Learning Objectives

summary the economic development of every of the nations in this section. Understand that Malaysia is divided in between the Malay Peninsula and the island of Borneo. Outline exactly how the structured island nation of Singapore ended up being an economic tiger. Define the physical location of Indonesia and also the populace dynamics the the island that Java. Summarize the cultural characteristics of the Philippines. Find out why this nation is a popular location for business process outsourcing (BPO).

The insular region of south east Asia consists of the countries of Malaysia, Singapore, Brunei, east Timor, Indonesia, and the Philippines. The the Southeast asian countries, eastern Timor most recently acquired its independence, as was mentioned in the vault lesson. In comparing this island nations, comprehensive diversity in all elements will be found. There are significant differences in cultural, economic, and political dynamics, and also in the ethnic teams that make up the dominant majorities in each. There is additionally a high level of linguistic and spiritual diversity. The physical location varies native island come island; some have actually high mountain relief and also others are low-lying and fairly flat. Energetic tectonic plate activity in the an ar causes earthquakes and volcanic activity, result in destruction of infrastructure and also loss the life; both acutely affect human activities.

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Economic forces proceed to notice the countries of south-east Asia to get in into trade relationships that integrate them with global networks based on dependency and also reliance. The old colonial powers may no longer manage them politically but may influence them economically. The new dynamics of that company colonialism, with their economic power located in the core economic regions, still seek to make use of the nations of south-east Asia for their labor and also resources. These eastern nations space working to build their own economies and use their very own labor and resources to get national wealth and increase the traditional of life for their people. Each nation has to complete with globalization forces within the worldwide network of financial relationships.


Malaysia is a country comprised of various British nests that came with each other as a federation and also then became an independent country. Britain started establishing swarms in the an ar in the so late 1700s. The 2 main locations include the western colonies on the Malay Peninsula and the eastern nests on the island of Borneo. The western negotiations were part of the Malay Peninsula, which consisted of the nests of Pinang and also Singapore. Eventually, the brothers took manage of the eastern swarms of Brunei, Sarawak, and Sabah on the island that Borneo. In 1957, the western swarms on the mainland peninsula damaged from your British colonizers and became an independent nation called the Federation the Malaya. In 1963, the brother Borneo nests of Sarawak and also Sabah joined the Federation of Malaya to form the current country, which is dubbed Malaysia. In 1965, Singapore broke off from Malaysia and became an live independence country. Brunei, which was still a brothers protectorate, came to be independent in 1984.

Malaysia has two main land areas separated by the southern China Sea. The regions of Sarawak and also Sabah, ~ above the island of Borneo, are dubbed East Malaysia; the mainland top top the Malay Peninsula is referred to as West Malaysia. These areas have comparable physical landscapes, i m sorry include coastal plains with surrounding densely forested foothills and also mountains. The highest possible mountains, rising 13,436 feet, are in eastern Malaysia on the island the Borneo. Located near the equator, Malaysia has actually a tropical form A climate v monsoons regularly emerging from October to February.

Figure 11.12 districts in East and also West Malaysia


Diversity of society and Ethnicity in Malaysia

Malaysia’s society is varied in the several major religions are exercised within that is borders. Islam is taken into consideration the official religion and also is sustained by at least 60 percent the the population. About 20 percent that the civilization are Buddhists, 10 percent Christians, and also 6 percent Hindu. The remaining percentages that the populace include timeless Chinese religions and also local defect beliefs. In this Islamic country, over there are concerns that Muslims acquire preferential therapy by federal government programs and also policies. There are even special judicial legit courts for Muslims just to job-related out issues regarding marriage, custody, inheritance, or other conflicting Islamic issues about faith and also obligation. This court only hears Islamic issues and also no various other legal matters. There have been motions by minority extremist teams that would like to view Malaysia change toward a true Islamic state, finish with the Sharia Criminal code as the regulation of the land. The movement, however, has been cracked under on by the government. Due to the fact that the 9-11 incident in the unified States, there has been an ext concern about extremist spiritual views.

