THE MALAYSIAN ECONOMIC EXPERIENCE AND ITS RELEVANCE FOR THE OIC MEMBER COUNTRIES

Malaysia’s economic track record in development is extremely impressive by any standards. The economy has made quantum leaps in just over three decades. It is noteworthy that rapid economic growth has been accompanied by a more equitable income redistribution without significant inflationary overtones. Trade represents the life-blood of the Malaysian economy with foreign direct investments playing a pivotal role in the industrialisation process. Economic openness has brought prosperity as well as vulnerability. To be sure, the Malaysian economy has been fairly resilient until it was caught in a major currency turmoil that began in mid- 1997. However, the origins of the current crisis are not entirely external. Domestic policies too have inadvertently contributed to the economic woes of the country. Nevertheless, the economy rests on solid foundations built since independence in 1957. The current problems are viewed as no more than a passing phase. However, there is a need to recognise policy failures, identify structural flaws in the system and set the house in order. OIC member countries can find useful lessons, both positive and negative, especially in the real of economic governance in Malaysia’s development experience.