Malaysia, under British colonial rule before independence, the abnormal development of the economy, the economy based on agriculture farming, industry is extremely backward. After independence, Malaysia has since 1966 implemented seven year development plan, vigorously transform the old economic structure. In recent years, the proportion of agricultural decline in the manufacturing sector increased. Government to encourage domestic processing of raw materials based industries, focusing on the development of electronic appliances (has become the world's third largest country of production and marketing of semiconductor components), automotive assembly, steel, petrochemicals and so on. Since 1978, Malaysia embarked on a 20-year "new economic policy", the main aim is to "eradicate poverty, restructuring society." June 1991, announced the 1991-2000 "National Development Policy", due to replace the "new economic policy", stressing balanced economic development, basic industrial diversification, emphasis on human resource development. Malaysia-based agriculture to cash crops, mainly rubber, oil palm, pepper, cocoa, coconut, rice is an important food crop, but not completely self-sufficient in food.

Malaysia's rich natural resources, rubber, tin, palm oil and pepper production and exports in the world, oil and gas reserves are also very rich. Since the seventies to constantly adjust the industrial structure, manufacturing and service industries developed rapidly. The mid-eighties, due to world economic downturn, economic growth rates. Government to stimulate the growth of foreign and private capital measures, the economy improved markedly since 1987, the average economic growth for nine consecutive years of 8%, inflation at 4% or less. Over the years, horses out of the economic structure of the irrationality of the colonial economy, especially export-oriented manufacturing industries of electronics, textile industry developed rapidly, exports of electronic products is ranked in the world.

July 1997, the Southeast Asian financial crisis, Malaysia suffered a serious blow. Estimated economic loss of more than 2000 billion dollars. Ma per capita income by the year 1996 to about $ 4,447 down to 4,000 U.S. dollars. Into the 1998 financial crisis, the horse further economic deterioration. 6.8% in the first half of negative economic growth, inflation rate rose to 5.7%, per capita income dropped to about 2,500 U.S. dollars. Rising interest rates, tightening credit, floating capital shortage, business failures increase. The face of deteriorating economic situation, Prime Minister Mahathir Mohamad, Deputy Prime Minister Anwar gave implemented by the International Monetary Fund in accordance with the higher interest rates, slowing credit deflation policy in favor of the development of the implementation of macroeconomic measures and loose monetary policy. September 1, announced the imposition of exchange controls, exchange rate of U.S. dollar against the ringgit was fixed at 1:3.8. In eliminating the threat of international speculation, the Ma administration initiated a series of stimulating economic growth and restore economic vitality of the measures: lower interest rates; increased loan growth; establishment of a national asset management companies to purchase corporate bad debts; establishment of the National Capital injection for the banks; The government intervened in the rescue of financially troubled large companies and choose the construction industry, real estate industry as a breakthrough in restoring economic vitality; consolidation in the financial sector, the implementation of corporate restructuring and bank mergers. The implementation of the policy to curb the momentum of horse economy continues to deteriorate.

In 1999, the global economic environment improves, gradually embarked on economic recovery in the road, the annual economic growth of 5.4%; the economic situation improves, Ma government began the gradual relaxation of capital controls carefully. February 15, 1999, the Government announced the divestment of tax (within one year from today the withdrawal of foreign investors pay 30% of the profits tax, one year after the withdrawal of the payment of 10%) to replace the mandatory detention of foreign investment measures.

A full recovery of 2000 Ma, GDP grew by 8.5%. 2001 impact of the global economic downturn, especially in horse import and export volume accounted for about half of the United States, Japan and Singapore in the "9? 11" the economy into recession after the incident, along with horse economy slows, full-year GDP growth rate of only 0.4%. September 21, 2001, to further relax the horse pulling duty with immediate effect from the withdrawal of all foreign investors pay only 10% of the profit tax. October 27, 2001, the Ma administration announced further foreign investment in Malaysia for one year, exempt from the divestment of 10% tax.

In 2002, Malaysia 4.2% GDP growth rate. The agricultural growth rate of 0.3%, mining industry increased by 4.5%, the manufacturing sector increased by 4.1%, construction industry, an increase of 2.3% in the service sector increased by 4.5%.

According to Ma the Central Bank, as of April 15, 2003, Malaysia's foreign exchange reserves to 133.62 billion ringgit (about 35.16 billion U.S. dollars), which pay nearly 5.5 months of imports and 4.2 times the national short-term debt; by 2002 end, the external debt amounted to 185.3 billion ringgit (about 48.763 billion U.S. dollars), of which short-term foreign debt amounted to 25.27 billion ringgit (about 6.65 billion U.S. dollars).

Malaysia has rich tourism resources, mainly tropical scenery, and cultural characteristics of note, every year more than 1 million people to attract tourists