People the Malay country background do up an ext than 50 percent that the population. Civilization of Chinese descent are the second-largest team at around 24 percent. An additional 11 percent that the population is consisted of of native groups. During British colonialism, a number of people from southern Asia were lugged to Malaysia. Because that example, Tamils were carried from India to work-related the plantations. Your Hindu beliefs were infused right into the society and part Tamils also converted to Christianity. Sikhs were carried from south Asia to assist Britain run the country as police, soldiers, or security officers. The Sikhs who came carried their religious beliefs with them, which included to the multireligious dynamics of the country.

Figure 11.13 The Tuaran roadway of Kota Kinabala City in Malaysia during a Time of slow Traffic


Notice the the cars space driving ~ above the same side that the road as they would be in good Britain, Malaysia’s previous colonizer.

Source: picture courtesy that thienzieyung, http://www.flickr.com/photos/thienzieyung/4693359106.

Malaysia’s diverse ethnic and social mix frequently results in solid centrifugal pressures that push and pull ~ above the societal dynamics the the country. China has been energetic in the service community and has established solid economic ties with local countries that have actually Chinese populations. The single largest minority team in the district of Sarawak top top Borneo is Chinese. Together a decimal group, Chinese citizens of Malaysia have actually felt discrimination. Because the official language is Malay and the main religion is Islam, there have actually been concerns about discrimination versus all minority groups. Working through the social and country diversity has actually been a major difficulty for the country. Every minority religious or ethnic group desires come celebrate its own special holidays. Because that example, over there is the usual brand-new Year’s celebration event on January 1, and also then over there is the timeless fifteen-day Chinese brand-new Year celebration commemorated at a different time the the year. Sikhs memory the Sikh new Year. Buddhists storage a holiday in honor of the life and enlightenment the Buddha. Believer celebrate Christmas and also Easter. Plenty of other holidays of significance are respect or honored by assorted minority groups.

Economic breakthrough in Malaysia

Malaysia has rapidly progressed its economic situation in recent decades and is modernizing that infrastructure—roads, bridges, highways, and urban facilities. In the capital city, Kuala Lumpur, Malaysia developed a modern main business district with a pair high-rise office structure claimed to be the world tallest at the moment of construction. Prior to the an international economic downturn that started in 2007, Malaysia had developed a fast-growing economy and was industrializing at a fast rate. Malaysia has taken advantage of its location on a major shipping lane and also has shifted to manufacturing as crucial sector of its economy. The country has been a leader in the fiddle of natural resources such as tin, rubber, and also palm oil and has arisen its agricultural and extractive sectors to get income. The 1980s and also 1990s were prosperous times for the country and it matured its manufacturing base from light textiles right into electronics and heavy industries.

One element of the nation that is looming top top the horizon and also may cause problems is the high populace growth rate. In 2010, Malaysia’s population was approximated at much more than twenty-five million, v a copy time of about forty years. Though the nation is 70 percent urban, household size (fertility rate) is quiet at around 3.0, which indicates an increasing population growth pattern. One-third of the populace is under the age of fifteen. Malaysia is one situation where the basic principle the if a country urbanizes and industrializes the family members size will certainly go down has actually not take away place quick enough. The fertility rate has dropped indigenous 5.0 come 3.0, however it demands to get listed below a rate of about 2.0 if the country is going to properly stabilize its populace growth. Uneven the nation addresses this population growth, the need for resources could outstrip economic progress in the future.


Under British colonial rule, the island the Singapore was consisted of in the Malaysian federation. It broke away and also became live independence in 1965. The is a little island measuring about thirty miles long at the widest point. Singapore is about two hundred fourty square mile in area. Singapore’s most valuable source is its loved one location. Singapore is comparable to Hong Kong in the development. V a great port, Singapore is a hub because that ships sailing between Europe and also China. It serves Southeast Asia together an entrepôtA break-of-bulk allude where big shipments arrive and also are damaged down right into smaller shipping for delivery to local regions on smaller sized transportation systems., or break-of-bulk point, where products are offloaded from large ships and also transported to smaller vessels for circulation to the Southeast oriental community.

