Economic policy has been in line with the global trend towards trade liberalisation, privatisation of state-owned concerns and reform of tax and tariff regimes. Nearly half of total output comes from the manufacturing sector, in which electronics, transport equipment, machinery, steel and textiles are the strongest industries. Until last year, the construction industry, which appeared to have almost taken over large parts of the capital, Kuala Lumpur, was especially active.
Japan is Malaysia's largest single trading partner, followed by the USA and Singapore.
Whether this plan will survive Asia's current financial and economic crisis is open to question. Malaysia has been affected quite seriously by the sudden collapse of its currency to half its previous value, mainly because its banking system is heavily exposed in the property market, invariably the first casualty of financial problems. However, its fundamental condition is better than many other countries in the region and Malaysia will probably avoid a full-scale recession. Suits or safari suits are acceptable for business meetings. Business visitors should remember that the Malay population is predominantly Muslim and religious customs should be respected and normal courtesies observed, eg appointments, punctuality and calling cards.