MALASIYA

Chapter-1

Introduction of geography and nation

1.1 Map of the country

1.1.1 Neighbouring countries of Malaysia

The borders of Malaysia include land and maritime borders with Brunei, Indonesia and Thailand and
shared maritime boundaries with china, Philippines, Singapore and Vietnam.

1.1.2 National Flag of the Malaysia

Dept. of MBA, DR.AIT 2019-2020 Page 1

 MALASIYA

The flag of Malaysia also known as the Malay: Jalur Gemilang (“Stripes of glory”), is composed of a
field of 14 alternating red and white stripes along the fly and a blue canton bearing a crescent and a
14-point star known as the Bintang persekutuan (Federal star). The 14 stripes, of equal width, represent
the equal status in the federation of the 13 member states and the federal territories, while the 14 points
of the star represent the unity between these entities. The crescent represent Islam, the country’s State
religion; the blue canton symbolises the unity of the Malaysia people; the yellow of the star and
crescent is the royal colour of the Malay rules.

1.1.3 Symbol of the Malaysia

Coat of Arms: Adopted in1965, the Malaysian coat of arms features two tigers supporting a shield
(which serves as a representation of the Malaysian states), a crescent and 14-point star at the top. The
national motto, “Bersekutu Bertambah Mutu” (Unity is Strength) in on the ribbon below.

1.2 Geographical spread by direction

The geography of Malaysia deals with the physical and human geography of Malaysia, a southeast
asian country. There are two major parts to this country, peninsular Malaysia to the west and east
Malaysia to the east. In addition, there are numerous smaller islands surrounding both landmasses.
Peninsular Malaysia is situated on the southernmost section of the malay peninsula, south of thailand,
north of Singapore and east of the Indonesian island of Sumatra; east Malaysia comprises most of the
northern part of borneo island, with land boarders shared with brunei to the north and Indonesian
borneo which is to the south.

1.2.1Rural and urban divide

Location with in the country, along with the wealth surrounding certain areas, however, play a larger
role in either bridging or creating the digital divide in Malaysia. Overall broadband penetration rate

Dept. of MBA, DR.AIT 2019-2020 Page 2

 MALASIYA

for the entire country was measured at 67.2%, averaged. However, in highly populated and more
wealthy areas, that rate jumps upto 115.7% at its highest difference. This shows a measurable neglect
to urban areas in need of ICT. Out of a collective 8500 primary and secondary schools in Malaysia,
most of these are location in rural areas. Because the factors contributing to the digital divide in
Malaysia overlap each other so commonly, this neglect to bridge the gaap of digital technology and
usage in the urban areas, particularly, further contributes to the digital divide. This is a problem that is
beginning to be addressed by several means of mending discussed in a later section of this article.

1.2.2Capital and major cities of Malaysia

Kuala lumpur capital of Malaysia as well as its largest city. The only global city in Malaysia it cover
an area of 243km29(94sq m) and has an estimated population of 1.73 millions as of 2016 grater kuala
lumpur also knows as the klang valley of 7.25 millions peoples as of 2017 among the fastest growing
metropolitan region in south east asia in both population economic development.

Major cities in Malaysia

 Kuala lumpur: kuala lumpur is the capital of Malaysia. Its modern skyline is dominated by the
451m-tall petronas twin towers, a pair of glass-and-steel-clad skyscrapers with Islamic motifs.
The towers also offer a public skybridge and observation deck. The city is also home to british
colonial-era landmarks such as the kulal lumpur railway station and the sulthan abdul samad
building
 Ipoh: Ipoh is a city in northwestern Malaysia, known as a gateway to the Cameron highlands
hill station. In the former hakka miner’s club, han chin pet soo is a museum about the tin-
mining industry and hakka community. Sam poh tong is a Buddhist temple in a limestone
cave. To the south, kellie’s castle is an unfinished mansion built by a Scottish planter.
Southeast, the vast gua tempurung cave has dramatic rock formations.
 Johor bahru: It is a capital Malaysia state of johor, sits at the sourthern tip of the malay
peninsula. With a causeway across that straits of johor connecting it to Singapore, it’s a
gateway for exploration of that island besar, a royal palace built by sultan abu bakar in 1866
that now houses the royal abu bakar museum.
 Kunching: The city of kunching is the capital and the most populous city in the state of Sarawak
in Malaysia. It is also the capital of kunching divison. The city is situated on the Sarawak river
at the southest tip of the state of Sarawak on the island of borneo and covers an area of 431

Dept. of MBA, DR.AIT 2019-2020 Page 3

 MALASIYA

square kilometres (166sqmi0 with a population about 165642 in the kunching south
administrative region.

1.3Land distribution

In essence the costal plains here in some areas rather wide rise gently into hills and mountains covered
by dense rain forest country wide elevation average between 3500 to 6000 feet with the major
exception being Malaysia’s highest point.

