Management of the domestic economy of Malaysia under surplus and deficit conditions

Abstract

In an economy where 40% of its GNP originates from the external sector, the progress of this sector has important consequences on the economic development of the country. The economic structure, Founded by the British, has made Malaysia a major exporter of primary commodities such as rubber, tin, palm oil and timber. The increasing demand for Malaysian exports has resulted in a surplus balance of payments. This surplus, over the years, has played a very important role in the development of the economy and at this crucial point, the thrust of development programmes is determined by the available finance.