Asean Malaysia By Dr Somjai Phagaphasvivat 1 Malaysia

Asean Malaysia By Dr. Somjai Phagaphasvivat 1

Malaysia 2

Malaysia • Malaysia is made up of 36% Chinese community, 53% Malay and 11% Indian communities. • The Constitution in its article 153 specifically allowed the yang-di-pertuan (the paramount ruler) or head of state, elected among a Malay sultans to authorize quotas for civil services, positions, scholarship and licenses for the Malays • After being granted independence, Sarawak and Sabah (North Borneo), the Federation of Malaysia was formed in August 31, 1963 grouping Malaysia, Singapore, Sarawak and Sabah ( North Borneo) with Kuala Lumpur as capital. 3

Malaysia • Because of personal conflict between Tunka Abdul Rahman and Lee Kuan Yew, Singapore was thrown out of the Federation in August 1965. As such, in the remnant Federation, Malays constituted 56% against 34% Chinese and 9% Indians. • In 1969, there were racial riots between Chinese and Malays following the election, which unseated several Chinese in the National Assembly. • After the riots, the Government adopted a new national platform called "Rukunegara" consisting of five principles: belief in God, loyalty to the King and Nation, upholding the Constitution, rule of law and good ethics. 4

Malaysia • It was a combination of Thailand's Three Pillars and Pancasila of Indonesia. • Rukunegara assumed the status of state ideology • It has been further developed to include respect for a pluralistic (negara) or multi-racial (banga) and multi-religious society (agama) • All these became the ideology of the United Malay National Organization(UMNO), the ruling coalition. • In February 1971, the Parliament passed the Constitutional Amendments and Sedition Act forbidding public discussion of issues having racial bearing. 5

Abdul Razak (1970 - January 1976) • Razak proposed the neutralization of the entire region. It was the idea coined by Tun Ismail, Home Ministry in 1968. In November 1971, the proposal was endorsed y ASEAN • The Malaysian proposal was threefold, designed to meet the three aspects of security: external, internal and intra-regional. It included: 1. All the Southeast Asian countries should agree on ending alliance with external powers and elimination of foreign military bases. The neutralization of the region should be guaranteed by all major powers including China. 2. All the Southeast Asian Nations should sign the treaties of non-aggression with each other. 3. All the Southeast Asian Nations should declare a policy of non-intervention in one another's Abdul Razak internal affairs. 6

Malaysia • In 1974, Malaysia normalized diplomatic relations with China • Confrontation policy with Indonesia ended in 1966 and in 1977 , at the bilateral talks during ASEAN ' s meeting, the Philippines agreed to end the dispute over Sabah in exchange for Malaysia ' s implicit agreement not to help the Moro rebels with arms. • In March 1977, Malaysia and Thailand signed a formal agreement to hold joint operations to suppress the communist insurgencies in the border region. • In 1982, Malaysia signed the maritime treaty with Indonesia relating to the parts of South China Sea separating peninsular Malaysia from Sabah and Sarawak by which Malaysia recognized Indonesia 's sovereignty and exclusive fishing rights in exchange for Malaysia 's fishing rights, right of sea and air passage etc. 7

Malaysia • Before 1974 election, a broader front Barisan Nacional (BN) was formed between 11 parties. There were 3 additions and one expulsion in 1988. These were: - Malay Chinese Association (MCA) - Malay Indian Congress (MIC) - United Malay National Organization (UMNO) (All the prime ministers were leaders of UMNO) • Until the elections of March 2008, the Barisan Nacional was repeatedly elected by more than two-third of the votes. This was attributed to: • Printing and Presses Act requiring obtaining and annually renewing a publishing licenses ( government. ' s control media) 8

