Introduction
Background
Malaysia’s location has long made it an important cultural, economic, historical, social, and trade link between the islands of Southeast Asia and the mainland. Through the Strait of Malacca, which separates the Malay Peninsula from the archipelago, flowed maritime trade and with it influences from China, India, the Middle East, and the east coast of Africa. Prior to the 14th century, several powerful maritime empires existed in what is modern-day Malaysia, including the Srivijayan, which controlled much of the southern part of the peninsula between the 7th and 13th centuries, and the Majapahit Empire, which took control over most of the peninsula and the Malay Archipelago between the 13th and 14th centuries. The adoption of Islam between the 13th and 17th centuries also saw the rise of a number of powerful maritime states and sultanates on the Malay Peninsula and the island of Borneo, such as the port city of Malacca (Melaka), which at its height in the 15th century had a navy and hosted thousands of Chinese, Arab, Persian, and Indian merchants.
The Portuguese in the 16th century and the Dutch in the 17th century were the first European colonial powers to establish themselves on the Malay Peninsula and Southeast Asia. However, it was the British who ultimately secured their hegemony across the territory and during the late 18th and 19th centuries established colonies and protectorates in the area that is now Malaysia. These holdings were occupied by Japan from 1942 to 1945. In 1948, the British-ruled territories on the Malay Peninsula except Singapore formed the Federation of Malaya, which became independent in 1957. Malaysia was formed in 1963 when the former British colonies of Singapore, as well as Sabah and Sarawak on the northern coast of Borneo, joined the Federation. The first several years of the country's independence were marred by a communist insurgency, Indonesian confrontation with Malaysia, Philippine claims to Sabah, and Singapore's expulsion in 1965. During the 22-year term of Prime Minister MAHATHIR Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials to the development of manufacturing, services, and tourism. Former Prime Minister MAHATHIR and a newly formed coalition of opposition parties defeated Prime Minister Mohamed NAJIB bin Abdul Razak's United Malays National Organization (UMNO) in May 2018, ending over 60 years of uninterrupted rule by UMNO. Since 2018, Malaysia has undergone considerable political upheaval with a succession of coalition governments holding power. However, following legislative elections in 2022, Anwar IBRAHIM was appointed prime minister after more than 20 years in opposition. His ruling coalition holds a two-thirds majority in the Malaysian parliament.
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Geography
Location
Southeastern Asia, peninsula bordering Thailand and northern one-third of the island of Borneo, bordering Indonesia, Brunei, and the South China Sea, south of Vietnam
Geographic coordinates
2 30 N, 112 30 E
Map references
Southeast Asia
Land boundaries
total: 2,742 km
border countries (3): Brunei 266 km; Indonesia 1,881 km; Thailand 595 km
Coastline
4,675 km (Peninsular Malaysia 2,068 km, East Malaysia 2,607 km)
Maritime claims
territorial sea: 12 nm
exclusive economic zone: 200 nm
continental shelf: 200-m depth or to the depth of exploitation; specified boundary in the South China Sea
Climate
tropical; annual southwest (April to October) and northeast (October to February) monsoons
Terrain
coastal plains rising to hills and mountains
Elevation
highest point: Gunung Kinabalu 4,095 m
lowest point: Indian Ocean 0 m
mean elevation: 419 m
Natural resources
tin, petroleum, timber, copper, iron ore, natural gas, bauxite
Land use
agricultural land: 23.2% (2018 est.)
arable land: 2.9% (2018 est.)
permanent crops: 19.4% (2018 est.)
permanent pasture: 0.9% (2018 est.)
forest: 62% (2018 est.)
other: 14.8% (2018 est.)
Irrigated land
4,420 sq km (2020)
Population distribution
a highly uneven distribution with over 80% of the population residing on the Malay Peninsula
Natural hazards
flooding; landslides; forest fires
Geography - note
strategic location along Strait of Malacca and southern South China Sea
People and Society
Nationality
noun: Malaysian(s)
adjective: Malaysian
Ethnic groups
Bumiputera 62.5% (Malays and indigenous peoples, including Orang Asli, Dayak, Anak Negeri), Chinese 20.6%, Indian 6.2%, other 0.9%, non-citizens 9.8% (2019 est.)
Languages
Bahasa Malaysia (official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai; note - Malaysia has 134 living languages - 112 indigenous languages and 22 non-indigenous languages; in East Malaysia, there are several indigenous languages; the most widely spoken are Iban and Kadazan
major-language sample(s):
Buku Fakta Dunia, sumber yang diperlukan untuk maklumat asas. (Bahasa Malaysia)
The World Factbook, the indispensable source for basic information.
Religions
Muslim (official) 61.3%, Buddhist 19.8%, Christian 9.2%, Hindu 6.3%, Confucianism, Taoism, other traditional Chinese religions 1.3%, other 0.4%, none 0.8%, unspecified 1% (2010 est.)
Demographic profile
Malaysia’s multi-ethnic population consists of the bumiputera – Malays and other indigenous peoples – (62%), ethnic Chinese (21%), ethnic Indians (6%), and foreigners (10%). The majority of Malaysia’s ethnic Chinese and Indians trace their roots to the British colonialists’ recruitment of hundreds of thousands of Chinese and Indians as mine and plantation workers between the early-19th century and the 1930s. Most Malays have maintained their rural lifestyle, while the entrepreneurial Chinese have achieved greater wealth and economic dominance. In order to eradicate Malay poverty, the Malaysian Government in 1971 adopted policies that gave preference to the bumiputera in public university admissions, government jobs and contracts, and property ownership. Affirmative action continues to benefit well-off urban bumiputera but has done little to alleviate poverty for their more numerous rural counterparts. The policies have pushed ethnic Chinese and Indians to study at private or foreign universities (many do not return) and have created and sustained one of the world’s largest civil services, which is 85-90% Malay.
