Malaysia
GANG INFORMATION
PROFILE
OFFICIAL NAME:
Malaysia
Geography
Area: 329,749 sq. km. (127,316 sq. mi.); slightly larger than
New Mexico.
Cities: Capital--Kuala Lumpur. Other cities--Penang, Ipoh, Malacca,
Johor Baru, Kuching, Kota Kinabalu, Alor Setar, Shah Alam, Miri.
Terrain: Coastal plains and interior, jungle-covered mountains.
The South China Sea separates peninsular Malaysia from East Malaysia
on Borneo (400 mi.).
Climate: Tropical.
People
Nationality: Noun and adjective--Malaysian(s).
Population (2004): 25.6 million.
Annual growth rate: 2.4%.
Ethnic groups: Malay 50.8%, Chinese 23.8%, Indigenous 10.9%, Indian
7.1%, non-Malaysian citizens 6.8 %, others 0.6%.
Religions: Islam (60.4%), Buddhism (19.2%), Christianity (9.1%),
Hinduism (6.3%), Confucianism (2.6%), animism (0.8%), others (including
Taoism, Sikhism, Baha'i faith -- 0.4%), none (2.8%).
Languages: Malay, Cantonese, Hokkien, Mandarin Chinese, English,
Tamil, indigenous.
Education: Years compulsory--9. Attendance--98.5% (primary), 82%
(secondary). Literacy (2002)--95%.
Health: Infant mortality rate (2003)--5.8 /1,000. Life expectancy
(2003)--female 75.5 yrs., male 71.0 yrs.
Work force (10.6 million, 2003): Manufacturing 29.1%; other services--28.2%;
agriculture--13.8%; government services--9.8%; construction--7.6%;
finance--6.4%; transportation and communications--5.2%; mining
and petroleum--0.4%.
Government
Type: Federal parliamentary democracy with a constitutional monarch.
Independence: August 31, 1957. (Malaya, which is now peninsular
Malaysia, became independent in 1957. In 1963 Malaya, Sabah, Sarawak,
and Singapore formed Malaysia. Singapore became an independent
country in 1965.).
Constitution: 1957.
Subdivisions: 13 states and three federal territories (Kuala Lumpur,
Labuan Island, Putrajaya federal administrative territory). Each
state has an assembly and government headed by a chief minister.
Nine of these states have hereditary rulers, generally titled
"sultans," while the remaining four have appointed governors
in counterpart positions.
Branches: Executive--Yang di-Pertuan Agong ("paramount ruler,"
who is head of state and customarily referred to as the king and
has ceremonial duties), prime minister (head of government), cabinet.
Legislative--bicameral parliament, comprising 70-member Senate
(26 elected by the 13 state assemblies, 44 appointed by the king
on the prime minister's recommendation) and 219-member House of
Representatives (elected from single-member districts). Judicial--Federal
Court, Court of Appeals, high courts, session's courts, magistrate's
courts, and juvenile courts. Shariah courts hear cases on certain
matters involving Muslims only.
Political parties: Barisan Nasional (National Front)--a coalition
comprising the United Malays National Organization (UMNO) and
13 other parties, most of which are ethnically based; Democratic
Action Party (DAP); Parti Islam se Malaysia (PAS); Parti KeADILan
Rakyat. There are more than 30 registered political parties, including
the foregoing, not all of which are represented in the federal
parliament.
Suffrage: Universal adult (voting age 21).
Economy (2004)
GNP: $111.3 billion.
Annual real GDP growth rate: 7.1% (2004); 5% (2005).
Per capita (GDP) income: $4,352.
Natural resources: Petroleum, liquefied natural gas (LNG), tin,
minerals. Agriculture: Products--palm oil, rubber, timber, cocoa,
rice, tropical fruit, fish, coconut.
Industry: Types--electronics, electrical products, chemicals,
food and beverages, metal and machine products, apparel.
Trade: Merchandise exports--$127.0 billion: electronics, electrical
products, palm oil, petroleum, liquid natural gas, apparel, timber
and logs, plywood and veneer, natural rubber. Major markets--U.S.
18%, Singapore 15.0%, Japan 10.9%. Merchandise imports--$99.2
billion: machinery, chemicals, manufactured goods, fuels, and
lubricants. Major suppliers--U.S. 15%, Japan 15%, Singapore 11%.