Malaysia • In the aftermath of the 1969 riots, the government introduced the "New Economic Policy" aimed at reducing the disparities between different ethnic communities through an increase in the proportion of the corporate wealth owned by "Bumiputras" to 30% by 1990. The goal was to be achieved by reducing the level of foreign ownership to 30% , the remaining 40% to be owned by Chinese and Indians. • In order to pursue its policy of increasing Bumiputra ownership, the government decreed that the Bank Negara (Central Bank) must make 20 % of its loans to Bumiputra business. • By early 1988 , the government created 500 million US dollar Enterprise Rehabilitation Fund to help banks out of bad loans made to Bumiputras 9

The Mahathir Era Dr. Mahathir • In July 1981, because of Prime Minister Hussein bin Onn's illness and his resignation, Dr. Mahathir was elected president of the UMNO and Prime Minister. • In 1981, the Mahathir Government downgraded its relationship with the UK and declared its international priorities as ASEAN and the Organization of the Islamic Conference(OIC) • The downgrading of relations with Britain was part of his new "Look East Policy". Mahathir called for rejection of residual Western influence to be replaced by a development strategy in which Japan and South Korea would provide more relevant examples for Malaysia 10

Malaysia • Mahathir encouraged building regional economic strength through the Afta. In late 1991 , Mahathir proposed the establishment of an East Asian Economic Caucus (EAEC) that include China, Japan, South Korea, Taiwan and ASEAN but some ASEAN countries rejected as an anti-West policy. He thus modified to call for the set-up of ASEAN plus three as an informal dialogue. • Malaysia' s consistent espousal of nuclear disarmament finally resulted in the signing by the ASEAN Summit of the Southeast Asian Nuclear Weapons-Free Zone Treaty in November 1995 11

Malaysia • The last general election under Mahathir's leadership of the UMNO and Barisan Nasional was held in November 1999. Although BN as a whole fared extremely well with three fourths of the seats obtained in the national legislature, the UMNO' s strengthit was reduced from 94 to 72. The Barisan 's Alternatif coalition of the PAS (Partai Islam se Malaysia) and Samangat formed a strong opposition winning 42 seats. The major decline of UMNO was Mahathir ' s treatment of his one time deputy prime minister Anwar Ibrahim. • In 1990 , Mahathir gave the country a thirty year mega-strategic plan, called Wawasan (vision) 2020 for transforming Malaysia by the year 2020 into a fully developed society not only in the economic sense but also in the political, moral, social and psychological senses. 12

Malaysia • The changes in Malaysia's economic policies were spectacular and farreaching : First, Malaysia moved from its "assembler status" to manufacturing one, chiefly employing low and medium technologies. At the same time, the manufacturing status went from being primarily concentrated in electrical and electronic industries, textiles and rubber products to include chemicals, metals, transportation and machine goods industries Second, the traditional policy of government assistance to Bumiputras has been replaced by market incentives. The slogan of the ruling party included Malay self-reliance. Third, there has been an emphasis on development of infrastructure, particularly in the areas of power, communication and telecommunication. 13

Malaysia • The 1999 elections reinforced several challenges to Mahathir 's leadership: First, there was a backlash over Mahahir's ill treatment of Anwar Ibrahim Second, his party UMNO suffered electoral reverses to an Islam fundamentalist party - Pan - Malaysia Islamic Party - in Kelantan, Terengganu and Kedah. Nationally, the UMNO won 71 seats compared to 94 in 1995. • Bowing to the challenge, Mahathir declared in mid 2002 his intention to quit as prime minister in October 2003 , well before the election in 2004. • UMNO chose the party ' s first vice president, Ahmed Badawi as prime minister. 14

Malaysia • In the general election of 2004 , the Barisan Nasional under Badawi scored a landslide victory with 92 % majority in the national legislature including recapturing Terengganu. • March 2006 , Badawi 's government unveiled the ninth Malaysian Plan 2006 -2010 which, while retaining Mahathir 's famous "Vision 2020" as a goal and slogan, showed substantial departure. • The government now focused on people rather than on the grandiose infrastructure of Mahathir regime. • In the March 2008 election, the Barisan Nasional's majority in the national legislature was cut to a record low, far below the two-third majority it had previously enjoyed. More over BN lost five out of twelve state legislature to the opposition. • In April 2009, Badawi stepped down allowing his deputy Najib Abdul Razak to succeed him. 15

