The Economy/ Contents

International trade

H. Osman Rani, M. Anuar Adnan and Mohamed Aslam

As an open economy with a relatively small domestic market, Malaysia depends on external trade for economic growth. Trade has increased significantly since Independence, and manufactured goods such as electrical and electronic products have far surpassed commodities as the main exports, while intermediate and capital goods have replaced consumer goods as the main imports. Direction of trade correlates to the sources of foreign direct investment. The Balance of Payments reflects the level of trade, which has registered surpluses in goods, but not services.

  • Information in the full article includes
  • Factors influencing trade
  • Exports and imports
PETRONAS’s LNG tanker

PETRONAS’s LNG tanker. As an exporting nation, Malaysia is heavily reliant on foreign shipping and insurance companies, which has resulted in a deficit in the services account.