1.3.1Topography

Four-fifths of peninsular Malaysia is covered by rainforest and swamp. The northern regions are
divided by a series of mountain ranges that rise abruptly from the wide, flat coastal plains. The highest
peaks, gunong tahan (3190m/7185 ft) and gunong kobru (2183m/7162ft), are in the north central
region. The main watershed follows a mountain range about 80km (50 mi) inland, roughly parallel to
the west coast. The rivers flowing to the east, south, and west of this range are swift and have cut
some deep gorges, but on reaching the coastal plains they become sluggish. The western coastal plain
contains most of the country’s population and the main seaports, George town (on the offshore pulau
pinang). The eastern coastal plain is mostly jungle and lightly settled. It is subject to heavy storms
From the south china sea and lacks natural harbours.

1.3.2Water resources

Malaysia receives abundant rainfall averaging 3000mm annually that contributes to an estimated
annual water resource of some 900 billion cubic meters. About 97% of our raw water supply for
agricultural, domestic and industrial needs are derived from surface water sources primarily rivers.

1.3.3Cultivable and non-cultivable land

Dept. of MBA, DR.AIT 2019-2020 Page 4

 MALASIYA

Agricultural land ( % of land area) in Malaysia was 23.86 as of 2015. Its highest value over the past
54 years was 23.86 in 2015, While its lowest value was 9.49 in 1961. Land under permanent cropsis
cultivated with crops that occupy the land for long periods and need not be replanted after each harvest,
such as cocoa, coffee, and rubber. This category includes land under flowering shrubs, fruit trees, nut
trees, and vines, but excludes land under trees grown for wood or timber. Permanent pasture is land
used for five or more years for forage, including natural and cultivated crops.

Agriculture remains an important sector of Malaysia's economy, contributing 12 percent to the national
GDP and providing employment for 16 percent of the population. The British established large-scale
plantations and introduced new commercial crops (rubber in 1876, palm oil in 1917, and cocoa in the
1950s). The 3 main crops—rubber, palm oil, and cocoa—have dominated agricultural exports ever
since, although the Malaysian share of the world's production of these crops declined steadily during
the last 2 decades. In addition to these products, Malaysian farmers produce a number of fruits and
vegetables for the domestic market, including bananas, coconuts, durian, pineapples, rice, rambutan (a
red, oval fruit grown on a tree of the same name in Southeast Asia), and others. The Malaysian tropical
climate is very favorable for the production of various exotic fruits and vegetables, especially since
Peninsular Malaysia seldom experiences hurricanes or droughts.

1.4 Environmental issues

This statistic displays the results of a survey conducted by lpsos about the most concerning
environmental issues in Malaysia as of march 2019. According to the survey respondents, global

Dept. of MBA, DR.AIT 2019-2020 Page 5

 MALASIYA

warming or climate change was the leading environmental concern with 45percent, followed by air
pollution at 33percent.

1.4.1Season in Malaysia

In Malaysia there is climate is almost no seasonal changes in climate, but the most cool is the time
from November to January when the temperature drops to + 26 °c (79 °F). However, the climate of
Malaysia is different and depending on which region you are. In the south of the Malacca and
Kalimantan the climate is equatorial, hot and humid, to the north- subequatorial monsoon. On plains
average temperatures during the year range + 25 °c 77 °ͦ F) to +32 °c (90 °F), but in mountainous areas

1.4.2Temperature

Malaysia the climate is equatorial, i,e hot, humid and rainy throught the year. Temperature are high
and stable, with a slight decrease between November and January, when hights drop to 29/300 °c
(84/86°F), at least in the north, and a slight increase ( which, however, is felt because of the high
humidity) between march and august, when hights over around 32/33 °c (90/91 °F) and lows around
23/25 °c (73/77 °F)

1.4.3Climate

Malaysia is generally warm throughout the year with temperatures ranging from 21 to 32c in the
lowlands. This can however be as low as 16 c in the hills and highlands.

1.5 Natural hazards

However Malaysia is vulnerable to natural to hazards including floods forest fires tsunami cyclonic
storms landslides epidemics and haze. one additionally the effect of climate change have resulted in
an increasing amount of climate related disasters resulting in a newfound threat to malaysia’s.

1.5.1Volcanoes

Bombalai volcano in north east borneo is the only volcano considered still possibly active of Malaysia,
although its last eruptions might have been thousands of years ago.

It is located close to the border with Indonesia, in the Malaysian province of sabah, across cowie
harbor from the Indonesian province of Kalimantan. Bombalai cinder cone is part of a large volcanic

Dept. of MBA, DR.AIT 2019-2020 Page 6

 MALASIYA

field on the semporna peninsula in the NE of borneo. Bombalai has a 300m wide crater breached to
the south and 2 young lava flows extending almost to the coast.

1.5.2Earthquakes

 A magnitude 5.5 earthquake centered off southern Malaysia in November 2001 killed one
person after a plank loosened by the shaking fell on his head.
 Manifest themselves by vibrate shaking and displacement of the ground.
 Caused mostly by slipping within geological faults.
 Rarely kill people or wildlife
 Secondary events they trigger will building collapse tsunamis and volcanoes.

1.5.3Typhoons

Malaysia long 3200- kilometres coastline is bettered every year by up to 10 stroms, killing hundreads,
even thousands of people. The gulf of Tonkin is a body of water between Malaysia the Chinese and
mainland china.

