For centuries, Malaysia has profited from its location at a crossroads of trade between the East and West, a tradition that carries into the 21st century. Geographically blessed, peninsular Malaysia stretches the length of the Strait of Malacca, one of the most economically and politically important shipping lanes in the world. Capitalizing on its location, Malaysia has been able to transform its economy from an agriculture and mining base in the early 1970s to an upper middle income, competitive nation, where services and manufacturing now account for 75.8 percent of GDP (55.5 percent in services and 20.3 percent in manufacturing in 2018).
Malaysia’s GDP projection for 2019 is between 4.3-4.8 percent. In 2018, Malaysia’s GDP growth was at 4.7 percent; 2017 GDP was 5.9 percent and 2016 GDP growth was 4.2 percent. Malaysia’s economy recorded an annual average growth of 5.0 percent during the period 2015 to 2018.