Malaysian economy at its strongest position in a decade

While Malaysia continues to attract investment, both domestic and foreign from the traditional sectors, new sectors such as the manufacturing, services, and oil and gas sectors are gaining in importance. Resources are flowing into new growth areas such as revitalized agriculture sector, high-technology manufacturing industries and biotechnology. The services sector such as information technology services, shared services and outsourcing, health and medical tourism, and financial services, in particular Islamic finance has increased its market share.

The petroleum industry is also a main contributor to GDP. In line with the government's emphasis on technology-intensive industries, the export-oriented manufacturing sector has been given strong emphasis, resulting in the setting up of many industrial estates. A big contributor to this sector is the country's national car, which is marketed under the name Proton. Besides the domestic market, Proton cars have penetrated many foreign markets amidst fierce competition from giant carmakers worldwide.

Although industrialization has taken a bigger role, agriculture is still important with palm oil, rubber, rubber wood, pepper and cocoa beans being major exports. Another big income contributor is the tourism industry which comes close after the manufacturing sector.

The international reserves of Bank Negara Malaysia amounted to RM340.1 billion (equivalent to USD 98.5 billion) as at 31 July 2007. The reserves position is sufficient to finance 8.9 months of retained imports and is 8.7 times the short-term external debt.

Bilateral trade between Malaysia, Taiwan

In 2006, total two-way trade between Taiwan and Malaysia amounted to USD 10.83 billion, a 15.87% increase from USD 9.34 billion recorded in 2005. Malaysia was Taiwan's eighth largest trading partner. Taiwan remained Malaysia's seventh largest export destination.

Malaysia remained the seventh largest source of imports and accounted for 2.99% of Taiwan's total imports (2005: 2.9%). In 2006, Malaysia was the eighth (10th in 2005) largest export destination for Taiwan, accounting for 2.26% of Taiwan's total export (2005: 2.2%).

ASEAN countries made up 12.91% (2005: 12.8%) or USD 53.57 billion of Taiwan's global trade and Malaysia was Taiwan's second largest trading partner in the grouping in 2006.

Top imports from Malaysia are as follows: electrical equipment and parts accounted for USD 2.46 billion or 40.9% of Malaysia's total exports to Taiwan (2005: USD 2.45 billion). This is followed by mineral fuels; wood and wood products; machinery and parts and organic chemicals.

Taiwan's top five exports to Malaysia are E&E (USD 2.44 billion); machinery, appliances and parts; iron and steel products; plastic and plastic products and optical and scientific equipment.

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