Virtual Map of Malaysia http://map.virtualmalaysia.com/index.asp http://www.windowstomalaysia.com.my/

1. Virtual Map of Malaysia http://map.virtualmalaysia.com/index.asp http://www.windowstomalaysia.com.my/

3. Kuala Lumpur  Putrajaya Kelantan Negeri Sembilan Kedah  Melaka Johor Perak Penang Perlis Sabah Pahang Sarawak Selangor Terengganu Federal territories Labuan 13 states:

4. Malaysia - A glance Full country name: Federation of Malaysia 馬來西亞聯邦Area: 329,750 sq km (204,445 sq mi)Population: 25 million Capital city: Kuala Lumpur (pop 1.5 million)People:50% Malay, 33% Chinese, 9% Indian, plus indigenous tribes such as Orang Asli and Iban Language: Bahasa Malaysia, English, Chinese dialects, Tamil, indigenous dialectsReligion: 52% Muslim, 17% Buddhist, 12% Taoist, 8% Christian, 8% Hindu, 2% tribalGovernment: Parliamentary monarchyGDP growth: 4-5% (2002), 6-6.5%(2003) Per capita income: 2002 RM14098(US$3710), Inflation rate: 1.9% Unemployment: 3.5% hibiscus

5. - History Ancient Malaysia: 35,000 BC - 100 BC Aboriginal Malays (Orang Asli) began moving down the Malay peninsula from south-westernChina about 10,000 years ago Hindu Kingdoms 100 BC - 1400 AD First Indians were lured to the Malay Peninsula and arrived in Kedah sometime around 100 BC, Indian traders arrived in search of gold, aromatic wood, and spices. Islam and the Golden Age of Malacca 1400 AD - 1511 AD Rule under the Cambodian-based Funan, the Sumatran-based Srivijaya and the Java-based Majapahit empires, before the Chinese arrived in Melaka in 1405. Islam arrived in Melakaat about the same time and spread rapidly. Malacca was founded in 1400 by a fleeing Palembang prince named Parameswara. Perfectly located for trade, within 50 years it was the most influential port in S.E. Asia.

7. Political System (http://www.windowstomalaysia.com.my/gov/20.htm) The Federation of Malaysia is a constitutional monarchy with a system of parliamentary democracy. Malaysia is a federal one, with each (13) state having its own legislature, but power is centralized in the national government.  General elections are held every five years.  The Barisan National, is a coalition of various political parties with the main party being UMNO, which continues to rule the government.

8. The Monarch - Head of State The Malaysian monarchy is a unique system as its King is rotationalelected every 5 years and is not hereditary. Here the King or the ‘Yang di-Pertauan Agong’ is elected every five years from 9 royal states. Unlike the traditional system where the Monarch ascends the throne through lineage and remains until his abdication or death. Royal Regalia Royal Head Dress (Royal Short Keris) Sultan of Perlis was elected as the 12th Yang di Pertuan Agong of Malaysia on 25th April 2002. (Royal Tiara)

9. Head of Government Prime Minister Official & Cabinet Ministers of Malaysia http://www.virtualmalaysia.com/Malaysia/Ministries/ PERDANA PUTRA BUILDING(PRIME MINISTER'S OFFICE) Putrajaya the New Government City Malaysia has undergone tremendous growth and prosperity, and has arguably made significant progress in race relations. Many attribute the country's success to the dynamic leadership of Prime Minister Mahathir bin Mohammed, who has led the country since 1981.  He is scheduled to step down on the end of October 2002 to finish the longest 22-years government administration among the Asia.

10. Senators, whether appointed or elected, serve a six-year term,

12. House of Representatives are elected for a 5-year term in a single member constituency system

13. Religions Islam is the national religion, but freedom of religion is guaranteed.  Malays are usually Muslims.  Chinese are predominately Taoists and Buddhists, some are Christians.  Majority Malaysia's Indian are mainly Hindu, a small percentage are Muslims, Christians and also Sikhs.  East Malaysia have converted to Christianity although others still follow their animist traditions.