Figure 11.14 Singapore and Neighboring Countries


Singapore has made good strategic utilization of its geographical location by serving as a distribution facility for goods and also materials handle in the region. Crude oil oil from Indonesia is unloaded and refined here. Raw materials are shipped in, manufactured into finished products, and then shipped out to global markets. Because Singapore is small, the has had actually to concentrate on manufacturing items that provide for optimal profits. Together an economic tiger, Singapore has transitioned with the exact same stages as Taiwan, south Korea, and Hong Kong to become an financial power in southeast Asia.

To store labor prices low, early manufactured commodities were textiles, clothing, and also cheap goods. As incomes and also labor skills rose, so did the intricacy of the made goods. The government of Singapore has targeted certain species of assets to for sure a high profit margin and a an international market need. This has had automation equipment, biotechnology, and high-end info technologies. Singapore doesn’t manufacture automobiles yet it does manufacture automation robotic contents that most modern auto manufactures will purchase and use. Medical modern technology is expensive and is in high demand the human being over. Singapore is targeting this market. The information age has spawned new technologies that space evolving promptly and, as soon as again, Singapore has gone to the center of this industry. Singapore has been a center for the manufacturing of computer system disc drives because that a multitude of worldwide corporations.

Singapore Island is a swampy place with no organic resources. All manufacturing components, food goods, building materials, and energy must be imported. Importing whatever has elevated the price of living. To complete with the other eastern economic many tigers in the worldwide marketplace, Singapore has implemented severe manage measures on its operations. There space harsh penalties for criminal activities and for even misdemeanor offenses. Singapore is a safe ar to live since of its strictly state rules. It has actually an authoritarian government, i m sorry strives to produce an attractive location for worldwide corporations come operate. One of the goals is to get rid of corruption and establish a business-friendly environment.

The federal government of Singapore has gone into into trade agreements v two that its next-door neighbors to administer raw materials and also cheap labor. A profession triangleThree-way trade agreement between Singapore, Malaysia, and Indonesia whereby each nation contributes what that can administer and obtain what the other nations have to offer. Has been established in between Singapore, Malaysia, and also Indonesia. Malaysia and Indonesia provide Singapore v raw materials and cheap labor; Singapore gives its neighbors with technological know-how and financial support. Anyone benefits. Singapore is fantastic example that the upper finish of the economic spectrum in southeast Asia. Countries like Laos or Vietnam would certainly be at the the opposite end, because they have actually a greatly rural population based on agriculture that is just start to change to the cities through industrialization. Singapore is already 100 percent urban with high incomes based on high-tech manufacturing and processing of life materials. Singapore is an financial hub because that Southeast Asia, finish with global airline connections and is located on a significant shipping lane. Singapore’s world-class port is just one of the busiest in Asia. The remainder of southeast Asia is what in in between these two ends that the spectrum as far as economic advance is concerned.


The country of Indonesia is the world’s largest archipelago state, consists of an ext than 17,500 islands, around one-third of which room inhabited. Indonesia is the sixteenth-largest nation in the people by area. The an unified area of every the islands and also regions the Indonesia would equal about the dimension of the country of Mexico. The nation shares land borders with the Borneo side of Malaysia, the western fifty percent of the island that Timor, and also the western portion of the island of brand-new Guinea, i m sorry is common with the country of Papua new Guinea.

