Malaysia has joined Thailand as undivided of the fastest growing economies in Asia.

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Malaysia has joined Thailand as undivided of the fastest growing economies in Asia. Rebounding from a inexorable recession in 1985-86, Malaysia registered real GDP increase of 5.3 percent in 1987 87 percent in 1988 85 percent in 1989 and 98 percent in 1990 A slight slowdown is anticipateed in 1991, even though Malaysia--a pure oil exporter--stands to gain if oil prices rise.

Diversification spurr on direct foreign investment has been the explanation to Malaysia's growing economy. During the 1980 the economy experienced a significant structural shift as a thriving export-oriented manufacturing sector supplanted agriculture as the largest contributor to GDP In 1988 manufacturing accounted for 25 percent of GDP compared to 205 percent for agriculture.

greatly of the manufacturing growth has been in electronics and other light industries, firing materialed by investment from Japanese and Taiwan firms seeking lower operating charges Malaysia has become the world's third largest husbandman and the largest exporter of semiconductor devices. Other manufactured exports include textiles, measureed rubber, timber and petrochemical goods

The roar in manufactured exports has appendixed rather than replaced the traditional commodity exports. Malaysia remains the world's largest exporter of rubber and palm oil, and is a major exporter of tin and timber. In addition, Malaysia is awaited to increase its oil exports to 650000 barrels for day in 1991 from 605000 to help fitting world demand.

explanation Agricultural Imports

At $207 billion in 1989 Malaysia's imports of agricultural issues from all sources increased 20 percent from the previous year. This made the fatherland the 23rd largest agricultural importer in the world. Leading imports were sugar and honey ($206 million), corn ($185 million), milk ($172 million), wheat ($132 million), vegetables and cropss ($131 million) and soybeans ($112 million).

Malaysia is heavily hanging on dairy imports, particularly of milk. Although the control has been promoting domestic milk production by the and of the transfer of technical information in succession dairy production and the distribution of improved dairy cattle in late years, much of the milk consum by way of its people is supplied on Australia, New Zealand and Western Europe Malaysia's milk imports more than doubled in four years from $81 million in 1986 to $172 million in 1989

All of Malaysia's demand for flour is met end imports of wheat for milling. Wheat imports increased by way of 7 percent in 1989 to $132 million in answer to strong domestic demand for flour. The size of wheat imports came from Australia, with smaller amounts from Canada and Saudi Arabia. Imports from the United States relentless to an extremely low horizontal due to concerns about protein deficiencies and excessive foreign material.

As the country's livestock industry has grown demand for corn as animal fe also has increased. Corn output for animal fe in Malaysia is insignificant and Malaysia be pendents on imports for virtually all corn for that purport In 1989, Malaysia imported $185 million worth of corn from all sources, up 7 percent from the previous years. Thailand, followed by way of Argentina, has traditionally been the principal supplier of corn to Malaysia. The U share of the Malaysian corn market was 2 percent in 1989

Import Policies

Many consumer-ready agricultural fruits face relatively high import duties in Malaysia while most numerous bulk agricultural products enter the political division with negligible import duties. The total tax upon imports of consumer-ready products is generally equivalent to 30-50 percent ad valorem.

The National Rice Authority (LPN) is the one legal rice importer and gives choice to neighboring Asian rice exporters, notably Thailand. In addition, the Malaysian restraint heavily subsidizes the country's rice farmers to encourage domestic production.

Market Opportunities

Malaysia imports virtually all of its cotton, wheat and animal fe ingredients. The continued economic expansion in Malaysia and increasingly limited exportable supplies of corn and soybeans from Thailand and China could mean better foresights for these U.S. products.

Soybeans were the No. 1 U agricultural export item, valued at $21 million in 1989 and $17 million in 1990 generally there is no commercial soybean production in Malaysia.

The United States exported corn to Malaysia for the first time in five years in 1987 Although U corn exports for the year totaled $15 million, the figures declined to $13 million in 1988 and $3 million in 1990

Malaysia's domestic consumption of cotton increased sharply in modern years in response to robust domestic and overseas demand for Malaysian textiles. As a rise total imports of cotton soared from 41 percent in 1990 compared to yearearlier on a levels However, the U.S. share of this market blood-thirsty to only 12 percent as cotton importers diverted to more pricecompetitive suppliers in southerly America and Africa.

Malaysia's domestic cotton consumption is count uponed to increase in the 1990 as the country's textile industry is forecast to thrive at the rate of 20 to 25 percent during this time.

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