14. Cultures have been meeting and mixing in Malaysia The Malay people and the Islam in Malaysia: Though Islam originates from Saudi Arabia The Malays do not accept all cultural values from the Arab, there is a difference between the Islam how it is practised in the Arab States in Middle East (so-called "desert-Islam") and in Malaysia, the "tropical Islam". Moslem New Year - Ma'al Hijrah / Awal Muharram(March) "Selamat Tahun Bahru!" - A happy New Year! Malaysia Fest is a two-week affair held in September Hari Raya Puasa: (Ramadan or festival of break-fast-time).Itis a celebration marking the end of Muslim month of fasting and abstinence. (October- November) Hari Raya Haji - the pilgrimage to Mecca(February)

16. Chinese Culture in Malaysia Chinese New Year, Dragon Boat Festival, Moon-cake Festival Opera,Lion Danceand others

17. Indian’s Thaipusam: a day of consecration to the Hindu deity. A feature is carrying a frame decorated with colorful papers, tinsels, fresh flowers, and fruits as a form of penance (January/February) The Panguni Utthiram Festival This is an auspicious date for worship on the full moon day of the Tamil month Panguni (March-April). Indian New Year (April)

18. Guidelines on the Do's & Don'ts Take off your shoes when entering a place of worship or a Malaysian home. Impolite to cross your legs with shoes facing other person. Don’t point your finger to others in most situation Avoid liquor and dishes which contain pork to serve Muslims. If your guest is an Indian Hindu, avoid serving him beef. Use right hand to shake hands, but kissing hand or cheek should be avoided. Muslim women prefer not to shake hands, a simple nod and smile is sufficient. Visitors should dress modestly in the conservative rural areas. Impolite to wear shorts to a place of worship or a function, except beach party.

19. Some Malay expressions Terima kasih. (Thank you.)Sama-sama. (You're welcome) Tolong (Please!) Apa khabar? (How are you?)Selamat pagi. (Good morning)Ma’afkan saya. (Excuse me/I'm sorry) Berapakah harganya? (How much is it?) Tak apa (It's okay)

20. MalaysiaSpecialTropical Fruits and Agriculture "The King of the fruits“ Durian "The Queen of the fruits" Mangosteen Jackfruit cocoa Rubber Rambutan Palm Oil

21. Malaysia Economic System The core of Malaysian economic systemis free market with private enterprises. Government also plays an active role in development planning to promote balanced economic growth and social progress. Malaysia is essentially a trade-oriented and open economy with exports and imports for over 176% of the GNP in the early 1990s. Exports play a dominant role and important determinant of the state of economic activity over the short and medium terms.

22. Malaysia Economic Development and Policies • Phase 1: 1957~1970 After Independence • Policy: Self-sufficiency, open, market-orientedeconomy with min. interventions • Rubber and Tin are the major products (Shared 85% of total exports) • 1st and 2nd 5-year economy plans: • Reforms on land and diversify agricultural outputs, • i.e. palm oil, cocoa, pepper, timber, etc • Restructure the reliance on rubber and tin production (colonial industries) • Encourage manufacturing by using Import-substitution policy

23. Rural development plan: (1) Diversify agriculture products - introduce technology to produce industry crops, i.e. palm oil, coco, pepper, coconut, coffee, etc. - provide agricultural training (2) Setup the production standard for rubber to keep the leadership of productions and exports (3) Green reforms among rural areas (4) Centralize purchase price of major agriculture (5) Land reform: Setup FELDA to provide to farmers, 4 arcs for each migrated farmer to new areas. Use 3.2 arcs for rubber and 0.8 arc for others. Also provide financial support and fertilizer to farmers until harvesting (5a) Later years introduce palm oil planting and encourage cooperate and merge to large farming.

24. Phase 2: 1971~ 1990: Authoritarian Policy • New Economic Policy (NEP): • Increase overall income, increase job opportunities, poverty eradication • - Directly subsidies and preferential to Malays, • - Encourage Malays to establish business, • - Enlarge the education opportunities for Malays • (2) Income re-distribution and balance economic power among races • - Restructure employment ratio: 54% Malay, 35% Chinese, 10% Indian, • - Restructure ownership shares to 30: 40: 30 for foreign, non-Malay and Malay • - Target 30% of companies are owned by Malays in 1990 • (3) Export-oriented policy: • - Free Trade Zones (FTZs), Export process Zone (EPZs), • - Exemption on Licenses manufacturing warehouse (LMWs) • - 8 yrs Tax Free for foreign investors • - Expand the petroleum industry Manufacturing sector accounts for 30.4% of GDP, and make up 86.5% of the country's total exports. The world's largest producer of palm oil, rubber and tin, also one of the world's leading exporters of semiconductor devices, computer hard disk drives, audio and video products, and room air-conditioners

25. Source: Table10.9, 13.4, Drabble, An Economic History of Malaysia, c.1800-1990

26. (4) 1981 “Look East” – Resource-Baseindustrialization policy, • - want “know-how”, don’t want “show-how” • heavy industries: auto (“Proton”), steel, oil & gas, paper, chemical fertilizer,… • setup HICOM for centralizemanagement, coordinate and monitor • - infrastructures: highway, sea-port, airport, telecommunications network • - Industrial Parks, Specialized parks, etc.

