Changes

In the years that followed, Malaysia undertook several initiatives that became integral parts of its socioeconomic model. The New Economic Policy (NEP), launched in 1971, contained a series of affirmative action policies designed to benefit Malays and certain indigenous groups (together known as bumiputera or "sons of the soil"). The Constitution was amended to limit dissent against the specially-protected and sensitive portions of the Constitution pertaining to the social contract. The government identified intercommunal harmony as one of its official goals. The previous alliance of communally based parties was replaced with a broader coalition—the Barisan Nasional (BN) or National Front. The BN won large majorities in the 1974 federal and state elections.  

In the years that followed, Malaysia undertook several initiatives that became integral parts of its socioeconomic model. The New Economic Policy (NEP), launched in 1971, contained a series of affirmative action policies designed to benefit Malays and certain indigenous groups (together known as bumiputera or "sons of the soil"). The Constitution was amended to limit dissent against the specially-protected and sensitive portions of the Constitution pertaining to the social contract. The government identified intercommunal harmony as one of its official goals. The previous alliance of communally based parties was replaced with a broader coalition—the Barisan Nasional (BN) or National Front. The BN won large majorities in the 1974 federal and state elections.  

Dr. Mahathir Mohamad was Prime Minister between 1981 and 2003, leading UMNO and BN to successive election victories. Mahathir emphasized economic development during his tenure, in particular the export sector, as well as large scale infrastructure projects. Mahathir attributed the success of the Asian tiger economies to the "Asian values" of its people, which he believed were superior to those of the West. Mahathir sharply criticized the International Monetary Fund (IMF), international financiers such as George Soros, and Western governments during the sharp economic and financial crisis that affected Asia in 1997-8, and denied that the downturn was due to the failures of corruption and "crony capitalism."  

Dr. Mahathir Mohamad was Prime Minister between 1981 and 2003, leading UMNO and BN to successive election victories. Mahathir emphasized economic development during his tenure, in particular the export sector, as well as large scale infrastructure projects. Mahathir attributed the success of the Asian tiger economies to the "Asian values" of its people, which he believed were superior to those of the West. Mahathir sharply criticized the International Monetary Fund (IMF), international financiers such as George Soros, and Western governments during the sharp economic and financial crisis that affected Asia in 1997–8, and denied that the downturn was due to the failures of corruption and "crony capitalism."  

[[File:Skyline Kuala Lumpur.jpg|thumb|left|320px|Kuala Lumpur, the capital.]]

[[File:Skyline Kuala Lumpur.jpg|thumb|left|320px|Kuala Lumpur, the capital.]]

The end of Mahathir's tenure was marred by a falling out with his deputy and presumed successor, Anwar Ibrahim. In September 1998, Mahathir dismissed Anwar and accused him of immoral and corrupt conduct. Although Anwar was convicted on both charges in 1999 and 2000, the trials were viewed as seriously flawed. Malaysia's Federal Court eventually freed Anwar after overturning his immoral conduct conviction in September 2004.  

The end of Mahathir's tenure was marred by a falling out with his deputy and presumed successor, Anwar Ibrahim. In September 1998, Mahathir dismissed Anwar and accused him of immoral and corrupt conduct. Although Anwar was convicted on both charges in 1999 and 2000, the trials were viewed as seriously flawed. Malaysia's Federal Court eventually freed Anwar after overturning his immoral conduct conviction in September 2004.  

===Foreign Relations===

===Foreign Relations===

Regional cooperation is a cornerstone of Malaysia's foreign policy. It was a founding member of the Association of Southeast Asian Nations (ASEAN) and served as the group's chair most recently in 2005-2006. It hosted the ASEAN Summit and East Asia Summit in December 2005, as well as the ASEAN Ministerial and the ASEAN Regional Forum in July 2006.

Regional cooperation is a cornerstone of Malaysia's foreign policy. It was a founding member of the Association of Southeast Asian Nations (ASEAN) and served as the group's chair most recently in 2005–2006. It hosted the ASEAN Summit and East Asia Summit in December 2005, as well as the ASEAN Ministerial and the ASEAN Regional Forum in July 2006.