Typhoon xangsane

Tue, dec 30,2014, 11:22

Malaysia, southern thailand and parts of the Philippines have been battered by heavy rain and flash
floods in recent days, killing dozens, officials said on Tuesday. Malaysia’s worst flooding in a decade
forced nearly a quarter of a million people from their homes, officials said, with the government
coming under renewed fire for its perceived slow response.

The national security council said that “exceptionally high” water levels had cut off rescuers from
relief centres as death toll rose to 21 across the northeast. Fifteen people have been killed in
neighbouring southern thailand.

1.5.4Flood in Malaysia

Flood in Malaysia are regular natural disasters in Malaysia which happen nearly every year during the
monsoon season.

 January 1971- kuala lumpur hit by flash floods.

 2nd march 2006- Shah alam hit by flash floods.

Dept. of MBA, DR.AIT 2019-2020 Page 7

 MALASIYA

 19 december 2006- several parts of johor state including muar, johor bahru, skudai and
segamant were hit by flash floods.
 December 2014- Northern and eastern states of Kelantan, Terengganu, Pahang, perak and perlis
in malay peninsular were hit by flash floods including some areas in sabah.

1.5.5Tornadoes

The peninsular Malaysia tornado outbreak of 2014 is a natural phenomenon that took place in the state
of kedah and Selangor, Malaysia from 14 october to 12 november 2014

Dept. of MBA, DR.AIT 2019-2020 Page 8

 MALASIYA

Chapter-2

Evolution and development

2.1 History of the country

Malaysia is a country located on a strategic sea-lane that exposes it to global trade and foreign culture.
Strictly, the name "Malaysia" is a modern concept, created in the second half of the 20th century.
However, contemporary Malaysia regards the entire History of Malaya, spanning thousands of years
back to Prehistoric times, as its own history, and as such it is treated in this page.

Evidence of modern human habitation in Malaysia dates back 40,000 years. In the Malay Peninsula,
the first inhabitants are thought to be Negritos. Traders and settlers from India and China arrived as
early as the first century AD, establishing trading ports and coastal towns in the second and third
centuries. Their presence resulted in strong Indian and Chinese influences on the local cultures, and
the people of the Malay Peninsula adopted the religions of Hinduism and Buddhism. Sanskrit
inscriptions appear as early as the fourth or fifth century. The Kingdom of Langkasuka arose around
the second century in the northern area of the Malay Peninsula, lasting until about the 15th century.
Between the 7th and 13th centuries, much of the southern Malay Peninsula was part of the maritime
Srivijayan empire. By the 13th and the 14th century, the Majapahit empire had successfully wrested
control over most of the peninsula and the Malay Archipelago from Srivijaya. Islam began to spread
among Malays in the 14th century. In the early 15th century, Parameswara, a runaway king of the
former Kingdom of Singapura linked to the old Srivijayan court, founded the Malacca Sultanate.
Malacca was an important commercial centre during this time, attracting trade from around the region.

2.1.1Ancient

Historians often speak of Malaysia's ancient past as something "shrouded in mystery," a

kind of black hole in Asi an history. The truth is that there is not much archeological
evidence or written records from ancient Malaysia; but it is likely that this situation will
change. Many suspect that there are more prehistoric archeological sites along the coasts
and in the jungles and hills, but given Malaysia's riotous vegetation it will take time to
find them.

We do know that homo sapiens have been in Malaysia for a long time. The oldest known evidence of
human habitation is a skull from the Niah Caves in Sarawak dating from 35,000 years before Christ.

Dept. of MBA, DR.AIT 2019-2020 Page 9

 MALASIYA

On the peninsula, stone age tools and implements from about 10,000 BC have been found, and some
archeologists suggest that they were left there by the predecessors of the Negrito aborigines - one of
the earliest groups to inhabit the peninsula.

2.1.2Middle

The Islam in Malaysia was influenced by previous religions and was originally not orthodox. The port
of Malacca on the west coast of the Malay Peninsula was founded in 1402 by parameswara, a srivijaya
prince fleeing temasek (now Singapore), Parsmeswara in particular sailed to temasek to escape
persecution.

2.1.3Modern

Early Modern Period (1500 – 1750)

The Early Modern Period is the first third of the Modern Period and is often used with the parent
categorization. It starts with the invention of the printing press, covering the voyage of Christopher
Columbus in 1492 and, more generally, the establishment of a more global network. It ends in 1750
with the beginning of British industrialization.

Slowly calm returned and parliament was reconvened in 1971. The Malaysian government then
adopted a new economic policy. It was remarkably successful. During the 1970's, 1980's and 1990's
Malaysia changed from being a poor, agricultural country to a rich, industrial one. The standard of
living of the Malaysian people rose dramatically. In 1991 the new economic policy was replaced by a
new development policy. Today Malaysia is a prosperous country. The population of Malaysia is 31
million.

2.1.4 Important events of the nation

There's always something going on Malaysia whatever the month. With this Malaysia events calendar
2019 you can see month by month all the major festivals and activities planned for this year.

