Geography

Malaysia is the 43rd most populated country and the 66th largest country by total land area in the world, with a population of about 28 million and a land area of over 320,000 km2 respectively. It is comparable in population to Saudi Arabia and Venezuela, and is roughly similar in size to Norway and Vietnam, along with the U.S. state of New Mexico.

The two distinct parts of Malaysia, separated from each other by the South China Sea, share a largely similar landscape in that both West and East Malaysia feature coastal plains rising to often densely forested hills and mountains, the highest of which is Mount Kinabalu at 4,095.2 metres (13,436 ft) on the island of Borneo. The local climate is equatorial and characterised by the annual southwest (April to October) and northeast (October to February) monsoons.


Kota Kinabalu, capital of East Malaysian state of Sabah is located 1,600 kilometres (990 mi) east across the South China Sea from Kuala Lumpur.Tanjung Piai, located in the southern state of Johor, is the southernmost tip of continental Asia.[54][55] The Strait of Malacca, lying between Sumatra and Peninsular Malaysia, is arguably the most important shipping lane in the world.

Kuala Lumpur is the official capital and largest city of Malaysia. Putrajaya is the federal administrative capital. Although many executive and judicial branches of the federal government have moved there (to ease growing congestion within Kuala Lumpur), Kuala Lumpur is still recognised as the legislative capital of Malaysia since it houses the seat of the Parliament of Malaysia. It is also the main commercial and financial centre of the country.

Other major cities include George Town, Ipoh, Johor Bahru, Kuching, Kota Kinabalu, Miri, Alor Star, Malacca Town, Kuala Terengganu, Kota Bharu, Kuantan and Petaling Jaya.

Natural resources
Malaysia is well-endowed with natural resources in areas such as agriculture, forestry and minerals. In terms of agriculture, Malaysia is one of the top exporters 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 generator of foreign exchange.


Palm oil estate in Malaysia.
Rolling tea fields in Malaysia.Regarding forestry resources, it is noted that logging only began to make a substantial contribution to the economy during the 19th century. Today, an estimated 59% of Malaysia remains forested. The rapid expansion of the timber industry, particularly after the 1960s, has brought about a serious erosion problem in the country's forest resources. However, in line with the Government's commitment to protect the environment and the ecological system, forestry resources are being managed on a sustainable basis and accordingly the rate of tree felling has been on the decline.

In addition, substantial areas are being silviculturally treated and reforestation of degraded forestland is being carried out. The Malaysian government provide plans for the enrichment of some 312.30 square kilometers (120.5 sq mi) of land with rattan under natural forest conditions and in rubber plantations as an inter crop. To further enrich forest resources, fast-growing timber species such as meranti tembaga, merawan and sesenduk are also being planted. At the same time, the cultivation of high-value trees like teak and other trees for pulp and paper are also encouraged. Rubber, once the mainstay of the Malaysian economy, has been largely replaced by oil palm as Malaysia's leading agricultural export.

Tin and petroleum are the two main mineral resources that are of major significance in the Malaysian economy. Malaysia was once the world's largest producer of tin until the collapse of the tin market in the early 1980s. In the 19th and 20th centuries, tin played a predominant role in the Malaysian economy. It was only in 1972 that petroleum and natural gas took over from tin as the mainstay of the mineral extraction sector. Meanwhile, the contribution by tin has declined. Petroleum and natural gas discoveries in oil fields off Sabah, Sarawak and Terengganu have contributed much to the Malaysian economy. Other minerals of some importance or significance include copper, bauxite, iron-ore and coal together with industrial minerals like clay, kaolin, silica, limestone, barite, phosphates and dimension stones such as granite as well as marble blocks and slabs. Small quantities of gold are produced.

In 2004, a minister in the Prime Minister's Department, Mustapa Mohamed, revealed that Malaysia's oil reserves stood at 4.84 billion barrels (769,000,000 m3) while natural gas reserves increased to 89 trillion cubic feet (2,500 km3). This was an increase of 7.2%.[citation needed] As of 1 January 2007, Petronas reported that oil and gas reserve in Malaysia amounted to 20.18 billion barrels (3.208×109 m3) equivalent.

The government estimates that at current production rates Malaysia will be able to produce oil up to 18 years and gas for 35 years. In 2004, Malaysia is ranked 24th in terms of world oil reserves and 13th for gas. 56% of the oil reserves exist in the Peninsula while 19% exist in East Malaysia. The government collects oil royalties of which 5% are passed to the states and the rest retained by the federal government.