Malaysia's Trade Patern
Malaysia’s Economic Overview:
Southeast Asia, particularly Malaysia, has been a trade hub for centuries. Since the beginning of history, Malacca has served as a fundamental regional commercial center for Chinese, Indian, Arab and Malay merchants for trade of precious goods. Today, Malaysia shares healthy trade relations with a number of countries, specifically the US. The country is associated with trade organizations, such as APEC, ASEAN and WTO. The ASEAN Free Trade Area that was established for trade promotion among ASEAN members also has Malaysia as its founding member. Malaysia has also signed Free Trade Agreements with countries including Japan, Pakistan, China and New Zealand.
Malaysia was once the world’s largest producer of tin, rubber and palm oil. Its manufacturing sector has a crucial role in its economic growth. The export industry was hit hard during the late 2000 economic recession drastically dropping to 78% i.e. FDI to RM4.2 billion in the first two quarters of 2009. Total exports fell down to $156.4 billion in 2009 from $198.7 billion in 2008. The imports also reduced from 154.7 billion in 2008 to $119.5 billion 2009.
Malaysia’s Exports:
The Minister of International Trade and Industry (MITI), YB Dato’ Sri Mustapa Mohamed announced that after a 16.5% decline in total trade registered in 2009, Malaysia’s trade rebounded in 2010 by registering 18.3% growth. The impressive growth was attributed to the global economic recovery which boosted demand for both manufactured goods and commodities.
Malaysia mainly exports the following commodities:
• Electronic equipment
• Petroleum and liquefied natural gas
• Wood and wood products
• Palm oil
• Rubber
• Textiles
• Chemicals
The table below shows the Top 10 exports products of Malaysia, 2010 :
|SITC |PRODUCTS |2010 (RM Billion) |Share (%) |
Southeast Asia, particularly Malaysia, has been a trade hub for centuries. Since the beginning of history, Malacca has served as a fundamental regional commercial center for Chinese, Indian, Arab and Malay merchants for trade of precious goods. Today, Malaysia shares healthy trade relations with a number of countries, specifically the US. The country is associated with trade organizations, such as APEC, ASEAN and WTO. The ASEAN Free Trade Area that was established for trade promotion among ASEAN members also has Malaysia as its founding member. Malaysia has also signed Free Trade Agreements with countries including Japan, Pakistan, China and New Zealand.
Malaysia was once the world’s largest producer of tin, rubber and palm oil. Its manufacturing sector has a crucial role in its economic growth. The export industry was hit hard during the late 2000 economic recession drastically dropping to 78% i.e. FDI to RM4.2 billion in the first two quarters of 2009. Total exports fell down to $156.4 billion in 2009 from $198.7 billion in 2008. The imports also reduced from 154.7 billion in 2008 to $119.5 billion 2009.
Malaysia’s Exports:
The Minister of International Trade and Industry (MITI), YB Dato’ Sri Mustapa Mohamed announced that after a 16.5% decline in total trade registered in 2009, Malaysia’s trade rebounded in 2010 by registering 18.3% growth. The impressive growth was attributed to the global economic recovery which boosted demand for both manufactured goods and commodities.
Malaysia mainly exports the following commodities:
• Electronic equipment
• Petroleum and liquefied natural gas
• Wood and wood products
• Palm oil
• Rubber
• Textiles
• Chemicals
The table below shows the Top 10 exports products of Malaysia, 2010 :
|SITC |PRODUCTS |2010 (RM Billion) |Share (%) |