PEOPLE
Malaysia's population of 25.6 million (2004) continues to grow
at a rate of 2.0% per annum; about 32.8% of the population is
under the age of 15. Malaysia's population comprises many ethnic
groups, with the politically dominant Malays comprising a majority.
By constitutional definition, all Malays are Muslim. About a quarter
of the population is Chinese, who have historically played an
important role in trade and business.
Malaysians of Indian descent comprise about 7% of the population
and include Hindus, Muslims, Buddhists, and Christians. About
85% of the Indian community is ethnically Tamil, with the remainder
including those of Telegu, Malayalam, Punjabi and Gujarati descent.
Non-Malay indigenous groups make up more than half of the Borneo
state of Sarawak's population and about 66% of the Borneo state
of Sabah's population. They are divided into dozens of ethnic
groups, but they share some general patterns of living and culture.
Until the 20th century, most practiced traditional beliefs, but
many have become Christian or Muslim. The "other" category
includes Malaysians of, inter alia, Thai, European, and Middle
Eastern descent. Population distribution is uneven, with some
20 million residents concentrated in the lowlands of peninsular
Malaysia, an area slightly smaller than the state of Michigan.
HISTORY
The early Buddhist Malay kingdom of Srivijaya, based at what is
now Palembang, Sumatra, dominated much of the Malay peninsula
from the 9th to the 13th centuries AD. The powerful Hindu kingdom
of Majapahit, based on Java, gained control of the Malay peninsula
in the 14th century. Conversion of the Malays to Islam, beginning
in the early 14th century, accelerated with the rise of the state
of Malacca under the rule of a Muslim prince in the 15th century.
Malacca was a major regional entrepot, where Chinese, Arab, Malay,
and Indian merchants traded precious goods. Drawn by this rich
trade, a Portuguese fleet conquered Malacca in 1511, marking the
beginning of European expansion in Southeast Asia. The Dutch ousted
the Portuguese from Malacca in 1641. The British obtained the
island of Penang in 1786. In 1795, the Dutch gave up Malacca to
the British temporarily to prevent it from falling to the French
during the Napoleonic war. It was returned to the Dutch in 1818.
In 1824, through the Anglo-Dutch treaty, Malacca was given to
the British in exchange for Bengkulen on the island of Sumatra,
in what is today Indonesia.
In 1826, the British settlements of Malacca, Penang, and Singapore
were combined to form the Colony of the Straits Settlements. From
these strongholds, in the 19th and early 20th centuries the British
established protectorates over the Malay sultanates on the peninsula.
Four of these states were consolidated in 1895 as the Federated
Malay States.
During British control, a well-ordered system of public administration
was established, public services were extended, and large-scale
rubber and tin production was developed. This control was interrupted
by the Japanese invasion and occupation from 1941 to 1945 during
World War II.
Popular sentiment for independence swelled during and after the
war and, in 1957, the Federation of Malaya, established from the
British-ruled territories of peninsular Malaysia in 1948, negotiated
independence from the United Kingdom under the leadership of Tunku
Abdul Rahman, who became the first prime minister. The British
colonies of Singapore, Sarawak, and Sabah (called North Borneo)
joined together with the Federation to form Malaysia on September
16, 1963.
Singapore left the Federation on August 9, 1965, and became an
independent republic. Neighboring Indonesia objected to the formation
of Malaysia and pursued a program of economic, political, diplomatic,
and military "confrontation" against the new country,
which ended only after the fall of Indonesia's President Sukarno
in 1966.
Following World War II, local communists, nearly all Chinese,
launched a long, bitter insurgency, prompting the imposition of
a state of emergency in 1948 (lifted in 1960). Small bands of
guerrillas remained in bases along the rugged border with southern
Thailand, occasionally entering northern Malaysia. These guerrillas
finally signed a peace accord with the Malaysian Government in
December 1989. A separate, small-scale communist insurgency that
began in the mid-1960s in Sarawak also ended with the signing
of a peace accord in October 1990.
GOVERNMENT
Malaysia is a constitutional monarchy, nominally headed by the
Yang di-Pertuan Agong ("paramount ruler"), customarily
referred to as the king. Kings are elected for 5-year terms from
among the nine sultans of the peninsular Malaysian states. The
king also is the leader of the Islamic faith in Malaysia.
Executive power is vested in the cabinet led by the prime minister;
the Malaysian constitution stipulates that the prime minister
must be a member of the lower house of parliament who, in the
opinion of the Yang di-Pertuan Agong, commands a majority in parliament.