Of course Malaysia, with its year-round tropical climate, does not have the seasonal variations that
many countries experience. Most of the top attractions appearing on this website are available all year
round such as climbing Mt. Kinabalu, exploring the national parks and caves, or just relaxing on the
beach.

Dept. of MBA, DR.AIT 2019-2020 Page 10

 MALASIYA

Some of the East Coast beaches and islands have a low season when the northeast monsoon makes the
seas too choppy (November to February) but beaches elsewhere in the country are enjoyable
throughout the year.

If you are planning a trip to Malaysia it is always sensible to check what events are scheduled for your
proposed dates. Even if you don't want to participate in the events yourself they might affect hotel
room and air ticket availability and prices.

School holidays also affect hotel prices and availability. These are the school holiday dates for
Malaysia in 2019 as announced by the Ministry of Education:

2.1.5Pre-independence and post-independence

After Malaya achieved its independence in 1957 and after the formation of Malaysia in 1963, the
country went through a lot of changes politically, socially and economically. The country had
developed leaps and bounds physically especially in terms of its infrastructure and there were also
changes in its people in so many aspects especially educational and economic levels. From a country
that was little known in other parts of the world, it is now known practically all over the world, although
Malaysia is a relatively small country. With all those changes and developments in the country one
could expect some psychological and social changes amongst its people. Thus, this study aimed to
identify the differences in personality and values both terminal and instrumental of pre-independence
and post-independence Malaysians. A total of 552 respondents participated in this study comprising
of 261 born before 1957 and 291 born after 1957. NEO Five Factor Inventory (NEO-FFI) was used to
measure personality and Rokeach Value Survey was employed to measure terminal and instrumental
values. Results showed that there were significant differences in certain constructs of personality and
certain aspects of terminal and instrumental values of the two groups of Malaysians.

2.3 Broad features of the constitutions

The Malaysia constitution cannot be accurately described or understood without making references to
its history. The constitutional development has been influenced inter alia, by pre-colonial indigenous

Dept. of MBA, DR.AIT 2019-2020 Page 11

 MALASIYA

traditions of sovereignty, colonial conceptions of executive authority, indirect rule, federalism and
social concerns during the immediate pre- independence and post-independence period

1. Position of Islam

Article 3(1) of the federal constitution provides that “Islam is the religion of the federation; but other
religions may be practised in peace and harmony in any part of the federation. “even though islam is
adopted as the social religion of the federation, Malaysia is not an Islamic state. was made by the
former pm tunku abdul rahman in the federal legislative council that islam as a religion of federation
does not convert Malaysia into as Islamic state.

2. Special position of certain classes

Under the federal constitution, a special treatment is accorded to the Malays and the indigenous people
of sabah and Sarawak. Article 153 of the FC assigns the TDPA with the responsibility of protecting
the special positions of the Malays and indigenous communities of sabah and Sarawak. This
responsibility is carried out in accordance to the cabinet’s advice. Beside that, theYDPA may, in order
to promote purposes of article 153, reserve such propotion as he deems reasonable of positons in public
service; scholarships; educational and training prileges o facilities; per,its or licences for the operation
of any trade or business; and places in institutions of higher learning.

2.4 Reforms social political and economical

Malaysia’s admirable economic growth is often attributed to liberal, open economic policies.
Aggregate measures of openness, however, often veil the way coalitional politics drove illiberal
government intervention in the economy to correct ethnically based economic inequality, create
national heavy industries, and favor politically well-connected entrepreneurs. A more nuanced analysis
reveals a complex mix of liberal and illiberal economic policies designed to balance competing
coalitional interests. These policies created a “dual economy” that successfully replaced growing
political and social instability with rapid economic growth sufficient to support redistributive politics.
Yet this same dual economy also slowed further reform and retarded technological development,
leaving Malaysia mired in mediocrity: neither price competitive with China nor technologically
competitive with Singapore, the East Asian NICs, or the OECD countries

Dept. of MBA, DR.AIT 2019-2020 Page 12

 MALASIYA

Dept. of MBA, DR.AIT 2019-2020 Page 13

 MALASIYA

Chapter-3

Government

3.1 Type of government

The federal government, having its base in Putrajaya, is the ultimate authority in Malaysia. Prime
Minister of Malaysia heads this government.

Malaysia is a country on the Southeast Asia made up of 13 states and 13 federal territories. Malaysia
spans over an area of 127,720 square miles and has a population of about 30 million people. It has its
origin from the Malay Kingdom which was within the British Empire in the 18th century. The Malayan
Union was formed in 1946 and restructured to the Malayan Federation in 1948. Malaysia attained its
independence on August 31, 1957. The Malayan joined North Borneo, Sarawak, and Singapore to
form Malaysia in 1963. However, Singapore was expelled from the federation in 1965.

Malaysia is a federal constitutional monarchy. Its government system closely resembles the
Westminster parliamentary system while the jurisdictions of the country are based on the common
law. The state is categorized as a representative democracy. The Federal Government has its
headquarter in Kuala Lumpur while the federal executive of Malaysia is in Putrajaya. The federal
government adheres to and is formed by the country’s Federal Constitution which is the final authority
on the land. The federal government operates on the basis of power separation as outlined in Article
127 of the Malaysian Constitution. There are three branches of the federal government of Malaysia
including the executive, judiciary, and the legislature.

