbone support of sustainability. Manufacturing plays important role in modernising the country to become the central of world technology development. Services and Investing sector is rapidly growing and will be the core of Malaysia's future economic.