Economy
Kuala Lumpur and its surrounding urban areas form the most industrialized and economically, the fastest growing region in Malaysia. Despite the relocation of federal government administration to Putrajaya, certain government institutions such as Bank Negara Malaysia (National Bank of Malaysia), Companies Commission of Malaysia and Securities Commission as well as most embassies and diplomatic missions have remained in the city.
The city remains as the economic and business centre of the country. Kuala Lumpur is a centre for finance, insurance, real estate, media and the arts of Malaysia. Kuala Lumpur is rated as an alpha world city, and is the only global city in Malaysia, according to the Globalization and World Cities Study Group and Network (GaWC). The infrastructure development in the surrounding areas such as the Kuala Lumpur International Airport at Sepang, the creation of the Multimedia Super Corridor and the expansion of Port Klang further reinforce the economic significance of the city.
Bursa Malaysia or the Malaysia Exchange is based in the city and forms one of its core economic activities. As of 20 November 2007, the market capitalisation stood at US$318.65 billion.
The Gross Domestic Product (GDP) for Kuala Lumpur is estimated at RM73,536 million in 2008 with an average annual growth rate of 5.9 percent. The per capita GDP for Kuala Lumpur in 2008 is RM48,556 with an average annual growth rate of 5.9 percent. The total employment in Kuala Lumpur is estimated at around 838,400. The service sector comprising finance, insurance, real estate, business services, wholesale and retail trade, restaurants and hotels, transport, storage and communication, utilities, personal services and government services form the largest component of employment representing about 83.0 percent of the total. The remaining 17 percent comes from manufacturing and construction.
The average monthly household income for Kuala Lumpur was RM4,105 (USD 1,324) in 1999, up from RM3,371 (USD 1,087) four years prior, making it 66% higher than the national average. In terms of household income distribution, 23.5% of households in the city earned more than RM5,000 (USD 1,613) per month compared to 9.8% for the entire country, while 8.1% earned less than RM1,000 (USD 323) a month.
The large service sector is evident in the number of local and foreign banks and insurance companies operating in the city. Kuala Lumpur is poised to become the global Islamic Financing hub with an increasing number of financial institutions providing Islamic Financing and the strong presence of Gulf's financial institutions such as the world's largest Islamic bank, Al-Rajhi Bank and Kuwait Finance House. Apart from that, the Dow Jones & Company is keen to work with Bursa Malaysia to set up Islamic Exchange Trade Funds (ETFs), which would help raise Malaysia's profile in the Gulf. The city has a large number of foreign corporations and is also host to many multi national companies’ regional offices or support centres, particularly for finance and accounting, and information technology functions. Most of the countries’ largest companies have their headquarters based here and as of December 2007 and excluding Petronas, there are 14 companies that are listed in Forbes 2000 based in Kuala Lumpur.
Other important economic activities in the city are education and health services. Kuala Lumpur also has advantages stemming from the high concentration of educational institutions located within its boundaries, providing a wide range of courses. There are numerous public and private medical specialist centres and hospitals in the city which offer general health services and a wide range of specialist surgery and treatment catering to locals and tourists.
There has been growing emphasis to expand the economic scope of the city into other service activities such as research and development which supports the rest of the economy of Malaysia. Kuala Lumpur has been home for years to important research centres such as the Rubber Research Institute of Malaysia, the Forest Research Institute Malaysia and the Institute of Medical Research and more research centres are expected to be established in the coming years.
Read more about this topic: Kuala Lumpur
Famous quotes containing the word economy:
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)