The country’s age structure has changed significantly since the 1960s, as fertility and mortality rates have declined. Malaysia’s total fertility rate (TFR) has dropped from 5 children per woman in 1970, to 3 in 1998, to 2.1 in 2015 as a result of increased educational attainment and labor participation among women, later marriages, increased use of contraception, and changes in family size preference related to urbanization. The TFR is higher among Malays, rural residents (who are mainly Malay), the poor, and the less-educated. Despite the reduced fertility rate, Malaysia’s population will continue to grow, albeit at a decreasing rate, for the next few decades because of its large number of reproductive-age women. The youth population has been shrinking, and the working-age population (15-64 year olds) has been growing steadily. Malaysia’s labor market has successfully absorbed the increasing number of job seekers, leading to sustained economic growth. However, the favorable age structure is changing, and around 2020, Malaysia will start to become a rapidly aging society. As the population ages, Malaysia will need to better educate and train its labor force, raise productivity, and continue to increase the number of women workers in order to further develop its economy.
More than 1.8 million Malaysians lived abroad as of 2015, including anywhere from 350,000 to 785,000 workers, more than half of whom have an advanced level of education. The vast majority of emigrants are ethnic Chinese, seeking better educational and job opportunities abroad because of institutionalized ethnic discrimination favoring the Malays. The primary destination country is nearby Singapore, followed by Bangladesh and Australia. Hundreds of thousands of Malaysians also commute across the causeway to Singapore daily for work.
Brain drain is an impediment to Malaysia’s goal of becoming a high-income country. The situation is compounded by a migrant inflow that is composed almost entirely of low-skilled laborers who work mainly in manufacturing, agriculture, and construction. Officially, Malaysia had about 1.8 million legal foreign workers as of mid-year 2017 – largely from Indonesia, Nepal, the Philippines, and Bangladesh – but as many as 3 to 4 million are estimated to be in the country illegally. Immigrants outnumber ethnic Indians and could supplant the ethnic Chinese as Malaysia’s second largest population group around 2035.
Age structure
0-14 years: 22.46% (male 3,952,311/female 3,734,607)
15-64 years: 69.42% (male 12,198,930/female 11,556,399)
65 years and over: 8.12% (2023 est.) (male 1,345,767/female 1,431,961)
Dependency ratios
total dependency ratio: 43.3
youth dependency ratio: 32.9
elderly dependency ratio: 10.4
potential support ratio: 9.6 (2021 est.)
Median age
total: 29.2 years
male: 28.9 years
female: 29.6 years (2020 est.)
comparison ranking: total 133
Population distribution
a highly uneven distribution with over 80% of the population residing on the Malay Peninsula
Urbanization
urban population: 78.7% of total population (2023)
rate of urbanization: 1.87% annual rate of change (2020-25 est.)
Major urban areas - population
8.622 million KUALA LUMPUR (capital), 1.086 million Johor Bahru, 857,000 Ipoh (2023)
Sex ratio
at birth: 1.07 male(s)/female
0-14 years: 1.06 male(s)/female
15-64 years: 1.06 male(s)/female
65 years and over: 0.94 male(s)/female
total population: 1.05 male(s)/female (2023 est.)
Infant mortality rate
total: 6.49 deaths/1,000 live births
male: 6.87 deaths/1,000 live births
female: 6.08 deaths/1,000 live births (2023 est.)
comparison ranking: total 163
Life expectancy at birth
total population: 76.38 years
male: 74.77 years
female: 78.12 years (2023 est.)
comparison ranking: total population 107
Gross reproduction rate
0.84 (2023 est.)
Contraceptive prevalence rate
52.2% (2014)
Drinking water source
improved: urban: 99.4% of population
rural: 90.7% of population
total: 97.5% of population
unimproved: urban: 0.6% of population
rural: 9.3% of population
total: 2.5% of population (2020 est.)
Current health expenditure
4.1% of GDP (2020)
Physicians density
1.54 physicians/1,000 population (2020)
Hospital bed density
1.9 beds/1,000 population (2017)
Sanitation facility access
improved: urban: 99% of population
rural: NA
total: NA
unimproved: urban: 0.1% of population
rural: NA
total: (2020 est.) NA
Major infectious diseases
degree of risk: intermediate (2023)
food or waterborne diseases: bacterial diarrhea
vectorborne diseases: dengue fever
water contact diseases: leptospirosis
Alcohol consumption per capita
total: 0.64 liters of pure alcohol (2019 est.)
beer: 0.48 liters of pure alcohol (2019 est.)
wine: 0.04 liters of pure alcohol (2019 est.)
spirits: 0.11 liters of pure alcohol (2019 est.)
other alcohols: 0.01 liters of pure alcohol (2019 est.)
comparison ranking: total 158
Tobacco use
total: 22.5% (2020 est.)
male: 43.8% (2020 est.)
female: 1.1% (2020 est.)
comparison ranking: total 68
Currently married women (ages 15-49)
59.3% (2023 est.)
Literacy
definition: age 15 and over can read and write
total population: 95%
male: 96.2%
female: 93.6% (2019)
School life expectancy (primary to tertiary education)
total: 13 years
male: 13 years
female: 14 years (2020)
Youth unemployment rate (ages 15-24)
total: 15.6%
male: 14.2%
female: 17.8% (2021 est.)
comparison ranking: total 111
Environment
Environment - current issues
air pollution from industrial and vehicular emissions; water pollution from raw sewage; deforestation; smoke/haze from Indonesian forest fires; endangered species; coastal reclamation damaging mangroves and turtle nesting sites
Environment - international agreements
party to: Antarctic-Environmental Protection, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Comprehensive Nuclear Test Ban, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Life Conservation, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 2006, Wetlands
signed, but not ratified: none of the selected agreements
Climate
tropical; annual southwest (April to October) and northeast (October to February) monsoons
Land use
agricultural land: 23.2% (2018 est.)
arable land: 2.9% (2018 est.)
permanent crops: 19.4% (2018 est.)
permanent pasture: 0.9% (2018 est.)
forest: 62% (2018 est.)
other: 14.8% (2018 est.)
