ECONOMIC ANALYSIS

i. DEMOGRAPHIC STUDY

Kuala Lumpur is the national capital of Malaysia as well as its largest city.
The city covers an area of 243 km which 94 sq mi and has an estimated
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population of 1.7 million as 2016. Other than that, Kuala Lumpur which also
known as Klang Valley, is an urban agglomeration of 7.2 million people as of
2013. In terms of population and economy, it is shown that the city is among the
fastest growing metropolitan regions in South-East Asia.

Besides that, Kuala Lumpur's heterogeneous populace includes the

country's three major ethnic groups which the Malays, the Chinese and the
Indians although the city also has a mix of different cultures including Eurasians,
as well as Kadazans, Ibans and other indigenous races from East Malaysia and
Peninsula Malaysia. By the 2010 census, according to the Department of
Statistics and excluding non-citizens, the percentage of the Bumiputera
population in Kuala Lumpur has reached around 45.9%, with the Chinese
population at 43.2% and Indians 10.3%.

Kuala Lumpur and its surrounding urban areas form the most industrialised
and economically, the fastest growing region in Malaysia. Although the relocation
of federal government administration to Putrajaya, certain government
institutions such as Bank Negara Malaysia, Companies Commission of Malaysia
and Securities Commission as well as most embassies and diplomatic missions
have remained in the city.

Kuala Lumpur is a centre for finance, insurance, real estate, media and the
arts of Malaysia. According to the Globalization and World Cities Study Group and
Network (GaWC), Kuala Lumpur is rated as an alpha world city, and is the only
global city in Malaysia. Moreover, the infrastructure development in the
surrounding areas such as the Kuala Lumpur International Airport (KLIA) at
Sepang, the creation of the Multimedia Super Corridor (MSC) and the expansion
of Port Klang further reinforce the economic significance of the city.

The Gross Domestic Product (GDP) for Kuala Lumpur is estimated at

RM79,752 in 2013with an average annual growth rate of 5.6% while for the
average monthly household income is RM10,629. The total employment in Kuala
Lumpur is estimated at around 838,400. The service sector comprising finance,
insurance, real estate, business services, wholesale and retail trade, restaurants
and hotels, transport, storage and communications, utilities, personal services
and government services form the largest component of employment
representing about 83.0% of the total. While the remaining 17% comes from
manufacturing and construction.

Besides that, other important economic activities in the city are education
and health services. The city also has advantages stemming from the high
concentration of educational institutions that provide a wide-ranging of courses.
Numerous public and private medical specialist centres and hospitals in the city
offer general health services, and wide range of specialist surgery and treatment
that caters to locals and tourists.