Malaysia is a country situated in the southeast of Asia. South Chinese Ocean divides the country into two parts; East Malaysia and Peninsular Malaysia. The national capital of the country is Kuala Lumpur. Thailand, Indonesia, Vietnam, Singapore, Brunei, and the Philippines are the neighbouring countries of her.
The population of the country is comprised of more than 32 million people. Malaysia has a system of constitutional monarchy which has three federal territories and 13 total states. Nine Malay states elect the monarch or King, head of the state, for five years, whereas Prime Minister is the head of the government. Although English is a widely spoken language, but Malaysian remains the official language of the country.
SWOT analysis of Malaysia would help us to understand multiple internal and external factors; here it follows;
Strengths of Malaysia
Following are the key strengths of Malaysia
Alliances with China & other Countries
Malaysian government has been a very active member of many world-leading organizations like the UN, Commonwealth nation and Asian. Although she has very troubling relations with china over the south Chinese ocean, but both countries have decided to resolve their issues peacefully.
Lower Unemployment Rate
Working and Employed people is a great asset to any country. The unemployment rate of Malaysia in 2019 was roundabout 3%. The mining and oil industry majorly contributes to the overall economy of the country. Although the government is planning to shift its focus toward knowledge-based service industry, if their plan succeeds, then the unemployment rate would drop a bit lower.
Multi-cultural & Diverse Population
People of different faiths like Buddhists, Muslims, and Christians live side by side. Besides faith, there are also people with multiple ethnic groups like Indian, Chinese, and indigenous Malay people. Although all of these people have huge cultural and ideological differences; but somehow they have managed to co-exist in one place. They go to school, colleges, and universities together, but they don’t marry with the opposite group.
Natural beauty and Tourism
The natural landscape, beaches, and countryside are breathtaking. Malaysian government is working in the tourism industry to attract more tourists. Even though she has entered into this field a bit if we compare other south Asian countries like Indonesia, Thailand, and Singapore.
Transportation & Accommodation
The tourists who come to visit the country, Malaysian offers them a unique air flight experience. The best quality accommodation in Malaysia is very cheap and affordable. English is the second language which is widely spoken across the country. Therefore, foreigners find no difficulty in terms of communication.
Facilitating business policies
The government has taken a bit of liberal policies towards businesses in the public and private sectors. The purpose is to facilitate businesses and attract foreign investors so that they would invest in the service industry.
Weaknesses of Malaysia
Here are the major weaknesses of Malaysia.
Limited basic Human Rights
People have limited access to basic human rights; like health, medicine, education, and the legal system. If they want complete access like a full medical treatment and justice to be delivered easily, then they have to pay more.
The reason people have limited access to basic human rights is because of the corrupt Politician. They have made the system so corrupt that you can’t get things to be done without paying more to them.
Unjust Interference in the Political Debate
Malaysian government controls the media, only the current government defines the information to be delivered to the general public. Even in the general elections of 2007, the government censored to air the political debates of the opposition leaders, the purpose was to feed only one type of information to the public. Therefore, it becomes easier to manipulate the mass population.
Soon to be Obsolete Exports
Malaysian economy is heavily relying upon the export of oil, gas, and diesel. The world, on the other hand, is moving from burning fossil fuels toward eco-friendly resources of energy. With the rise of electric vehicles, solar panels, and wind force energy; the demand for mining oil and gas would become much less.
Lower Profit Margin
Cheap accommodation prices are good for the tourists, but it’s a nightmare for the local businessmen. When they don’t make sufficient profit to cover up their expenses and take less money at home, then it would badly affect the service quality of the staff that doesn’t have the professional training to deliver the quality service.
Opportunities for Malaysia
Malaysia can capitalize on the following opportunities.
Shift Product to Service based Industry
Malaysian economic trends have been changing for the past 50 years. Now, her economy has moved to the middle-income countries with the rise of the standard of living of the working class. The country has established multiple sources of income.
The knowledge-based service industry is the new economy dominating the factor of any nation if the country shifts its focus from the export of oil and gas to the service industry. Then her economy would grow more.
The government has welcomed the tech companies like Google and IBM with open arms. It shows her interest in this sector. However, the country has to learn a lot to reach the comprehension stage. Once they reach there, it would not only create more job opportunities for the people, but it would also generate national revenue for the country.
Fast food Trend
The working class and the young generation prefer fast food like burgers and pizza because it’s cheap and readily available. The trend of it has been increasing; therefore, it’s also a great opportunity for investors to invest in this sector.
Family Dinner Service
Religion plays a very important role in the lives of Malaysian people, where they’d love to have family dinner every day. If hotels and restaurants could provide family atmosphere service, then it would proliferate.
Threats of Malaysia
As the cities are expanding, and the mining industry is searching for more resources of oil and gas. Forests are getting shorter as a result. Palm oil is one of the major ingredients in many Malaysian’s exports. Deforestation means the end of this palm oil industry.
Wildlife is also on the very verge of extinction because of the Malaysian deforestation. Many of the species have been declared as extinct. The government must stop deforestation; otherwise, it’ll be too late.
The bribery or political corruption is destroying the very fabric of a peaceful society. It’s because you can’t get a better knowledge-based education, or access to medical facilities unless you pay for it. Anyone who raises one’s voice against corruption, than government-controlled media won’t give coverage to such news. Therefore, it would be very difficult that things would be ever changed because no one is willing to accept the facts.
Two homegrown radical organizations like Abu Sayyaf Group and Jemaah Islamiyah have a strong network across the country, and these organizations have also ties with Al-Qaida. That’s why the US government has put them in her wanted list. The point is that the whole economy and investment won’t proliferate without proper measures of security.
Conclusion: SWOT Analysis of Malaysia
Malaysian economy can become more fruitful and start thriving if it adopts technology and the service-based knowledge industry.
The future generations of the country have to pay a heavy price if the current generation doesn’t stop deforestation.
The government must stop controlling everything if it wants to be prosperous. New ideas and brainstorming only happen; when the minds of people are free, they say whatever they want to say without any restrictions.