The cabinet is chosen from among members of both houses of parliament
and is responsible to that body.
The bicameral parliament consists of the Senate (Dewan Negara)
and the House of Representatives (Dewan Rakyat). All 70 Senate
members sit for 3-year terms, which are normally extended for
an additional 3 years; 26 are elected by the 13 state assemblies,
and 44 are appointed by the king. Representatives of the House
are elected from single-member districts by universal adult suffrage.
The 219 members of the House of Representatives are elected to
parliamentary terms lasting up to 5 years. Legislative power is
divided between federal and state legislatures.
The Malaysian legal system is based on English common law. The
Federal Court reviews decisions referred from the Court of Appeal;
it has original jurisdiction in constitutional matters and in
disputes between states or between the federal government and
a state. Peninsular Malaysia and the East Malaysian states of
Sabah and Sarawak each have a high court.
The federal government has authority over external affairs, defense,
internal security, justice (except civil law cases among Malays
or other Muslims and other indigenous peoples, adjudicated under
Islamic and traditional law), federal citizenship, finance, commerce,
industry, communications, transportation, and other matters.
Principal Government Officials
Prime Minister--Dato' Seri Utama Abdullah bin Ahmad Badawi
Foreign Minister--Datuk Seri Syed Hamid Albar
Ambassador to the U.S.--Dato' Ghazzali Sheikh Abdul Khalid
Ambassador to the UN--Datuk Rastam Mohd Isa
Malaysia maintains an embassy in the U.S. at 3516 International
Court, Washington, DC 20008, tel. (202) 572-9700; a Consulate
General in the Los Angeles World Trade Center, 350 South Figueroa
Street, Los Angeles, CA, tel. (213) 621-2991; and a Consulate
General at 140 E. 45th Street, New York, NY 10017, tel. (212)
490-2722.
POLITICAL CONDITIONS
Malaysia's predominant political party, the United Malays National
Organization (UMNO), has held power in coalition with other parties
since Malaya's independence in 1957. In 1973, an alliance of communally
based parties was replaced with a broader coalition--the Barisan
Nasional--composed of 14 parties. In September 1998, then-Prime
Minister Mahathir dismissed Deputy Prime Minister Anwar Ibrahim
and accused Anwar of immoral and corrupt conduct. Although Anwar
was convicted on both charges in 1999 and 2000, the trials were
viewed as seriously flawed (Malaysia’s Federal Court eventually
freed Anwar after overturning his immoral conduct conviction in
September 2004). Mahathir replaced Anwar in 1999 with Abdullah
Ahmad Badawi.
On October 31, 2003, Prime Minister Mahathir stepped down voluntarily
after 22 years in power, and his successor, Deputy Prime Minister
Abdullah Badawi, was sworn into office. Abdullah won an overwhelming
victory in March 21, 2004 general elections, with Barisan Nasional
winning 199 of 219 seats in the lower house of parliament. UMNO
itself won 110 seats. PAS was reduced to six seats in parliament
and lost control of the state of Terengganu. The socialist Democratic
Action Party (DAP), with predominately urban ethnic Chinese support,
won 12 seats in parliament, and party chairman Lim Kit Siang became
Leader of the Opposition in parliament.
ECONOMY
The Malaysian economy grew at 7.1% (real GDP) in 2004 but slowed
to 5% in 2005 due to slowing regional and local growth, as well
as the impact of high energy costs. The better than expected expansion
in 2004 was fueled primarily by the continuing strength of the
manufacturing sector, particularly the electronics and chemical
industries. The strength of the global electronics sector continued
to boost Malaysian exports to the U.S., Malaysia’s principal
trade and investment partner. The government has taken measures
to reduce its deficit and 2006 growth is projected at 5.5%, although
fears of rising inflation persist.
Although Malaysia is a net exporter of oil, due to the significant
and rapid hike in oil prices, the government has seen an increased
cost to support oil subsidies. It has also passed some of the
burden of these subsidies to domestic consumers through higher
prices at the pump, thereby raising concerns about inflation.
On July 21, 2005, the government removed the 7-year old peg linking
the ringgit’s value to the U.S. dollar (at an exchange rate
of RM 3.8/U.S.$1.0), replacing it with a managed float against
an undisclosed basket of currencies. This move aims to keep the
ringgit stable to support the country’s export-based economy.
