Abstract
The world has seen the most important economic growth since the end of the Second World War in the region of East Asia. This incredible economic phenomenon had emerged more particularly in Japan during the 1950s. This trend has been followed later by what is known as the four dragons: Taiwan, South Korea, Singapore and Hong Kong. The Association of Southeast Asian Nations (ASEAN), which is composed of Thailand, Indonesia, Philippine and Malaysia also became part of its growth later. This success has impressed the world, because of the rapidity with which East Asian countries have increased their GDP, approximately 5% in each in the few last decades and also reduced their poverty and raised their standard of living. The East Asian growth has been studied in order to find if there is a method applicable to other countries. However, no common method has been found because it does not exist, but explanations of the East Asian success have been found and have divided economists. Malaysia is one of the newest countries which has been part of the Asian miracle, and is considered by Leipziger & Vinod as part of the second generation of Asian Tigers. What are the factors which has lead Malaysia to success and what difficulties did it have to face?
