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🇲🇾 Malaysia

East and Southeast Asia

Page last updated: April 24, 2024

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. 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.

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

02°30' N, 112°30' E

Map references

Southeast Asia

Area

Total: 329,847 km²

Land: 328,657 km²

Water: 1,190 km²

Area - comparative

Slightly larger than New Mexico

Area comparison map:

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 km² (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

Population

34,219,975 (2023 est.)

Nationality

Noun: Malaysian(s)

Adjective: Malaysian

Ethnic groups

Bumiputera 63.8% (Malay 52.8% and indigenous peoples, including Orang Asli, Dayak, Anak Negeri, 11%), Chinese 20.6%, Indian 6%, other 0.6%, non-citizens 9% (2023 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) 63.5%, Buddhist 18.7%, Christian 9.1%, Hindu 6.1%, other (Confucianism, Taoism, other traditional Chinese religions) 0.9%, none/unspecified 1.8% (2020 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)

2023 population pyramid:

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: 31.4 years (2023 est.)

Male: 31.3 years

Female: 31.5 years

Population growth rate

1.01% (2023 est.)

Birth rate

14.4 births/1,000 population (2023 est.)

Death rate

5.7 deaths/1,000 population (2023 est.)

Net migration rate

1.5 migrant(s)/1,000 population (2023 est.)

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.)

Total population growth rate v. urban population growth rate, 2000-2030

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.)

Maternal mortality ratio

21 deaths/100,000 live births (2020 est.)

Infant mortality rate

Total: 6.5 deaths/1,000 live births (2023 est.)

Male: 6.9 deaths/1,000 live births

Female: 6.1 deaths/1,000 live births

Life expectancy at birth

Total population: 76.4 years (2023 est.)

Male: 74.8 years

Female: 78.1 years

Total fertility rate

1.74 children born/woman (2023 est.)

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

Obesity - adult prevalence rate

15.6% (2016)

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.)

Tobacco use

Total: 22.5% (2020 est.)

Male: 43.8% (2020 est.)

Female: 1.1% (2020 est.)

Children under the age of 5 years underweight

14.1% (2019)

Currently married women (ages 15-49)

59.3% (2023 est.)

Education expenditures

3.9% of GDP (2020 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)

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.)

Total population growth rate v. urban population growth rate, 2000-2030

Revenue from forest resources

1.57% of GDP (2018 est.)

Revenue from coal

0.02% of GDP (2018 est.)

Air pollutants

Particulate matter emissions: 21.52 micrograms per cubic meter (2019 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.)

Geoparks

Total global geoparks and regional networks: 2

Global geoparks and regional networks: Kinabalu; Langkawi (2023)

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 IBRAHIM ibni al-Marhum Sultan Iskandar (since 31 January 2024); 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 October 2023 (next to be held in October 2028 with installation in January 2029); 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 to be held in 2027)

Election results: Senate - appointed; composition as of March 2024 - men 51, women 10, percentage women 16.4%

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 90, PN 50, BN 42, GPS 18, WARISAN 7, PEJUANG 4, PBM 3, PSB 1, MUDA 1, independent 4, vacant 2; composition as of March 2024 - 192 men, 30 women; percentage women 13.5%; total Parliament percentage women 9.2%

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 [Ahmad ZAHID Hamidi]:

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 [ANWAR Ibrahim]:

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 [MUHYIDDIN Yassin]:

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 [HAJIJI Noor]:

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 [Abang Abdul Rahman Zohari Abang Openg or ABANG JOHARI or "Abang Jo"]:

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 ABANG JOHARI or "Abang Jo"]

Others receiving votes in 2022 general election:

Malaysian Nation Party (Parti Bangsa Malaysia) or PBM [Larry SNG Wei Shein]

Heritage Party (Parti Warisan) or WARISAN [SHAFIE Apdal]

Social Democratic Harmony Party (Parti Kesejahteraan Demokratik Masyarakat) or KDM [PETER Anthony]

Malaysian United Democratic Alliance (Ikatan Demokratik Malaysia) or MUDA [Syed SADDIQ]

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

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)

$963.29 billion (2022 est.)

$886.596 billion (2021 est.)

$858.293 billion (2020 est.)

Note: data in 2017 dollars

Real GDP growth rate

8.65% (2022 est.)

3.3% (2021 est.)

-5.46% (2020 est.)

Note: annual GDP % growth based on constant local currency

Real GDP per capita

$28,400 (2022 est.)

$26,400 (2021 est.)

$25,900 (2020 est.)

Note: data in 2017 dollars

GDP (official exchange rate)

$407.027 billion (2022 est.)

Note: data in current dollars at official exchange rate

Inflation rate (consumer prices)

3.38% (2022 est.)

2.48% (2021 est.)

-1.14% (2020 est.)

Note: annual % change based on consumer prices

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

Industrial production growth rate

6.46% (2022 est.)

Note: annual % change in industrial value added based on constant local currency

Labor force

17.129 million (2022 est.)