Urbanization
urban population: 78.7% of total population (2023)
rate of urbanization: 1.87% annual rate of change (2020-25 est.)
Air pollutants
particulate matter emissions: 16.04 micrograms per cubic meter (2016 est.)
carbon dioxide emissions: 248.29 megatons (2016 est.)
methane emissions: 51.51 megatons (2020 est.)
Waste and recycling
municipal solid waste generated annually: 12,982,685 tons (2014 est.)
municipal solid waste recycled annually: 2,271,970 tons (2016 est.)
percent of municipal solid waste recycled: 17.5% (2016 est.)
Total water withdrawal
municipal: 1.34 billion cubic meters (2020 est.)
industrial: 1.64 billion cubic meters (2020 est.)
agricultural: 2.51 billion cubic meters (2020 est.)
Total renewable water resources
580 billion cubic meters (2020 est.)
Government
Country name
conventional long form: none
conventional short form: Malaysia
local long form: none
local short form: Malaysia
former: British Malaya, Malayan Union, Federation of Malaya
etymology: the name means "Land of the Malays"
Government type
federal parliamentary constitutional monarchy
note: all Peninsular Malaysian states have hereditary rulers (commonly referred to as sultans) except Melaka (Malacca) and Pulau Pinang (Penang); those two states along with Sabah and Sarawak in East Malaysia have governors appointed by government; powers of state governments are limited by the federal constitution; under terms of federation, Sabah and Sarawak retain certain constitutional prerogatives (e.g., right to maintain their own immigration controls)
Capital
name: Kuala Lumpur; note - nearby Putrajaya is referred to as a federal government administrative center but not the capital; Parliament meets in Kuala Lumpur
geographic coordinates: 3 10 N, 101 42 E
time difference: UTC+8 (13 hours ahead of Washington, DC, during Standard Time)
etymology: the Malay word for "river junction or estuary" is kuala and lumpur means "mud"; together the words render the meaning of "muddy confluence"
Administrative divisions
13 states (negeri-negeri, singular - negeri); Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Perak, Perlis, Pulau Pinang, Sabah, Sarawak, Selangor, Terengganu; and 1 federal territory (Wilayah Persekutuan) with 3 components, Kuala Lumpur, Labuan, and Putrajaya
Independence
31 August 1957 (from the UK)
National holiday
Independence Day (or Merdeka Day), 31 August (1957) (independence of Malaya); Malaysia Day, 16 September (1963) (formation of Malaysia)
Constitution
history: previous 1948; latest drafted 21 February 1957, effective 27 August 1957
amendments: proposed as a bill by Parliament; passage requires at least two-thirds majority vote by the Parliament membership in the bill’s second and third readings; a number of constitutional sections are excluded from amendment or repeal; amended many times, last in 2019
Legal system
mixed legal system of English common law, Islamic law (sharia), and customary law; judicial review of legislative acts in the Federal Court at request of supreme head of the federation
International law organization participation
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
Citizenship
citizenship by birth: no
citizenship by descent only: at least one parent must be a citizen of Malaysia
dual citizenship recognized: no
residency requirement for naturalization: 10 out 12 years preceding application
Suffrage
18 years of age; universal (2019)
Executive branch
chief of state: King Sultan ABDULLAH Sultan Ahmad Shah (since 24 January 2019); note - King MUHAMMAD V (formerly known as TUANKU Muhammad FARIS Petra) (selected on 14 October 2016; installed on 13 December 2016) resigned on 6 January 2019; the position of the king is primarily ceremonial, but he is the final arbiter on the appointment of the prime minister
head of government: Prime Minister ANWAR Ibrahim (since 25 November 2022)
cabinet: Cabinet appointed by the prime minister from among members of Parliament with the consent of the king
elections/appointments: king elected by and from the hereditary rulers of 9 states for a 5-year term; election is on a rotational basis among rulers of the 9 states; election last held on 24 January 2019 (next to be held in 2024); prime minister designated from among members of the House of Representatives; following legislative elections, the leader who commands support of the majority of members in the House becomes prime minister
Legislative branch
description: bicameral Parliament of Malaysia or Parlimen Malaysia consists of:
Senate or Dewan Negara (70 seats; 44 members appointed by the king and 26 indirectly elected by 13 state legislatures; members serve 3-year terms)
House of Representatives or Dewan Rakyat (222 seats; members directly elected in single-seat constituencies by simple majority vote to serve 5-year terms) (2016)
elections: Senate - appointed
House of Representatives - last held on 19 Nov 2022 (next scheduled for 2027)
election results:
Senate - appointed; composition - men 54, women 14, percent of women 20.6%
2022: House of Representatives - percent of vote by party/coalition - PH 37.5%, PN 30.4%, BN 22.4%, GPS 4%, WARISAN 1.8%, GRS 1.3%, other 2.6%; seats by party/coalition - PH 81, PN 73, BN 30, GPS 23, GRS 6, WARISAN 3, PBM 1, KDM 1, MUDA 1, independents/unaffiliated 3
2018: House of Representatives - percent of vote by party/coalition - PH 45.6%, BN 33.8%, PAS 16.9%, WARISAN 2.3%, other 1.4%; seats by party/coalition - PH 113, BN 79, PAS 18, WARISAN 8, USA 1, independent 3; composition - men 199, women 23, percent of women 10.4%; note - total Parliament percent of women 12.8%
note: as of May 2022, seats by party/coalition - PH 90, PN 50, BN 42, GPS 18, WARISAN 7, PEJUANG 4, PBM 3, PSB 1, MUDA 1, independent 4, vacant 2
Judicial branch
highest court(s): Federal Court (consists of the chief justice, president of the Court of Appeal, chief justice of the High Court of Malaya, chief judge of the High Court of Sabah and Sarawak, 8 judges, and 1 "additional" judge); note - Malaysia has a dual judicial hierarchy of civil and religious (sharia) courts
