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Malaysia has one of the highest standards of living in SE Asia, largely because of its expanding industrial sector, which propelled the country to an 8–9% yearly growth rate from 1987 to 1997. Growth contracted during the 1997–98 Asian financial crisis, and the government was forced to cut spending and defer several large infrastructure projects. Unemployment and interest rates rose, and thousands of foreign workers, many of them from Indonesia, were forced to leave the country. The economy began to improve in 1999.
Malaysia is a large producer of rubber and tin; other important industries include palm-oil, crude petroleum and petroleum products, electronics, logging, and textiles. Since the late 1980s, the government has moved to privatize large industries that had been under state control, and foreign investment in manufacturing has increased significantly. Pinang city is the chief port. Subsistence agriculture remains the basis of livelihood for about 20% of Malaysians and agriculture provides about 15% of GDP. Rice is the staple food, while fish supply most of the protein. Industry is largely concentrated in West Malaysia. The major cities on the Malay Peninsula are connected by railroads with Singapore, and an extensive road network covers the west coast. The main trading partners are Japan, the United States, and Singapore.
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