Malaysia needs to focus on strengthening core fundamentals — report

KUALA LUMPUR: The focus on strengthening core fundamentals, while reflecting on the state of development, are among key priority areas essential towards securing the future of the state of all households in Malaysia.

According to Khazanah Research Institute’s State of Household 2018: Different Realities Report, Malaysia needs to build and develop its core fundamentals, rather than react to the uncertain global and domestic environment.

“These fundamentals, broadly identified as openness, human capital development, economic agility, inclusive growth and macroeconomic stability, are essential for ensuring economic security for Malaysians through both good and trying times,” it said.

The report also stated that improvements in the state of households in Malaysia over the decades had not occurred in isolation, but is intrinsically tied to the economic development and transformation of the nation.

Improvements in the economy in the past also corresponded with a general improvement in the wellbeing of Malaysians and these can be observed through indicators such as increased life expectancy, lower mortality rates for children and improved access to utility facilities, it said.

It added that the state of human capital development in Malaysia, of which 20 per cent of government expenditure goes to education, had plenty of room for improvement.

Despite receiving 12 years of schooling, Malaysian students actually receive only nine years’ worth of schooling after adjusting for education quality.

“The central issue of generating high quality human capital in this country is an important one, as the transition to a high-income nation requires human capital levels that continuously improve productivity, sustain growth and is able to create or utilise technological advancements rather than being substituted by it,” the report said.

Itindicatedthatbeyondknowledge and human capital, the provision of modern infrastructure and facilities were essential for the seamless and efficient functioning of modern economic activities.

Apart from physical infrastructure, it said the Internet and online services infrastructure is vital for a growing user base in Malaysia.

“Future-oriented improvements are needed for Internet-based government services to cope with the demands of Malaysians in the future,” it added.

TheStateofHousehold2018:Different Realities is the third instalment to Khazanah Research Institute’s State of Household collection.

The report intends to share its perspective on the changing trends of inequality, besides sharing its findings on the Malaysian labour workforce, and measures required to enhance the nation’s economy. - Bernama