Malaysian Country Analysis

Malaysia A. Brief History § In the first century AD, the Malayan peninsula was prominent in int’l trade. § Conquered by the Portuguese in 1511, then the Dutch in 1641. § The British, who replaced the Dutch in 1795, developed large-scale productions of tin and rubber. § The Japanese invaded Malaysia during WWII. § Malaysia was formed after negotiating for independence from the British in September 16, 1963. B. Comparative Advantage (Early years up to pre-1980’s) § Natural Resources/Land - Malaysia has a …

…became vulnerable, and the financial system was exposed to external borrowing, property, stock, and shares. - Weak supervision in the financial system. § Strategy for Recovery - Stabilizing the Ringgit - Reduce an Over-Dependence on the US Dollar - Increase External Reserves - Adopt a Balanced Interest Rate Policy G. Most Likely Country Scenario § Invest more on its resources. § Will develop competitive industries. § Must become politically and socially stable. Bibliography Malasian Star (newspaper) Asia Economic review