A nation in motion

The total population of Malaysia in 1996 was estimated at 20.56 million, according to figures released by the Statistics Department. Malaysia has a relatively high standard of living with an average per capita income of circa RM11,100 in 1996, an inflation rate estimated at 3.6 per cent, and an unem...

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Bibliographic Details
Published inMalaysian business p. 44
Main Author Raymond Liew Lee Leong
Format Magazine Article
LanguageEnglish
Published Kuala Lumpur The New Straits Times Press (M) Berhad 16.06.1998
Subjects
Censorship
Foreign investment
Income taxes
Local businesses
Manufacturing
Monetary incentives
Multimedia
Tax incentives
Taxation
Tourism
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Summary:The total population of Malaysia in 1996 was estimated at 20.56 million, according to figures released by the Statistics Department. Malaysia has a relatively high standard of living with an average per capita income of circa RM11,100 in 1996, an inflation rate estimated at 3.6 per cent, and an unemployment rate of circa 2.6 per cent. The country enjoys a mixed economy although the economy has traditionally been commodity-based with manufacturing as the impetus of the economic growth. The country grew speedily, following a recession in the mid-80s. Annual growth rates, since the recovery, was at a constant rate of eight per cent and above. In view of the regional economic turmoil, the projection was revised down at the beginning of 1998 to between four and five per cent from about the seven per cent announced in the 1998 Budget, unveiled in October 1997. On March 24, this projection was further revised down to between two and three per cent to reflect the current economic climate. Under the NDP, 100 per cent foreign ownership is permitted for export- based manufacturing companies. Priority is also given to foreign investments in agriculture, tourism and high-tech industries, subject to obtaining the necessary approvals from the Ministry of International Trade and Industry (Miti). However, prior approval for foreign equity ownership of a private limited company is not required. Businesses such as corporation enterprises, joint ventures and partnerships are allowed although local participation is encouraged. With the current economic situation, corporate rescues and acquisitions by foreign investors are permitted although this may be subject to approval from Miti. Exchange controls are minimal and there is no restriction on the repatriation of capital and profits. In general, foreign investment in Malaysia should benefit the country as a whole.
ISSN:0126-5504