Chapter 8

Early Development of Malaysia's Economy

From padi fields to busy ports! Discover how tin, rubber and trade built our early economy.

How our economy began

Long ago, most Malays lived in villages and earned a living by farming (growing padi/rice) and fishing. Life depended closely on the land and the sea.

A famous trading centre

In the 15th century, Melaka grew into a busy trading port. Traders from China, India and Arabia met there to buy and sell goods. A port that stores goods and sells them again is called an entrepot. Melaka's place beside the sea made it perfect for trade.

Tin and rubber

  • Tin (bijih timah) was mined, especially in Perak and Selangor. This attracted many workers from China.
  • Rubber (getah) was planted on large estates and became a big export. Many workers came from India to tap the rubber.

Remember

  • Malaya became one of the world's biggest producers of tin and rubber.
  • Later, oil palm and petroleum became important too.

These early industries helped build the strong economy Malaysia enjoys today.

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