The paper "Malaysian Economy" is an outstanding example of a micro and macroeconomic assignment. Using Malaysia as the case study this paper is to explore the performance of the Malaysian economy in relation to international trade. It keenly scrutinizes the various financial policies that the country has taken and the way that they are affecting the performance of the economy. Important business aspects like imports, exports, are well covered. In the end, different recommendations are given on the changes that need to be taken in the economy According to Lean and Smyth (2010), trade openness in Malaysia in terms of international trade has earned the economy such great prosperity that it has shifted from an ordinary traditional primary producer to a Modern industrialized Nation.
Through this trade, the economy has been exposed to the international ups and downs not forgetting the GFC that touched nearly every economy in the world as well as the Asian crises. The Trade Current Account The economy has been registering a surplus since the well known Asian crises. The export of goods has greatly outpaced the country’ s imports and hence the deficits in the income and service account have been offset.
According to BEKHET (2014), this great performance of the export account has been due to the diversification of the country’ s markets. However, the great financial crises marked the start of the modernization trend to the current account surplus. In recent years, there have been lower exports for Malaysia due to lower commodity prices and weak global demand. The table below shows the trends in the Exports As Ariff and Hill (2011) observe, the economy is export-oriented with the main export products being electronics and electrical products which take 35% of the total exports followed by palm oil(15%), petroleum products(9%), and liquefied gas that takes 7 %. Malaysia also exports other products in small quantities and they include machinery, chemicals, and manufacturers metals.
The country’ s main export partners are Singapore (13% of the total imports ad 15% of the total exports) and China (15 % of the total imports and 13 % of the total exports). Other trade partners are, united s States, Emu, Japan taking, and China taking 13%.
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