judge selection and term of office: Federal Court justices appointed by the monarch on advice of the prime minister; judges serve until mandatory retirement at age 66 with the possibility of a single 6-month extension
subordinate courts: Court of Appeal; High Court; Sessions Court; Magistrates' Court
Political parties and leaders
National Front (Barisan Nasional) or BN:
All Malaysia Indian Progressive Front or IPF (Barisan Kemajuan India Se-Malaysia) or AMIPF [LOGANATHAN Thoraisamy]
Love Malaysia Party (Parti Cinta Malaysia) or PCM [HUAN Cheng Guan]
Malaysian Chinese Association (Persatuan Cina Malaysia) or MCA [WEE Ka Siong]
Malaysian Indian Congress (Kongres India Malaysia) or MIC [VIGNESWARAN Sanasee]
Malaysian Indian Muslim Congress (Kongres India Muslim Malaysia) or KIMMA [Syed IMBRAHIM Kader]
Malaysia Makkal Sakti Party (Parti Makkal Sakti Malaysia) or MMSP [R.S. THANENTHIRAN]
United Malays National Organization (Pertubuhan Kebansaan Melayu Bersatu) or UMNO [Ahmad ZAHID Hamidi]
United Sabah People's Party (Parti Bersatu Rakyat Sabah) or PBRS [Arthur Joseph KURUP]
Alliance of Hope (Pakatan Harapan) or PH:
Democratic Action Party (Parti Tindakan Demokratik) or DAP [Anthony LOKE Siew Fook]
Malaysian United Democratic Alliance (Ikatan Demokratik Malaysia) or MUDA [Syed SADDIQ Syed Adbdul Rahman]
National Trust Party (Parti Amanah Negara) or AMANAH [MOHAMAD Sabu]
People's Justice Party (Parti Keadilan Rakyat) or PKR [ANWAR Ibrahim]
United Progressive Kinabalu Organization (Pertubuhan Kinabalu Progresif Bersatu) or UPKO [EWON Benedick]
National Alliance (Perikatan Nasional) or PN
Malaysian People's Movement Party (Parti Gerakan Rakyat Malaysia) or GERAKAN or PGRM [LAU Hoe Chai]
Malaysian United Indigenous Party (Parti Pribumi Bersatu Malaysia) or PPBM or BERSATU [MUHYIDDIN Yassin]
Pan-Malaysian Islamic Party (Parti Islam Se-Malaysia) or PAS [Abdul HADI Awang]
Sabah People's Alliance (Gabungan Rakya Sabah) or GRS:
Homeland Solidarity Party (Parti Solidariti Tanah Airku) or STAR [Jeffrey KITINGAN]
Sabah People's Ideas Party (Parti Gagasan Rakyat Sabah) or GAGASAN or PGRS [HAJIJI Noor]
Sabah Progressive Party (Parti Maju Sabah) or SAPP [Yong Teck Lee]
United Sabah National Organization (Pertubuhan Kebangsaan Sabah Bersatu ((Baru)) or USNO (Baru) [PANDIKAR Amin Mulia]
United Sabah Party (Parti Bersatu Sabah) or PBS [Maximus Johnity ONGKILI]
Sarawak Parties Alliance (Gabungan Parti Sarawak) or GPS
Progressive Democratic Party (Parti Demokratik Progresif) or PDP [TIONG King Sing]
Sarawak People's Party (Parti Rakyat Sarawak) or PRS [Joseph SALANG Gandum]
Sarawak United People's Party (Parti Rakyat Bersatu Sarawak) or SUPP [SIM Kui Hian]
United Bumiputera Heritage Party (Parti Pesaka Bumiputera Bersata) or PBB [Abang Abdul Rahman Zohari Abang Openg or or ABANG JOHARI or "Abang Jo"]
Others receiving votes in 2022 general election:
Malaysian Nation Party (Parti Bangsa Malaysia) or PBM [Larry SNG Wei Shein] (formerly Sarawak Workers Party)
Heritage Party (Parti Warisan) or WARISAN [SHAFIE Apdal]
Social Democratic Harmony Party (Parti Kesejahteraan Demokratik Masyarakat) or KDM [PETER Anthony]
Socialist Party of Malaysia (Parti Sosialis Malaysia) or PSM [Michael JEYAKUMAR Devaraj]
International organization participation
ADB, APEC, ARF, ASEAN, BIS, C, CICA (observer), CP, D-8, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, MONUSCO, NAM, OIC, OPCW, PCA, PIF (partner), UN, UNAMID, UNCTAD, UNESCO, UNHRC, UNIDO, UNIFIL, UNISFA, UNMIL, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO
Diplomatic representation in the US
chief of mission: Ambassador Mohamed NAZRI Bin Abdul Aziz (since 19 April 2023)
chancery: 3516 International Court NW, Washington, DC 20008
telephone: [1] (202) 572-9700
FAX: [1] (202) 572-9882
email address and website:
mwwashington@kln.gov.my
https://www.kln.gov.my/web/usa_washington/home
consulate(s) general: Los Angeles, New York
Diplomatic representation from the US
chief of mission: Ambassador Brian D. McFEETERS (since 26 February 2021)
embassy: 376 Jalan Tun Razak, 50400 Kuala Lumpur
mailing address: 4210 Kuala Lumpur, Washington DC 20521-4210
telephone: [60] (3) 2168-5000
FAX: [60] (3) 2142-2207
email address and website:
KLACS@state.gov
https://my.usembassy.gov/
Flag description
14 equal horizontal stripes of red (top) alternating with white (bottom); there is a dark blue rectangle in the upper hoist-side corner bearing a yellow crescent and a yellow 14-pointed star; the flag is often referred to as Jalur Gemilang (Stripes of Glory); the 14 stripes stand for the equal status in the federation of the 13 member states and the federal government; the 14 points on the star represent the unity between these entities; the crescent is a traditional symbol of Islam; blue symbolizes the unity of the Malay people and yellow is the royal color of Malay rulers
note: the design is based on the flag of the US
National symbol(s)
tiger, hibiscus; national colors: gold, black
National anthem
name: "Negaraku" (My Country)
lyrics/music: collective, led by Tunku ABDUL RAHMAN/Pierre Jean DE BERANGER
note: adopted 1957; full version only performed in the presence of the king; the tune, which was adopted from a popular French melody titled "La Rosalie," was originally the anthem of Perak, one of Malaysia's 13 states
National heritage
total World Heritage Sites: 4 (2 cultural, 2 natural)
selected World Heritage Site locales: Gunung Mulu National Park (n); Kinabalu Park (n); Malacca and George Town, Historic Cities of the Straits of Malacca (c); Archaeological Heritage of the Lenggong Valley (c)
Economy
Economic overview
upper middle-income Southeast Asian economy; implementing key anticorruption policies; major electronics, oil, and chemicals exporter; trade sector employs over 40% of jobs; key economic equity initiative; high labor productivity
Real GDP (purchasing power parity)
$884.106 billion (2021 est.)
