Malaysia's forward progress is secure.

In the context of a developing economy Malaysia's efforts have drawn favorable recognition from the international financial community. The International Monetary Fund (IMF) in particular has acknowledged Malaysia's recent progress (specifically in a March 13, 2006 press release following a high level consultation with Malaysian officials.)

A good summary of the international consensus in regard to Malaysia's economy comes from that March 13, 2006 release. "In recent years, Malaysia's economic performance has been robust, underpinned by prudent macroeconomic management and structural reform."

Probably the most favorable comment made by the IMF was that Malaysia was further insulating itself from external economic shocks-notably from volatile oil prices. Malaysia is an oil producing nation, the fourth biggest in the Asia Pacific region in terms of reserves according to a 2005 British Petroleum study, and is fourteenth in the world in natural gas reserves according to 2005 statistics presented by Gibson Consulting, a Montana USA geologic consulting firm.

Malaysia's consumers benefit from the country's GDP growth, estimated at 5.5 percent for 2006 and 5.8 percent for 2007 by the IMF, and 6.0 percent for 2006 by the Malaysian government.

A June 9, 2006 story carried on the Bernama news wire (the government-owned Malaysia news service) quotes the governor of the country's central bank on implications for consumers. "The role of private consumption in the economy has also been enhanced, supported by steadily rising incomes, low unemployment, and access to the financial system."

A separate June 14, 2006 Bernama story said interest rate fears might have an adverse impact on the economy. As its source, Bernama cited the UBS financial firm.

Both inflation (2.9 percent) and unemployment (3.6 percent) are low, and the percentage of the population living below the poverty line is 8.0 percent (1998) according to 2005 CIA estimates.

A major stumbling block moving forward is the difficulty of increasing the pace of reform among so-called government linked companies.

STRUCTURAL REFORM AND AN EYE ON INFLATION WILL HELP MALAYSIA GROW

The population growth rate for Malaysia is above the regional average, due in part to a birth rate of 26 per thousand inhabitants, which is above the average of 22 per thousand for Southeast Asia. Job creation has kept up with growth of the labor force in recent years, and it is likely that the situation will improve further in 2006. Unemployment is running about 3.6 percent, and this continues to buoy consumer confidence.

Malaysia's population reached 26-million people mid-2005, which amounted to just under 5 percent of Southeast Asia's 557-million inhabitants. According to data released by the Population Reference Bureau (PRB), Malaysia's population will reach 36-million by 2025. Also, according to that source, Malaysia is going to have a population of 47-million people in 2050.

The PRB revealed that 62 percent of Malaysia's population lived in urban areas during 2005, and that the country's population density is a comparatively moderate 205 people per square mile. Malaysia is nearly the same size in area as Vietnam, but Vietnam has slightly more than three times as many people.

The CIA's World Factbook, indicates that 33 percent of Malaysia's population was birth to 14 years old in 2005, while 62 percent was 15 to 64 years old, and 5 percent of the populace was 65 years of age and over.

CIA statistics also revealed that the country's population growth rate will be 1.78 percent in 2006. According to the United Nations Population Division, in the year 2050, 20 percent of Malaysia's population will be birth to 14 years old, while 59 percent will be aged 15 to 59, and 21 percent of the populace will be 60 years of age and over.