/ Malaysia
Overview
Malaysia is a country located in Southeast Asia, consisting of two non-contiguous regions: Peninsular Malaysia on the Malay Peninsula and East Malaysia on the island of Borneo. It shares land borders with Thailand, Indonesia, and Brunei, and maritime borders with Singapore, Vietnam, and the Philippines. Malaysia covers an area of approximately 330,803 square kilometers and has an estimated population of 35.8 million as of February 2026. The country is a federal constitutional elective monarchy divided into 13 states: including Johor, Selangor, and Sarawak; and three federal territories: Kuala Lumpur, Putrajaya, and Labuan.
In 2025, the GDP reached approximately US$468 billion, and per capita GDP was US$13,280. Malaysia's economy is increasingly service-oriented, with the service sector accounting for c.59.1% of its GDP, driven by retail, finance, and professional services. Domestic consumption and a resilient manufacturing base are the primary drivers of economic growth. The country’s economy is a critical link in the global semiconductor supply chain, particularly in assembly and testing. Its largest trading partners are China, Singapore, the United States, and Japan. Malaysia produces significant export commodities including integrated circuits, refined petroleum, palm oil, and liquefied natural gas (LNG). The digital economy and advanced electrical and electronics (E&E) manufacturing are expected to be major future growth drivers. Additionally, the tourism sector has surpassed pre-pandemic levels, contributing c.14.8% to the GDP in 2025 with over 30 million international arrivals. The country's industrial sector represents approximately 36.3% of its GDP and employs about 27.2% of the workforce. Imports of electronic components, refined petroleum, and machinery are among the highest in the country, with top import partners being China, Singapore, Taiwan, and the United States.
Malaysia has a diverse history influenced by its position at the crossroads of maritime trade, transitioning from various Malay sultanates to a British colonial period. The country gained independence as the Federation of Malaya in 1957 and expanded into Malaysia in 1963. Since then, Malaysia has transformed from an agriculture-and-commodity-based economy into a leading emerging industrial nation, characterized by its multicultural society and strategic role in the ASEAN region.
