Answers for 1-7

20th Century to the End of World War II 3points

The first period, roughly from the start of the 20th century to the end of World War II, was the
era of Colonial-led, resource-based growth. Malaysia was a model colony (or actually group of colonies)
of the British empire. It developed rapidly under imperial institutions. As Sultan Nazrin Shah notes,
Malaysia benefited from three geographical factors: its tropical climate, its ample (even remarkable)
natural resources, and its proximity to the major trade route between Europe and East Asia. Under
these circumstances, Malaysia offered enormous profits to British private investors who invested in
Malaysia's tin and rubber, the two dominant exports. The British imperial institutions enforced an
imperial laissez faire for British private interests, while exercising sovereign decisions over foreign policy,
commercial law, and the in-migration of workers, especially from China (mainly related to tin) and India
(mainly related to rubber).

This was, of course, a policy made by and for the imperial power. The Gross Domestic Product grew
rapidly, roughly 3.7 per cent per year between 1900 and 1939, but national income and consumption of
native Malays grew much more slowly, with domestic consumption rising around 1 per cent per year
during this period. The difference in growth between output and consumption, of course, reflects the
huge profits earned by British private interests as they secured the economic rights to develop and
export Malaysia's tin and rubber with only small revenue collections for public services for the local
population. As late as 1970, around 60 per cent of the capital in limited liability companies was foreign
owned.

Moreover, rather than allowing the expansion of tin and rubber (and related industries) to bid up Malay
wages, the British imperial power, with the support of Malay sultans, facilitated the in-migration of low-
wage workers from China and India, ensuring that wage growth would remain very low and the returns
to British investments would be maximized. The ethnic Malay population declined from around 62.8 per
cent of the population in 1901 to less than half (49.5 per cent) in 1947.

1946-1970 1point

With the end of World War II in 1945, the end of imperial rule was in sight, though of course nearly two
decades would be needed to give birth to today's Malaysia. The period 1946-1970 therefore constitutes
an era of political change as well as social and economic change. In 1946, the Malayan Union was
established, with limited sovereignty; then in 1957, the independence of the Federation of Malaya; and
in 1964, the political formation of today's Malaysia. This was also a period of massive economic change,
entailing the first period of real nation-building, with increased investments in infrastructure (roads, rail,
power, and ports) and in human capital (health and education). This period set the foundations for a
significant rise in living standards and a significant decline in poverty, including among the still-poor and
mainly rural Malay population of the 1940s.

The year 1969 marked another turning point, with the racial unrest and the adoption of the New
Economic Policy, aiming for broad social inclusion and especially a catching-up of the Malay population
with the more urban and more prosperous Chinese population. One of the tenets of the NEP was
economic diversification. By then (around 1970), tin and rubber were in any event shifting to
hydrocarbons (oil and gas) and oil palm. After 1970, this shift would continue, but would be significantly
augmented by the rise of labour-intensive export-oriented manufacturers, mainly the development of a
labour-intensive electronics assembly export industry tightly interconnected with US multinational
companies.

1970-2000 2points

The era between 1970 and 2000 was an economic success based on several standards, but one with a
growing number of problems. The diversification into urban-based services, and middle-skilled labour-
intensive industry, was successful in reducing poverty, extending education, and improving population
health and longevity, but it continued Malaysia's heavy dependence on a few export sectors (oil and gas,
oil palm, electronics) and failed to catapult Malaysia into endogenous growth, meaning self-sustaining
innovation based on science and technology. While education expanded rapidly, the quality of
education remained mixed. Malaysia's attempt from the 1980s onward to emulate the Republic of
Korea's success in heavy and innovation-based industries, fell short.

These vulnerabilities revealed themselves after 2000, when the rise of China's export-oriented
manufacturing sector created a huge competition for Malaysia, and in effect put a ceiling on the growth,
employment, and income of Malaysia's "middle-tech" industries. Economic progress continued, but now
at a much slower pace. Income inequalities tended to widen. And high environmental costs of Malaysia's
resource-based development became increasingly evident. Malaysia's burgeoning land area planted to
palm oil, coupled with massive deforestation and tropical logging destined for Chinese markets,
threatened the biodiversity of many parts of Malaysia, especially Sabah and Sarawak.

Air and water pollution increased, including the "imported" air pollution from the mass peat burning of
Java and Sumatra. And in an era of global warming, Malaysia's heavy dependence on and use of fossil
fuels raised red flags at home and internationally.

2015 up to the Present 1point

Malaysia therefore finds itself at the start of a fifth era of transformation, starting in 2015, this
one very well characterized by the United Nations' Agenda 2030. The aim of the globally agreed Agenda
2030 is sustainable development, meaning the combination of economic development with social
inclusion and environmental sustainability. The three pillars of sustainable development – economic,
social, and environmental – are made more precise and quantitative in the 17 Sustainable Development
Goals (SDGs) that are part of Agenda 2030. Of course, Malaysia is not alone in having to move from
economic development (based largely on the growth of GDP per capita) to sustainable development
according to the 17 SDGs. All UN member states adopted Agenda 2030 and the 17 SDGs in September
2015, because all countries are in need of ensuring that their economies not only produce high levels of
GDP per person but do so in a way that is also socially inclusive and environmentally sustainable.

T 8.) A child is considered to be bumiputera if one of the parents is a Muslim Malay, as stated in the
Constitution. The Federal Constitution defines a Malay as a person who professes the religion of Islam,
habitually speaks Malay, conforms to Malay customs and is the child of a Malaysian parent.

T 9.) The New Economic Policy (NEP)1970-1990 goals are the following:

(i) To reduce the domestic inflation rate.

(ii) To improve the efficiency and productivity of the economy.

(iii) To put the economy back on the path of sustainable growth with social justice.

10.) It was on May 13, 1969 when the Riot in Kuala Lumpur happened which led to the development of
National Economic Policy in order to address the issue of racial tension between the Malaysians and the
British Community.

T 11.) Malaysia is an Upper-middle income country with GNI per capita of 3,996 - 12,375 USD (2020)

12.) Timo was right when he said that the currency of Malaysia is Malaysian dollar

13-14 Write the 1st and 2nd Top imports of Malaysia in 2019

TOP IMPORTS ARE

1. Integrated Circuits ($37.3B)

2. Refined Petroleum ($15.5B)
3. Crude Petroleum ($4.62B)
4. Broadcasting Equipment ($3.51B)
5. Office Machine Parts ($3.47B).

15-16 Write the 1st and 2nd Top exports of Malaysia in 2019

THE TOP 5 EXPORTS

1. Integrated Circuits ($55.7B)

2. Refined Petroleum ($18B)
3. Office Machine Parts ($11.1B)
4. Petroleum Gas ($10.1B)
5. Palm Oil ($9.9B)

17.) Which country is where most of the products of Malaysia is being exported to?

China

18.) Which country is where most of the imported products in Malaysia are coming from?

China

19.) _______ is elected by the rulers of the country's nine states, who take turns in serving five-year
terms.

The King of Malaysia

20.) Under the Federal Constitution, the appointment of the _______ is a discretionary function of the
Yang di-Pertuan Agong (The King). He/She must be a member of the parliament who in the judgment of
the Yang di-Pertuan Agong (The King), is “likely to command the confidence of the majority of the
members of the (lower) House”.

Prime Minister