Malaysia: A Journey of 68 years towards peace, development, and prosperity I
Dr. Syed Mehboob
Economic and Political Analyst
Brother Islamic country Malaysia is celebrating its 68th Independence Day. On 31st August 1957, Malaysia gained independence from the United Kingdom. Malaysian Independence Day is also called “ Hari Merdeka ” in the Malaysian language, and this is why Independence Day is incomplete without the seven shouts of “ MERDEKA!”. This gesture was initiated by the First Prime Minister of Malaysia, Tunku Abdul Rahman, back in 1957 at Dataran Merdeka. Although there is a public day on 31st August, the Independence celebration ceremonies are held from 31st August till 16th September, which is Malaysian Day. During the whole month of August, also known as the Merdeka month, most Malaysians express their patriotism and love towards their culturally unique country by raising the Malaysian flag on their vehicles, balconies of their homes, and even along the streets. It is also during this time that the government buildings all over Kuala Lumpur and most shopping malls are hoisted with the Malaysian flag, Jalur Gemilang. The whole build-up to Malaysia’s Independence Day is celebrated with pride and joy, where competitions and parades are held; school children also perform on this auspicious day.
Every year, this day has a theme. The Theme for 2025 is “Malaysia Madani; Rakyat Disantuni”. This theme emphasizes the government’s commitment to placing the people at the center of its development agenda, prioritizing their well-being and ensuring inclusive growth that integrates material progress and spiritual values. Malaysia Madani refers to a nation focused on holistic and balanced development. Rakyat Disnatuni means’ People are cared for, ' reflecting a compassionate and inclusive approach to governance and development. Independence Day serves as a reminder to all Malaysians to appreciate the tough fight our ancestors have fought and to educate the current generation about the spirit of Independence.
Malaysia has demonstrated sustained, inclusive economic growth over the decades, transitioning from a middle-income to a high-income nation, driven by strong domestic demand, resilient exports, and a strategic shift from agriculture to manufacturing, services, and advanced technologies such as electronics and the digital economy. Key initiatives include multi-year development plans, investment in high-value sectors, and a focus on sustainable practices and climate change mitigation through policies such as carbon pricing and renewable energy promotion. The country also prioritizes inclusive growth by improving protection, addressing poverty, and aligning education with labour market needs, particularly for women. Malaysia aims to reach high-income status, moving towards becoming one of the top thirty economies globally, according to the Reshaping Development. The economy has diversified from traditional industries like palm oil to advanced manufacturing like electronics and electrical services, with a strong push into the digital economy and green initiatives. Malaysia benefits from its strategic location between major shipping routes, making it a crucial trade hub and a desirable destination for foreign investment.
Malaysia is a country in Southeast Asia. A federal constitutional monarchy consists of thirteen states and three federal territories, separated by the South China Sea into two regions: Peninsular Malaysia on the Indochinese Peninsula and East Malaysia, which shares land borders with Singapore, Vietnam and Indonesia, East Malaysia on the Island of Borneo. Peninsular Malaysia shares land and maritime borders with Thailand, as well as maritime borders with Singapore, Vietnam, and Indonesia; East Malaysia shares land borders with Brunei and Indonesia, and maritime borders with the Philippines and Vietnam. Kuala Lumpur is the country’s national capital, largest city, and the seat of the legislative branch of the federal government, while Putrajaya is the federal administrative capital, representing the seat of both the executive branch, the cabinet, federal ministers, and federal agencies, and the judicial branch of the federal government. With a population of 34 million, it is the world’s 42nd most populous country. It gained independence on 31 August 1957. On 15 September 1963, Independent Malaya united the then British Crown Colonies of Borneo, Sarawak, and Singapore to become Malaysia.
Malaysia is a founding member of the Organization of Islamic Cooperation ( OIC), the East Asia Summit ( EAS), and the Association of Southeast Asian Nations ( ASEAN).
Malaysia is a very peaceful country, and its visionary and able leadership promoted tolerance, acceptance, and accommodated diversity, inclusion, and it ranks 10th in the Global Peace Index (GPI) and 11th in the Henley Passport Index( HPI).
Malaysia is the 66th largest country by total area of 330,803 square km.
There is a great deal of commonality and potential for bilateral exchange in trade, tourism, knowledge, and expertise between Malaysia and Pakistan. Malaysia and Pakistan enjoy very close, brotherly, and good relations, and there is a dire need to turn these close relations into strong, long-term, and strategic economic relations.
Malaysia has taken pride in its association with Pakistan since 31 August 1957, when it gained independence. Pakistan was one of the earliest countries to recognize Malaysia as an independent and sovereign nation. Justice Abdul Hameed of Pakistan helped Malaysia in drafting its constitution, which reflects how close, brotherly, and strong relations Pakistan and Malaysia have. There is about one hundred thousand Pakistanis in Malaysia, who are working there and remitting money back to Pakistan, which is vital for Pakistan’s economy. Malaysia is also a very important destination for Pakistani students, and Malaysian education is at par with International standards. One of my former students, Dr. Zubair, did his Ph.D. from a Malaysian university and is now serving to impart his knowledge and experience to Pakistani students and to cultivate the seed of research in them.
25 million tourists witnessed the beauty and hospitality of Malaysia. Tourism is one of the largest sectors of the Malaysian economy in terms of revenue and employment. Pakistan can benefit from this experience from Malaysia as Pakistan has so many beautiful places which, if organized and facilitated, could be the source of attraction for tourists.
Prime Minister Mian Muhammad Shahbaz Sharif will visit Malaysia next month, and his visit will open a new chapter in strengthening Pakistan-Malaysia friendship. It is interesting to note that Malaysian Prime Minister Anwar Ibrahim visited Pakistan last year, and I had written an article on his visit. His Excellency Anwar Ibrahim had also visited Karachi during his youth, when he fell in love with Allama Iqbal’s poetry. There are around five thousand Pakistani students studying in Malaysia. Malaysia and Pakistan are moving towards strategic ties. Pakistan is the third-largest trade partner of Malaysia in South Asia. Malaysia is located in a very important geographical location right in the middle of the ASEAN region, with ten very important member states. The population base of ASEAN is 670 million people, so Pakistan can benefit. Pakistani investors can invest in Malaysia and use its soil to re-export many items to enhance Pakistan’s exports and foreign exchange. Malaysia has also invested in Pakistan in the finance sector, with one of its banks, Maybank, successfully operating in Pakistan. Malaysian power generation company is also operating one of the power plants in Lahore. Malaysia also has its telecommunication company investing in two thousand cell phone towers. Malaysia bought its airline “AirAsia” last year. There are also PIA flights to Malaysia. So, Pakistan and Malaysia are now well connected, and there is a need to make serious efforts to enhance bilateral trade.
Pakistan Malaysia Trade Statistics
Year Export US$ million Import US$ million Total Trade US$ billion Balance of Trade US$ Total export of Pakistan: US$ billion % of Total Export of Pakistan Total Import of Pakistan US$ billion % of Total Import of Pakistan
2020 233.1 1087.2 1.32 (854.10 22.24 1.0 45.840 2.4
2021 884.0 1319.1 1.703 (935.1) 28.88 1.3 73.10 1.8
2022 379.6 1076.7 4156.3 (697.07) 31.176 1.2 71.10 1.0
2023 465.2 773.6 1.238 (309.4) 28.95 1.6 50.36 1.5
2024 515.3 960 1.427 (444.7) 32.46 1.6 56.52 1.7
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