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. In the agricultural sector palm oil, of which Malaysia is the world's leading producer, is a major export commodity. Timber production remains important although it has been limited by the introduction of conservation measures in the mid-1990s. Tourism dominates the service sector, more so since the country's financial services industry was damaged by the 1997 financial crisis.
Japan is Malaysia's largest single trading partner, followed by the USA and Singapore.
However, its fundamental condition was better than many other countries in the region and Malaysia avoided a full-scale recession. Eschewing an IMF-led bailout, the insistence of the government to intervene strongly in the financial markets and to regulate foreign currency movement caused some consternation in international markets but appears, in retrospect, to have been vindicated. 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. In general most offices are open by 0830 and close between 1600 and 1730.