Malaysia is an active member of the Asia Pacific Economic Cooperation (APEC), the Organization of the Islamic Conference (OIC), the Non-Aligned Movement (NAM), and the United Nations. It is the current chair of the OIC and has also chaired the NAM. Malaysia hosted the APEC Leaders' Meeting in 1998.

Malaysia is an active member of the Asia Pacific Economic Cooperation (APEC), the Organization of the Islamic Conference (OIC), the Non-Aligned Movement (NAM), and the United Nations. It is the current chair of the OIC and has also chaired the NAM. Malaysia hosted the APEC Leaders' Meeting in 1998.

*Trade: Merchandise exports--$145.0 billion: electronics, electrical products, palm oil, petroleum, liquid natural gas, apparel, timber and logs, plywood and veneer, natural rubber. Major markets—U.S. 18.8%, Singapore 15.0%, Japan 10.1%. *Merchandise imports--$118.0 billion: machinery, chemicals, manufactured goods, fuels, and lubricants. Major suppliers—Japan 16.1%, U.S. 14.6%, Singapore 11.2%.

*Trade: Merchandise exports--$145.0 billion: electronics, electrical products, palm oil, petroleum, liquid natural gas, apparel, timber and logs, plywood and veneer, natural rubber. Major markets—U.S. 18.8%, Singapore 15.0%, Japan 10.1%. *Merchandise imports--$118.0 billion: machinery, chemicals, manufactured goods, fuels, and lubricants. Major suppliers—Japan 16.1%, U.S. 14.6%, Singapore 11.2%.

[[File:New-Zealand-Malaysia-Free-Trade-Agreement.jpg|thumb|left|240px|[[New Zealand]] - Malaysia Free Trade Agreement.]]

[[File:New-Zealand-Malaysia-Free-Trade-Agreement.jpg|thumb|left|240px|[[New Zealand]] - Malaysia Free Trade Agreement.]]

The government has taken an active role in guiding the nation's economic development. Malaysia's New Economic Policy (NEP), first established in 1971, sought to eradicate poverty and to enhance the economic standing of ethnic Malays and other indigenous peoples (collectively known as "bumiputeras"). One NEP goal was to expand the share of corporate equity owned by ethnic Malays. In June 1991, after the NEP expired, the government unveiled its National Development Policy, which contained many of the NEP's goals. In April 2001, the government released a new plan, the "National Vision Policy," to guide development over the period 2001-2010. The National Vision Policy targets education for budget increases and seeks to refocus the economy toward higher-technology production. The stated goal is for Malaysia to be a fully developed economy by 2020.

The government has taken an active role in guiding the nation's economic development. Malaysia's New Economic Policy (NEP), first established in 1971, sought to eradicate poverty and to enhance the economic standing of ethnic Malays and other indigenous peoples (collectively known as "bumiputeras"). One NEP goal was to expand the share of corporate equity owned by ethnic Malays. In June 1991, after the NEP expired, the government unveiled its National Development Policy, which contained many of the NEP's goals. In April 2001, the government released a new plan, the "National Vision Policy," to guide development over the period 2001–2010. The National Vision Policy targets education for budget increases and seeks to refocus the economy toward higher-technology production. The stated goal is for Malaysia to be a fully developed economy by 2020.

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial crisis, which affected countries throughout the region, including South Korea, Indonesia, and Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a return to recession in 2001 when its economy was negatively impacted by the bursting of the [[dot-com bubble]] (which hurt the ICT sector) and slow growth or recession in many of its important export markets.  

The Malaysian economy went into sharp recession in 1997-1998 during the Asian financial crisis, which affected countries throughout the region, including South Korea, Indonesia, and Thailand. Malaysia's GDP contracted by more than 7% in 1998. Malaysia narrowly avoided a return to recession in 2001 when its economy was negatively impacted by the bursting of the [[dot-com bubble]] (which hurt the ICT sector) and slow growth or recession in many of its important export markets.