PEST ANALYSIS OF

POLITICAL

1. Form And Type Of Government: constitutional monarchy

In 1957 Selected from nine hereditary Sultans of the Malay states

2. ministerial hierarchy (separate ministers under each section)

Portfolio Office Bearer Party

Prime Minister of Najib Tun Razak UMNO Malaysia UMNO Deputy Prime Minister of Malaysia

Ministers in the Prime Koh Tsu GERAKAN Minister's Department Koon (Senator) UMNO Nazri Aziz UMNO Nor Mohamed UMNO Yakcop (Senator)

Minister of Finance Najib Tun Razak UMNO Minister of Finance II Ahmad Husni UMNO Hanadzlah

Minister of Education Muhyiddin Yassin UMNO

Minister of Transport MCA

Minister of Plantation Bernard Dompok UPKO Industries and Commodities Minister of Home Affairs Hishammuddin Tun UMNO Hussein

Minister of Infomation, UMNO Communications and Culture

Minister of Energy, Green SUPP Technology and Water

Minister of Rural and Mohd UMNO Regional Development

Minister of Higher Mohamed Khaled UMNO Education Nordin

Minister of International UMNO Trade and Industry

Minister of Science, PBS Technology and Innovation

Minister of Natural Douglas Uggah PBB Resources and Embas Environment

Minister of Tourism MCA

Minister of Agriculture UMNO and Agro-based Industry Minister of Defence Ahmad Zahid UMNO Hamidi

Minister of Works Shaziman Abu UMNO Mansor

Minister of Health MCA

Minister of Youth and Ahmad Shabery UMNO Sports Cheek

Minister of Human Subramaniam MIC Resources Sathasivam

Minister of Domestic UMNO Trade, Cooperative and Consumerism

Minister of Housing and MCA Local Government

Minister of Women, Shahrizat Abdul UMNO Family and Community Jalil (Senator) Development

Minister of Foreign UMNO Affairs

Minister of the Federal UMNO Territories Zainal Abidin (Senator)

http://en.wikipedia.org/wiki/Cabinet_of_Malaysia 3. Axim policy-

Foreign Policy

• A markedly anti-Communist and pro-western posture with close links to the Commonwealth under , our first Prime Minister, gave way to one based on non-alignment, neutralization and peaceful co-existence. • Under Tun Abdul Razak, as a member of the Organisation of Islamic Conference (OIC), Malaysia began to identify itself as a "Muslim nation."

• Malaysia's relations with other countries. These refer to sovereign equality and mutual respect for territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, peaceful settlement of disputes as well as mutual benefit in relations and peaceful co-existence.

• Developing close bilateral relations with our neighbours remains a high priority..

http://www.kln.gov.my/?m_id=2

Trade Policy

• is to pursue trade liberalisation through the rule-based multilateral trading system under the World Trade Organisation (WTO). • Free trade agreements (FTAs) have traditionally been confined to trade in goods. However, after the establishment of the WTO, trade in services has been included in many FTAs.

4. FDI /FII structure

• The government has a generally favourable attitude toward foreign investment, especially regarding projects that facilitate technology transfers, create high- skilled jobs and contribute capital to the economy. • New ventures in the manufacturing sector may be 100% foreign-owned, the financial sector is being liberalized and capital controls on overseas investments have been relaxed. • Any FDI that seeks to acquire assets in Malaysia including ownership of businesses without giving clear benefit to will be actively discouraged. • All industrial projects must be approved by the Malaysian Industrial Development Agency (MIDA) which has lately stopped granting approvals in what it views as low-productivity industries. • In April 2009, the Malaysian government removed existing bumiputera (ethnic Malay) affirmative action requirements for companies in certain sectors (health, tourism, transport and IT services) to have 30% ethnic Malay ownership. This move was a bid by the ruling coalition to reach out to ethnic minority groups to strengthen its position. http://www.edc.ca/english/docs/gmalaysia_e.pdf

ECONOMIC

Free trade agreements were introduced by Badawi to Japan. These contracts will help these two countries minimize tariffs on trade of all industrial goods and large number of forestry, agricultural, and fishery products. Economic policies of Malaysia also state that it has to develop and focus more on its strengths, which is agriculture. It would also look in to fact that manufacturing base is not affected. By restructuring government financial assistance, it has increased price of petrol and electricity.

