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However, given the openness of its economy with trade accounting for about 200 percent of GDP, Malaysia was not spared from the negative effects of the United States economic slowdown. These effects came in the form of declining manufacturing production and negative export growth, particularly of electronics. Nevertheless, the government's initiation of strong monetary and fiscal policies to stimulate economic growth through accelerating domestic economic activities and reducing the over-dependence on exports helped the nation to sustain a positive real GDP growth.
Since 1998 the Government has relaxed the equity guidelines for investment in the manufacturing sector...
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