Malaysia  

Unemployment is low at 4% and Malaysian workers have access to a high level of capital stock, including offices and productive machinery. Inflation is just 2%, the domestic savings rate is a high 42%, and household spending accounts for a quarter of GDP, suggesting a significant domestic market. The banking sector is competitive and efficient, as indicated by a very low spread between lending and borrowing margins, and a low number of non-performing loans. Malaysia avoids dependence upon raw materials, with a low proportion of primary products in its exports. Malaysia ranks best in the world for its export revenues relative to the cost of imported goods, indicating a strong capacity to earn foreign currency. Foreign direct investment is 5% of GDP.

Malaysia has a limited communications infrastructure, with only 23 personal computers per 100 people, and only 17 secure internet servers per million people. Supporting this is a moderate level of internet infrastructure, as measured by bandwidth. Malaysia’s performance is, however, boosted by a flourishing high-tech industry. Levels of ICT exports are strong, and high-tech exports constitute over half of total exports. High levels of royalty receipts indicate that Malaysia is able to capitalise on its innovations. Value added in Malaysia’s service industry amounts to 41% of GDP, which is near the bottom of the rankings for this variable. R&D expenditure is just 0.6% of GDP, giving Malaysia a rank of 50th out of 104 for this measure. Nine procedures are required to start a business, and over 38,000 businesses were started in Malaysia in 2007, a high number boosting Malaysia to the 19th position in that category.

Malaysia is categorised as a partial democracy, with limited levels of free and open political competition and sound regulation of political processes. Its citizens have only moderate freedom to participate in activities such as joining political parties or running for office, and there are limits on their civil rights, including freedom of expression, belief, and association. The processes for transferring executive power are not fully open and regulated. Political instability is a small factor in Malaysia, with the last change of regime occurring less than four decades ago. Elections to both the executive and legislative branches of government are competitive. There are also significant constraints upon the power of the executive, partly due to an independent judiciary.

Primary school enrolment is gender equal and children benefit from a favourable ratio of one teacher for every 17 students. However, successful enrolment drops somewhat at secondary school level and even more in tertiary education, where only 69% and 29% of the population enrolled, respectively. However, the workforce is well educated, with an average 5.3 years of secondary education and four years of tertiary educationper worker. Malaysia achieves this success despite a very low annual expenditure of $2,950 per student.

Malaysia’s health infrastructure has significant limitations: there are a low number of doctors and nurses per capita, and only 18 hospital beds per 10,000 people. However, on measures of health outcomes, Malaysia is much more successful. It ranks in the top 50 for health-adjusted life expectancy at 63 years. Only 3% of the population is undernourished, and infant mortality figures are low. More than nine out of 10 people have access to sanitary waste disposal facilities and 77% are satisfied with their water quality.* Malaysians seem broadly pleased with their personal health: 87% of Malaysians are satisfied with their general level of health, only a quarter of Malaysians indicated that they have significant health problems, and only 17% reported being in pain for a significant portion of the previous day.* Nearly eight in 10 Malaysians felt well rested, placing Malaysia in the top 10 countries on this variable.*

Malaysia faces significant challenges related to the presence of refugees and internally displaced individuals, as well as from social groups with a history of discrimination or other grievances. There are also some problems with human flight, as individuals seek a better life abroad, and some alleged incidents of government-sponsored torture and political imprisonment. There were no casualties from civil war in 2008. Although only a low 56% of Malaysians reported feeling safe walking the streets alone at night, crime rates are lower than this might suggest.* Homicide rates are low at just over five per 100,000 persons, and only 16% of respondents had property stolen in the last six months.* Just 5% of people had been assaulted in 2008, a very low figure by international standards.*

Malaysia is ranked 35th for the extent to which its government equitably enforces the rule of law and 38th for the quality of its regulation of investment and competition. Its bureaucracy implements policies in a highly effective manner. While Malaysians have the right to change their government and participate in politics, this is subject to some limitations. Although 62% of people have confidence that elections are carried out in a fair way, over four in five people believe that government and local businesses are corrupt, a relatively high figure, internationally.* However, confidence in courts and in the military is high, with 76% and 84% expressing confidence in those respective institutions.*

Malaysia ranks relatively poorly on measures of freedom. Although 72% of citizens in this highly multiracial society think that Malaysia is a good place to live for ethnic minorities, just 19% believe that the country is welcoming to immigrants.* Freedom of movement, religion, and speech is also low, by international standards. However, over four out of five Malaysians are satisfied with their freedom to choose in life, a comparatively high figure internationally.*

Just 9% of Malaysians believe others can be trusted, placing Malaysia below the global average for this variable.* Levels of membership in social groups are relatively low: 31% of Malaysians are members of a sports group, 22% are in an arts organisation, and just 10% are in an environmental group.* Levels of donations to charity, volunteering, and helping strangers are average by international standards.* Although nearly eight in 10 Malaysians consider themselves religious, just 34% are members of a religious organisation.* A high number of people think that friends are important to them, and 85% of Malaysians feel they have someone to rely upon in times of need.*

* Data taken from the Gallup World Poll

• Back to top