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One of the largest of Malaysia’s 13 states, Sabah is banking on an economic development strategy that aims to make the most of its strategic position in the South China Sea, the beauty of its landscape and the riches of its natural environment. The plan centres on the Sabah Development Corridor (SDC), one of five economic development zones established throughout Malaysia and designed to encourage growth by targeting investment in key industries. In Sabah, the corridor covers the entire state and is focused on developing natural resources, especially hydrocarbons, and agriculture – predominantly palm oil, but also including food crops. Sabah is also looking to increase tourism, with Mount Kinabalu (South-east Asia’s tallest mountain), some of the world’s most stunning dive sites, and iconic wildlife, attracting visitors from across the globe. This chapter contains interviews with Musa Aman, Chief Minister, Sabah; Mohd Yaakub Johari, President and CEO, Sabah Economic Development and Investment Authority; Clarence Bongkos Malakun, Chairman, Institute for Development Studies Sabah; and Melvin Disimond, CEO, Kota Kinabalu Industrial Park.

Resource rich and export-oriented, Malaysia’s economy has endured another major test in resilience, with a global slump in commodities and China’s slowdown reducing revenues from the key sectors of energy, palm oil and manufacturing. In 2015 the local currency, the ringgit, saw its biggest sell-off since the 1997 Asian financial crisis. Yet economic data continued to suggest business as usual. With a flexible currency regime, ample liquidity in domestic banks and alternative sources of growth, the country was able to absorb the external shocks. This chapter contains interviews with Abdul Wahid Omar, Minister in the Prime Minister’s Department; Zakri Abdul Hamid, Science Advisor to the Prime Minister and Joint-Chairman, Malaysian Industry-Government Group for High Technology; Ahmad Tajussin Ali, Chairman, UEM Group and Construction Industry Development Board and Joint-Chairman, Malaysian Industry-Government Group for High Technology; and Saw Choo Boon, President, Federation of Malaysian Manufacturers, and Co-Chair, Special Task Force to Facilitate Business.

As a leading force in regional integration through the ASEAN trading block, Malaysia has managed to consolidate its position as the principle gateway to South-east Asia. Though smaller in terms of market size than its neighbours, it has consistently punched above its weight in attracting foreign direct investment dollars. Despite external headwinds in 2015 and the beginning of 2016, Malaysia has managed to grow its overall trade volumes in local currency by 1.2% in 2015, reaching a total of RM1.5trn ($371.3bn), equivalent to 127% of GDP. This chapter contains a viewpoint from US President Barack Obama, and interviews with Le Luong Minh, Secretary-General, ASEAN; Thongsing Thammavong, Former Prime Minister of Laos and 2016 ASEAN Chair; Cecilia Malmström, European Commissioner for Trade; and Dzulkifli Mahmud, CEO, Malaysia External Trade Development Corporation.

Sri Lanka is well situated for trade and an attractive target for international investment. Lying on major shipping and air routes, it is close to the markets of Asia, Africa and the Middle East. Moreover, the country has a literate workforce, good infrastructure, a healthy population and relatively low wages. Since the 2009 cessation of a long-running civil war, Sri Lanka has become one of the region’s more stable nations, and following elections in 2015 it has become increasingly open. The new government has indicated it is doing away with the country’s statist past and is embarking on a period of material liberalisation. This chapter contains a viewpoint from Malik Samarawickrama, Minister of Development Strategies and International Trade; and interviews with Harsha de Silva, Deputy Minister of Foreign Affairs; Upul Jayasuria, Chairman, Board of Investment; Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce; Ugo Astuto, Director and Deputy Managing Director for Asia and the Pacific, European External Action Service; and Razeen Sally, Chairman, Institute of Policy Studies.

Sri Lanka is well situated for trade and an attractive target for international investment. Lying on major shipping and air routes, it is close to the markets of Asia, Africa and the Middle East. Moreover, the country has a literate workforce, good infrastructure, a healthy population and relatively low wages. Since the 2009 cessation of a long-running civil war, Sri Lanka has become one of the region’s more stable nations, and following elections in 2015 it has become increasingly open. The new government has indicated it is doing away with the country’s statist past and is embarking on a period of material liberalisation. This chapter contains a viewpoint from Malik Samarawickrama, Minister of Development Strategies and International Trade; and interviews with Harsha de Silva, Deputy Minister of Foreign Affairs; Upul Jayasuria, Chairman, Board of Investment; Samantha Ranatunga, Chairman, Ceylon Chamber of Commerce; Ugo Astuto, Director and Deputy Managing Director for Asia and the Pacific, European External Action Service; and Razeen Sally, Chairman, Institute of Policy Studies.