Malaysia remains an important trading partner for the United States.
In 2004, bilateral trade between the United States and Malaysia
totaled $39.1 billion. U.S. exports to Malaysia were $10.9 billion,
and U.S. imports from Malaysia were $28.2 billion. Malaysia was
the United States' 10th-largest trading partner and its 16th-largest
export market. During the first 6 months of 2004, U.S. exports
to Malaysia totaled $4.8 billion while the United States imported
$15.3 billion from Malaysia.
Malaysia successfully developed from a commodity-based economy
to one focused on manufacturing. Today the Government of Malaysia
seeks to make the leap to a knowledge-based economy. At independence,
Malaysia inherited an economy dominated by two commodities--rubber
and tin. In the 40 years thereafter, Malaysia's economic record
had been one of Asia's best. From the early 1980s through the
mid-1990s, the economy experienced a period of broad diversification
and sustained rapid growth averaging almost 8% annually. New foreign
and domestic investment played a significant role in the transformation
of Malaysia's economy. Manufacturing grew from 13.9% of GDP in
1970 to 30.9 % in 2003, while agriculture and mining, which together
had accounted for 42.7% of GDP in 1970, dropped to 8.7% and 7.2
%, respectively, in 2003. Malaysia is one of the world's largest
exporters of semiconductor devices, electrical goods, and appliances,
and the government has ambitious plans to make Malaysia a leading
producer and developer of high-tech products, including software.
Malaysia is a major destination for outsourcing after China and
India.
The Malaysian Government encourages foreign direct investment
(FDI), and the United States continues to be one of the largest
sources of new investment in Malaysia. In 2004, the Malaysian
Government approved $263 million in new manufacturing investment
by U.S. companies, with the bulk in the electronics and electrical
sectors. The cumulative value of U.S. private investment in Malaysia
exceeds $20 billion, 60% of which is in the oil and gas and petrochemical
sectors with the rest in manufacturing, especially semiconductors
and other electronic products, according to an American Chamber
of Commerce 2003 survey.
The Government of Malaysia has taken an active role in guiding
the nation's economic development. Malaysia's New Economic Policy
(NEP), first established in 1971, sought to eradicate poverty
and end the identification of economic function with ethnicity.
In particular, it was designed to enhance the economic standing
of ethnic Malays and other indigenous peoples (collectively known
as "bumiputeras" in Bahasa Malaysia). Rapid growth through
the mid-1990s made it possible to expand the share of the economy
for bumiputeras without reducing the economic attainment of other
groups. One controversial NEP goal was to alter the pattern of
ownership of corporate equity in Malaysia, with the government
providing funds to purchase foreign-owned shareholdings on behalf
of the bumiputera population. In June 1991, after the NEP expired,
the government unveiled its National Development Policy, which
contained many of the NEP's goals, although without specific equity
targets and timetables. In April 2001, the government released
a new plan, the "National Vision Policy," to guide development
over the period 2001-10. The National Vision Policy targets education
for budget increases and seeks to refocus the economy toward higher-technology
production. In 2004, the government announced plans to revamp
the government-linked corporations (GLCs) targeting to improve
performance and gradually reduce the state’s stakes in them.
DEFENSE
In the early 1990s, Malaysia undertook a major program to expand
and modernize its armed forces. This included procurement of F/A-18
and C-130 aircraft from the United States. In 2003, the government
announced a major purchase of Russian Sukhoi aircraft. Malaysia
is also acquiring submarines from France and tanks from Poland.
FOREIGN RELATIONS
As a founding member of the Association of Southeast Asian Nations
(ASEAN--established 1967), Malaysia views regional cooperation
as the cornerstone of its foreign policy. Malaysia was elected
chair of the 39th ASEAN Standing Committee and hosted the ASEAN
Summit and East Asia Summit in December 2005. Malaysia will also
host the ASEAN Ministerial and ASEAN Regional Forum meetings in
July 2006. In world affairs, Malaysia maintains cooperative relations
with the United States, the European Union, and Japan. Malaysia
is an active member of the Commonwealth, the UN, the Organization
of Islamic Conference (OIC), and the Non-Aligned Movement (NAM).
