Malaysia's Trade and Economy Transition between the Era of Tunku Abdul Rahman and Tun Mahathir, 1960s -1990s

Abstract

This article will focus on the main factors of change and development of economic modernization in trade. Since Malaysia gained independence, the agricultural sector has been a significant contributor to the country's financial income. However, in the 1980s, the industrial sector became essential to the national economy through gas and petroleum production. This situation changed the country's economic system and policies from the agricultural industry to the industrial sector in the early 1980s. The study examines the critical factors in Malaysia's economic development and trade changes from the 1960s to the 1990s. The study will also discuss changes and developments in the country's significant financial and trade policies. This research is using qualitative method by analyzing primary documents or materials from archives and secondary sources such as journal articles related to this research. The study began in the 1960s to take the year of Malaysia's independence in 1957 and ended before the Asian economic crisis in 1997. The findings show that internal factors such as government policy approaches and the country's vital financial resources were determinants of trade sector change. In addition, external factors of changes in the world economic environment and economic blocs also affect the modernization of the world economy. Therefore, internal and external factors play an essential role in developing the modernization of the trade economy.

Received: 4 April 2022

Reviewed: 8 April 2022

Accepted: 20 June 2022