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) in constant prices for successive five year periods as a guide, it increased from 5.6 per cent and 5.5 per cent for 1961-65 and 1966-70 respectively to 7.1 per cent for the Second Malaysia Plan period (SMP, 1971-75) and 8.6 per cent for the Third Malaysia Plan period (TMP, 1976-80).1/ By 1979, Malaysia's per capita GNP (Gross National Product) was US$1,370, making her the 50th in the league of nations, ahead of Turkey and a little behind the Republic of Korea. 2/ It is not an exaggeration to say that Malaysia reached an unprecedented level of prosperity at the turn of this decade.