The Malay Peninsula and indeed Southeast Asia has been a centre of trade for centuries. Various items such as porcelain and spice were actively traded even before Malacca and Singapore rose to prominence.
In the 17th century, were found in several Malay states. Later, as the British started to take over as administrators of Malaya, rubber and palm oil trees were introduced for commercial purposes. Over time, Malaya became the world's largest major producer of tin, rubber, and palm oil.[30] These three commodities, along with other raw materials, firmly set Malaysia's economic tempo well into the mid-20th century.
Instead of relying on the local Malays as a source of labour, the British brought in Chinese and Indians to work on the mines and plantations. Although many of them returned to their respective home countries after their agreed tenure ended, some remained in Malaysia and settled permanently.
As Malaya moved towards independence, the government began implementing economic five-year plans, beginning with the First Malayan Five Year Plan in 1955. Upon the establishment of Malaysia, the plans were re-titled and renumbered, beginning with the First Malaysia Plan in 1965.
In 1970s, Malaysia began to imitate Asian Tigers and committed itself to a transition from being reliant on mining and agriculture to an economy that depends more on manufacturing. With Japanese investment, heavy industries flourished and in a matter of years, Malaysian exports became the country's primary growth engine. Malaysia consistently achieved more than 7% GDP growth along with low inflation in the 1980s and the 1990s.
Malaysia is well-endowed with natural resources in areas such as agriculture, forestry as well as minerals. In terms of agriculture, Malaysia is the world's primary exporter of natural rubber and palm oil, which together with sawn logs and sawn timber, cocoa, pepper, pineapple and tobacco dominate the growth of the sector. Palm oil is also a major foreign exchange earner.
