TITLE : ECONOMIC REPORT 1999/2000. (VOLUME 28).

 
 
																PAGE			
1.	THE PERFORMANCE OF THE MALAYSIAN ECONOMY IN 1999			
	AND PROSPECTS FOR 2000										17
 
	The Performance of the Malaysian Economy in 1999			17
	An Overview													17
	Sectoral Output Performance									18
	Domestic Demand												20
	External Demand												22
	Balance ofPayments											23
	Public Sector Financial Position							24
	National Resource Position									25
	Monetary Developments										25
	Stock Markets												26
	Inflation and Property Prices								27
	Labour Market												27
 
 Prospects for 2000												28
	Sectoral Output Performance									28
	Domestic Demand												30
	Net External Demand											30
	Balance of Payments											31
	Public Sector Financial Position							31
	National Resource Position									32	
	Inflation													32
	Employment Situation										32
 Conclusion 													32
 
 
2.	MANAGING THE MALAYSIAN ECONOMY IN 1999 						33
 
 An Overview													33
 Fiscal Policy													34
	Policy Considerations										34
	Priority In Budgetary Allocations							35
	Speedier Project Implementation								36
	Tax Measures												36
 Financing The 1999 Budget										38
 Strengthening the Banking Sector								38
 Development of The Ringgit Corporate Bond Market				39
 Enhancing The Standard of Corporate Governance					40
 Ensuring Y2K Compliance										40
 Impact of Policy Initiatives									41
 
 
3.	INTERNATIONAL ECONOMIC SURVEY								43
 
 Overview														43
	World Trade Growth											43
	International Financial Flows								43
	Financial Markets											44
	Economic Situation in the Industrial Countries				45
	Economic Situation in the Developing Countries				48
		The ASEAN Economies										48
		North East Asian Economies								50
 
		Feature Article l: Results of the Sixth APEC Finance
		Ministers Meeting (Langkawi, 15-16 May 1999)			51	
 
		Feature Article Il: Progress in the Financial and
		Corporate Sector Restructuring Process in the Asian
		Crisis Affected Economies								 55
 
	Other Developing Countries									 57
		Latin America										     57				
		Middle East, Africa and South Asia						 58
	Economic Situation of Countries-in-Transition				 60
	Prospects for 2000											 60
	Challenges Ahead											 62
 
 
4.	SECTORAL PERFORMANCE										 63	
 
	Gross Domestic Product										 63
	Manufacturing Sector										 63
	Agriculture Sector											 68
		Palm Oil and Palm Kernel Oil							 69
		Timber 													 70
		Rubber 													 70
		Other Agriculture, Livestock and Fisheries				 70
	Mining Sector												 71
		Crude Petroleum and Gas									 72
		Tin														 72
	Construction Sector											 73
	Services Sector												 75
 
 
5.	PUBLIC SECTOR FINANCIAL PERFORMANCE						      79
 
	1999 Performance 											  79
		Overview												  79
		Federal Government										  80
			Revenue												  81
			Operating Expenditure								  82
			Development Expenditure								  85
			Financing											  87
		State Government										  88
		Non-Financial Public Enterprises (NFPEs)				  89
		National Debt											  90
		Federal Government Dent									  91
	2000 Outlook												  93
		Overview												  93
		Federal Government										  94
			Revenue 2000										  94
			Operating Budget									  95
			Development Budget									  96
 
 
6.	EXTERNAL TRADE, BALANCE OF PAYMENTS AND FOREIGN EXCHANGE
	MARKET														  97
 
	Export Performance											  97
		Exports of Manufactured Goods							  97
		Major Primary Commodity Export							  104
			Palm Oil and Palm Kernel Oil						  104
			Timber												  105
			Rubber												  106	
			Other Agriculture Commodities						  106
			Crude Petroleum and Liquefied Natural Gas			  107
			Tin													  108
	Imports of Goods											  108
			Capital Goods										  109
			Intermediate Goods									  109
			Consumption Goods								      110
	Direction of Trade											  110
	Balance of Payments											  116
			Current Account										  117
			Capital Account									      121
	Foreign Exchange Market										  122
 
 
7.	PRICES, EMPLOYMENT AND WAGES								  123
 
	Prices														  123
	Employment													  127
 
 
8.	DEVELOPMENTS IN THE FINANCIAL SYSTEM						  133
 
	Monetary Policy and Financial Sector Developments			  133
	Money Supply												  135
	Bank Liquidity and Money Market								  136
	Commercial Banks											  137
	Islamic Banking												  140
	Finance Companies											  141
	Merchant Banks												  143
	Discount Houses												  144
	Development Finance Institutions							  144
	Other Financial Institutions								  147
			National Savings Bank								  147
			Provident and Pension Funds							  148
			Insurance Companies									  150
	Capital Market												  153
			The Kuala Lumpur Stock Exchange						  155
 
INVESTOR'S GUIDE												  169
 
STATISTICAL TABLE												  i
 
ACRONYMS AND ABBREVIATIONS										  lxiii
 
ORGANISATION CHART OF THE MINISTRY OF FINANCE