Political Development of Malaysia • The politics of Malaysia takes place in the framework of a federal representative democratic constitutional monarchy, in which the Yang di-Pertuan Agong is head of state and the Prime Minister of Malaysia is the head of government. Executive power is exercised by the federal government and the 13 state governments. • Federal legislative power is vested in the federal parliament and the 13 state assemblies. • The judiciary is independent of the executive and the legislature, though the executive maintains a certain level of influence in the appointment of judges to the courts. 16

Political Development of Malaysia • The Constitution of Malaysia is codified and the system of government is based on the Westminster system. The hierarchy of authority in Malaysia, in accordance to the Federal Constitution, has stipulated the three branches (administrative components) of the Malaysian government as consisting of the Executive, Judiciary and Legislative branch. • the Parliament consists of the Dewan Negara (Upper House / House of Senate) and Dewan Rakyat (Lower House / House of Representatives). 17

Political Development of Malaysia • Malaysia has a multi-party system since the first direct election of the Federal Legislative Council of Malaya in 1955 on a first-past-thepost basis. • The ruling party since then has always been the Alliance Party (Malay: Parti Perikatan) coalition and subsequently from 1973 onwards, its successor the Barisan Nasional (National Front) coalition. • The Barisan Nasional coalition currently consists of the United Malays National Organisation (UMNO), Malaysian Chinese Association (MCA), Malaysian Indian Congress (MIC) and 11 other political parties. 18

Political Development of Malaysia • Although Malaysian politics has been relatively stable, critics allege that "the government, ruling party, and administration are intertwined with few countervailing forces. " However, since 8 March 2008 General Election, media's coverage on country's politics has noticeably increased. 19

Political conditions UMNO logo • Malaysia's predominant political party, the United Malays National Organisation (UMNO), has held power in coalition known as the Barisan Nasional (formerly the Alliance) with other parties since Malaya's independence in 1957. • In 1973, an alliance of communally based parties was replaced with a broader coalition – the Barisan Nasional — composed of fourteen parties. Today the Barisan Nasional coalition has three prominent members – the UMNO, MCA (Malaysian Chinese Association) and MIC (Malaysian Indian Congress). The Prime Minister of Malaysia has always been from the UMNO. 20

Political conditions • In addition to the UMNO and other member parties of the Barisan Nasional, three main opposition parties (and several smaller parties) compete in national and state-level elections in Malaysia. • The three most competitive opposition parties are the People's Justice Party (Parti Keadilan Rakyat in Malay, shortened to PKR), the Pan-Malaysian Islamic Party (Parti Islam se-Malaysia, or PAS), and the Democratic Action Party (DAP). • The Islamic Party of Malaysia (PAS) promotes a more Islamist political agenda, while the Democratic Action Party (DAP) promotes a more democratic socialist economic policy. 21

Political conditions • The political process in Malaysia has generally been described as taking the form of "consociationalism" whereby "communal interests are resolved in the framework of a grand coalition" "Malaysia: Developmental State Challenged". • In Government and Politics in Southeast Asia' The executive branch has tended to dominate political activity, with the Prime Minister's office being in a position to preside "over an extensive and ever growing array of powers to take action against individuals or organisations, " and "facilitate business opportunities". 22

Political conditions • Critics generally agree that although authoritarianism in Malaysia preceded the administration of Mahathir bin Mohamad, it was he who "carried the process forward substantially". • Legal scholars have suggested that the political "equation for religious and racial harmony" is rather fragile, and that this "fragility stems largely from the identification of religion with race coupled with the political primacy of the Malay people colliding with the aspiration of other races for complete equality. " 23

