Overall, the Malaysian economy is highly robust and diversified with the export value of high-tech products in 2022 standing around US$66 billion, the third highest in ASEAN.

This is due to a fast-growing export-oriented economy, a relatively low national income tax, highly affordable local food and transport fuel, as well as a fully subsidized single-payer public healthcare system.

With Japanese investment, heavy industries flourished and within several years, Malaysian exports became the country's primary growth engine.

[45] Malaysia experienced an economic boom and underwent rapid development during the late 20th century and had a GDP per capita (nominal) of US$11,648.70 in 2023, and is considered a newly industrialised country.

"[51] In early 2020, the Malaysian economy was severely afflicted by the COVID-19 pandemic that eventually expanded to the rest of the world, causing an economic shutdown and downturn in the country, the worst since 2008.

Others, such as Carmelo Ferlito, from the Centre for Market Education, said it might require something more substantial as the recent budget lacked a strategy for the recovery as well as addressing the political tensions, and also, Shan Saeed at Juwai IQI suggested that the agency had lost its relevance as the analysis was "behind the curve".

[citation needed] However, the COVID-19 recession in the country ended by 1 April 2022 as the COVID-19 Omicron infection rate continued to fall ahead of the endemic phase.

An executive decision led by the then Prime Minister Mahathir Mohamad decided to peg the MYR to the dollar and impose capital controls to prevent excessive outflow of the Ringgit in the open market.

[54] Prior to the incident, the poverty rates among Malays were extremely high (65%) as was discontent between races, particularly towards the Chinese, who controlled 74% of the economy at the time.

[55][56] Through NEP, the Bumiputeras majority were given priority and special privileges in housing developments, scholarship admission and also for ownership of publicly listed companies.

[58] When the Democratic Action Party was elected in the state of Penang in 2008, it announced that it would do away with the NEP, claiming that it "... breeds nepotism, corruption and systemic inefficiency".

He also criticized the Federal Government giving cash-handouts and financial aid instead of providing equal access to education to help the marginalized poor to lift their income status.

On 21 April 2009, the prime minister Najib Tun Razak announced the liberalization of 27 services sub-sector by abolishing the 30% bumiputera requirement.

However, any Malaysian companies that wished to list in Malaysia would still need to offer 50 percent of public shareholding spread to Bumiputera investors.

Instead, a more selective, targeted subsidy was implemented, where cash assistance was directly disbursed to qualified individuals or fleet cards to eligible logistics vehicles.

[81] In recent years, Bank Negara Malaysia has begun to relax certain rules on capital controls, although the currency itself is still not traded internationally.

[96] Highlights includes easing restrictions and requirement to hire expatriates, shorten time to do land transfers and increasing the limit of sugar storage (a controlled item in Malaysia) for companies.

[98][99][100][101] In 2016, the Inland Revenue Board of Malaysia lowered the effective tax rate to 24% for businesses with capital exceeding RM2.5 million (approximately US$550,000).

He said Malaysia's main imports from Japan were electrical and electronics, machines and equipment as well as spare parts and accessories for vehicles and cars.

[116] In March 2019, the European Commission concluded that palm oil cultivation results in excessive deforestation and its use in transport fuel should be phased out by 2030.

[125] The Malaysian automotive industry is Southeast Asia's sole pioneer of indigenous car companies, namely Proton and Perodua.

[127] The Malaysian automotive industry also hosts several domestic-foreign joint venture companies, which assemble a large variety of vehicles from imported complete knock down (CKD) kits.

The expansion of the construction industry has been catalysed by major capital expenditure projects, and a key factor has been the government's Economic Transformation Programme (ETP) and public-private partnership (PPP) mega-projects like Tun Razak Exchange, KVMRT and Iskandar Malaysia.

[136] The Malaysian government is planning to transform the country's capital Kuala Lumpur into a major financial centre in a bid to raise its profile and spark greater international trade and investment through the construction of the Tun Razak Exchange (TRX).

[143] Malaysia's top tourist destinations are the Mulu Caves, Perhentian Islands, Langkawi, Petronas Towers and Mount Kinabalu.

[155][156] In 2016, Malaysia was ranked 18th out of 140 countries in the World Economic Forum's Global Competitiveness Report, the highest among of all developing economies in Asia.

[161] Malaysia's energy infrastructure sector is largely dominated by Tenaga Nasional, the largest electric utility company in Southeast Asia, with over RM99.03 billion in assets.

[165] As of 2021, Malaysia is one of the major producers of solar panels for the international market, but paradoxically it has yet to fully capitalize on this for domestic electricity generation.

The Pan-Borneo Highway, which connects Sabah and Sarawak on Borneo Island of East Malaysia, is undergoing a major upgrade to dual carriageway since 2015.

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