Trends in Malaysian economic development

Abstract

The Malaysian economy grew from strength to strength in the twenty-three years following the independence of Malaya in 1957. Taking the average annual growth rate of Gross Domestic Product (GDP) at constant prices for successive five-year periods as a guide, it increased from 5.6 percent and 5.5 percent for 1961-65 and 1966-70 respectively to 7.1 per cent for the Second Malaysia Plan period (SMP, 1971-75) and 8.6 percent for the Third Malaysia Plan period (TMP, 1976-80; Teo, 1979 and Malaysia, 1981, p.11) By 1979, Malaysia's per capita Gross National Product (GNP) was US$1,370, making her the 50th in the league of nations, ahead of Turkey and a little behind the Republic of Korea (World Bank, 1981, pp. 133-4).2 It is not an exaggeration to say that Malaysia reached an unprecedented level of prosperity at the turn of this decade.