Malaysia - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Malaysia
| Official Name | Malaysia |
| Capital | Kuala Lumpur |
| Location | Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and the South China Sea, south of Vietnam |
| Area | total: 329,750 sq km land: 328,550 sq km water: 1,200 sq km |
| Climate | tropical; annual southwest (April to October) and northeast (October to February) monsoons |
| Terrain | coastal plains rising to hills and mountains |
Editor PicksBrowse Asia News Archive
Malaysia's construction Stocks Are Ready to Grow
Malaysian construction stocks including Gamuda Bhd., IJM Corp. and WCT Bhd. are set to benefit from several "fat years" as the government accelerates a slew of development projects, Maybank Investment Bank Bhd. said.
Prime Minister Najib Razak is yet to award 12 billion ringgit ($3.4 billion) of contracts from two stimulus packages, Wong Chew Hann, a Kuala Lumpur-based analyst at Maybank, said in a report today. The first-quarter economic slump of 6.2 percent underlines the need for faster project implementation, Wong said. "The momentum of awards for construction jobs should quicken," Wong said in the report, reiterating an "overweight" rating on the industry. "Tenders and awards ought to lift the valuations of construction stocks." The rollout of all outstanding contracts has the potential to trigger Malaysia's first building boom since the Petronas Twin Towers and the Kuala Lumpur International Airport projects before the 1997-1998 regional financial crisis, Maybank said. Steelmakers, property developers and construction stocks are already among the year's top climbers on the nation's main index. IJM, helping to build a tunnel for an interstate Malaysian water project, has almost doubled in 2009 and is the second-best performer on the Kuala Lumpur Composite Index. Gamuda, jointly building a railway in the north of Malaysia, has surged 33 percent. WCT has jumped 27 percent.read source article
Malaysia: Ringgit Bond Issuance To Drop In 2009
The Malaysian Rating Corporation Bhd (MARC) is expecting that Ringgit bond issuance will drop further to between RM25 billion and RM30 billion as the global economic downturn continues.
The Malaysian Rating Corporation Bhd (MARC) is expecting that Ringgit bond issuance will drop further to between RM25 billion and RM30 billion as the global economic downturn continues. Total bond issuance dropped by 8.3 percent to RM49 billion in 2008 after hitting a record high of RM54 billion in 2007. It is hoped that the establishment of the Financial Guarantee Institution (FGI) will encourage lower rated issuers to come back to the market.Malaysia To Take Extra Measures If Global Economy Worsens
Bank Negara Governor Tan Sri Dr. Zeti Akhtar Aziz said that Malaysia has the capacity to take additional measures if the global economy worsens and financial conditions fail to stabilize after the second half of the year.
Bank Negara Governor Tan Sri Dr. Zeti Akhtar Aziz said that Malaysia has the capacity to take additional measures if the global economy worsens and financial conditions fail to stabilize after the second half of the year. These measures include stimulus measures and monetary measures. The central bank has forecast growth in 2009 between 0.1 percent and 1 percent and unemployment to increase from 3.7 percent last year to 4.5 percent this year.read source article
New Dutch Investment in Malaysia
The Netherlands is set to launch a new investment in Malaysia during the Netherlands' Council for Trade Promotion chairman, Jochum Haakma's visit to the country on March 25.
The Netherlands is set to launch a new investment in Malaysia during the Netherlands' Council for Trade Promotion chairman, Jochum Haakma's visit to the country on March 25. The Netherlands has invested over RM1.8 billion in Malaysia, making it the country's 8th largest foreign investor. A statement from the Dutch embassy said that the current economic climate will not stop Dutch traders and investors from looking into opportunities abroad, particularly in the Asian region.Malaysia To Forge New Economic Model
Deputy Prime Minister Datuk Seri Najib Tun Razak said Thursday that Malaysia will use the current economic downturn as a springboard to forge a new economic model by using knowledge as its lead.
Deputy Prime Minister Datuk Seri Najib Tun Razak said Thursday that Malaysia will use the current economic downturn as a springboard to forge a new economic model by using knowledge as its lead. The government will invest in education and technology to strengthen the country's information technologies, renewable energy and emerging sectors of the new economy. The goal is to harness the talent, energy and drive of all Malaysians.read source article
Malaysia To Tap Growing Islamic Tourism
Malaysia launched the Islamic Tourism Center (ITC) today in Malacca with hopes to encourage tourist arrivals from Muslim nations and Muslim communities abroad.
