Asian Pacific Business - Malaysia
- Factors that have led Malaysia to success and the difficulties faced
- Negative impact on Malaysia
The world has seen the most important economic growth since the end of the Second World War in the region of East Asia. This incredible economic phenomenon had emerged more particularly in Japan during the 1950s. This trend has been followed later by what is known as the four dragons: Taiwan, South Korea, Singapore and Hong Kong. The Association of Southeast Asian Nations (ASEAN), which is composed of Thailand, Indonesia, Philippine and Malaysia also became part of its growth later. This success has impressed the world, because of the rapidity with which East Asian countries have increased their GDP, approximately 5% in each in the few last decades and also reduced their poverty and raised their standard of living. The East Asian growth has been studied in order to find if there is a method applicable to other countries. However, no common method has been found because it does not exist, but explanations of the East Asian success have been found and have divided economists. Malaysia is one of the newest countries which has been part of the Asian miracle, and is considered by Leipziger & Vinod as part of the second generation of Asian Tigers. What are the factors which has lead Malaysia to success and what difficulties did it have to face?
[...] K., (2008) FDI and economic growth relationship: empirical study on Malaysia, International research Business, pp Nylan, C., Smith, W., Smyth, R., Vicziany, M., (2001) Malaysia Business in the New era, Cheltenham, UK ; Northampton, MA : Edward Elgar Pangestu, M., (2001) the social impact of globalisation in Southeast Asia, OECD development centre, n 187 Park, D., (2000) the dichotomy between Northeast Asian capitalism and Southeast Asian capitalism, Journal of the Asia Pacific Economy, pp. 234?254 Rahman, T. A., (1965) First Malaysia plan 1966-1970, Kuala Lumpur Razak, T. [...]
[...] have led Malaysia to economic success. We will also examine the negative impact these success factors have had on Malaysia. Before starting, it is relevant to notice that East Asian success is not equal in every country and that North East Asia, more especially Japan, has not used the same strategy as South East Asian countries have (Park Krugman, 1994). East Asian success has led to many interrogations by economists. Consequently, two principal ways of thinking have been pointed out. [...]
[...] Consequently the new development policy of Japanese and East Asian firms, which are searching to relocate some part of their production using low cost labor has come into place; in the long run, Malaysia has seen its FDI explode (Rodan et al., 2001). Free trade zones have attracted a lot of US, Japanese and East Asia firms. One of the best known free trade areas is the ?Penang?. The Penang, a small island on the border of Malaysia, was until a few years ago, one of the poorest areas of the country. [...]