PEST ANALYSIS OF MALAYSIA

POLITICAL 1. Form And Type Of Government: constitutional monarchy In 1957 Selected from nine hereditary Sultans of the Malay states 2. ministerial hierarchy (separate ministers under each section)

Portfolio

Office Bearer

Party

Prime Minister of Malaysia Deputy Prime Minister of Malaysia

Najib Tun Razak Muhyiddin Yassin

UMNO UMNO

Ministers in the Prime Minister's Department

Koh Tsu Koon (Senator) Nazri Aziz Nor Mohamed Yakcop Jamil Khir Baharom (Senator)

GERAKAN UMNO UMNO UMNO

Minister of Finance Minister of Finance II

Najib Tun Razak Ahmad Husni Hanadzlah

UMNO UMNO

Minister of Education

Muhyiddin Yassin

UMNO

Minister of Transport

Ong Tee Keat

MCA

Minister of Plantation Bernard Dompok Industries and Commodities

UPKO

Minister of Home Affairs

Hishammuddin Tun Hussein

UMNO

Minister of Infomation, Rais Yatim Communications and Culture

UMNO

Minister of Energy, Green Technology and Water

Peter Chin Fah Kui

SUPP

Minister of Rural and Regional Development

Mohd Shafie Apdal

UMNO

Minister of Higher Education

Mohamed Khaled Nordin

UMNO

Minister of International Trade and Industry

Mustapa Mohamed

UMNO

Minister of Science, Technology and Innovation

Maximus Ongkili

PBS

Minister of Natural Douglas Uggah Resources and Environment Embas

PBB

Minister of Tourism

Ng Yen Yen

MCA

Minister of Agriculture and Agro-based Industry

Noh Omar

UMNO

Minister of Defence

Ahmad Zahid Hamidi UMNO

Minister of Works

Shaziman Abu Mansor

UMNO

Minister of Health

Liow Tiong Lai

MCA

Minister of Youth and Sports Ahmad Shabery Cheek

UMNO

Minister of Human Resources

Subramaniam Sathasivam

MIC

Minister of Domestic Trade, Ismail Sabri Yaakob Cooperative and Consumerism

UMNO

Minister of Housing and Local Government

Kong Cho Ha

MCA

Minister of Women, Family Shahrizat Abdul and Community Jalil (Senator) Development

UMNO

Minister of Foreign Affairs

Anifah Aman

UMNO

Minister of the Federal Territories

Raja Nong Chik Zainal Abidin (Senator)

UMNO

http://en.wikipedia.org/wiki/Cabinet_of_Malaysia 3. Axim policyForeign Policy

A markedly anti-Communist and pro-western posture with close links to the Commonwealth under Tunku Abdul Rahman, our first Prime Minister, gave way to one based on non-alignment, neutralization and peaceful co-existence. Under Tun Abdul Razak, as a member of the Organisation of Islamic Conference (OIC), Malaysia began to identify itself as a "Muslim nation." Malaysia's relations with other countries. These refer to sovereign equality and mutual respect for territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, peaceful settlement of disputes as well as mutual benefit in relations and peaceful co-existence. Developing close bilateral relations with our neighbours remains a high priority..

http://www.kln.gov.my/?m_id=2 Trade Policy

is to pursue trade liberalisation through the rule-based multilateral trading system under the World Trade Organisation (WTO). Free trade agreements (FTAs) have traditionally been confined to trade in goods. However, after the establishment of the WTO, trade in services has been included in many FTAs.
4. FDI /FII structure The government has a generally favourable attitude toward foreign investment, especially regarding projects that facilitate technology transfers, create high-skilled jobs and contribute capital to the economy. New ventures in the manufacturing sector may be 100% foreign-owned, the financial sector is being liberalized and capital controls on overseas investments have been relaxed. Any FDI that seeks to acquire assets in Malaysia including ownership of businesses without giving clear benefit to Malaysians will be actively discouraged. All industrial projects must be approved by the Malaysian Industrial Development Agency (MIDA) which has lately stopped granting approvals in what it views as lowproductivity industries. In April 2009, the Malaysian government removed existing bumiputera (ethnic Malay) affirmative action requirements for companies in certain sectors (health, tourism, transport and IT services) to have 30% ethnic Malay ownership. This move was a bid by the ruling coalition to reach out to ethnic minority groups to strengthen its position.