The country’s ar on both sides of the equator offers a tropical form A climate, complete with a monsoon season. Typical rainfall deserve to vary from seventy to two hundred forty inches per year. The highest possible mountain is in West Papua and rises to around 16,024 feet. Indonesia is located on the Pacific Rim, where tectonic plate task produces earthquakes and also volcanic activity. The nation is home to end one hundred fifty active volcanoes, including two of the most famous ones, Krakatoa and Tambora. Both had devastating eruptions in the previous two centuries. Among the many violent volcano explosions ever recorded in human history came indigenous Krakatoa, i beg your pardon is located between the archipelago of Java and also Sumatra. A series of eruptions in 1883 to be heard as far away as the coastline of Africa. Shockwaves reverberated around the globe seven times. Ash erupted into the atmosphere to a height of about fifty miles. The official death toll to be 36,417, yet estimates from local sources ar it as high as 120,000. An international temperatures fell by around 2 °F, and weather patterns were disrupted for the next five years. Krakatoa remains active. Over the past few decades, the volcanic peak has been growing at the typical rate of about five inches per week.

Figure 11.16 significant Islands and also the Thirty-Three nationwide Provinces that Indonesia


Source: Updated indigenous map courtesy that Golbez, http://commons.wikimedia.org/wiki/File:Indonesia_provinces_english.png.

The tropical climate and the archipelago nature of the country provide for enormous biodiversity within the environment. Second only to Brazil in that is biodiversity, Indonesia is host to an enormous number of unique plants and also animals. The habitats of countless of these creatures space being encroached upon by human activity. The far islands have more of a chance of escaping habitat devastation and remaining intact, but agricultural and extractive economic activities have converted much of the natural setting into a social landscape that is not conducive to eco-friendly sustainability.

Animals such together orangutans are shedding their organic forests and may become extinct if current trends continue. The timber industry has actually brought about deforestation. Slash and burn farming has damaged forest habitat, and also human breakthrough patterns such together roads and also urbanization have altered the ecosystems the the region. Follow to recent reports, Indonesia is just one of the biggest emitters of carbon dioxide in the world since of the high number of forest fires collection each year. In 2009, the United says brokered a deal with Indonesia to pardon thirty million dollars the its blame if the nation would work-related to defend forests ~ above the island that Sumatra, which is house to intimidated indigenous pets such as tigers, elephants, rhinos, and also orangutans.

In 2010, the estimated population of Indonesia was about 245 million. Indonesia has actually the fourth-largest population of any country in the world, after ~ the joined States, India, and China. Indonesia additionally has an ext Muslims than any type of other country in the world. More than half the population of Indonesia resides on Java, the island where Jakarta, the funding city, is located. Java is the many populous island in the world, and has a population density of an ext than 2,400 human being per square mile. Java is the dimension in area that the us state the Louisiana. Java has 135 million people, whereas Louisiana has actually 4.5 million people. Jakarta is a world-class city the is bigger than brand-new York City and also encompasses a big metropolitan area, complete with plenty of manufacturing centers, business complexes, and housing districts.

The many islands the Indonesia are home to a big number of varied ethnic and religious groups that vary as extensively as any kind of Southeast eastern nation. There might be as plenty of as 3 hundred different and also distinct ethnic groups in Indonesia. Numerous of the ethnic teams are further separated by archipelago or distance. An ext than 2 hundred fifty separate languages and also hundreds of added dialects space spoken. There space an approximated seven hundred fifty languages talked on the island of new Guinea itself, with hundreds of them talked on the Indonesian next of the island, in a populace of much less than 3 million. The most prevalent language team in the nation as a totality is Javanese, i m sorry is talked by around 42 percent the the population. Javanese contains the official language of Indonesian, i m sorry is taught in schools and used in business and politics as the lingua franca the the country. Many civilization speak an ext than one language or also a number of languages to connect throughout the country.

