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This article would give an overview of national income of Malaysia and its growth over a period of time.
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National Income of Malaysia

The National Income accounts provide a summary of all transactions in an economy. Seen from the income side, the production process creates incomes for the owners of the inputs used in production including labor and capital.
 
Every day there are many transactions taking place in the Malaysian economy. There is buying and selling of products and services, the collection of taxes and the payment of subsidies, the payment to workers and the return to capital on its investment. The National Income accounts provide a summary of all these transactions in an economy over a period of time, usually a quarter or a year.
 
Malaysia has over a period of time evolved from a low to medium income economy. After independence, the economy was to a large extent dependent on primary commodities, namely rubber and tin. During the period 1957 to 1960, agriculture was the largest sector, employing about 58% of the labor and accounting for 47% of total output. Rubber by itself accounted for over 25% of National Income, nearly 30% of employment and about 60% of exports. At the same period, the mining sector, dominated by tin, employed 3% of the labor force and accounted for 25% of exports. With rubber and tin accounting for 85% of total exports between them, the entirely economy was vulnerable to fluctuations in commodity prices.
 
The Government then released the necessity to diversify the economy and reduce the dependence on rubber and tin. The Government then laid emphasis on developing other suitable agricultural crops and embarked on downstream manufacturing activities. This heralded the phase of industrialization in Malaysia since the early 1970s.The Government provided special assistance and incentives for setting up and for expanding industrial establishments. The Government came up with the First Industrial Master Plan (IMP, 1986-1995), Malaysia’s first industrial blueprint.
 
Due to the impetus given to the manufacturing sector, by 1988 for the first time, the manufacturing sector became the leading growth sector when its share of gross domestic product rose to 21.1% surpassing that of agriculture at 18.6%.This signaled a structural shift from agriculture to a manufacturing based economy.
 
The Second IMP (1996-2005) was introduced to bring about a change from assembly intensive manufacturing to an integrated, industry wide approach consisting of both manufacturing and related services. To further boost manufacturing and modern services the Third IMP(2006-2020) was introduced in 2006.At the end of the period, Malaysia emerged as one of the most dynamic and vibrant economies of the world. Between 1971 and 2008, Malaysia was among the fastest growing countries in the Asean region.
 
The National Income of Malaysia is illustrated for a period from 1960 to 2008 in the following table
 
Year
National Income in $(millions)
1960
12899
1961
13794
1962
14578
1963
15271
1964
16235
1965
17405
1966
18278
1967
18587
1968
20217
1969
21382
1970
22684
1971
24359
1972
26195
1973
29982
1974
32222
1975
32489
1976
36536
1977
39513
1978
42970
1979
46469
1980
50333
1981
53901
1982
57102
1983
60588
1984
65290
1985
64617
1986
65434
1987
68898
1988
74982
1989
81996
1990
89823
1991
97545
1992
105151
1993
113927
1994
124408
1995
136600
1996
150260
1997
161229
1998
149298
1999
158406
2000
171553
2001
172411
2002
86143
2003
96082
2004
112580
2005
125847
2006
146754
2007
180714
2008
188061
 

Last Updated on: 18-11-2009


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