Economic activities are the ways people earn a living and produce goods and services. Geographers classify them into three main sectors.
The three sectors
- Primary sector — extracting raw materials from nature: agriculture, fishing, forestry, mining.
- Secondary sector — processing raw materials into finished goods: manufacturing and construction.
- Tertiary sector — providing services: tourism, banking, transport, trade and education.
Key idea
Primary = extract raw materials; Secondary = manufacture goods; Tertiary = provide services.
Major activities in Malaysia
Malaysia's economy has shifted from a primary base towards manufacturing and services:
- Agriculture: oil palm, rubber, cocoa, paddy and pineapple.
- Mining: petroleum, natural gas and formerly tin.
- Manufacturing: electronics (E&E), petrochemicals and vehicles, in industrial zones like Penang and Shah Alam.
- Services: tourism, finance, ports and information technology.
| Sector | Example |
|---|---|
| Primary | Oil palm plantation |
| Secondary | Electronics factory |
| Tertiary | Hotel and tourism |
Example
Fresh Fruit Bunches from an oil palm estate (primary) are milled into palm oil in a factory (secondary), then sold and exported through trading and shipping firms (tertiary).
Remember
- Three sectors: primary, secondary, tertiary.
- Developed economies rely more on secondary and tertiary sectors.
- Malaysia's economy is now led by manufacturing and services.
Factors affecting economic activities
Where an activity takes place depends on physical factors such as climate, soil, relief and natural resources, and human factors such as labour, capital, technology, transport and market. For example, oil palm thrives in Malaysia's hot, wet lowlands, while electronics factories cluster near ports, good roads and a skilled workforce.
Understanding these sectors shows how a country develops from a resource-based economy towards industrial and service-based activities that add greater value.