http://www.edc.ca/english/docs/gmalaysia_e.pdf

ECONOMIC

Free trade agreements were introduced by Badawi to Japan. These contracts will help these two countries minimize tariffs on trade of all industrial goods and large number of forestry, agricultural, and fishery products. Economic policies of Malaysia also state that it has to develop and focus more on its strengths, which is agriculture. It would also look in to fact that manufacturing base is not affected. By restructuring government financial assistance, it has increased price of petrol and electricity. Monetary policy Reserve requirements have been cut to reduce the cost of financial intermediation. Timely liquidity support in the inter-bank market has kept the overnight inter-bank rate close to the policy rate, suggesting orderly market conditions throughout. The base lending rate has declined, and broad money has continued to grow. Credit has expanded although the rate of expansion has decelerated as banks tightened lending standards and loan demand moderated in tandem with economic activity.

http://www.economywatch.com/economic-policy/Malaysia.html 1. banking structure both national and private and private banks exist 2. income patterns (GDP)In 2008 fiscal Malaysia GDP as per purchasing power parity was estimated to be $397.5 billion, while GDP as per official exchange was $214.7 billion for 2008. Statistical research work shows that real growth rate of Malaysia GDP of 2008 is approximately 5.5%. Malaysia GDP per capita has been shown to be $15,700 in 2008. http://www.economywatch.com/gdp/world-gdp/malaysia.html

SOCIAL 1. psycographics and sociographics (all possible ratios)

Full name: Federation of Malaysia Population: 27 million (UN, 2008) Capital: Kuala Lumpur Area: 329,847 sq km (127,355 sq miles) Major languages: Malay (official), English, Chinese dialects, Tamil, Telugu, Malayalam Major religions: Islam, Buddhism, Taoism, Hinduism, Christianity, Sikhism Life expectancy: 72 years (men), 77 years (women) Monetary unit: 1 ringgit = 100 sen Main exports: Electronic equipment, petroleum and liquefied natural gas, chemicals, palm oil, wood and wood products, rubber, textiles

Sex ratio: at birth: 1.07 male(s)/female under 15 years: 1.06 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.78 male(s)/female total population: 1.01 male(s)/female (2008 est.) Rich: poor Malaysia has the largest gap between rich and the poor in Southeast Asia, where the top 10 percent is 22.1 times richer than the poorest 10 percentThe richest 10 percent in Malaysia controls 38.4 percent of the country's economic income as compared to the poorest 10 percent controlling 1.7 percent. Income parameters: 8.6 percent of households earn below RM1,000, followed by about 29.4 percent of households who earn between RM1,000 and RM2,000.19.8 percent of households are in the RM2001RM3,000 income bracket, RM3,001-RM4,000 (12.9 percent), RM4,001-RM5,000 (8.6 precent), RM5,001-RM10,000 (15.8 percent) and above RM10,000 (4.9 percent).In short, almost 40 percent of households in Malaysia earn RM2,000 and below.At the other end of the scale, about 20 percent of households earn more than RM5,000 a month.. http://www.geocities.com/easytocall/

TECHNOLOGICAL 1. infrastructure

Transport:
Airport Construction and Related Works Kuala Lumpur International Airport (KLIA) has a new passenger terminal for budget airlines. The terminal will have the capacity to handle 30mn passengers annually, thus increasing the airports annual capacity to 55mn passengers. It will be located next to the existing terminal and will be ready by 2010.

Communication
The press

New Straits Times - English-language daily

The Star - English-language daily Business Times - English-language daily The Malay Mail - English-language daily Malaysiakini - English-language, online news service

Television

Radio Television Malaysia (RTM) - state-run, operates TV1 and TV2 networks TV3 - commercial network ntv7 - commercial network 8TV - commercial network

Radio

Radio Television Malaysia (RTM) - state-run, operates some 30 radio stations across the country and external service Voice of Malaysia Era FM - private FM station Hot FM - private FM station Time Highway Radio - private Kuala Lumpur FM station

News agency

Bernama - state-run

http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1304569.stm