Why did Malaysia’s economic growth slow to 3.5% in 1975 after 1971-74?

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Malaysia's Economic Growth Slowdown in 1975

Malaysia's economic growth decelerated to 3.5% in 1975, a significant decrease from the preceding four-year period. This slowdown was primarily influenced by the global oil shocks of the 1970s, which transmitted adverse effects to the Malaysian economy through increased import costs for essential goods and production inputs.
Impact of Increased Import Prices

The 1970s oil shocks led to substantial price hikes for goods crucial to Malaysia's economy. Food import prices, for instance, rose by over 37% in 1974, contributing to a 41% surge in overall import prices for that year. Similarly, the costs of fuel, fertilizer, and chemicals, vital for domestic food production, also experienced significant increases.
Preceding Economic Performance

Prior to the 1975 slowdown, Malaysia had experienced a period of robust economic expansion. Between 1971 and 1974, the country achieved an average annual growth rate of 8.4%. This strong performance was subsequently contrasted by the economic challenges that emerged in the mid-1970s.
Broader Economic Context

The 1970s were marked globally by economic turbulence, including high inflation and slowed growth, often termed stagflation, particularly in industrialized nations. For Malaysia, the ripple effects of the oil embargo and subsequent price increases created a more challenging economic environment, impacting domestic production and consumption patterns.

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Why did Malaysia’s economic growth slow to 3.5% in 1975 after 1971-74?

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