Analysis of Malaysian Economic Development From 1993 to 2002
Over the past three decades, Malaysia has achieved growth and
structural transformation in its economy. This review examines the
Malaysian economic performance and its policies for the last 10 years
(1993 - 2002). My approach to the review will cover the following:
· What is the role of the government in the economy process?
· What were the forms of government intervention?
· What were the costs and benefits?
· Could the government have used different policy mix?
Based on the approach I will examine and present the conditions that
was faced by Malaysia during the period of review along with the major
developments since then.
AN ANALYSIS OF MALAYSIAN ECONOMIC DEVELOPMENT
FROM 1993 TO 2002
In this paper I will analyse the performance of the Malaysian economy
for the past 10 years between 1993 and 2002. The analysis will be
divided into two eras, pre (1993 to 1996) and post (1997 to 2002)
Asian Financial Crisis. I will also present the economy polices
implemented during the period of review and in the process identify
whether the government's intervention had caused a positive or
negative effect on the growth of the economy. In closing, I will
conclude by commenting on the course of actions taken by the Malaysian
government whether or not it could have been better.
This study is carried out in the context of the Malaysian economy for
the period between 1993 and 2002. The key economic data was obtained
from various sources; Gross Domestic Product (GDP), National Accounts
from the Central Bank (Bank Negara Malaysia), Asian Development Bank
and other statistics i.e. Inflation and Unemployment rates from the
Malaysian Statistics Department. The GDP figures presented have been
based on the 1987 constant price.
In the presentation of the GDP data, I will categorise the industries
into four major sectors; agricultural, mining, manufacturing and
services and present their contributions to the economic growth, as
well as the industry's growth rate itself by year-on-year (yoy). The
other data used in this assignment would be the federal government
finance and debt, inflation rate, unemployment rate, current account
balances, gross domestic investments, gross domestic savings,
merchandise export and import. Tables and graphs are also used as aids
to illustrate the information presented by the data.
BRIEF ECONOMY OVERVIEW
The structural transformation of Malaysia's economy since it gained
independence from the British in 1957 has been pretty spectacular. The
agricultural and mining sectors were the main drivers of the economy
back then. It laid the foundation by financing the development of the
country. But in the last decade or more, the Malaysian economy has