$857.588 billion (2020 est.)
$907.832 billion (2019 est.)
note: data are in 2017 dollars
comparison ranking: 31
Real GDP per capita
$26,300 (2021 est.)
$25,800 (2020 est.)
$27,700 (2019 est.)
note: data are in 2017 dollars
comparison ranking: 77
GDP (official exchange rate)
$364.631 billion (2019 est.)
Inflation rate (consumer prices)
2.48% (2021 est.)
-1.14% (2020 est.)
0.66% (2019 est.)
note: approximately 30% of goods are price-controlled
comparison ranking: 137
Credit ratings
Fitch rating: BBB+ (2020)
Moody's rating: A3 (2004)
Standard & Poors rating: A- (2003)
note: The year refers to the year in which the current credit rating was first obtained.
GDP - composition, by sector of origin
agriculture: 8.8% (2017 est.)
industry: 37.6% (2017 est.)
services: 53.6% (2017 est.)
comparison rankings: services 164; industry 40; agriculture 97
GDP - composition, by end use
household consumption: 55.3% (2017 est.)
government consumption: 12.2% (2017 est.)
investment in fixed capital: 25.3% (2017 est.)
investment in inventories: 0.3% (2017 est.)
exports of goods and services: 71.4% (2017 est.)
imports of goods and services: -64.4% (2017 est.)
Agricultural products
oil palm fruit, rice, poultry, eggs, vegetables, rubber, coconuts, bananas, pineapples, pork
Industries
Peninsular Malaysia - rubber and oil palm processing and manufacturing, petroleum and natural gas, light manufacturing, pharmaceuticals, medical technology, electronics and semiconductors, timber processing; Sabah - logging, petroleum and natural gas production;Sarawak - agriculture processing, petroleum and natural gas production, logging
Labor force - by occupation
agriculture: 11%
industry: 36%
services: 53% (2012 est.)
Youth unemployment rate (ages 15-24)
total: 15.6%
male: 14.2%
female: 17.8% (2021 est.)
comparison ranking: total 111
Population below poverty line
5.6% (2018 est.)
Average household expenditures
on food: 21.5% of household expenditures (2018 est.)
on alcohol and tobacco: 1.8% of household expenditures (2018 est.)
Household income or consumption by percentage share
lowest 10%: 1.8%
highest 10%: 34.7% (2009 est.)
Budget
revenues: $77.736 billion (2019 est.)
expenditures: $85.851 billion (2019 est.)
Public debt
62.03% of GDP (2020 est.)
52.42% of GDP (2019 est.)
51.19% of GDP (2018 est.)
note: this figure is based on the amount of federal government debt, RM501.6 billion ($167.2 billion) in 2012; this includes Malaysian Treasury bills and other government securities, as well as loans raised externally and bonds and notes issued overseas; this figure excludes debt issued by non-financial public enterprises and guaranteed by the federal government, which was an additional $47.7 billion in 2012
comparison ranking: 79
Fiscal year
calendar year
Current account balance
$14.143 billion (2021 est.)
$14.138 billion (2020 est.)
$12.795 billion (2019 est.)
comparison ranking: 24
Exports
$256.659 billion (2021 est.) note: data are in current year dollars
$208.217 billion (2020 est.) note: data are in current year dollars
$238.361 billion (2019 est.) note: data are in current year dollars
comparison ranking: 31
Exports - partners
Singapore 15%, China 14%, US 13%, Hong Kong 6%, Japan 6% (2021)
Exports - commodities
integrated circuits, refined petroleum, palm oil, rubber apparel, natural gas, semiconductors (2021)
Imports
$230.188 billion (2021 est.) note: data are in current year dollars
$186.613 billion (2020 est.) note: data are in current year dollars
$210.86 billion (2019 est.) note: data are in current year dollars
comparison ranking: 29
Imports - partners
China 29%, Singapore 11%, Japan 6%, US 6%, Taiwan 6% (2021)
Imports - commodities
integrated circuits, refined petroleum, crude petroleum, coal, gold, semiconductors (2021)
Reserves of foreign exchange and gold
$116.916 billion (31 December 2021 est.)
$107.644 billion (31 December 2020 est.)
$103.63 billion (31 December 2019 est.)
comparison ranking: 25
Exchange rates
ringgits (MYR) per US dollar -
Exchange rates:
4.143 (2021 est.)
4.203 (2020 est.)
4.142 (2019 est.)
4.035 (2018 est.)
4.3 (2017 est.)
