Regarding the mixed economic system in Malaysia, it is obvious that the general stability of the
economy depends directly on the proper management of the finances in both public and private sectors.
According to Keat (2010), Malaysia turns out the significant proof; since the Asian crisis the ratio of
corporate debt to equity ratio decreased by two thirds. The financial leverage and dependence on
foreign financing was decreased as well. The next point of the right management relates to the notion of
main indicators of external vulnerability because this index was decreased by a third.
During the past decade, the trade among Asian countries has tripled and the same situation has
happened to the Asian emerging markets. The key of Asian trade is that any trade currents form the
major one. There is the typical chain forming China as the final departure for different goods from a
plenty of countries. China collects all staff and produces the final products for export. According to
Garnaut (1980), this intermediate product is more than 70 percent of Asian export. Malaysia cannot
help standing aside and exports the valuable electronic products for assembly.
The government of Malaysia sets the course for the transition into the category of high-income
countries (“Malaysia’s economy”,). This may happen only on the assumption of a strong middle class
and the necessary level of the domestic consumption. Following this purpose, the government promotes
the further regional integration, thus it is possible to open new areas for mutually beneficial
cooperation.
Through this aspect, the main advantage of the mixed economy becomes apparent. The government
conducts the social policies and sets tax policy following the completion of the budget and the
