Malaysia vs Indonesia

This report will try to figure out what is Malaysia’s economy look like. Therefore overall look will focus on macro economy through indications such as the grow of domestic product (GDP), inflation rate, business cycle, quality of life, unemployment, and development planning.

I believe that Indonesia and Malaysia are growing economy regions.  Although Indonesia is more challenging due to huge resources for business but Malaysia is also promising. Both countries lie on natural resource bases.  The rigid of Indonesia policies on supporting exports has made Malaysia goods more competitive in the global market. For example Indonesia has banned to import sugar and this has made Indonesia  goods more expensive than Malaysia goods, due to local sugar price is higher than import one. I also believe that when investors consider investing in Indonesia because due to huge markets. Indonesia has 240 million consumers while Malaysia has only 28 million consumers but Malaysia offers an efficiency. Japanese Sonny has moved its factory to Malaysia to increase efficiency but still the largest target market is Indonesia.

The three main ethnics Malaysian such as Malay, Chinese and Indian have contributed to the growth of overall nation development. The strength government and structure of the government itself have put the power to control the whole nation. While Indonesia is still paving the right model to better and suit of Indonesia democracy, which is sometimes, government has no power to control . Malaysia has clearly on vision where is the country will go as well as in the economy policy while Indonesia has no a clear vision.

The interesting things between two countries are that every regime has claimed that their economy growths are result of their policies. But personally I suspect that the achievement of their economy growths because of the strength of their natural resources. Malaysia has oil and Palm oil (agricultures) while Indonesia has oil and natural LNG, palm oil and also coals (mining).

The agriculture sector has contributed to the growth of the Malaysian economy. It is one of the major contributors to national income and export earning. It has become the foundation of economy growth and the main contributor to the national economic prior to the 1970s. Nevertheless, the agricultural sector has remained a stronghold of major sectors contributing to the economy after manufacturing and service industry despite rapid industrialization.

Anyway in this case Malaysia is still committed to preserve its natural forest up to 50% and has implemented into their own programs such as not to export their woods policy while Indonesia has changed the natural forest into palm oil plantation zones.

 Malaysia lies 2 to 7 degrees north of the equator, peninsular. Malaysia is separated from Sabah and Sarawak by the south China Sea. The peninsular shares a common border with Thailand in the north, while its southern neighbor with Singapore. Sabah and Sarawak share common border with Indonesia and also share with Brunei Darrusalam.

The total is 329.758 square km large with total number of population is around 28 million people. They are about 60 % of Malay people and the rest are Chinese, Indian and other ethnic group.

The national language is Malay but English is widely spoken. Chinese and Indonesian are also used among their group ethnics. Islam is the official state religions while Buddha and Hindus and Christian are practiced freely.

Malaysia applies Parliamentary Political system and constitutional Monarchy and they have bicameral legislative. The head of the state called “Yang Dipertuan Agong” and the head of the Government is “Prime Minister”.

Economy Figure

  1. Economy figure in general (GDP)
  2. Agricultural values
  3. Growth and inflations
  4. Employment

Highlight social issues

 On my way back to Airport, I tried to find out how the Indian Malaysian people express his own opinion on country. He said; “ I am happy to be Malaysian citizen. There no bad people here, who want to topple top leaders, want to make problems to the country and ruin this country. But we need our leader to say nicely to the people. They need not to say anything to get people support in every election, just let us make more comfortable to live here in this country.

What did you mean? I asked him.

Why there is no Indian or Chinese in Malays Soccer team? Why there was tag in the Bank like this “Bad list people will not get Bank loan but for Bumi Putra”. Why the price of rice is so high nowadays? The government still watch people up to now. That’s why in the government organization the Malays people are dominated in number and position while Chinese and Indian are in the second class.

How about the justice in Malaysia?

The case of Anwar Ibrahim that is really lie. Not true. This a political dispute not a law, he added.

A Chinese Malaysian friend of mine who has same got scholarship from Japanese government wrote “As for problems, you may wish to check out publications or comments from overseas or 3rd party for more insight news.  Surely there is no government who will give bad comment on it’s own policies.  Look for a few sources to see what are happenings.  Newspapers are not 100% reliable as media is “somewhat controlled” and no one will really get to see the truth.  Hence, we may need to think and get many opinions of the reliable sources to avoid any bias.  Use our heart and wisdom to see the truth too”.






Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s