In 2003, Malaysia assumed the chairmanship of both the OIC and
the NAM. Malaysia also is a member of APEC and hosted the 1998
Leaders' Meeting. Malaysia maintains diplomatic relations with
North Korea. Malaysia does not have diplomatic relations with
Israel. Malaysia's international affiliations include the UN and
many of its specialized agencies, including UNESCO, World Bank,
International Monetary Fund, and the International Atomic Energy
Agency; General Agreement on Tariffs and Trade; Association of
Southeast Asian Nations; Asian Development Bank; Five-Power Defense
Arrangement; South-South Commission (G-15); Asia-Pacific Economic
Cooperation (APEC), Commonwealth; Non-Aligned Movement; and Organization
of Islamic Conference.
U.S.-MALAYSIAN RELATIONS
The United States has maintained friendly relations with Malaysia
since its independence in 1957. The United States and Malaysia
have a record of cooperation in many areas, including trade and
investment, defense, counter-terrorism, and counter-narcotics.
Cultural and educational exchanges have been another fruitful
area of cooperation. However, the number of Malaysians studying
in the United States declined significantly from 14,597 in the
1997-98 school year to 6,483 in the 2003-04 school year.
Trade and Investment
The United States is currently Malaysia's largest trading partner
and largest foreign investor. Malaysia possesses abundant resources
and land, a well-educated work force, adequate infrastructure,
and a relatively stable political environment. The return of economic
growth should boost U.S. exports, particularly in priority areas
of development, including high-technology fields, industrial automation,
medical products and services, education/distance learning, and
the environment. Of particular interest to the Malaysian Government
is the development of the Multimedia Super Corridor, Malaysia's
effort to create a Silicon Valley in Asia. Malaysia, a member
of the World Trade Organization (WTO), has few restraints on trade
goods. Its service sector, however, remains protected, particularly
in financial services.
Principal U.S. Embassy Officials
Ambassador--Christopher J. LaFleur
Deputy Chief of Mission--David B. Shear
Political Counselor--Thomas F. Daughton
Economic Counselor--Colin S. Helmer
Commercial Counselor--Joseph B. Kaesshaefer
Public Affairs Officer--Phillip Hoffmann
Agricultural Counselor--Jonathan P. Gressel
Consul--Andrew T. Miller
The U.S. Embassy in Malaysia is located at 376 Jalan Tun Razak,
50400 Kuala Lumpur (tel. 60-3-2168-5000, fax 60-3-2142-2207).
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country.
Travel Warnings are issued when the State Department recommends
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Free copies of this information are available by calling the Bureau
of Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers publication
series, which contain information on obtaining passports and planning
a safe trip abroad, are on the Internet and hard copies can be
purchased from the Superintendent of Documents, U.S. Government
Printing Office, telephone: 202-512-1800; fax 202-512-2250.
Emergency information concerning Americans traveling abroad may
be obtained from the Office of Overseas Citizens Services at (202)
647-5225. For after-hours emergencies, Sundays and holidays, call
202-647-4000.
The National Passport Information Center (NPIC) is the U.S. Department
of State's single, centralized public contact center for U.S.
passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778).
Customer service representatives and operators for TDD/TTY are
available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern Time,
excluding federal holidays.
Travelers can check the latest health information with the U.S.
Centers for Disease Control and Prevention in Atlanta, Georgia.
A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations
or requirements, and advice on food and drinking water safety
for regions and countries. A booklet entitled Health Information
for International Travel (HHS publication number CDC-95-8280)
is available from the U.S. Government Printing Office, Washington,
DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements, currency
and customs regulations, legal holidays, and other items of interest
to travelers also may be obtained before your departure from a
country's embassy and/or consulates in the U.S. (for this country,
see "Principal Government Officials" listing in this
publication).
U.S. citizens who are long-term visitors or traveling in dangerous
areas are encouraged to register their travel via the State Department’s
travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in
a country by filling out a short form and sending in a copy of
their passports. This may help family members contact you in case
of an emergency.
Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov,
the Department of State web site provides timely, global access
to official U.S. foreign policy information, including Background
Notes and daily press briefings along with the directory of key
officers of Foreign Service posts and more.
Export.gov provides a portal to all export-related assistance
and market information offered by the federal government and provides
trade leads, free export counseling, help with the export process,
and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce,
provides authoritative economic, business, and international trade
information from the Federal government. The site includes current
and historical trade-related releases, international market research,
trade opportunities, and country analysis and provides access
to the National Trade Data Bank.