Monetary policy

• Reserve requirements have been cut to reduce the cost of financial intermediation. • Timely liquidity support in the inter-bank market has kept the overnight inter-bank rate close to the policy rate, suggesting orderly market conditions throughout. • The base lending rate has declined, and broad money has continued to grow. Credit has expanded although the rate of expansion has decelerated as banks tightened lending standards and loan demand moderated in tandem with economic activity. http://www.economywatch.com/economic-policy/Malaysia.html

1. banking structure – both national and private and private banks exist 2. income patterns (GDP)-

In 2008 fiscal Malaysia GDP as per purchasing power parity was estimated to be $397.5 billion, while GDP as per official exchange was $214.7 billion for 2008. Statistical research work shows that real growth rate of Malaysia GDP of 2008 is approximately 5.5%. Malaysia GDP per capita has been shown to be $15,700 in 2008. http://www.economywatch.com/gdp/world-gdp/malaysia.html

SOCIAL 1. psycographics and sociographics (all possible ratios)

• Full name: Federation of Malaysia • Population: 27 million (UN, 2008) • Capital: • Area: 329,847 sq km (127,355 sq miles) • Major languages: Malay (official), English, Chinese dialects, Tamil, Telugu, Malayalam • Major religions: Islam, Buddhism, Taoism, Hinduism, Christianity, Sikhism • Life expectancy: 72 years (men), 77 years (women) • Monetary unit: 1 ringgit = 100 sen • Main exports: Electronic equipment, petroleum and liquefied natural gas, chemicals, palm oil, wood and wood products, rubber, textiles

Sex ratio: at birth: 1.07 male(s)/female under 15 years: 1.06 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.78 male(s)/female total population: 1.01 male(s)/female (2008 est.)

Rich: poor

Malaysia has the largest gap between rich and the poor in Southeast Asia, where the top 10 percent is 22.1 times richer than the poorest 10 percentThe richest 10 percent in Malaysia controls 38.4 percent of the country's economic income as compared to the poorest 10 percent controlling 1.7 percent.

Income parameters:

8.6 percent of households earn below RM1,000, followed by about 29.4 percent of households who earn between RM1,000 and RM2,000.19.8 percent of households are in the RM2001-RM3,000 income bracket, RM3,001-RM4,000 (12.9 percent), RM4,001- RM5,000 (8.6 precent), RM5,001-RM10,000 (15.8 percent) and above RM10,000 (4.9 percent).In short, almost 40 percent of households in Malaysia earn RM2,000 and below.At the other end of the scale, about 20 percent of households earn more than RM5,000 a month.. http://www.geocities.com/easytocall/

TECHNOLOGICAL 1. infrastructure

Transport:

Airport Construction and Related Works Kuala Lumpur International Airport (KLIA) has a new passenger terminal for budget airlines. The terminal will have the capacity to handle 30mn passengers annually, thus increasing the airport’s annual capacity to 55mn passengers. It will be located next to the existing terminal and will be ready by 2010.

Communication

The press

• - English-language daily • - English-language daily • Business Times - English-language daily • The - English-language daily • - English-language, online news service

Television

• Radio Television Malaysia (RTM) - state-run, operates TV1 and TV2 networks • TV3 - commercial network • ntv7 - commercial network • 8TV - commercial network

Radio

• Radio Television Malaysia (RTM) - state-run, operates some 30 radio stations across the country and external service Voice of Malaysia • Era FM - private FM station • Hot FM - private FM station • Time Highway Radio - private Kuala Lumpur FM station

News agency

• - state-run http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1304569.stm