International Economic - Malaysia Trading Partner

INTERNATIONAL ECONOMICS

MALAYSIAN TRADING PARTNERS

TABLE OF CONTENT

1.0 INTRODUCTION 1

2.0 MALAYSIA MAJOR TRADING 2

2.1 MALAYSIA TOP 5 MAJOR TRADE 2

2.2 BENEFITS ON TRADING TO MALAYSIA 7

3.0 OBSERVATION IMPORT AND EXPORT COMPOSITION OF MALAYSIA FOR THE PAST 10 YEARS 10

3.1 PRINCIPAL STATISTIC OF EXTERNAL TARDE, 2000-2009

3.2 PRINCIPAL STATISTICS OF EXTERNAL TRADE,

EXPORT & IMPORT BY COMMODITY SECTION,

2000-2009 MALAYSIA 12

4.0 CONCLUSION 14

5.0 REFERENCES 16

1.0 INTRODUCTION

International trade is exchange of capital, goods, and services across international borders or territories. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

Malaysia is one of the three countries other than Singapore and Indonesia that control the Strait of Malacca which was one of the most important shipping lanes in the world. Thus, international trade plays a large role in the Malaysian economy. Since 1970, Malaysia has changed from a raw material exporter to a more open emerging multi-sector economy. In 2007, Malaysia was the 3rd largest economy in Southeast Asia.

The total GDP of Malaysia is $381.1 billion and it ranks 30th in the world. Agriculture contributes 10.1% to the total GDP. The major agricultural products are rubber, palm oil, rice, timber and cocoa. The manufacturing industry contributes 42.3% to the total GDP of Malaysia. The major industries in Malaysia are rubber and palm oil processing, light manufacturing, electronics, logging and petroleum production. Malaysia is one of the world's largest exporters of semiconductor devices.

The major export partners of Malaysia are Singapore (13.9%), China(12.2%),

US( 10.9%), Japan ( 9.8%), Thailand ( 5.4%) and Hong Kong (5.2%).The total import value of Malaysia's international trade is $119.5 billion. The major commodities imported in Malaysia are electronics, machinery, petroleum products, plastics, vehicles, iron and steel products and chemicals. The major import partners of Malaysia are China (13.9%), Japan(12.5%), US (11.2%), Singapore (11.1%), Thailand (6%), Indonesia (5.3%), South Korea(4.6%), Taiwan (4.2%) and Germany (4.2%).

2.0 MALAYSIA MAJOR TRADE

2.1 Malaysia Top 5 Major Trade For Export and Import

2.1.1 Malaysia Export Top 5 Major Trade

Figure 2.1.1 Bar Graph: Malaysia Export Major Trade

The major trade partner for Malaysia is People's Republic Of China, Singapore, United States Of America, Japan and ASEAN. In 2000 United State Of America has the highest share that is 20.5%. Singapore rank number two with the amount of share about 18.4 %. Japan has the amount of share of about 13.1% and the rank of trade partners with Malaysia is number three. Next is ASEAN with the amount of share about 8.2%. lastly is People's Republic Of China with the amount of share about 3.1%.

In 2001 United State of America has the highest share that is 20.2%. Singapore rank number two with the amount of share about 16.9% while Japan rank number three with the amount of share 13.3%. Next is is ASEAN with the amount of share about 8.2%. Lastly is People's Republic Of China with the amount of share about 4.4%.

In 2002 United State Of America has the highest share that is 20.7%. Singapore rank number two with the amount of share about 16.9%