3.1.1Democracy

Is a form of government in which the people have the authority to choose their governing legislation.
Who people are and how authority is shared among them are core issues for democratic development
and constitution. Some cornerstones of these issues are freedom of assembly and speech, inclusiveness
and equality, membership, consent, voting, right to life and minority rights.

Generally, there are two types of democracy: direct and representative. In a direct democracy, the
people directly deliberate and decide on legislature. In the people elect representatives to deliberate
and decide on legislature, such as in parliamentary or presidential democracy. Liquid democracy
combines elements of these two basic types.

Dept. of MBA, DR.AIT 2019-2020 Page 14

 MALASIYA

The most common decision making approach of democracies has been the majority rule. Others are
supermajority and consensus.

In the common variant of liberal democracy the powers of the majority are exercised within the
framework of a representative democracy, but the constitution limits the majority and protects the
minority, usually through the enjoyment by all of certain individual rights, e.g. freedom of speech, or
freedom of association. Beside these general types of democracy there have been a wealth of further
types (see below). Republics, though often associated with democracy because of the shared principle
of rule by consent of the governed, are not necessarily democracies, as republicanism does not specify
how the people are to rule.

3.1.2Monarchy

The monarchies of Malaysia refer to the constitutional monarchy system as practised in Malaysia. The
political system of Malaysia is based on the Westminster parliamentary system in combination with
features of a federation.

Every five years or when a vacancy occurs, the rulers convene as the conference as the conference of
rulers to elect among themselves the yang di-pertuan Agong, the federal constitutional monarch and
head of state of Malaysia. As the yang di-pertuan agong is elected among the rulers, Malaysia, as a
whole, is also an elective monarchy.

3.2 Form of government

The Government of Malaysia officially the Federal Government of Malaysia is based in the Federal
Territory of Putrajaya with the exception of the legislative branch, which is based in the national capital
of Kuala Lumpur. Malaysia is a federation of 13 states operating within a constitutional monarchy
under the Westminster parliamentary system and is categorised as a representative democracy. The
federal government of Malaysia adheres to and is created by the Federal Constitution of Malaysia, the
supreme law of the land.

3.2.1 Federal Government

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

Dept. of MBA, DR.AIT 2019-2020 Page 15

 MALASIYA

internationally. They have to depend on revenue from forests, lands, mines, petroleum, the
entertainment industry, and finally, transfer payments from the central government.

The 2008 general elections saw a loose coalition between the Democratic Action Party, People's Justice
Party and Pan-Malaysian Islamic Party win a majority in five of the thirteen state legislative
assemblies. Previously, the ruling Barisan National coalition controlled twelve of the state
governments, with the exception of Kelantan. In an editorial, The Sun suggested that this would herald
changes for the relationship between state and federal governments

3.3 Decentralization of government.

Decentralisation is the process of dispersing or redistributing powers, functions, population and so on

away from a central authority or location.

At present day, most countries of the developing nation, Malaysia included, are too concentric and
centralised, where the entire country is governed through a centralised body in their respective capital
cities. To make matters worse, administrative bodies, job opportunities and other major activities are
too concentrated in that particular area, resulting in unequal growth within the country.

3.3.1National of Malaysia

Ascertaining the role of national development planning in supporting Malaysia’s aspiration to become
a high income and developed country can be an enormous feat – given the complexities and challenges
tied to remaining competitive in the global environment as well as meeting rising citizen expectations.

The poverty rate has declined. Standards of living have improved. Social and economic infrastructure
have expanded and grown in sophistication. In 2003, universal access to primary education was also
introduced and as such, government expenditure on education - which accounts for almost 5% of the
country’s GDP - outperforms its neighbors.

3.3.2Local of Malaysia

Malaysia comprises 13 states and 3 federal territories. Each state has its own written constitution,
legislative assembly, and executive council, which is responsible to the legislative assembly and
headed by a chief minister. The federal territories, which include the capital city region of Kuala

Dept. of MBA, DR.AIT 2019-2020 Page 16

 MALASIYA

Lumpur, the administrative capital of Putrajaya, and the island of Labuan off the coast of East
Malaysia, carry the same status as states, but they do not have separate legislatures or heads of state.

3.4 National security.

Malaysia has undergone a challenging evolution in maintaining itssovereignty, national security and
public order.The current security landscape has become increasingly complex withthreats from both
State and Non-State actors which will have high impact on the security and sovereignty ofthe nation.
Past experiences faced by the nation in relationto security includes colonisation by foreign powers,
the Communist insurgency, the Indonesian Confrontation, secessionist movements, the 13 May 1969
ethnic conflict, extremism (ethnic, ideological, religious and political), economic crises, natural
disasters and territorial infringements. Measure sto ensure national security and the survival of
Malaysia as asovereign state needsto take cognizance of both internal threatsand the geopolitical
climate at regional and international levels as follows.