Energy
Electricity access
electrification - total population: 100% (2021)
Electricity
installed generating capacity: 34.959 million kW (2020 est.)
consumption: 150.062 billion kWh (2019 est.)
exports: 669 million kWh (2019 est.)
imports: 19 million kWh (2019 est.)
transmission/distribution losses: 12.124 billion kWh (2019 est.)
comparison rankings: installed generating capacity 33; transmission/distribution losses 29; imports 116; exports 69; consumption 24
Electricity generation sources
fossil fuels: 87.5% of total installed capacity (2020 est.)
nuclear: 0% of total installed capacity (2020 est.)
solar: 0.7% of total installed capacity (2020 est.)
wind: 0% of total installed capacity (2020 est.)
hydroelectricity: 10.9% of total installed capacity (2020 est.)
tide and wave: 0% of total installed capacity (2020 est.)
geothermal: 0% of total installed capacity (2020 est.)
biomass and waste: 1% of total installed capacity (2020 est.)
Coal
production: 2.977 million metric tons (2020 est.)
consumption: 35.268 million metric tons (2020 est.)
exports: 17,000 metric tons (2020 est.)
imports: 37.295 million metric tons (2020 est.)
proven reserves: 226 million metric tons (2019 est.)
Petroleum
total petroleum production: 593,800 bbl/day (2021 est.)
refined petroleum consumption: 718,600 bbl/day (2019 est.)
crude oil and lease condensate exports: 303,600 bbl/day (2018 est.)
crude oil and lease condensate imports: 182,300 bbl/day (2018 est.)
crude oil estimated reserves: 3.6 billion barrels (2021 est.)
Natural gas
production: 74,985,350,000 cubic meters (2019 est.)
consumption: 39,586,915,000 cubic meters (2019 est.)
exports: 34,197,548,000 cubic meters (2020 est.)
imports: 4,008,073,000 cubic meters (2020 est.)
proven reserves: 1,189,306,000,000 cubic meters (2021 est.)
Carbon dioxide emissions
254.764 million metric tonnes of CO2 (2019 est.)
from coal and metallurgical coke: 81.726 million metric tonnes of CO2 (2019 est.)
from petroleum and other liquids: 94.934 million metric tonnes of CO2 (2019 est.)
from consumed natural gas: 78.104 million metric tonnes of CO2 (2019 est.)
comparison ranking: total emissions 26
Communications
Telephones - fixed lines
total subscriptions: 8,247,100 (2021 est.)
subscriptions per 100 inhabitants: 25 (2021 est.)
comparison ranking: total subscriptions 20
Telephones - mobile cellular
total subscriptions: 47,201,700 (2021 est.)
subscriptions per 100 inhabitants: 141 (2021 est.)
comparison ranking: total subscriptions 34
Telecommunication systems
general assessment: as part of a diverse range of initiatives designed to move the country from developing to developed status by 2025, Malaysia has enabled and encouraged open competition in its telecommunications market; the result is very high penetration levels in both the mobile (147%) and mobile broadband (127%) segments, and near-universal coverage of 4G LTE networks; steady growth is occurring as more fiber optic cable networks are being deployed around the country; consumers are the main beneficiaries of the highly competitive market; they enjoy widespread access to high-speed mobile services as well as attractive offers on bundles to keep data use up but prices low; the downside is that most of Malaysia’s MNOs and MVNOs have struggled to increase revenue in line with growth in subscriber numbers as well as demand for broadband data; while the operators have been very successful in moving a significant proportion (now over 30%) of customers from prepaid over to higher-value postpaid accounts, ARPU continues to fall year after year as a result of competitive pricing pressures; the mobile market, in particular, has become overcrowded and the government is keen to see further rationalization and consolidation with the operators; while customers will no doubt continue to enjoy high quality services at competitive rates, the new entity will be hopeful of squeezing better margins through improved economies of scale; the government’s next move is to encourage the private mobile operators to sign up to the country’s wholesale 5G network; this will develop and deploy the 5G infrastructure across the country; the government’s stated intent was to avoid duplication of networks and infrastructure, and thus reduce investment costs for the operators; to date, no MNO has agreed to the deal and are instead demanding the development of a dual wholesale network model (one that no doubt offers more flexible terms, at least in the eyes of the MNOs); Malaysia’s 5G rollout has, in effect, come to a standstill while the government tries to find a way to restart negotiations (2022)
domestic: fixed-line roughly 25 per 100 and mobile-cellular teledensity roughly 141 per 100 persons (2021)
international: country code - 60; landing points for BBG, FEA, SAFE, SeaMeWe-3 & 4 & 5, AAE-1, JASUKA, BDM, Dumai-Melaka Cable System, BRCS, ACE, AAG, East-West Submarine Cable System, SEAX-1, SKR1M, APCN-2, APG, BtoBe, BaSICS, and Labuan-Brunei Submarine and MCT submarine cables providing connectivity to Asia, the Middle East, Southeast Asia, Australia and Europe; satellite earth stations - 2 Intelsat (1 Indian Ocean, 1 Pacific Ocean); launch of Kacific-1 satellite in 2019 (2019)
Broadcast media
state-owned TV broadcaster operates 2 TV networks with relays throughout the country, and the leading private commercial media group operates 4 TV stations with numerous relays throughout the country; satellite TV subscription service is available; state-owned radio broadcaster operates multiple national networks, as well as regional and local stations; many private commercial radio broadcasters and some subscription satellite radio services are available; about 55 radio stations overall (2019)
Internet users
total: 32.98 million (2021 est.)
percent of population: 97% (2021 est.)
comparison ranking: total 29
Broadband - fixed subscriptions
total: 3,358,800 (2020 est.)
subscriptions per 100 inhabitants: 10 (2020 est.)
comparison ranking: total 43
Transportation
National air transport system
number of registered air carriers: 13 (2020)
inventory of registered aircraft operated by air carriers: 270
annual passenger traffic on registered air carriers: 60,481,772 (2018)
annual freight traffic on registered air carriers: 1,404,410,000 (2018) mt-km
Airports - with paved runways
39
note: paved runways have a concrete or asphalt surface but not all have facilities for refueling, maintenance, or air traffic control; the length of a runway required for aircraft to safely operate depends on a number of factors including the type of aircraft, the takeoff weight (including passengers, cargo, and fuel), engine types, flap settings, landing speed, elevation of the airport, and average maximum daily air temperature; paved runways can reach a length of 5,000 m (16,000 ft.), but the “typical” length of a commercial airline runway is between 2,500-4,000 m (8,000-13,000 ft.)
