Malaysia Economy

Malaysia Economy

Economic boom

Malaysia is one of the countries in Southeast Asia that is doing better economically than other countries. It has natural resources and is in the process of expanding its industry. Malaysia produces large quantities of rubber and palm oil as well as tin. Incidentally, half of the palm oil that is produced in the world comes from Malaysia. Tea plantations also shape the landscape. Oil and natural gas were discovered off the coast, but also copper, iron, gold and silver deposits. There has been a major boom in the country’s economy since the 1960s.

The other side of the coin

The rainforest still covers large areas. But wood is one of the country’s export items. The deforestation of the forest is unfortunately not without consequences for the animals and in the end also for the people. Deforestation is a major problem in many other Asian countries. Luckily Malaysia has a few other industries to switch to so the problem could be resolved.


The important thing is tourism, which brings money into the country. Because Malaysia is so beautiful and diverse, there are so many different cultures and the people are very friendly, people from other countries come year after year to admire it.

Situation of workers

Agriculture declined in Malaysia. This is often the case in countries where industry is growing. For example, electrical appliances and microchips are manufactured in Malaysia. The government in Malaysia ensures that companies from abroad come to Malaysia and invest money there. That’s good because it gives a lot of people jobs.

The danger, however, is that the workers are poorly paid. The companies from abroad would simply have to pay their workers at home a lot more, so they go abroad. The labor there is cheaper. But do people at least get enough that they can live well there or are they just being exploited? It is very different. Some companies are aware of their responsibility, others are not.

Infrastructure of Malaysia

In order for companies to invest, the government in Malaysia has also put a lot of money into expanding the country. There are some airports from which the goods can be transported. There are well-developed roads and a well-functioning railway network. Some sea ports were also built. From here, important products from Malaysia are shipped over the sea. Therefore, the economy in Malaysia is doing better than in other countries in Southeast Asia.

The Strait of Malacca

As a country located in Asia according to ezinereligion, Malaysia is strategically located because it is right on the Strait of Malacca, through which 80 percent of the trade in crude oil to China, Japan and South Korea is by sea.

The palm oil production

Together with Indonesia, Malaysia produces most of the world’s palm oil. The conditions for the growth of the oil palms, from which the palm oil is extracted, are ideal due to the uniform, humid and warm climate. If the climate were not tropical, the plants would not be able to grow. But that’s the problem, because the rainforest actually grows in Malaysia, and it values ‚Äč‚Äčthis climate just as much. So the rainforest is cut down, it is also called cleared, and oil palms are planted in place of these rainforest trees.

Bad effects on the environment

The oil that Malaysia exports to many countries around the world is obtained from the oil palms. The consequences for nature are dire. By clearing the harmful carbon dioxide is released, which the Earth’s atmosphere intact. At the same time, the clearing is contributing to the destruction of many animal and plant species that live in the rainforests of Malaysia. This includes not only the orangutans, but also the Sumatran tigers and the Borneo rhinos. In addition, these plantations are pure monocultures. Often the palm trees are sprayed so that they are not eaten away by pests. This poison harms the animals that live there. That is why it is better to avoid palm oil. Only since the end of 2014 have manufacturers had to write on the packaging whether their product contains palm oil.

Where is the palm oil in?

Many products that you may have already bought yourself contain palm oil. Here you can read it again very carefully.

Malaysia Economy