[3] Malalag is the agricultural center of Davao del Sur, and its main products are banana, coconut and other fruits and vegetables.

Some pioneers trace the town's name from a disagreement between a Spanish soldier and Datu Alag, a famous chieftain among the early tribes.

The same story was told over the generations, so that even settlers coming from Visayas and Luzon became accustomed to calling the place Malalag.

The same area, now known as Crossing Baybay and adjacent to the 434th PNP Mobile Force Company barrack, was a center of commerce with Chinese traders.

Also, the Malalag Wharf that is located about a kilometer away used to accommodate three to four sea vessels that loaded products for transport to Visayas.

For two decades, the boundary dispute arising from the encroachment of the Municipality of Sulop into the territory of Malalag remained unsettled.

Originally, Malalag contained the Poblacion that is the seat of the Municipal Government, Bulacan, Bolton, Santa Maria, New Baclayon and Sulop.

At present, it has fifteen (15) regular barangays: Poblacion, Baybay, Bulacan, Bolton, New Baclayon, Caputian, Bagumbayan, Ibo, Pitu, Tagansule, Kiblagon, Rizal, San Isidro, Mabini and Lapu-lapu.

On July 2, 1953, the first sets of local officials were appointed and assumed office, headed by Mayor Col. Antonio Lanzar.

Since 1954, the municipal government has been run by the following elected mayors: Malalag also harbors a "Lumad" tribe called "Tagakaolo".

In 1955, the barrios of Basiawan, Kibulan and the sitios of Kimatay and Kilalag were transferred from the town of Malita, Davao del Sur, to Malalag.

Ships can anchor at a depth of 21 fathoms free of hazardous underwater obstructions/currents and is notably sheltered from direct exposure to the open sea.