The paper "Malaysia Economic Growth and the Drivers of the Economy" is a good example of a macro & microeconomics case study. Since Malaysia gained independence in 1957, the country’ s economy has continued to grow. Coupled with a population that was increasing by the day and taking into consideration that she was primarily relying on the agricultural sector, the Malaysian government needed to act fast to diversity the Malaysian economy and shift from an agricultural dependent economy to a manufacturing economy with the objective of creating an economy that would sustain Malaysia in the long run (Duasa, 2000).
She is dubbed as a country which is recognized in the world for having one of the most rapidly expanding economies in the world. What then are the drivers of the economy in Malaysia? What would make Malaysia stand out among other world economies? When addressing the question on drivers of the Malaysian economy, the emphasis is on the factors that have contributed to the Malaysian economic growth. Drivers of the Malaysian Economy Manufacturing Industry From the word go, when the country started to invest more in the manufacturing industry is when the Malaysian economy showed some tremendous improvements.
The manufacturing sector is considered as one of the economic drivers of the country’ s economy when Malaysia started to export more manufactured products rather than raw agricultural products although we cannot discredit the fact that agriculture also plays a major role in the country’ s economy. Electronics and electrical products constitute the backbone of the country’ s exports with most of the raw material imported into the country been used in the production of exports (Duasa, 2000). ICT Integration in the economy In the global context and where countries have to compete for markets for their exports, being free minded is not the only thing that is required for a country to expand its economy.
Malaysia on the other hand has adopted some strategies that have seen her economy expand but also compete in the global arena. Another key driver of the Malaysian economy is the adoption of Information and Communications Technology.
Arndit, W. (1999). Southeast Asia’s Economic Crisis: Origins, Lessons, and the Way Forward. ISEAS current economic affairs series. Institute of Southeast Asian Studies.
Duasa, J. (2000). Determinants of Malaysian Trade Balance. An ARDL Bound Testing Approach. Journal of Economic Cooperation. 28, 3, 21 – 40.
EPU (Economic Planning Unit) (2001). The Ninth Malaysian Plan. 2006 – 2010, Prime Minister’s Department.
Anonymous, n.d. Malaysia: A Bold New Bold Vision. An Interview with Malaysia’s Trade Minister Mustapa bin Mohamed. Economic Development. Retrieved on 5th October, 2011. http://www.forbescustom.com/EconomicDevelopmentPgs/MalaysiaBoldNewVisionP1.html
Palley, T. (1997). "Keynesian theory and AS/AD analysis". Eastern Economic Journal, fall
Yusuf, S. & Nabeshima, K. (Eds) (2007). How Universities Can Promote Economic Growth. The e World Bank Publications