“Malaysia is a success story. It has a strong economy and is growing towards a high income economy.”

MARA WARWICK, World Bank country director for Brunei, Malaysia, the Philippines and Thailand

KUALA LUMPUR: The World Bank views Malaysia as a success story because of its strong economy and emphasis on achieving a high-income nation status.

“Malaysia is a success story. It has a very strong economy and it is growing towards a high-income economy,” said World Bank country director for Brunei, Malaysia, the Philippines and Thailand, Mara Warwick.

“The focus now should be on the quality of growth and inclusiveness of growth. For example, the education system needs to better prepare young Malaysians for the future workforce so they can compete for higher-paying jobs,” she said yesterday.

World Bank macroeconomics, trade and investment global practice lead economist Dr Richard Record said it was important for the government to handle its debt with prudence.

“It is important to note that much of the country’s debt, about 97.7 per cent, is in ringgit denomination and, therefore, has very limited risk. Also, 70 per cent of this debt is medium term and has a maturity in the next three years. Therefore, there is limited risk on rollover debt.”

On whether the Sales and Services Tax (SST) could help recover revenue loss from the abolition of the Goods and Services Tax, Record said it remained to be seen.

“We are greatly anticipating the new SST that we believe will be quite different from the previous one.”