SWOT Analysis of Malaysia

Swot analysis of Malaysia. Malaysia is a Southeast Asian country. The South China Sea separates the country into two regions; East Malaysia of Borneo and Peninsular Malaysia. She shares the border with Vietnam, Singapore, Indonesia, and Thailand. Kuala Lumpur is the capital of Malaysia.

The total area of Malaysia is 127,724 square miles and it’s the 66th largest country in the world in the terms of area. Approximately more than 32,573,874 people are living there and that makes her 43rd more populated country. She falls at the 17th position of the world’s megadiverse country.

Some of the main industries of Malaysia are;

  • Telecommunication Products
  • Petrochemicals
  • Liquified Natural Gas
  • Petroleum
  • Islamic Finance
  • Wood Pulp
  • Timber
  • Smelting
  • Medical Equipment
  • Pharmaceuticals
  • Optical Devices
  • Automotive
  • Oleochemicals
  • Rubber
  • Integrated Circuits
  • Microchips
  • Semiconductors
  • Electronics

The British empire took over the Malay kingdom in the 18th century. The Malaysian Union of Peninsular was established in 1946 and it became the Federation of Malaysia in 1948. She finally gained her independence from the colonial empire on August 31, 1957.

According to an estimate, the annual GDP of Malaysia in 2022 was 434 billion dollars and it is 36th world’s highest. Out of which the per capita income was 13,108 dollars and it’s 63rd world’s highest.

Today, we’ll discuss the swot analysis of Malaysia. Here we’ll be analyzing various internal and external factors of the country. For macro-environmental factors, check out the pestle analysis of Malaysia. Here’s the swot analysis of Malaysia as follows;

Strengths of Malaysia 

Relationship with other Countries

Malaysia has very good relations with different countries of the world like the USA, UK, Canada, Australia, Germany, etc. She is a member of the world’s organizations like the Commonwealth of Nations, APEC, Non-Aligned Movement, OIC, EAS, and ASEAN.

Malaysia had conflicted relations with China on the South China Sea. Both finally came to an agreement after a lot of troubling periods.


Malaysia is the world’s most diverse country in terms of population and endemic species. People from different backgrounds like Chinese, Malaysians, and Indians live together in harmony. The three different ethnic groups work together and practically live their lives together. But they don’t do inter-ethnic marriages.


Malaysian landscape is comprised of beautiful landscape and charming natural beauty. The tourism industry is her major source of revenue. She has realized the worth and significance of the tourism industry much later than her neighboring countries Thailand, Indonesia, and Singapore.

Weaknesses of Malaysia 

Political Corruption

Malaysian political and government offices have some level of corruption. The people have to pay extra money “sweetener” to get things done. Even people can’t have access to basic human facilities like healthcare, education, and courts without bribery or sweetener.

Controlled Media

Malaysia has a controlled media and only the prevailing government makes the broadcasting decision. For instance, the government banned all the political debates and speeches of the opposition party in the election of 2007. The prevailing government behaves like a dictatorship and discourages the voting to the opposition party.

Useless Exports

As we know that the world is moving towards clean sources of sustainable energy. Malaysia heavily relies on the exports of oil, gas, and diesel. Most importantly, the prices of these exports are volatile and variable to the environmental changes. The eco-friendly and sustainable trend and the volatile international market both are impacting her exports.

Violation of Human Rights

It’s very difficult for the Malaysian people to enjoy basic human living facilities like healthcare, education, medication, and justice. It’s all dependants on bribery.

Opportunities available to Malaysia 

Service Industry

The Malaysian economy has faced many changes for the past 50 years. Now the country has moved towards middle-income countries by expanding its sources of earning. If she wants to grow more, then she has to focus on the growth of the service industry instead of the growth of exports.

Tech Industry

Malaysian people are accepting the technological changes and tech companies like Google, Facebook, Amazon, Microsoft, IBM, Apple, and many others. Their interest in the tech industry has created many opportunities. It would keep doing so in the upcoming future. Once people have the knowledge and expertise of the technology of the latest tech trends, then they grow in it. The government is also promoting and investing in the hi-tech industry.

Fast Food

The trend of fast food among the young generation is increasing. They prefer the quick and readily available fast-food. The pandemic crisis has promoted the trend of online order and home delivery service. If the fast-food offers online order and home delivery service, it has great growth potential.

Threats Malaysia has to face

Unemployment rate

According to an estimate, the unemployment rate in 2020 was 4.7%. It has increased from 3.2% before the pandemic of covid-19. The employment rate and new job opportunities have decreased by 0.8% due to the lockdown and shutdown of businesses.


As we know that Malaysia is a beautiful country with charming beaches and natural landscapes. But the expansion of cities, palm oil, and the mining industry is resulting in the form of deforestation. They’re good economically, but they’re ruining the natural environment.

Malaysia is also home to a variety of endemic species. The growing urbanization and deforestation would make them extinct. Environmentalists have said that some of the rare species have already gone extinct. Now the government must intervene to stop the slow down process.

Security Issues

Radically extremist organizations like Jemaah Islamiyah and Abu Sayyaf Group have a strongly growing network in Malaysia. They’ve also got association with Terrorist organizations like Al-Qaida. They’re on the most wanted list of the US government. Their presence won’t attract tourists and foreign investors. She must put an end to their presence.

Conclusion: Malaysia SWOT Analysis Example Country

After a careful study of the swot analysis of Malaysia, we’ve realized that Malaysia is indeed a growing and developing economy at a very high rate. The increasing unemployment rate, security issues, and deforestation are serious threats to the country. Malaysia must use its influence to develop the tech and tourism industry.

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