Political conditions • During the terms of Dr. Mahathir Mohamad as the fourth Prime Minister of Malaysia, many constitutional amendments were made. Henceforth, the Senate can only delay a bill from taking effect and the Monarch no longer has veto powers on proposed bills. • Also, the 26 state senators are no longer the majority as another 44 senators are appointed by the King at the advice of the Prime Minister. The amendments also limited the powers of the judiciary to what parliament grants them. 24

Political conditions • Like the desire of a segment of the Muslim community for an Islamic State, the non-Malay demand for complete equality is something that the present Constitution will not be able to accommodate. • For it is a demand which pierces the very heart of the political system – a system based upon Malay political pre-eminence. • It is a demand that challenges the very source of Malay ruling elites' power and authority. 25

Political conditions • Nearly September 1998, Prime Minister Mahathir bin Mohamad dismissed Deputy Prime Minister Anwar Ibrahim and accused Anwar of immoral and corrupt conduct. • Anwar said his ouster actually owed to political differences and led a series of demonstrations advocating political reforms. • Later in September, Anwar was arrested, beaten while in prison (by among others, the chief of police at the time), and charged with corrupt practices, in both legal and moral contexts, charges including obstruction of justice and sodomy. • In April 1999, he was convicted of four counts of corruption and sentenced to six years in prison. 26

Political conditions • In August 2000, Anwar was convicted of one count of sodomy and sentenced to nine years to run consecutively after his earlier six-year sentence. • Both trials were viewed by domestic and international observers as unfair. Anwar's conviction on sodomy has since been overturned, and having completed his six-year sentence for corruption, he has since been released from prison. • In the November 1999 general election, the Barisan Nasional was returned to power with three-fourths of the parliamentary seats, but UMNO's seats dropped from 94 to 72. The opposition Barisan Alternatif coalition, led by the Islamic Party of Malaysia (PAS), increased its seats to 42. PAS retained control of the state of Kelantan and won the additional state of Terengganu. 27

Political conditions Najib Razak. • The current Prime Minister is Dato' Seri Mohd. Najib bin Tun Haji Abdul Razak. He took office following the retirement of Dato' Seri Abdullah Ahmad Badawi (colloquially known as "Pak Lah") on April 2009. • In the March 2004 general election, Dato' Seri Abdullah Ahmad Badawi led Barisan Nasional to a landslide victory, in which Barisan Nasional recaptured the state of Terengganu. The coalition now controls 92% of the seats in Parliament. • In 2005, Mahathir stated that "I believe that the country should have a strong government but not too strong. A twothirds majority like I enjoyed when I was Prime Minister is sufficient but a 90% majority is too strong. . We need an opposition to remind us if we are making mistakes. When you are not opposed you think everything you do is right. " 28

Political conditions • The national media are largely controlled by the government and by political parties in the Barisan Nasional/National Front ruling coalition and the opposition has little access to the media. • The print media are controlled by the Government through the requirement of obtaining annual publication licences under the Printing and Presses Act. • In 2007, a government agency – the Malaysian Communications and Multimedia Commission – issued a directive to all private television and radio stations to refrain from broadcasting speeches made by opposition leaders. • The official state ideology is the Rukunegara, which has been described as encouraging "respect for a pluralistic, multireligious and multicultural society". • However, political scientists have argued that the slogan of Bangsa, Agama, Negara (race, religion, nation) used by UMNO constitutes an unofficial ideology as well. Both ideologies have "generally been used to reinforce a conservative political ideology, one that is Malaycentred" 29

Political conditions • Executive power is vested in the cabinet led by the prime minister; the Malaysian constitution stipulates that the prime minister must be a member of the lower house of parliament who, in the opinion of the Yang di-Pertuan Agong, commands a majority in parliament. The cabinet is chosen from among members of both houses of Parliament and is responsible to that body. the 2007 Bersih Rally • In recent years the opposition have been campaigning for free and fairer elections within Malaysia. On 10 November 2007, a mass rally, called the 2007 Bersih Rally, took place in the Dataran Merdeka Kuala Lumpur at 3 pm to demand for clean and fair elections. The gathering was organized by BERSIH, a coalition comprising political parties and civil society groups(NGOs), and drew supporters from all over the country. 30