Islam was diffused come Indonesia in the thirteenth century and by the 16 century had end up being the dominant religion. The Indonesian constitution enables for spiritual freedom, although much more than 85 percent of the population follows Islam. There are at least 4 other faiths that room officially recognized: Christianity (both Protestantism and Roman Catholicism), Hinduism, Buddhism, and Confucianism. Because Islam is adhered to by such a huge percentage of the population, the various other religions do not lug the same influence. Regional and ethnic differences play a role in the varied religious dynamics. The island the Bali, because that example, is home to a bulk Hindu population. Many of the Buddhists space ethnically Chinese, and also they only consist of a tiny percentage the the population. Christians and Muslims have actually had conflicts on the island that Sulawesi. That is typical to find the exercise of these religions less than orthodox in the much more rural neighborhoods of the country.

In despite the of the diversity in ~ the population, the country of Indonesia has established a considerable degree of nationalism as a centripetal force that holds the nation together. Over there is a fairly high degree of stability regardless of the surface ar tensions or country and religious conflicts that might erupt. An instance of the social tensions is prove in the instance of Chinese citizens of Indonesia, who only make up about 1 percent of the populace but send a considerable influence end the privately owned business sector the the economy. This seemingly inequitable relationship has resulted in significant resentment by other portions the the population, regularly with violent results. The countless islands have become natural departments between social groups.

Some that the islands—or parts of them—have attempted to break away in a devolutionary manner and also become live independence countries. Just as east Timor ended up being independent, the many western district of Aceh on the island that Sumatra had a similar movement toward independence. West Papua ~ above the island of brand-new Guinea has additionally had an freedom movement. The Aceh instance was negotiated the end while the West Papua movement has been suppressed by military and also political force. Many of the islands possess large amounts of organic resources, so the nation of Indonesia does not want to lose these nationwide assets that might prove an important in getting wealth because that the future. The is not simple to produce national unity v such a diverse populace scattered throughout such a huge archipelago.

Agriculture has been the historic base the the Indonesian economy. In 2010, it accounting for about 13 percent of the nation’s gross domestic product (GDP). Farming is the biggest employment sector—approximately 42 percent the the workforce. This converts to much more than half of the population being rural. Many of the agricultural methods in rural areas are traditional; because that example, farmers usage water buffalo or oxen for tilling the land. The dry climate and also adequate rainfall provide for multiple plants of rice every year in plenty of areas. Spices, coffee, tea, palm oil, and also rubber are also produced in substantial quantities.

Industries are an important building block for just how a nation gains wealth. In the instance of Indonesia, industry accounts for about 40 percent of its GDP and also employs around 20 percent of its workforce. Major industries incorporate oil, herbal gas, mining, and also textiles or clothes manufacturing. Indonesia’s economic situation has been impacted by worldwide markets, but in 2005 still controlled to operation a trade surplus. Japan has actually been its main trading partner, and also China has likewise been a significant supplier of imported goods. Indonesia has actually been taking benefit of the profession triangle it has actually with its neighbors, Singapore and Malaysia, to boost its import and export trade activities.

The politics background that Indonesia is comparable in dynamics to numerous of its neighbors. Colonized by Europeans, Indonesia to be previously called the Dutch eastern Indies, which explains why the archipelago of the Caribbean were referred to as the West Indies. The Dutch conquered Indonesia in the early seventeenth century but had to relinquish possession of the archipelago come the Japanese in civilization War II. In 1945, ~ the Japanese surrendered, Indonesia declared its independence, which was lastly granted in 1949 after much negotiation. The country’s government easily moved toward authoritarian rule.

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During a fifty-year time period, there were only two authoritarian leaders: Sukarno (1949–68) and Suharto (1968–99). Near the finish of Sukarno’s rule, there to be violent conflicts between Sukarno’s military and the Communist Party the Indonesia, which resulted in much more than five hundred thousands deaths. Suharto’s routine was credited for considerable economic growth however was additionally accused of significant corruption and also the repression of opposition political voices. Due to the fact that 1999, Indonesia has actually conducted cost-free parliamentary elections and also is now taken into consideration the third-largest democracy, ~ India and also the unified States.