Note: number of people ages 15 or older who are employed or seeking work

Unemployment rate

3.63% (2022 est.)

4.08% (2021 est.)

4.54% (2020 est.)

Note: % of labor force seeking employment

Youth unemployment rate (ages 15-24)

Total: 15.6% (2021 est.)

Male: 14.2%

Female: 17.8%

Population below poverty line

6.2% (2021 est.)

Note: % of population with income below national poverty line

Gini Index coefficient - distribution of family income

41.2 (2018 est.)

Note: index (0-100) of income distribution; higher values represent greater inequality

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%: 2.3%

Highest 10%: 31.2% (2018 est.)

Note: % share of income accruing to lowest and highest 10% of population

Remittances

0.4% of GDP (2022 est.)

0.42% of GDP (2021 est.)

0.42% of GDP (2020 est.)

Note: personal transfers and compensation between resident and non-resident individuals/households/entities

Budget

Revenues: $77.736 billion (2019 est.)

Expenditures: $85.851 billion (2019 est.)

Budget surplus (+) or deficit (-)

-3% (of GDP) (2017 est.)

Public debt

63.26% of GDP (2021 est.)

62.01% of GDP (2020 est.)

52.42% of GDP (2019 est.)

Note: central government debt as a % of GDP

Taxes and other revenues

11.21% (of GDP) (2021 est.)

Note: central government tax revenue as a % of GDP

Fiscal year

Calendar year

Current account balance

$12.271 billion (2022 est.)

$14.493 billion (2021 est.)

$14.138 billion (2020 est.)

Note: balance of payments - net trade and primary/secondary income in current dollars

Exports

$312.857 billion (2022 est.)

$263.836 billion (2021 est.)

$208.217 billion (2020 est.)

Note: balance of payments - exports of goods and services in current dollars

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

$283.601 billion (2022 est.)

$236.855 billion (2021 est.)

$186.613 billion (2020 est.)

Note: balance of payments - imports of goods and services in current dollars

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

$114.659 billion (2022 est.)

$116.916 billion (2021 est.)

$107.644 billion (2020 est.)

Note: holdings of gold (year-end prices)/foreign exchange/special drawing rights in current dollars

Debt - external

$224.596 billion (2019 est.)

$226.901 billion (2018 est.)

Exchange rates

Ringgits (MYR) per US dollar -

Exchange rates:

4.401 (2022 est.)

4.143 (2021 est.)

4.203 (2020 est.)

4.142 (2019 est.)

4.035 (2018 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 185; 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.)

Refined petroleum products - production

528,300 bbl/day (2015 est.)

Refined petroleum products - exports

208,400 bbl/day (2015 est.)

Refined petroleum products - imports

304,600 bbl/day (2015 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.)

Energy consumption per capita

123.755 million Btu/person (2019 est.)

Communications

Telephones - fixed lines

Total subscriptions: 8,452,900 (2022 est.)

Subscriptions per 100 inhabitants: 25 (2021 est.)

Telephones - mobile cellular

Total subscriptions: 47,201,700 (2021 est.)

Subscriptions per 100 inhabitants: 141 (2021 est.)

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; in 2022, the government abandoned its single wholesale 5G network model and committed to deploying a dual 5G network; currently, 80 percent of Malaysia’s population is covered by 5G (2023)

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 country code

.my

Internet users

Total: 32.98 million (2021 est.)

Percent of population: 97% (2021 est.)

Broadband - fixed subscriptions

Total: 3,358,800 (2020 est.)

Subscriptions per 100 inhabitants: 10 (2020 est.)

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

Civil aircraft registration country code prefix

9M

Airports

102 (2024)

Heliports

24 (2024)

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)

Roadways

Total: 144,403 km (excludes local roads)

Paved: 116,169 km (includes 1,821 km of expressways)

Unpaved: 28,234 km (2010)

Waterways

7,200 km (2011) (Peninsular Malaysia 3,200 km; Sabah 1,500 km; Sarawak 2,500 km)

Merchant marine

Total: 1,750 (2023)

By type: bulk carrier 14, container ship 35, general cargo 169, oil tanker 148, other 1,384

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) (2024)

Note 1: the Royal Malaysia Police (RMP or Polis Diraja Malaysia, PDRM) 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

1.1% of GDP (2022 est.)

1% of GDP (2021)

1.1% of GDP (2020)

1% of GDP (2019)

1% of GDP (2018)

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 array of mostly older weapons systems along with a modest mix of modern equipment; its inventory originates 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) (2024)

Military - note

The Malaysian military is 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 five frigates on order (due in 2026-2029), which would increase the number of operational frigates from two to seven, and complement its small inventory of littoral combat ships (comparable to light frigates in capabilities) and offshore patrol vessels; 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 four divisional commands are comprised largely of infantry brigades; it also has separate brigades of airborne, security, and special operations forces; 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)

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

Refugees and internally displaced persons

Refugees (country of origin): 157,731 (Burma) (refugees and asylum seekers) (2023)

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