Political conditions the 2007 Bersih Rally • On 11 November, the Malaysian government briefly detained de facto opposition leader Anwar Ibrahim on Tuesday and arrested a human rights lawyer and about a dozen opposition leaders, amid growing complaints the government is cracking down on dissent. • Dozens of policemen blocked the main entrance to the parliament building in Kuala Lumpur to foil an oppositionled rally demanding free and fair elections. The rally carried out hand with the attempt to submit a protest note to Parliament over a government-backed plan to amend a law that would extend the tenure of the Election Commission chief, whom the opposition claims is biased. 31

Political conditions • Malaysia's government intensified efforts on 6 March 2008 to portray opposition figure Anwar Ibrahim as a political turncoat, days ahead of Malaysian general election, 2008 on 8 March 2008 because he posed a legitimate threat to the ruling coalition. • Campaigning wrapped up 7 March 2008 for general elections that could see gains for Malaysia's opposition amid anger over race and religion among minority Chinese and Indians. • Malaysians voted 8 March 2008 in parliamentary elections. • Election results showed that the ruling government suffered a setback when it failed to obtain two-thirds majority in parliament, and five out of 12 state legislatures were won by the opposition parties. • Reasons for the setback of the ruling party, which has retained power since the nation declared independence in 1957, are rising inflation, crime and ethnic tensions. 32

Monarch Abdul Halim of Kedah • The monarch of Malaysia is the Yang di. Pertuan Agong (YDPA), commonly referred to as the Supreme King of Malaysia. • Malaysia is a constitutional elective monarchy, the Yang di-Pertuan Agong is selected for a five-year terms from among the nine Sultans of the Malay states. The other four states that do not have monarch kings, are ruled by governors. • The position has to date been, by informal agreement, based on systematic rotation between the nine sultans; the order was originally based on seniority. 33

Monarch • According to the Federal Constitution of Malaysia, the YDPA is considered as the Supreme Head of the Federation. As a constitutional head, the YDPA is to act on the advice of the Prime Minister. The YDPA or monarch king basically has three broad power vested in him. • The power to exercise based on the advice from the Prime Minister, the Cabinet, and the Conference of Rulers. • The power to exercise based on his discretionary power (without the consent or influence of any other authority) • The power to pardon (granting of pardons), reprieves and respites, and/or of remitting, suspending or commuting sentences, under Clause (12) of Article 42. • The YDPA shall also be the Supreme Commander of the Armed Forces (i. e. Police, Army) in the Federation of Malaysia. The Yang di-Pertuan Agong is also the head of the Islamic faith in Malaysia. Besides that, he is also the head of the religion of Islam for states that do not have kings, such as, Malacca, Penang, Sabah, Sarawak, and all the Federal Territories in Malaysia. 34

System of government • Malaysia is a federation of 13 states and 3 federal territories. The system of government in Malaysia is closely modelled on that of Westminster parliamentary system, a legacy of British colonial rule. • In practice however, more power is vested in the executive branch of government than in the legislative, and the judiciary has been weakened by sustained attacks by the government during the Mahathir era. • Parliamentary elections are held at least once every five years, usually concurrent with state elections for state assemblies except for Sabah (until 2004) and Sarawak. 35

Legislative • Legislative power is divided between federal and state legislatures. The bicameral parliament consists of the lower house, the House of Representatives or Dewan Rakyat (literally the "Chamber of the People"); and the upper house, the Senate or Dewan Negara (literally the "Chamber of the Nation"). • All seventy Senate members sit for three-year terms (to a maximum of two terms); twenty-six are elected by the thirteen state assemblies, and forty-four are appointed by the king based on the advice of the Prime Minister. • The 222 members of the Dewan Rakyat are elected from single-member districts by universal adult suffrage. Parliament has a maximum mandate of five years by law. The king may dissolve parliament at any time, and usually does so upon the advice of the Prime Minister. • General elections must be held within sixty days of the dissolution of parliament. In practice, this has meant that elections have been held every three to five years at the discretion of the Prime Minister. 36

