Country: Malaysia
Capital: Kuala Lumpur (KL)
Population: 26.6 millions
Predominant Religion: Islam
Currency: Ringget
Weather: Hot
Economy: Hotter than Hot!
I have reasons to believe that Malaysia will be one of the fastest-growing islamic economies in the world. The country’s largest industry is manufacturing, which accounts for 30.7% of the economy. Malaysia boasts booming auto manufacturing businesses, vibrant furniture factories, & thriving electronics & semiconductor chip makers.
Tin & base metals account for another 15% of the economy, & the country’s financial services industry now comprises another 16%. Other important areas are agriculture (palm oil & rubber), trade, construction, & tourism. Malaysia’s economy expanded at a very healthy 5.9% last year, more than twice as fast as the U.S. economy.
With only $39 billion in gross domestic product, the country is tiny by comparison, but its GDP looks set to keep soaring in the years ahead. Foreign direct investment (FDI) in Malaysia is also exploding higher, reaching a record $5.7 billion in 2006, up more than 12% from 2005.
Malaysia clearly has an economic advantage because of its vast natural resources in agriculture, mining, & oil. It also has strong roots in British law, largely due to the British occupation from 1795 to 1957, after which the independent Malaysia was formed. They have a large English-speaking population too, & this widespread use of English is a huge plus, especially when you put it into the context of economic growth.
But Malaysia has another unique advantage that I believe will help push its economy ahead at solid growth rates for several more years: It is home to the largest Islamic capital markets in the world! The Malaysian government has always been sensitive to the Islamic religion, &, unlike many other Muslim countries, it has kept the religion’s principals in mind when it comes to monetary matters.
Case in point: Malaysia is the first Islamic country to have its own Islam-based stock exchange, the Bursa Malaysia Berhad. This subset of the country’s main stock market was launched on March 18, 2005. The exchange lists equities, derivatives, & offshore markets — but only those that adhere to Islamic tenets. For example, companies cannot actively seek revenues from interest income, gambling, life insurance, tobacco, or alcohol.
In short, Malaysia has done what no other country has done — accommodated the tenets of Islamic law in its economy & its stock market by setting up separate listings. These companies allow the devout to invest with a conscience & help foster the Islamic economy.
Interestingly, this Malaysian system wouldn’t work in many other areas of the world. But it gives tens of millions of Muslim investors a unique solution to today’s rapidly changing financial markets. There are over 1.5 billion Muslims in the world today, representing 24% of the world’s population. Key developments like Malaysia’s Bursa Berhad help to bring them into modern society while addressing their religious needs.
My take: Malaysia’s economy is poised for loads of growth in the years ahead. Its stock markets have recently pulled back, & now look very attractive to investors. Considering also the fact that China is crunching out almost 1 million cars a month, where are they going to get the rubber they need to make tyres? Fact: Malaysia is one of the 2 major exporter of rubber, besides Indonesia. Every one vehicle will need four of those wheels (some need 5!). You do the maths.
Capital: Kuala Lumpur (KL)
Population: 26.6 millions
Predominant Religion: Islam
Currency: Ringget
Weather: Hot
Economy: Hotter than Hot!
I have reasons to believe that Malaysia will be one of the fastest-growing islamic economies in the world. The country’s largest industry is manufacturing, which accounts for 30.7% of the economy. Malaysia boasts booming auto manufacturing businesses, vibrant furniture factories, & thriving electronics & semiconductor chip makers.
Tin & base metals account for another 15% of the economy, & the country’s financial services industry now comprises another 16%. Other important areas are agriculture (palm oil & rubber), trade, construction, & tourism. Malaysia’s economy expanded at a very healthy 5.9% last year, more than twice as fast as the U.S. economy.
With only $39 billion in gross domestic product, the country is tiny by comparison, but its GDP looks set to keep soaring in the years ahead. Foreign direct investment (FDI) in Malaysia is also exploding higher, reaching a record $5.7 billion in 2006, up more than 12% from 2005.
Malaysia clearly has an economic advantage because of its vast natural resources in agriculture, mining, & oil. It also has strong roots in British law, largely due to the British occupation from 1795 to 1957, after which the independent Malaysia was formed. They have a large English-speaking population too, & this widespread use of English is a huge plus, especially when you put it into the context of economic growth.
But Malaysia has another unique advantage that I believe will help push its economy ahead at solid growth rates for several more years: It is home to the largest Islamic capital markets in the world! The Malaysian government has always been sensitive to the Islamic religion, &, unlike many other Muslim countries, it has kept the religion’s principals in mind when it comes to monetary matters.
Case in point: Malaysia is the first Islamic country to have its own Islam-based stock exchange, the Bursa Malaysia Berhad. This subset of the country’s main stock market was launched on March 18, 2005. The exchange lists equities, derivatives, & offshore markets — but only those that adhere to Islamic tenets. For example, companies cannot actively seek revenues from interest income, gambling, life insurance, tobacco, or alcohol.
In short, Malaysia has done what no other country has done — accommodated the tenets of Islamic law in its economy & its stock market by setting up separate listings. These companies allow the devout to invest with a conscience & help foster the Islamic economy.
Interestingly, this Malaysian system wouldn’t work in many other areas of the world. But it gives tens of millions of Muslim investors a unique solution to today’s rapidly changing financial markets. There are over 1.5 billion Muslims in the world today, representing 24% of the world’s population. Key developments like Malaysia’s Bursa Berhad help to bring them into modern society while addressing their religious needs.
My take: Malaysia’s economy is poised for loads of growth in the years ahead. Its stock markets have recently pulled back, & now look very attractive to investors. Considering also the fact that China is crunching out almost 1 million cars a month, where are they going to get the rubber they need to make tyres? Fact: Malaysia is one of the 2 major exporter of rubber, besides Indonesia. Every one vehicle will need four of those wheels (some need 5!). You do the maths.
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