Airports - with unpaved runways
75
note: unpaved runways have a surface composition such as grass or packed earth and are most suited to the operation of light aircraft; unpaved runways are usually short, often less than 1,000 m (3,280 ft.) in length; airports with unpaved runways often lack facilities for refueling, maintenance, or air traffic control
Heliports
4 (2021)
Pipelines
354 km condensate, 6,439 km gas, 155 km liquid petroleum gas, 1,937 km oil, 43 km oil/gas/water, 114 km refined products, 26 km water (2013)
Railways
total: 1,851 km (2014)
standard gauge: 59 km (2014) 1.435-m gauge (59 km electrified)
narrow gauge: 1,792 km (2014) 1.000-m gauge (339 km electrified)
comparison ranking: total 76
Roadways
total: 144,403 km (2010) (excludes local roads)
paved: 116,169 km (2010) (includes 1,821 km of expressways)
unpaved: 28,234 km (2010)
comparison ranking: total 36
Waterways
7,200 km (2011) (Peninsular Malaysia 3,200 km; Sabah 1,500 km; Sarawak 2,500 km)
comparison ranking: 21
Merchant marine
total: 1,790
by type: bulk carrier 14, container ship 33, general cargo 181, oil tanker 156, other 1,406 (2022)
comparison ranking: total 16
Ports and terminals
major seaport(s): Bintulu, Johor Bahru, George Town (Penang), Pelabuhan Klang (Port Klang), Tanjung Pelepas
container port(s) (TEUs): Port Kelang (Port Klang) (13,724,460), Tanjung Pelepas (11,200,000) (2021)
LNG terminal(s) (export): Bintulu (Sarawak)
LNG terminal(s) (import): Sungei Udang
Military and Security
Military and security forces
Malaysian Armed Forces (Angkatan Tentera Malaysia, ATM): Malaysian Army (Tentera Darat Malaysia), Royal Malaysian Navy (Tentera Laut Diraja Malaysia, TLDM), Royal Malaysian Air Force (Tentera Udara Diraja Malaysia, TUDM) (2023)
note 1: the Royal Malaysian Police (PRMD) are under the Ministry of Home Affairs; the PRMD includes the General Operations Force, a paramilitary force with a variety of roles, including patrolling borders, counter-terrorism, maritime security, and counterinsurgency; the Ministry of Home Affairs also includes the Malaysian Maritime Enforcement Agency (MMEA; aka Malaysian Coast Guard)
note 2: Malaysia created a National Special Operations Force in 2016 for combating terrorism threats; the force is comprised of personnel from the ATM, the PRMD, and the MMEA
Military expenditures
1% of GDP (2022 est.)
1% of GDP (2021)
1.1% of GDP (2020)
1% of GDP (2019)
1% of GDP (2018)
comparison ranking: 128
Military and security service personnel strengths
approximately 110,000 active-duty troops (80,000 Army; 15,000 Navy; 15,000 Air Force) (2023)
Military equipment inventories and acquisitions
the military fields a diverse mix of older and more modern imported weapons systems from a wide variety of suppliers across Europe, Asia, and the US; in recent years it has received military equipment from approximately 20 countries with South Korea as one of the leading suppliers (2023)
Military service age and obligation
17 years 6 months of age for voluntary military service for men and women (younger with parental consent and proof of age); maximum age of 27 to enlist; mandatory retirement age 60; no conscription (2023)
note - in 2020, the military announced a goal of having 10% of the active force comprised of women
Military deployments
830 Lebanon (UNIFIL) (2023)
Military - note
the MAF is a professional force primarily focused on internal and maritime security and responding to natural disasters; maritime security has received increased emphasis in recent years, particularly anti-piracy operations in the Strait of Malacca and countering Chinese incursions in Malaysia’s Economic Exclusion Zone, as well as addressing identified shortfalls in maritime capabilities; as such, Malaysia has undertaken efforts to procure more modern ships, improve air and maritime surveillance, expand the Navy’s support infrastructure (particularly bases/ports) and domestic ship-building capacities, restructure naval command and control, and increase naval cooperation with regional and international partners; as of 2023, for example, the Navy had 5 frigates on order (due in 2026), which would increase the number of operational frigates from 2 to 7, and complement its small inventory of littoral combat ships (comparable to light frigates in capabilities) and offshore patrol vessels, as well as its 2 attack-type submarines; in addition, the Navy conducts air and naval patrols with Indonesia and the Philippines; it also cooperates with the US military, including on maritime surveillance and training; the Army’s force structure reflects its traditional focus on counterinsurgency operations and terrorist threats; its 4 divisional commands are comprised largely of infantry brigades; it also has 2 security brigades, an airborne brigade that serves as a rapid-reaction force, and a special operations brigade; Malaysia does not have a marine corps, but places considerable emphasis on amphibious capabilities for some of its Army ground units; the Air Force has a mix of about 50 combat aircraft and helicopters
Malaysia is a member of the Five Powers Defense Arrangements (FPDA), a series of mutual assistance agreements reached in 1971 embracing Australia, Malaysia, New Zealand, Singapore, and the UK; the FPDA commits the members to consult with one another in the event or threat of an armed attack on any of the members and to mutually decide what measures should be taken, jointly or separately; there is no specific obligation to intervene militarily (2023)
Maritime threats
the International Maritime Bureau reported four attacks in the territorial and offshore waters of Malaysia in 2022; the South China Sea remains a high risk for piracy and armed robbery against ships; numerous commercial vessels have been attacked and hijacked both at anchor and while underway; hijacked vessels are often disguised and cargo diverted to ports in East Asia; crews have been murdered or cast adrift; the Singapore Straits saw 38 attacks against commercial vessels in 2022, a slight increase over 2021 and the highest number of incidents reported since 1992; vessels were boarded in all of the 38 attacks while underway, four crew were taken hostage during these incidents
Space
Space agency/agencies
Malaysian Space Agency (MYSA); MYSA was established in 2019 through the merging of the National Space Agency (ANGKASA; established 2002) and Malaysian Remote Sensing Agency (MRSA; established 1998); Astronautic Technology Sd Bhd (ATSB; established 1995) (2023)
Space program overview
