Identify and Evaluate the Economic System That Malaysia Is Adopting. Discuss the Rational of the Malaysia’s Economic System in Terms of Government Intervention and Resource Allocations in the Country.
1 INTRODUCTION
Continuous rapid economic growth has raised Malaysia from an agricultural and commodity-based low-income economy to a successful middle-income economy. As a mixed economy, Malaysia has elements of a free market economy nevertheless with intervention government. Malaysia's economic activity consist of a mixture of sectors whereas mixed of capitalism and socialism The strong economic performance has helped improve the quality of life for Malaysians and supported advances in education, health, infrastructure, housing and public amenities and others.
The population of Malaysia locate at over 28 million in 2012.Malaysia's population involved many ethnic groups, with the Malays at around 50.4% making up the majority and other aboriginal groups in Sabah and Sarawak at 11% around of the population. By constitutional definition, Malays are Muslims who practice Malay customs and culture. Around 23.7% of the population is of Chinese descent, while Malaysians of Indian descent comprises approximately 7.1% of the population. Indians began migrating to Malaysia in the early 19th century. Other Malaysians also include those whose origin, can be traced to the Middle East, Thailand and Indonesia. Europeans and Eurasians mainly include British who settled in Malaysia since colonial times. The population distribution is highly uneven, with some 20 million residents concentrated on the Malay Peninsula, while East Malaysia is relatively less populated.
2 EVALUATION ON MALAYSIA ECONOMIC SYSTEM
2.1 MALAYSIA ECONOMIC STRUCTURE
After gaining independence, the Malaysian Federation faced a necessity to expand the economy. The country shifted from the policy of export of primary natural resources and agricultural products to establish itself as a rapidly industrializing country with a diversified export base. In the mid-1960s, Malaysia established 5-year planning, targeting certain areas of economic growth and social changes, and allocating public resources for priority
Continuous rapid economic growth has raised Malaysia from an agricultural and commodity-based low-income economy to a successful middle-income economy. As a mixed economy, Malaysia has elements of a free market economy nevertheless with intervention government. Malaysia's economic activity consist of a mixture of sectors whereas mixed of capitalism and socialism The strong economic performance has helped improve the quality of life for Malaysians and supported advances in education, health, infrastructure, housing and public amenities and others.
The population of Malaysia locate at over 28 million in 2012.Malaysia's population involved many ethnic groups, with the Malays at around 50.4% making up the majority and other aboriginal groups in Sabah and Sarawak at 11% around of the population. By constitutional definition, Malays are Muslims who practice Malay customs and culture. Around 23.7% of the population is of Chinese descent, while Malaysians of Indian descent comprises approximately 7.1% of the population. Indians began migrating to Malaysia in the early 19th century. Other Malaysians also include those whose origin, can be traced to the Middle East, Thailand and Indonesia. Europeans and Eurasians mainly include British who settled in Malaysia since colonial times. The population distribution is highly uneven, with some 20 million residents concentrated on the Malay Peninsula, while East Malaysia is relatively less populated.
2 EVALUATION ON MALAYSIA ECONOMIC SYSTEM
2.1 MALAYSIA ECONOMIC STRUCTURE
After gaining independence, the Malaysian Federation faced a necessity to expand the economy. The country shifted from the policy of export of primary natural resources and agricultural products to establish itself as a rapidly industrializing country with a diversified export base. In the mid-1960s, Malaysia established 5-year planning, targeting certain areas of economic growth and social changes, and allocating public resources for priority