Sample English Paper on Malaysia last 20 years
Malaysia is an upper middle economy that has undergone major transformation for the last twenty years. Malaysia is one of the few countries that were indentified in a growth report by the commission of growth and development as a fast growing economy. In the report, it is evident that Malaysia has been growing by an average of more than seven percent for the last twenty years. The country has a diversified economy and has become a leading exporter of electrical appliances, electronic parts and components, palm oil, and natural gas which generate a lot of revenue. The smooth establishment of the post-colonial state in Malaysia more easily incorporated Islamic politics as a result of the geographic location of the country. The establishment of Islamic politics in the post colonial Malaysia had an impact on the growth of the country. The transformation and integration of Malaysia due to processes of globalization and Islamic politics have provided an ideological resource for articulating social and political discontent in the country (Hadiz and Teik 464). This essay analyzes the changes that have taken place in Malaysia for the last twenty years and how these changes have affected the economy of the country.
The resources that are available in Malaysia have been fully utilized to help the country to grow at a higher rate. The country is an energy exporter due to the abundant energy resources that the country enjoys. Malaysia has been one of the leading exporters of crude oil and natural gas both in Asia and the whole world in general. A number of studies of Malaysia’s economic transition since 1969 indicate that labor markets were a crucial site for economic reforms (Elias, 535). This was premised on the making of a more ‘flexible’ and ‘efficient’ depoliticized and feminized workers in the country as a result of the measures that the government put in place. These studies underline the importance of relations, for instance, gender relations and identities to processes of state led integration into the global market economy. The transformation was based on the country’s policy of building a knowledge based economy to benefit the society at large.
For the last twenty years, Malaysia has also been importing energy from other countries so as to ensure reliable energy supply. In the last twenty years, the country has remained a net exporter of oil regardless of the narrowing gap between the exports and imports. In the recent past, crude oil imports have increased whereas exports have decreased. The country exports more than half of it crude oil production due to its high quality. The crude oil of the country is of high quality thus making it attractive to countries which are in need of crude oil. Australia, Thailand, Japan and India are the most attractive markets in which the country exports its crude oil (Chong 2849). On the other hand, Malaysia imports sour crude oil for its refineries because of its lower cost and other logistics like availability of affordable means of transport to its refineries’. The revenue that is realized from the export of the products is ploughed back in activities that help to develop many sectors of the country. At the time of the Asian financial crisis of 1997-1998, the country continued to post a growth rate of more than five percent. The country was affected by a Financial Crisis in 2009 but recovered rapidly, posting growth rates averaging 5.7 percent since 2010.
In the last twenty years, Malaysia has been pursuing a development strategy whose main focus is on diversification of agricultural exports as a means of gaining stability in its earnings from exports. In the last twenty years, Malaysia has experienced fundamental growth in its agricultural industry. The country has gradually transitioned from an agricultural country to an industrial country in the last twenty years. This occurred as a result of government policies that were aimed at industrializing the country through import substitution and export based industrialization measures and strategies. The development plans of the country are clearly spelled out in the development plan of the country that was drafted by experts. The plan of the country places an emphasis on growth and equity on the context of multi-racial society. Before, 1970s, there was an economic imbalance in the country in many areas of its economy, for instance distribution of income, employment, ownership and control of economic activities.
The economy of the country has performed well in recent years with output growth averaging over five percent since 2010. This is as a result of the steps that have been taken by the government of Malaysia to consolidate its fiscal position after an increase in public debt. The public debt of the country has been increasing in the last twenty years but measures have been put in place to prevent a negative effect on the economic growth of the country. The stable financial system of the country has provided an environment which is conducive to the growth of its economy. The credit markets of the country have been notable for their resilience through ups and downs in global financial risk cycle in the last twenty years. In addition, the country’s long running current account surplus has moved closer to a more sustainable balance. This is as a result of a higher investment growth that has coincided with declining savings rates.
The growth and economic rebalancing of the country has been exemplary in the last twenty years. The growth has made it to become one of the fasted growing economies in the Asian continent. However, despite of the high economic growth, some policy areas remain of concern from the analysis of policy experts. The country’s past success insulating its bond market from fluctuations in global risk appetite is not guaranteed in the future. This is for the reason that of the continued fall of domestic savings and the rise of advanced country rate which has led to more volatile capital flows in the country. The domestic savings of the country have continued to fall in the past few years but the government has put in place measures to ensure that this will not have an effect on its economy, few years to come. Furthermore, real estate price rises points to a potential future financial sector and household wealth stability. These concerns have spurred macro prudential policy responses by those who have a stake in ensuring that the country’s economy is not negatively affected.
Oil and gas production has been at the heart of the country’s economic growth for the past twenty years. The discovery of oil in Malaysia in 1900s had a positive impact on the economy of the county. The revenues from oil have provided the country with strong incentives to develop the oil industry. A robust oil sector has been developed from oil revenues and thus boosting the economy of the country. Oil production has prospered as a result of the creation of local companies to build and expand capacities across all sectors. For Malaysia, latest indicators indicate that there was a continued expansion in the fourth quarter of 2016 as a result of the strategies that were put in place. Going forward, private sector activity will remain the key driver of growth in the county. Private consumption of the country has been sustained by continued wage and employment growth rates. This is as a result of the support from various policy measures to raise disposable income in the last twenty years. Investment activity, although moderating, has been supported by on-going infrastructure development projects and capital spending in the manufacturing and services sectors. On the external front, the expected improvement in exports has provided some support to growth. Overall, the economy remains on track to expand as projected by policy experts. The rapid growth of the economy that has been realized in the past twenty years has been as a result of the continued steps that the government of Malaysia has taken in improving the country.
Malaysia has been classified as one of the fasted growing economies in the Asian continent as a result of the changes that have taken place. In the last twenty years, the country has experienced rapid growth in most areas of its economy. This is as a result of the steps that have been taking the country in diversifying its exports. Although the gap between exports and imports is narrowing, the country has put in place measure to ensure that this does not have a negative effect on its economy.
Works cited
Chong, Chinhao, et al. “The use of energy in Malaysia: Tracing energy flows from primary source to end use.” Energies 8.4 (2015): 2828-2866.
Elias, Juanita. “The Gender Politics Of Economic Competitiveness In Malaysia’s Transition To A Knowledge Economy.” Pacific Review 24.5 (2011): 529-552. Academic Search Premier. Web. 30 Jan. 2017.
Hadiz, Vedi R., and Khoo Boo Teik. “Approaching Islam And Politics From Political Economy: A Comparative Study Of Indonesia And Malaysia.” Pacific Review 24.4 (2011): 463-485. Academic Search Premier. Web. 30 Jan. 2017.
Yusoff, Mohammed B., Fauziah Abu Hasan, and Suhaila Abdul Jalil. “Globalisation, economic policy, and equity: the case of Malaysia.” Poverty and Income Inequality in Developing Countries: A Policy Dialogue on the Effects of Globalization (2000).