has a growing space program focused on the areas of remote sensing (RS), communication, and navigational services to support domestic economic sectors; also seeks to promote a domestic space industry; acquires, manufactures, and operates satellites; conducts research in RS capabilities and space sciences such as astronomy, atmospherics, space environment, and weather; has an astronaut training exchange program with Russia and has relations with a variety of foreign space agencies and industries, including those of the European Space Agency and some of its individual member states, India, Japan, Russia, South Korea, the UK, and the US (2023)
note: further details about the key activities, programs, and milestones of the country’s space program, as well as government spending estimates on the space sector, appear in Appendix S
Terrorism
Terrorist group(s)
Terrorist group(s): Islamic State of Iraq and ash-Sham (ISIS); Jemaah Islamiyah (JI); Abu Sayyaf Group (ASG)
note: details about the history, aims, leadership, organization, areas of operation, tactics, targets, weapons, size, and sources of support of the group(s) appear(s) in Appendix-T
Transnational Issues
Disputes - international
piracy remains a problem in the Malacca Strait
Malaysia-Brunei: per Letters of Exchange signed in 2009, Malaysia in 2010 ceded two hydrocarbon concession blocks to Brunei; in 2009, the media reported that Brunei had dropped its claims to the Limbang corridor, but Brunei responded that the subject had never been discussed during recent talks between the two countries
Malaysia-China-Philippines-Vietnam: while the 2002 "Declaration on the Conduct of Parties in the South China Sea" has eased tensions over the Spratly Islands, it is not the legally binding "code of conduct" sought by some parties, which is currently being negotiated between China and ASEAN; Malaysia was not party to the March 2005 joint accord among the national oil companies of China, the Philippines, and Vietnam on conducting marine seismic activities in the Spratly Islands
Malaysia-Indonesia: land and maritime negotiations with Indonesia are ongoing, and disputed areas include the controversial Tanjung Datu and Camar Wulan border area in Borneo and the maritime boundary in the Ambalat oil block in the Celebes Sea
Malaysia-Philippines: Philippines retains a dormant claim to the eastern part of Malaysia's Sabah State in northern Borneo
Malaysia-Singapore: disputes continue over deliveries of fresh water to Singapore, Singapore's land reclamation, bridge construction, and maritime boundaries in the Johor and Singapore Straits; in 2008, the International Court of Justice awarded sovereignty of Pedra Branca (Pulau Batu Puteh/Horsburgh Island) to Singapore, and Middle Rocks to Malaysia but did not rule on maritime regimes, boundaries, or disposition of South Ledge
Malaysia-Thailand: in 2008, separatist violence in Thailand's predominantly Muslim southern provinces prompts Malaysia to take measures to close and to monitor the border with Thailand to stem terrorist activities
Refugees and internally displaced persons
refugees (country of origin): 158,165 (Burma) (refugees and asylum seekers) (2022)
stateless persons: 113,930 (2022); note - Malaysia's stateless population consists of Rohingya refugees from Burma, ethnic Indians, and the children of Filipino and Indonesian illegal migrants; Burma stripped the Rohingya of their nationality in 1982; Filipino and Indonesian children who have not been registered for birth certificates by their parents or who received birth certificates stamped "foreigner" are not eligible to attend government schools; these children are vulnerable to statelessness should they not be able to apply to their parents' country of origin for passports
Trafficking in persons
tier rating: Tier 2 Watch List — Malaysia does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so; the government made key achievements during the reporting period, therefore Malaysia was upgraded to Tier 2 Watch List; officials initiated more investigations, prosecuted and convicted more traffickers, and prosecuted complicit officials; the government identified more victims, funded efforts to raise awareness of trafficking and increase victim access to services and shelters, and increased training for officials and victim service providers; however, the government did not sufficiently press criminal prosecution of labor traffickers in several sectors; Standard Operating Procedures were not systematically implemented countrywide to identify victims, including those who came in contact with officials during law enforcement raids or other situations; authorities likely detained, arrested, and deported some victims; delays in prosecution, insufficient interagency coordination, and inadequate services for victims discouraged victim participation in criminal proceedings and hindered anti-trafficking law enforcement efforts (2023)
trafficking profile: human traffickers exploit domestic and foreign victims in Malaysia and Malaysians abroad; most victims in Malaysia are documented and undocumented migrant workers from Bangladesh, Burma, Cambodia, China, India, Indonesia, Laos, Nepal, Pakistan, the Philippines, Sri Lanka, Thailand, and Vietnam; employers and agents exploit some migrants through debt-based coercion, and large organized crime syndicates are involved in some trafficking; Chinese nationals working for Chinese state-affiliated construction projects in Malaysia are vulnerable to forced labor; some young foreign women and girls—mainly from Southeast Asia, although also from Nigeria, Tanzania, and Uganda—are forced into commercial sex work in Malaysia after false recruitment for work in restaurants, hotels, beauty salons, or brokered marriages; refugees, Rohingya and other asylum-seekers, and stateless individuals are vulnerable to sex and labor trafficking; traffickers force Malaysian orphans and children to beg, and exploit Malaysian women and children in forced labor; corrupt immigration officials facilitate trafficking by accepting bribes from brokers and smugglers at the borders and airports, and other government officials profit from bribes or extortion from and exploitation of migrants (2023)
Illicit drugs
not a source country for illicit drugs bound for the United States but is a significant transit country for drugs destined for Australia; drugs trafficked to Malaysia include crystal methamphetamine and lesser quantities of MDMA (ecstasy), cannabis, heroin, and ketamine; significant number of the population abuse drugs especially methamphetamine