The financial policy after the monetary and financial crisis of 1997–98 is aimed at maintaining a stable exchange rate of the national currency, the ringgit, at a fairly low percentage of credit rates, and at expanded capitalization. At the government’s initiative, a banking system restructuring program was launched, focused on the merger of small banks and the creation of large competitive financial corporations.
A feature of the credit and financial system is the presence of an Islamic banking sector that provides interest-free loans and loans. Includes Bank Islam Malaysia, Bank Muamalat, as well as 35 other financial institutions with total assets of approx. 49 billion ring, or St. $12 billion.
State budget (2001/02) 93.7 billion ring. (approx. USD 23.4 billion). The revenue part was formed at the expense of indirect taxes (37.5%), borrowings from the assets of state investment and trust funds (27.6%), income tax from legal entities and individuals (27.6%), import duties (6.4% ), export duties (1.0%). Expenditures consisted of two parts: for development needs and operational appropriations. According to the first article, directly to the economy – 12%, to the social sphere – 12%, to defense and security – 4%, to administrative management – 1.6%. Under the article “operating expenses”: for the payment of salaries to civil servants – 21.5%, for servicing the public debt – 19.9%, for pensions and benefits – 6%, for transfers to the states – 2.7%. The budget deficit in 2001 was 6.5% of GDP. In emergency cases (bankruptcy of companies with state participation, etc.)
External debt approx. $42.6 billion.
The official salary level is RM600 or US$150. However, out of 14 million people employed in the public and private sectors, 2 million people did not receive it. In addition, approx. 800 thousand foreign workers, there were approx. 1 million illegal guest workers, mainly from Indonesia, Bangladesh and other countries of Southeast and South Asia.
There were significant disproportions in the distribution of income among ethnic groups. The average monthly income of a Malay family in urban areas was about 1/3 of the Chinese. In rural areas, where 80% of indigenous Malays live, the difference was even more striking. Below the poverty line there were approx. 12% of the population. The incomes of the Dayak tribes of East Malaysia are not available for statistical analysis.
Malaysia is one of the leading trading powers in Southeast Asia (2nd after Singapore). Foreign trade turnover (2001) approx. 637 billion ring., or 162 billion US dollars, which is more than 2 times the GDP. Export – ok. $85 billion, imports $77 billion Main exports: electronic components and electrical goods 60%, other manufactured products including automobiles 22%, chemicals 5%, crude oil and liquefied natural gas 7%, palm oil 3%. Machinery and equipment, industrial vehicles, consumer goods and foodstuffs are imported.
Main foreign trade partners: USA (18.6%), Japan (16.7%), Singapore (15%), EU countries (13.4%), South Korea, Hong Kong, Taiwan (11.3% each), others ASEAN countries (except Singapore) (9%).
Up to 3/4 of foreign trade transportation is carried out through the Singapore port. Efforts to redirect them to Port Klang are not having much success due to higher handling and clearance costs.
A purposeful policy of foreign trade expansion is being implemented, primarily an increase in the export of palm oil. To stimulate it, the government exempted 1 million tons of oil sold on foreign markets from export duty, and expressed its readiness to lend to potential buyers.
Science and culture of Malaysia
According to searchforpublicschools, science and education are represented by the oldest universities – the University of Malaya (operating since the mid-1950s), the National University of Malaysia, and the International Islamic University. There is also an extensive network of private higher and secondary educational centers.
In accordance with the concept of “K-economy”, training is mainly aimed at mastering the exact sciences. There is also a wide network of Islamic theological secondary schools.
There is a semi-state Council for Language and Literature, which deals with questions of linguistics, the promotion of the national language and the publication of literature in it in all branches of knowledge, as well as fiction. The Federation of National Writers’ Associations (GAPENA) is led by Ismail Hussain, one of Malaysia’s leading contemporary writers.
There is a fully computerized National Library.
Under the patronage of the Petronas company, a national philharmonic orchestra, one of the best in Southeast Asia, was created. Such outstanding conductors as E. Menuhin, M. Horvat and Y. Temirkanov, performers – M. Rostropovich, singers – D. Khvorostovsky, G. Gorchakova and others performed on its stage.
Although there are no monumental monuments of antiquity and the Middle Ages in the country, museum work has been put on a fairly solid base. The National and Historical museums are open in the capital, as well as the ultra-modern Museum of Islamic Civilization. In Malacca, one of the richest exhibits is the Historical and Ethnographic Museum. The gallery of modern art in Kuala Lumpur is famous.