Legislative • Legislative power is divided between federal and state legislatures. Malaysia has two sources of law. The national constitution, the nation's supreme law, can be amended by a two-thirds majority in parliament. (Since its formation, the BN has never lacked the necessary two-thirds until 8 March 2008's General Election) The second source of law is syariah (Islamic law), which applies only to Muslims. • The federal government has little input into the administration of syariah; it falls to the states to implement Islamic law, and interpretations vary from state to state. The parliament follows a multi-party system and the governing body is elected through a first-past-the-post system. 37

Executive • Executive power is vested in the cabinet led by the prime minister; the Malaysian constitution stipulates that the prime minister must be a member of the Lower House of parliament who, in the opinion of the Yang di-Pertuan Agong (YDPA), commands a majority in parliament. The cabinet is chosen from among members of both houses of Parliament and is responsible to that body. • The Executive branch of the government consists of the Prime Minister as the head of the government, followed by the various ministers of the Cabinet. Strictly speaking, the Executive branch does not have the right to intervene in the Legislative or Judicial branches of the state. This is to ensure that the principle of separation of power is adhered to, as guaranteed by Article 127 of the Federal Constitution. • The Executive branch of the government formulates various socio-economic policies and development plans, for the development of the country as a whole. The Executive has the power and authority to generate revenues through the collection of various taxes, levies, fines, summons, custom duties, and fees, to name some, from the general public. 38

Judicial • The judiciary is theoretically independent of the executive and the legislature, although supporters of the government hold many judicial positions. • The highest court in the judicial system is the Federal Court, followed by the Court of Appeal, and two High Courts, one for Peninsular Malaysia, and one for East Malaysia. • The subordinate courts in each of these jurisdictions include Sessions Courts, Magistrates' Courts, and Courts for Children. Malaysia also has a Special Court to hear cases brought by or against all Royalty. 39

Judicial • There is also a Special Court, established in 1993 to hear cases brought by or against Ruler. Before its establishment, Rulers were immune from any proceedings brought against them in their personal capacity. Rulers include the Yang di-Pertuan Agong (the elected Monarch), and the heads of state of Malaysia's component states. • Separate from the civil courts are the Shariah Courts, which decide on cases which involve Malaysian Muslims. • These courts run parallel to the normal court system, and are undergoing reforms that include the first ever appointment of female judges. Debate exists in Malaysia over whether the country should be secular or Islamic. • Some state governments controlled by the Pan-Malaysian Islamic Party, including that of Terengganu, have passed Islamic laws, but these have not gone into effect due to opposition from the federal government. 40

Legal system • Malaysia's legal system is based on English Common Law, alongside a Sharia court system for Malaysian Muslims. • The Federal Court reviews decisions referred from the Court of Appeals; it has original jurisdiction in constitutional matters and in disputes between states or between the federal government and a state. • Peninsular Malaysia and the East Malaysian states of Sabah and Sarawak each has a high court. • The federal government has authority over external affairs, defence, internal security, justice (except civil law cases among Malays or other Muslims and other indigenous peoples, adjudicated under Islamic and traditional law), federal citizenship, finance, commerce, industry, communications, transportation, and other matters. 41

State powers and law enforcement • Due to the Internal Security Act (now abolished), the Interior Minister is able to arrest any Malaysian without trial. The government has effective control of all media, with media outlets only able to operate if licensed by the government. Convictions cannot be challenged. • There are 27, 299 prisoners in Malaysia, a country with 581 thefts, 8 rapes, and 2 murders per 100, 000 people. The Death penalty is in use, and mandatory for narcotics possession. 42