Malaysia launched the Islamic Tourism Center (ITC) today in Malacca with hopes to encourage tourist arrivals from Muslim nations and Muslim communities abroad. They see the Islamic tourism sector as a potential boon for the country's tourism industry. Islamic tourism covers numerous aspects, including the economy and the arts. ITC was set up after several Muslim nations requested for it to help Malaysia share their tourism experience.Browse Asia News Archive
Trade Agreements
ASEAN - China Free Trade Area
The ASEAN - China Free Trade Agreement will apply in an area involving 1.7 billion consumers, making it the world's largest trading area. The agreement currently establishes a zero-tariff market. The agreement now contains trade in goods, services and dispute settlement. Investment is still under negotiation.
ASEAN - Korea Free Trade Area
Under the ASEAN- Korea Free Trade Agreement, Korean businesses will gain access to the ASEAN market, which contains nearly 500 million people. The agreement contains trade in goods and tariffs will be either eliminated or reduced on Korean products. http://www.aseansec.org/18063.htm
ASEAN Free Trade Area
Initiated in 1992, ASEAN Free Trade Area (AFTA) main mechanism used to reduce tariffs in ASEAN. It originally contained six members (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) the other four members (Vietnam -1995, Laos -1997, Myanmar-1997 and Cambodia-1999) joined after the original agreement was signed. In order to join ASEAN, they had to agree to AFTA. The overall objective of AFTA is to encourage more foreign investment to ASEAN and establish ASEAN as a world competitor by eliminating both tariff and non-tariff barriers within ASEAN. Over the next 15 years, ASEAN agreed to reduce tariffs 0-5%. http://www.aseansec.org/19346.htm
Global System of Trade Preferences among Developing Countries
Algeria
Argentina
Benin
Bolivia
Brazil
Cameroon
Chile
Colombia
Cuba
Ecuador
Egypt
Ghana
Guinea
Guyana
Iran
Iraq
Libya
Mexico
Morocco
Mozambique
Nicaragua
Nigeria
Peru
Sudan
Tanzania, United Republic Of
Trinidad And Tobago
Tunisia
Venezuela
ZimbabweThe Global System of Trade Preferences arose out of the United Nations Group of 77. The Group first appeared interested in 1976 to develop a global system of trade for developing countries. Over years of negotiations, the agreement was signed by the participating members of the Group of 77. The members are currently looking to expand their economic ties to other developing countries in Asia, Latin America and Africa. http://www.unctadxi.org/templates/Page____6207.aspx
Japan – Malaysia Economic Partnership Agreement
Under the Agreement, both countries will work to eliminate all tariffs within ten years. The partnership will allow Japanese firms to move into the Malaysian car market. The tariffs on Japanese cars will be eliminated by 2015. Trade in Japan is expected to increase as Japan is Malaysia’s third largest trading partner. JMEPA will strengthen the economic ties between the two countries and remains a solid basis for the facilitation of trade between the countries. http://www.mofa.go.jp/region/asia-paci/malaysia/epa/index.html
Trade and Investment Framework Arrangement between the United States of America and the Association of Southeast Asian Nations
United States of AmericaThe Enhanced partnership between ASEAN and the United States will increase cooperation and understanding in the areas of politics, economics and safety. EAI, Enterprise ASEAN Initiative, will strengthen economic cooperation and will allow and increase of trade and investment between both parties. Both sides have also vowed to work together on various projects in the development arena including, fighting infectious disease and disaster relief. http://www.ustr.gov/assets/Trade_Agreements/TIFA/asset_upload_file932_9760.pdf
Trade Organizations
ASEAN Plus 3
Forum as a coordinator of cooperation between ASEAN and China, Japan and South Korea.
Asia-Pacific Economic Cooperation (APEC)
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions (styled 'member economies') to discuss the regional economy, cooperation, trade and investment. The membership is claimed to account for approximately 41 percent of the world's population, approximately 56 percent of world GDP and about 49 percent of world trade. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat.
Association of Southeast Asian Nations (ASEAN)
Association of Southeast Asian Nations, commonly referred to as ASEAN, is a geo-political and economic organization of 10 countries located in Southeast Asia, which was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Its aims include the acceleration of economic growth, social progress, cultural development among its members, and the promotion of regional peace.
BIMP-East ASEAN Groth Area (BIMP-EAGA)
A subregional economic cooperation initiative involving 4 Southeast Asia Nations
Council for Security Cooperation in the Asia Pacific (CSCAP)
The Council for Security Cooperation in the Asia Pacific (CSCAP) is a non-governmental (second track) process for dialogue on security issues in Asia Pacific.
East Asia Summit (EAS)
The East Asia Summit (EAS) is a Pan-Asia forum of 16 countries in East Asia, with ASEAN in a leadership position.