27. Malaysia Real GDP growth rate before 1997 • Phase 3: 1990 ~ 1997 • New Development Policy (NDP) • Stress on economic growth and balance development • Stress on harmonious and cooperation • (3) Liberalize investment regulations for non-Malay The Government has instituted significant reforms by dismantling many state-run enterprises and encouraging private enterprise to undertake many of the country's development projects. Through promoting a free market in some areas, the Government is also an investor in the economy (usually as a minority partner) and controls prices on some key commodities such as fuel and rice. The Economy Video Clips http://www.windowstomalaysia.com.my/vid_eco.htm

29. Labor welfare and social security • Central Provident Fund System (1957-present) • Statutory contributions under the Employees Provident Fund Act 1991 • Employers – Min. of 12% of the employees’ monthly wages • (before 1991 is 10%) • Employees – Min. of 11% of the employees’ monthly wages • (before 1991 is 5%) • Until 55-year-old employees can withdraw from the central provident fund.

31. Human Resources Development High Priority on Education Education shared about 15% of total public expenditure allocated under Malaysia's five-year development plans. There are 18 public and 15 private universities, 4 oversea U. branches, and various polytechnics and industrial training institutes Total enrolment in public institutions of higher learning alone is projected to reach over 250,000 in 2003, with more than half in the science and technical disciplines. HKBU-Economics 2003 Malaysia Field Trip http://www.hkbu.edu.hk/~eecon/2003Malaysia/2003Malaysia01.html

34. Economic statistics http://www.statistics.gov.my/English/framesetKeystats.htm

36. Government Services Agriculture, forestry & fishing Finance, insurance, real estate & business services Mining and Quarrying 8.7% 7.3% 11.4% 11.6% Other services 6.8% 30.8% Manufacturing 13.8% 3.7% 3.3% Electricity, water & gas Construction Wholesale, retail, hotel & restaurants

38. Malaysia Prior to the Crisis • Causes for concern: • Economic growth above the potential output • 2. Loss of efficiency in the economy • Rising current account deficits • Excessive Credit Expansion to the Non-Tradable Sectors

41. Exchange Rates: National currencies against US Dollar The Ringgit, which had been one of the region's strongest and most stable currencies, plunged in value from RM2.5 to the US dollar to almost RM5 to the dollar, before the Government fixed it at RM3.8 in September 1998.

42. Asian Financial Crisis: Malaysia has been seriously affected by the Asian financial crisis with GDP shrinking by 7.5 per cent by the end of 1998. The decline in output was mostly observed in the construction, manufacturing and agricultural sectors. The Ringgit depreciated by 56 per cent and the stock market fell by 50 per cent between mid-1997 and January 1998. The financial crisis had cost Malaysia about US$50 billion in terms of purchasing power of imports and US$150 billion in market capitalisation. Several Government-funded mega-projects were put on hold following the implementation of the National Economic Recovery Plan (NERP), drawn up by the National Economic Action Council (NEAC), to counter the negative effects of the Ringgit depreciation and the collapse of the stock market. Economic Recovery Plan after 1997 http://mir.com.my/lb/econ_plan/index.htm Malaysia Budget – Keynesian Approach http://mir.com.my/lb/budget2002/index.htm

46. The Malaysia Government has responded immediately by putting in place measures to prevent further deterioration in the economy. Steps are being taken to reduce dependency on external trade, while more attention is given to domestic economic activities as well as the new markets, which will be expected to lead in the nation's economic growth in 2002 and the years ahead.

47. Liberalisation of Equity Policy in the Manufacturing Sector After July 1998, foreign investors are allowed to hold 100% of the equity in all manufacturing projects, with the exception of 7 activities and products comprising paper packaging, plastic packaging, plastic injection moulded components, metal stamping and metal fabrication, wire harness, printing and steel service centers Since Jun 2003, to further improve the investment climate, the government has decided to fully liberalise equity holdings in all manufacturing projects, irrespective of the level of exports and without any product/activity being excluded. Liberalisation Policy on the Employment of Expatriates in theManufacturing Sector. To address the need for high level expertise in the manufacturing sector, the Government has further liberalized the policy on the employment of expatriates in the manufacturing sector. Automatic approval for up to 10 expatriate posts, including 5 key posts. Expatriates can be employed for up to a maximum of 10 years for executive posts, and 5 years for non-executive posts.

48. Recovery in Malaysia

50. Challenges Remain