Total Area[1]

330,113 sq km

Population[2]

25.6 million

Major Cities Population in (000s)[3]

Kuala Lumpur (capital) 1,367

Johor Baharu                    724

Ipoh                                  601

Klang                                503

Petaling Jaya                    460

Languages[4]

Malay (the official language), Mandarin, English, Tamil, Iban, and Banjar

Currency[5]

Malaysian dollar (Ringgit) M$3.80:US$1

Government[6]

Federal Constitutional Monarchy with a federal parliament, executive councils for 13 states, and a judicial system

Overall Risk Assessment[7]

Legal risk is heightened by the lack of judicial independence. Capital controls have been dismantled, but would be re-imposed in the event of another financial crisis. The ringgit:US dollar peg will probably be maintained in 2004 and 2005. Transport and telecommunications infrastructure is reliable.

ICT Infrastructure[8]

Malaysia’s infrastructure is comparable to other countries in southeast Asia. Investment was interrupted by the 1997-98 collapse of the Thai Bot. After the crisis, investment has resumed. Malaysia has made progress in the creation of a more integrated, efficient and reliable urban transport system.

Telekom Malaysia is the dominant provider of fixed-line and cellular services. In 2003, the market for fixed-line telephones was 19 lines for every 100 people. Telekom is the provider of fiber-optics. Cellular services have continued to grow. Tariff liberalization has boosted the number of mobile phone users from 5.1m in 2000 to 9.2m in 2002.

Information and communications technology (ICT) development plays a crucial role in the government's plans and policies for the economy. The government desires to position Malaysia as a regional and global ICT and multimedia hub, by providing tax breaks to attract multinational corporations and increase the companies’ competitiveness through the development of the Multimedia Super Corridor. As of 2003, an estimated 1,000 foreign companies, including technology manufacturers, data centers and communication-related industries have a presence in Malaysia. Usage of ICT, measured in terms of installed personal computers (PCs), rose to almost 109 per 1,000 head of population in 2002, up from 97.2 in 1998. The government estimated in 2003 that there were 8.2m Internet users, which would give a penetration rate of 32%, compared with 40-50% in Singapore, Japan, South Korea and Taiwan. Malaysia has six Internet service providers, but the government keeps a wary eye on the Internet fearing uncensored criticism. The government has set a target of 50% broadband penetration by 2007.