3.5 Foreign policy

1. Malaysia continues to pursue an independent, principled and pragmatic foreign policy, founded on
the values of peace, humanity, justice, and equality. The overarching thrust of its foreign policy has
been to safeguard Malaysia’s sovereignty and national interests as well as to contribute meaningfully
towards a just and equitable community of nations through the conduct of effective diplomacy.

2. Malaysia’s foreign policy is largely influenced and shaped by three key factors, namely its strategic
location in Southeast Asia, its attributes as a trading nation as well as its unique demography. While
the foreign policy approaches may have differed over the years due to changing domestic and external
factors, the basic principles of the policy have continued since independence. Policy-making has been
guided by the criteria of credibility together with consistency and coherency, which have served the
country’s best interests.

3. ASEAN remains the cornerstone of Malaysia’s foreign policy and the establishment of the ASEAN
Community in 2015 has significantly elevated Malaysia’s approach and engagement at the regional
level. Concurrently strengthening bilateral and multilateral aspects of Malaysia’s engagement with the
world will continue to be an important focus. The nation’s well-being is founded on the strong and
friendly relations with other countries and its commitment to the multilateral system.

Dept. of MBA, DR.AIT 2019-2020 Page 17

 MALASIYA

4. Under the present leadership of Prime Minister Tun Dr. Mahathir bin Mohamad, Malaysia
continues to promote a forward-looking and pragmatic foreign policy that facilitates trade, attracts
foreign investment as well as projects Malaysia as a stable and peaceful country.

3.6 Government agreement

The Malaysia Agreement or the Agreement relating to Malaysia between United Kingdom of Great
Britain and Northern Ireland, Federation of Malaya, North Borneo, Sarawak and Singapore was the
agreement which combined North Borneo, Sarawak, and Singapore with the existing states of the
Federation of Malaya, the resulting union being named Malaysia. Singapore later ceased to be a part
of Malaysia, becoming an independent state on 9 August 1965.

3.6.1Free trade Agreement

As a trading nation with a small domestic market, it is imperative for Malaysia to continue to adopt
an open trade and investment regime to promote economic growth, provide opportunities for high
skilled employment and promote technological development and innovation. Moreover, increased
internationalisation through trade and participation in the global value chains (GVCs) provides SMEs
in Malaysia the opportunity to achieve economies of scale, expand market share, and increase
productivity. In this respect, Malaysia has embarked on Free Trade Agreements (FTAs) to seek better
market access opportunities for Malaysian goods and services. Malaysian SMEs are therefore
encouraged to leverage on FTAs and develop good understanding of FTA provisions and trade
requirements to be able to tap on the opportunities brought by FTAs to penetrate export markets. The
use of e-commerce platforms is also useful to reach a wider market.

To-date Malaysia has signed 13 FTAs as per below:

 Malaysia-Turkey (2014)
 Malaysia-Australia (2012)
 Malaysia-India (2011)
 Malaysia-Chile (2010)
 Malaysia-New Zealand (2009)
 ASEAN-Australia-New Zealand (2009)
 ASEAN-India (2009)
 ASEAN-Japan (2008)

Dept. of MBA, DR.AIT 2019-2020 Page 18

 MALASIYA

 Malaysia-Pakistan (2007)
 ASEAN-Korea (2006)
 Malaysia-Japan (2005)
 ASEAN-China (2004)
 ASEAN Free Trade Area (1992)

3.6.2Bilateral

Currency, Malaysia has seven bilateral free trade agreements (FTAS) with the following countries:
Australia, Chile, India, Japan, New Zealand, Pakistan, and Turkey.

Describes bilateral and multilateral trade agreements that this country is party to, including with the
United States. Includes websites and other resources where U.S. companies can get more information
on how to take advantage of these agreements.

Dept. of MBA, DR.AIT 2019-2020 Page 19

 MALASIYA

Chapter -4

Social structure

4.1 Ethnic groups

Malaysia is a Southeastern Asian country that is multiracial, with many different ethnic groups living
in the country. These include Malays, Chinese, Indians, and other indigenous Bumiputra groups.

Malaysia is a Southeastern Asian country that is multiracial, with many different ethnic groups living
in the country. These include Malays, Chinese, Indians, and other indigenous Bumiputra groups. The
demographic composition in the country are as follows. 50.1% of the population are Malay, 22.6% are
Chinese, 11.8% are indigenous Bumiputra groups other than the Malays, 6.7% are Indian, and other
groups account for 0.7%. Non-citizens account for 8.2% of Malaysia’s resident population. This
multicultural context makes Malaysia a highly rich society, with diverse religions, foods, culture, and
customs.

4.2 Social class system

A Social class system is a set of concepts in the social sciences and political theory centered on
models of social stratification in which people are grouped into a set of hierarchical social
categories, the most common being the upper, middle and lower classes.

"Class" is a subject of analysis for sociologists, political scientists, anthropologists and social
historians. However, there is not a consensus on a definition of "class" and the term has a wide range
of sometimes conflicting meanings. Some people argue that due to social mobility, class boundaries
do not exist. In common parlance, the term "social class" is usually synonymous with "socio-
economic class", defined as "people having the same social, economic, cultural, political or
educational status", e.g., "the working class"; "an emerging professional class". However, academics
distinguish social class and socioeconomic status, with the former referring to one's relatively stable
sociocultural background and the latter referring to one's current social and economic situation and
consequently being more changeable over time.

