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Malaysia
Where is Malaysia?
Malaysia is situated in Southeast Asia, bordered by Thailand in the north, Indonesia in the south, and the Philippines in the east. The country has an area of 329,758 square kilometres. The Federation of Malaysia consists of 13 states, and is divided into 2 parts: 11 states are located in Peninsular Malaysia (also called West Malaysia) and 2 comprise East Malaysia, which is situated on the island of Borneo (see map).

How and why Malaysia has industrialised…
Early Industrialisation, 1957-70 * Malaysia’s economy was geared to the export of primary commodities. These included Rubber, Palm Oil, Timber and Tin. At the time, manufacturing comprised 9%, much of it from the first industrial estate at Petaling Jaya outside Kuala Lumpur. Early industrialisation took the form of import substitution – the production of goods needed by the population, such as clothing.
The New economic Policy, 1971-90 * Oil exports were fuelling the growth of export-orientated industries. Non-agricultural began to exceed agricultural employment. Various government initiatives and changing economic circumstances encouraged rapid growth of manufacturing. Exports grew by 26% per annum in 1970’s. * This was due to: * Need for newly independent state to break away from the stifling impact of colonialism on economy * Continuing emphasis on resource based industries – rubber, palm oil, timber, tin * Creation of industrial estates near state capitals * Opening of Malaysian investment centre in Tokyo attracting over 1000 Japanese companies. * Lower taxes on transnational companies compared with local companies
The Push towards Heavy Industrialisation * The 1980’s saw heavy industrialisation and further growth of export-oriented firms with increasing emphasis on electronics. The growth engine for these developments was increasing

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