This report describes, contrasts and compares the Economies of Malaysia and
Hong Kong. It showcases few economic indicators from last 5 years that are
analyzed and interpreted the underlying factors comparing the two
economies.
This comparison aims to show the statistical data to represent which country
made the most of its scarce resource and has the potential for the citizens to
have a better quality of life in general.
But Hong Kongs low open economy left itself exposed to the slowdown of the
global economy. Its GDP fell in 2009 due to the Global Financial Crisis. As
China is becoming increasingly the largest trading partner with Hong Kong,
nearly valuing half of Hong Kongs exports. Hong Kong has recovered from
the downturn quickly than the people anticipated. Its natural resources are
very limited, and so raw materials and food are imported.
Hong Kong closely links its currency to the US dollar, maintaining the 1983s
arrangement.
Malaysia, since the 1970s have transformed itself from raw materials
producers to an emerging multi-sector economy. In 2003, Prime Minister
Abdullah influenced to farther up the economy by attracting investments in
technology industries and pharmaceuticals for value-added production chain.
The current administration of Prime Minister Najib, also continued similar
efforts to boost the economy by introducing several reforms in the service
sector. Electronics still plays a significant role boosting exports as a major
driver of the economy. Malaysia has also profited as an oil and gas exporter.
Petronas, the state oil producer supplies more than 40% of government
revenues. Nevertheless in 2009, the decreasing demand for consumer goods
worldwide did hurt the economic growth of Malaysia.
Real GDP is the production of goods and services valued at constant prices.
Real GDP
250
200
150
Hong Kong SAR
100
Billion US $ Malaysia
50
0
The GDP of Hong Kong is closely higher than that of Malaysia and in 2008
Malaysias GDP went higher than Hong Kongs. But this statistics doesnt
represent the standards of living or the quality of life that the citizens of each
nation enjoy, or the way the wealth produced by the nation is shared among
its citizens. But it does provide the overall indication of the well being of the
nation, its people.
Hong Kongs GDP : After easing of travel restrictions from China, the total
number of tourists from
mainland to Hong Kong has increased from 4.5 Million (2001) to 17.7 Million
(2009).
And in last 10 years Hong Kongs service industry has rapidly grown to 90%
( 2009 ) of the territorys GDP, and this was due to the manufacturing
industries moving into China. From 1989 to 2008 the GDP growth has
averaged a strong 4% . { Source: CIA World Factbook - Unless otherwise
noted, information in this page is accurate as of February 19, 2010}
Malaysias GDP : In the last four years, Malaysias growth has been the
fastest despite the hike in domestic consumption and the fall of the key tech
exports. The major part in helping this growth was due the production of
crude palm oil becoming the 2nd largest producer in the world. Petroleum,
liquefied natural gas, Electronic equipments, wood and wood products,
rubber, palm oil, chemicals and textiles were the major items exported from
Malaysia. The Major export partners were US (15.6 %), Singapore (14.6 %),
Thailand (5 %) and Hong Kong (4.6 %) {Source
http://www.economywatch.com/economic-growth/malaysia.html)
Components of GDP
To see how the nation is really performing among the other nations lets look
deeper into its economy that is, the components of the GDP. Here below the
pie charts displays the components that produces the GDP of both nations.
Agriculture 0% Industry 8%
Services 92%
From the above graph, the economic structure of Hong Kong can be divided
into following sectors;
Primary sector: The Steep hillside is mainly responsible for zero agriculture.
Forcing most of the agriculture imports from China. Not even 0.1% of labor
forces were engaged in Hong Kongs 2009 agriculture sector.
Agriculture; 10%
Services; 48%
Industry; 42%
From the above graph, the economic structure of Malaysia can be divided into
following sectors;
0.00%
-2.00%
-4.00%
Line Graph of Malaysia and Hong Kong to show the past 5 yrs how the
countries have done
With the GDP data , the following table determines the purchasing power
parity basis that is divided by the population for the same year as of July
GDP - per capita (PPP)
$50,000
$40,000
$30,000
Hong Kong
$20,000
US $ Malaysia
$10,000
$0
Hours Worked
Bar Chart of no. of hours worked by 2 countries in general from last 5 years
(Source OECD Factbook 2010)
And explanation
Trade Balance
References
http://www.tradingeconomics.com/Economics/GDP-Per-Capita-PPP.aspx?
Symbol=MYR
http://www.indexmundi.com/g/r.aspx?t=0&v=66&l=en
http://www.indexmundi.com/malaysia/gdp_real_growth_rate.html
http://www.tradingeconomics.com/Economics/GDP-Per-Capita-PPP.aspx?
Symbol=MYR
Malaysia : http://www.dfat.gov.au/geo/fs/mlay.pdf