4.3 Religion (s)

Malaysia is a multicultural and multiconfessional country, whose official religion is Islam. As of the
2010 Population and Housing Census, 61.3 percent of the population practices Islam; 19.8 percent
Buddhism; 9.2 percent Christianity; 6.3 percent Hinduism; and 3.4 percent traditional Chinese

Dept. of MBA, DR.AIT 2019-2020 Page 20

 MALASIYA

religions. The remainder is accounted for by other faiths, including Animism, Folk religion, Sikhism,
Baha'i Faith and other belief systems. Numbers of self-described atheists in Malaysia are few; the state
has come under criticism from human rights organizations for the government's discrimination against
atheists, with some cabinet members saying that "the freedom of religion is not the freedom from
religion".

4.4 Population and longevity (Gender Ratio)

The sex ratio of the total population was 1.030 (1,030 males per 1000 females) which is higher than
global sex ratio. The global sex ratio in the world was approximately 1016 males to 1000 females as
of 2018. Below are the key figures for Malaysia population in 2018: 532123 live births.

32,422,416 Current population.

16,440,627 Current male population (50.7%)
15,981,789 Current female population (49.3%)

4.4 Education system

Education in Malaysia is overseen by the Ministry of Education. Although education is the

responsibility of the Federal Government, each state and federal territory has an Education Department
to co-ordinate educational matters in its territory. The main legislation governing education is the
Education Act 1996.

The education system is divided into preschool education, primary education, secondary
education, post-secondary education and tertiary education. It is further divided into public and private
education. Education may be obtained from the multilingual public school system, which
provides free education for all Malaysians, or private schools, or through homeschooling.
International and private institutions charge school fees. By law, primary education is compulsory. As
in many Asia-Pacific countries such as the Republic of Korea, Singapore and Japan, standardized
tests are a common feature. Currently, there are 43 universities, 31 private university colleges,
9 foreign university branch campuses and 414 private colleges in Malaysia.

Dept. of MBA, DR.AIT 2019-2020 Page 21

 MALASIYA

4.6 Cultural etiquette

When visiting a foreign country, it is always important to gain an understanding of their culture and to
respect it all times. A little bit of research in advance will provide you with a good foundation.

Malaysia is an Islamic state but it also has an extremely multicultural society as the predominant
cultures are Malay, Indian and Chinese. This means it is a melting pot of ethnicities and religions and
can make it difficult to know how to behave with members of each culture. However, good etiquette
is often simply a combination of common sense and a basic understanding and respect for the local
culture.

4.6.1Customs in Malaysia

Greetings in a social context will depend upon the ethnicity of the person you are meeting. In general,
most Malays are aware of Western ways so the handshake is normal. There may be slight differences
though and a few things to bear in mind include:

Malay women may not shake hands with men. Women can of course shake hands with women. Men
may also not shake hands with women and may bow instead while placing their hand on their heart.

The Chinese handshake is light and may be rather prolonged. Men and women may shake hands,
although the woman must extend her hand first. Many older Chinese lower their eyes during the
greeting as a sign of respect.

Indians shake hands with members of the same sex. When being introduced to someone of the opposite
sex, nodding the head and smiling is usually sufficient.

Among all cultures, there is a general tendency to introduce:

 The most important person to the lower ranking person.

 The older person to the younger person.
 Women to men.

Dept. of MBA, DR.AIT 2019-2020 Page 22

 MALASIYA

4.6.2Tradition in Malaysia

The culture of Malaysia draws on the varied cultures of the different people of Malaysia. The first
people to live in the area were indigenous tribes that still remain; they were followed by the Malays,
who moved there from mainland Asia in ancient times. Chinese and Indian cultural influences made
their mark when trade began with those countries, and increased with immigration to Malaysia. Other
cultures that heavily influenced that of Malaysia include Persian, Arabic, and British. The many
different ethnicities that currently exist in Malaysia have their own unique and distinctive cultural
identities.

4.6.3Language

Malay is the national language of Malaysia and also one of the two official languages of the country,
the other being English.

The official language spoken in Malaysia is the Malaysian language. This language is sometimes called
Malaysian Malay or simply just Malay or Malaysian. Malay is spoken by the majority of the country
and is taught extensively in the country's public education system. Aside from Malay, English is also
very commonly spoken in Malaysian. Aside from English, Chinese dialects such as Mandarin and
Hokkien are also spoken in the country, primarily by those of Chinese ethnic origin. Tamil is also
another popular language spoken in the country, primarily spoken by people from India.

4.6.4Cuisine

Malaysian cuisine consists of cooking traditions and practices found in Malaysia, and reflects the
multi-ethnic makeup of its population. The vast majority of Malaysia’s population can roughly be
divided among three major ethnic groups: Malays, Chinese and Indians. The remainder consists of
the indigenous people of Sabah and Sarawak in east Malaysia, the orang asli of peninsular Malaysia,
the peranakan and Eurasian creole communicates, as well as a significant number of foreign workers
and expatriates.

