Commodity exports and the Malaysian economy

Abstract

Malaysia has a highly external oriented economy. In 1981 total export earnings amounted to M$25,781 million the equivalent of 46.5 percent of Malaysia's Gross National Product of M$55,449 million. In 1979 and 1980, the pro- portion was even higher at 56 and 57 percent respectively. The high proportion of exports to GNP shows how important export is to the income and wellbeing of the Malaysian population, even without taking into account the multiplier effects of export income.