Malaysia

Malaysia Overview

Malaysia’s economy has been transformed since 1970 from one based primarily on the export of raw materials (rubber and tin) to one that is among the strongest, most diversified, and fastest-growing in Southeast Asia. Primary production remains important: the country is a major producer of rubber and palm oil, exports considerable quantities of petroleum and natural gas, and is one of the world’s largest sources of commercial hardwoods. Increasingly, however, Malaysia has emphasized export-oriented manufacturing to fuel its economic growth. Using the comparative advantages of a relatively inexpensive but educated labour force, well-developed infrastructure, political stability, and an undervalued currency, Malaysia has attracted considerable foreign investment, especially from Japan and Taiwan.

Since the early 1970s the government has championed a social and economic restructuring strategy, first known as the New Economic Policy (NEP) and later as the New Development Policy (NDP), that has sought to strike a balance between the goals of economic growth and the redistribution of wealth. The Malaysian economy has long been dominated by the country’s Chinese and South Asian minorities. The goal of the NEP and the NDP has been to endow the Malays and other indigenous groups with greater economic opportunities and to develop their management and entrepreneurial skills. Official economic policy also has encouraged the private sector to assume a greater role in the restructuring process. A major component of this policy has been the privatization of many public-sector activities, including the national railway, airline, automobile manufacturer, telecommunications, and electricity companies.

Source: britannica.com

Landscape and growth

Global State of the Market Report

In 2022, the Advisory Board Centre mapped professionals currently serving on Advisory Boards. This assessment identified over 7,000 professionals on Advisory Boards in Malaysia.

Advisory Board Landscape

The assessment has identified low numbers of Advisory Board professionals in Malaysia. Minimal participation in the market may indicate:

  • That Advisory Board structures engaged in the country are informal in nature;
  • Advisory Boards are referred as a different name, such as committees, councils or think tanks;
  • Traditional sourcing of advice is more customary for Malaysia’s current business environment; or
  • There is a language barrier stemming from the search for Advisory Board professionals being in English.

Future Growth Opportunities

As an emerging sector in Malaysia, connection and collaboration with the global Advisor community will present strong future growth opportunities. Further, focusing on key market sectors – manufacturing, natural resources and agribusiness – as well as acknowledging start-up and emerging industries are essential. It will also be important for Advisory Board professionals in market to be credentialed to best practice and ethics as this sector grows over time.

Key Statistics

Population 34 million
GDP $372,980 USD Million
Labour Force by occupation
Agriculture10.09%
Industry26.83%
Services63.08%
GDP by sector
Agriculture9.59%
Industry37.76%
Services51.55%
Import $230,244 USD Million
Export $256,756 USD Million
Global ease of doing business rank 24th
Global ease of doing business score 78.43/100