INTRODUCTION

Malaysia is a country that consists of thirteen states and three federal territories in Southeast Asia with a total landmass of 329,847 km².[1][2] The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government.[2] The country is separated into two regions — Peninsular Malaysia and Malaysian Borneo — by the South China Sea.[2] Malaysia borders Thailand, Indonesia, Singapore, Brunei and the Philippines.[2] Located near the equator, the weather is characterised by tropical climate.[2] Malaysia is headed by the Yang di-Pertuan Agong and politically led by a Prime Minister.[3][4] The government is closely modeled after the Westminster parliamentary system.[5]

Malaysia as a unified state did not exist until 1963. Previously, a set of colonies were established by the United Kingdom from the late eighteenth century, and the western half of modern Malaysia was composed of several separate kingdoms. This group of colonies was known as British Malaya until its dissolution in 1946, when it was reorganized as the Federation of Malaya and later recognized as an independent nation in 1957.[6] Singapore, Sarawak, British North Borneo and the Federation of Malaya joined to form Malaysia on September 16, 1963.[7] The early years of the new union were marred by an armed conflict with Indonesia and the expulsion of Singapore.[8][9] The Southeast Asian nation experienced an economic boom and underwent rapid development during the late 20th century. With a GDP per capita standing at USD13,000, it has, from time to time, been considered a newly industrialized country.[10][11] As one of three countries that control the Strait of Malacca, international trade plays a large role in its economy.[12] At one time, it was the largest producer of tin, rubber and palm oil in the world.[13][14] Manufacturing has a large influence in the country's economy.[15]

The population of Malaysia is approximately 25 million.[2] The Malays form the majority of the population. Some Malays are of Arab descent and there are sizable Chinese and Indian communities. Islam is the largest as well as the official religion of the federation.[2][16] The Malay language is the official language, the original script was Jawi and it was based on Arabic script .[17]

Malaysia is the founding member of Association of Southeast Asian Nations and participates in many international organizations such as the United Nations.[18][19] As a former British colony, it is also a member of the Commonwealth of Nations.[20] It is also a member of the Developing 8 Countries.[21]

Geography

Main article: Geography of Malaysia

Map of Peninsular Malaysia and East Malaysia (Malaysian Borneo)
The two distinct parts of Malaysia, separated from each other by the South China Sea, share a largely similar landscape in that both West and East Malaysia feature coastal plains rising to often densely forested hills and mountains, the highest of which is Mount Kinabalu at 4,095.2 metres (13,435.7 ft) on the island of Borneo. The local climate is equatorial and characterised by the annual southwest (April to October) and northeast (October to February) monsoons.

Tanjung Piai, located in the southern state of Johor, is the southernmost tip of continental Asia.[47][48]
The Strait of Malacca, lying between Sumatra and Peninsular Malaysia, is arguably the most important shipping lane in the world.[49]

Putrajaya is the newly created administrative capital for the federal government of Malaysia, aimed in part to ease growing congestion within Malaysia's capital city, Kuala Lumpur. Kuala Lumpur remains the seat of parliament, as well as the commercial and financial capital of the country. Other major cities include George Town, Ipoh, Johor Bahru, Kuching, Kota Kinabalu, Miri, Alor Star, Malacca Town, and Klang.

Natural resources

Malaysia is well-endowed with natural resources in areas such as agriculture, forestry and minerals. In terms of agriculture, Malaysia is one of the top exporters of natural rubber and palm oil, which together with sawn logs and sawn timber, cocoa, pepper, pineapple and tobacco dominate the growth of the sector. Palm oil is also a major generator of foreign exchange.

Regarding forestry resources, it is noted that logging only began to make a substantial contribution to the economy during the nineteenth century. Today, an estimated 59% of Malaysia remains forested. The rapid expansion of the timber industry, particularly after the 1960s, has brought about a serious erosion problem in the country's forest resources. However, in line with the Government's commitment to protect the environment and the ecological system, forestry resources are being managed on a sustainable basis and accordingly the rate of tree felling has been on the decline.

In addition, substantial areas are being silviculturally treated and reforestation of degraded forest land is also being carried out. The Malaysian government provide plans for the enrichment of some 312.30 square kilometres (120.5 sq mi) of land with rattan under natural forest conditions and in rubber plantations as an inter crop. To further enrich forest resources, fast-growing timber species such as meranti tembaga, merawan and sesenduk are also being planted. At the same time, the cultivation of high-value trees like teak and other trees for pulp and paper are also encouraged. Rubber, once the mainstay of the Malaysian economy, has been largely replaced by oil palm as Malaysia's leading agricultural export.

Tin and petroleum are the two main mineral resources that are of major significance in the Malaysian economy. Malaysia was once the world's largest producer of tin until the collapse of the tin market in the early 1980s. In the 19th and 20th century, tin played a predominant role in the Malaysian economy. It was only in 1972 that petroleum and natural gas took over from tin as the mainstay of the mineral extraction sector. Meanwhile, the contribution by tin has declined. Petroleum and natural gas discoveries in oil fields off Sabah, Sarawak and Terengganu have contributed much to the Malaysian economy. Other minerals of some importance or significance include copper, bauxite, iron-ore and coal together with industrial minerals like clay, kaolin, silica, limestone, barite, phosphates and dimension stones such as granite as well as marble blocks and slabs. Small quantities of gold are produced.

In 2004, Minister in the Prime Minister's Department, Mustapa Mohamed, revealed that Malaysia's oil reserves stood at 4.84 billion barrels while natural gas reserves increased to 89 trillion cubic feet (2,500 km³). This was an increase of 7.2%.[citation needed] As of January 1, 2007, Petronas reported that oil and gas reserve in Malaysia amounted to 20.18 billion barrels equivalent.[50]

The government estimates that at current production rates Malaysia will be able to produce oil up to 18 years and gas for 35 years. In 2004, Malaysia is ranked 24th in terms of world oil reserves and 13th for gas. 56% of the oil reserves exist in the Peninsula while 19% exist in East Malaysia. The government collects oil royalties of which 5% are passed to the states and the rest retained by the federal government.[citation needed]