4.6.5Clothing

Most Malaysians dress as Westerners do but many Muslim women wear long skirts/pants and head
scarves. On special occasions, people from each ethnic group wear their traditional clothes.

Dept. of MBA, DR.AIT 2019-2020 Page 23

 MALASIYA

Malays: For Malay women, they wear the baju kurung; Malay men wear the baju melayu with a
songkok on the head. Alternatively, the men wear batik shirts with trousers.

4.7 Famous personality

Dato’ Michelle Yeoh

In the world of entertainment, Dato’ Michelle Yeoh is definitely Malaysia’s most successful movie
star. Her career began in Hong Kong when she starred alongside Jackie Chan in The Police Story 3, a
critical and successful movie which was released in 1992. Dato’ Michelle impressed Jackie so much
that she is among the handful of stars that he would allow to do their own stunts. Since then, she has
appeared in both Hong Kong and Hollywood films.

Amber Chia

Amber Chia is a supermodel and is undoubtedly the most well-known in recent history. She began her
modeling career at the age of 17 and gained international recognition when she won the Guess Watches
Timeless Beauty Contest in 2004. This contest was a search for models from across the globe in hopes
of finding a brand ambassador for Guess Watches. Amber is not only the first Malaysian to win the
contest but also the first Asian to do so.

Yuna

Yuna is an independent Malaysian singer-songwriter. She began composing music at the age of 14 and
went on to perform her own songs when she was 19. Since 2006, she has performed in numerous
acoustic shows and events throughout Malaysia. US Indie-Pop record label and management company
discovered her talent and actually flew to Malaysia to convince her to sign a contract with them. They
also managed to get her a deal with FADER Label, which is based in New York. Yuna is currently
signed with the Verve Music Group with Grammy-winning producer David Foster heading the creative
operations. In 2012, her single “Live Your Life”, produced by Pharrell Williams debuted on iTunes
and she was recognized with a National Youth Icon Award by the Prime Minister of Malaysia, Datuk
Seri Najib Razak.

Dr Sheikh Muszaphar Shukor

Dept. of MBA, DR.AIT 2019-2020 Page 24

 MALASIYA

This orthopedic surgeon was the first Malaysian to travel into space. He was launched to the
International Space Station aboard Soyuz TMA-11 with the Expedition 16 crew on 10 October 2007.
Sheikh Muszaphar flew under an agreement with Russia through the Angkasawan program, and
returned to Earth on 21 October 2007, aboard Soyuz TMA-10 with the Expedition 15 crew members.

Dept. of MBA, DR.AIT 2019-2020 Page 25

 MALASIYA

Chapter-5

Economic System

5.1 sectoral distribution of growth

In 2017, the Share of agriculture in Malaysia’s gross Domestic product was around 8.78percent,
industry contributed approximately 38.79 percent and the services sector contributed about 51.01
percent.

5.2 natural resources (factors of production)

Malaysia's most economically significant natural resource is tin; its tin deposits are the most extensive
in the world. Other important natural resources are bauxite, copper, gold, iron ore, natural
gas, petroleum, and timber.

5.3 Trade-domestic and international

Malaysia is the 19th largest export economy in the world and the 25th most complex economy
according to the Economic Complexity Index (ECI). In 2017, Malaysia exported $263B and
imported $197B, resulting in a positive trade balance of $66.4B. In 2017 the GDP of Malaysia
was $314B and its GDP per capita was $29.4k.

The top exports of Malaysia are

 Integrated Circuits($55.7B)

 Refined Petroleum ($18B),

 Office Machine Parts($11.1B)

 Petroleum Gas ($10.1B)

 Palm Oil ($9.9B), using the 1992 revision of the HS (Harmonized System) classification.

Dept. of MBA, DR.AIT 2019-2020 Page 26

 MALASIYA

Its top imports are

 Integrated Circuits($37.3B)
 Refined Petroleum ($15.5B)
 Crude Petroleum($4.62B)
 Broadcasting Equipment ($3.51B)
 Office Machine Parts ($3.47B)

5.4 economic systems in comparison with Indian economy

5.5 Institutions of national importance

 AIMST University.

 Asia e University.

 Allianze University College of Medical Sciences.

 Asia Pacific University of Technology and Innovation.

 Bricksfield Asia College.

 Berjaya University College of Hospitality.

 Binary University College of Management and Entrepreneurship.

 Curtin University of Technology.

Dept. of MBA, DR.AIT 2019-2020 Page 27

 MALASIYA

5.6 key economic system challenges

The greatest economic threat that Malaysia is facing right now is the middle income trap. The trap
Is described as the phenomenon where by rapidly growing countries experience stagnate income
levels, unable to advance to high income from its current middle income. Countries in the middle
income trap often find it hard to break away. An article by the economist (2012) reported that only
13 countries in history has escaped the middle income trap, and Malaysia is absent in the list. Despite
local economist arguing that Malaysia has broker free of the middle income trap(FMT,2017), its
effects are still felt till today and there is a chance of falling back into the trap.

Dept. of MBA, DR.AIT 2019-2020 Page 28