MALAYSIA TO BECOME HIGH-INCOME NATION AS EARLY AS 2020, SAYS WORLD BANK
Malaysia’s progress owes much to sound policies, says World Bank director
THE World Bank anticipates that Malaysia can become a high-income nation as early as 2020.
In its latest Malaysian Economic Monitor report, the World Bank projected that the country’s gross national income (GNI) per capita will pass the high-income threshold of US$12,236 (RM49,923) between 2020 and 2025.
The World Bank defines highincome economies as those whose GNI per capita stands at US$12,236 or more, based on estimates using the Atlas method.
This year, Malaysia’s average GNI per capita is estimated to stand at US$9,660, or US$2,576 short of the defined threshold level.
Unveiled on Thursday, the Malaysia Economic Monitor report, titled “Turmoil to Transformation: 20 years after the Asian Financial Crisis”, presents an analysis of economic and structural development issues in the country.
The aim of the report is to foster better-informed policy analysis and debate regarding the key challenges that Malaysia faces in its endeavour to achieve rapid, inclusive and sustainable economic growth.
According to the report, Malaysia’s economic growth accelerated this year with year-on-year growth projected at 5.8 per cent, the highest annual growth rate since 2014.
The economy is also expected to remain strong next year, with projected growth at 5.2 per cent, it said, adding the estimate was based on accelerated growth fuelled by strengthening domestic demand, improved labour market conditions, wage growth as well as improved external demand for manufactured products and commodity exports.
Malaysia World Bank director Ulrich Zachau said Malaysia’s progress over the last 20 years owed much to the sound policies adopted during and since the Asian Financial Crisis.
“Continued sound macroeconomic management and further reforms to strengthen people’s skills, competitiveness and equal opportunities will help secure gains from Malaysia’s robust economic growth for all its people, especially low-income and lowerincome families through access to more and better jobs,” he said.
According to the report, Malaysia’s stronger than expected growth created opportunities for deeper structural reforms that could lead to higher growth.
“These reforms include policies that enhance productivity and address constraints, such as lack of competition in key markets and critical skills deficit. Such policies will enable access to more remunerative employment and real income gains for lowerincome families,” it stated.