State governments • Each state has a unicameral state legislative chamber whose members are elected from single-member constituencies. State governments are led by Chief Ministers (Menteri Besar in Malay states or Ketua Menteri in states without hereditary rulers), who are state assembly members from the majority party in the Dewan Undangan Negeri. • They advise their respective sultans or governors. In each of the states with a hereditary ruler, the Chief Minister is required to be an ethnic Malay, appointed by the Sultan upon the recommendation of the Prime Minister. • Parliamentary elections are held at least once every five years, with the last general election being in April 2013. Registered voters of age 21 and above may vote for the members of the House of Representatives and, in most of the states, for the state legislative chamber. Voting is not mandatory. • Although Malaysia is a federal state, political scientists have suggested that its "federalism is highly centralized“ 43

State governments • Our federalism gives the federal government not only the most legislative and executive powers but also the most important sources of revenue. State governments are excluded from the revenues of income tax, export, import and excise duties, and they are also largely restricted from borrowing internationally. They have to depend on revenue from forests, lands, mines, petroleum, the entertainment industry, and finally, transfer payments from the central government. 44

Participation • Race plays a large role in Malaysian politics, and many Malaysian political parties are ethnically based. . The Government's New Economic Policy (NEP) and the National Development Policy (NDP) which superseded it, were implemented to advance the standing of Bumiputera Malaysians. • The policies provide preferential treatment to Malays over non-Malays in employment, education, scholarships, business, and access to cheaper housing and assisted savings. While improving in the economic position of Malays, it is a source of resentment amongst non-Malays. • Students are not allowed to be involved in politics, due to the University and University College Act. A higher interest in the political process led to a slowdown in outbound corporate travel in anticipation of the general election in the first half of 2013, where many travellers postponed travel to ensure they had the chance to cast their votes. 45

Participation • Prime Minister Dato Sri Mohd Najib Tun Razak has claimed to attempt to close racial divides through the 1 Malaysia initiative. • The origin of race based politics can be traced back to independence of Malaysia from United Kingdom, who wanted all citizens of Malaysia to be equal upon independence, instead of dominance by Malays. • This caused the political parties of the three major races at the time, the UMNO (representing Malays), the MCA (representing Chinese), and the MIC (representing Indians), to join and form the Alliance Party. 46

Foreign relations • Malaysia participates in international politics and engages in formal relationships with international bodies as well as with foreign states adopting various policies. Malaysia's participation in international politics also affects domestic politics for example the Israel–Malaysia relations. 47

The Economy • • • GDP M$ 941 Billion GDP $ 305 Billion Average annual growth in GDP )2007 -20124. 3 ( % GDP per head $10, 430 Origin - Agriculture 10% - Industry 41% ) Manufacturing 24( % - Service 49% 48

Components of GDP • • • Private consumption Public consumption Investment Export Import 49% 14% 26% 87% -75% 49

Structure of employment • • • Agriculture Industry Service Unemployment (2012) Average annual rate 2000 -2012)) 12. 6% 28. 4% 59. 0% 3. 1% 3. 4% 50

Inflation • CPI (2013) 2. 1% • Average annual CPI 2008 -2013)) 1. 8% 51

Main Export Destination • • Singapore China Japan United States 13. 6% 12. 6% 11. 8% 8. 7% 52

Main Origin Import • • China Singapore Japan United States 15. 2% 13. 3% 10. 3% 8. 1% 53

Trade • • • Principle Export Machinery and transport equipment Mineral fuels Manufactured goods Chemicals 86. 3 Billion$ 46. 2 Billion$ 20. 6 Billion$ 14. 6 Billion$ 54

Trade • • • Principle Import Machinery and transport equipment Mineral fuels Manufactured goods Chemicals 86. 5 Billion$ 27. 9 Billion$ 24. 4 Billion$ 17. 7 Billion$ 55

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