Malaysia’s planned target of high-income country status by 2024 will require focusing on productivity growth with structural reforms to move up the value chain and improve skills. Also, ensuring environmental protection is expected to improve the quality of growth.
Due to slowdown in global trade, Malaysia’s economic growth is set to moderate in the near future. Economic progress can be achieved provided Malaysian government offers a more targeted support, boosting entrepreneurship, improving productivity and employability among the low-income households.
Semiconductors and electronic products, travel and tourism, machinery, petroleum, rubber, minerals and palm oil are major industries of Malaysia. In 2017, Agriculture industry contributed 8.78% to GDP of Malaysia. Manufacturing had a share of 38.79% while services industry had a share of 51.01% of GDP in 2017.
In 2017, Services industry exports was valued at USD 37.1 billion for Malaysia. Electronics export accounted for USD 120 billion, minerals for USD 38.7 billion and agriculture for USD 30.4 billion in 2017.
Malaysia is a federal constitutional monarchy in Asia. It consists of thirteen states and three federal territories and has a total landmass of 127,350 square miles separated by the South China Sea into two similarly sized regions, Peninsular Malaysia and Malaysian Borneo. Land borders are shared with Thailand, Indonesia, and Brunei, and maritime borders exist with Singapore, Vietnam, and the Philippines.
Malaysia had estimated population of 32.801million in the year 2019 and expected to reach 34.915 million by 2024. Malaysia’s unemployment rate was 3.325% of total labor force.
Malaysia’s real gross domestic product (GDP) was expected to be MYR 1287.11 billion in 2019 whereas the nominal GDP was expected to be MYR 1527.79 billion. This resulted in GDP deflator 118.699. Per capita GDP was estimated to be at USD 11385.11 whereas purchasing power parity (PPP) based per capita GDP was estimated to be at USD 32454.93.
In 2019, Malaysian government’s revenue was expected to be MYR 304.818 billion whereas the expenditure was expected to be MYR 350.674 billion. This resulted Malaysian government’s net lending / borrowing negative expected at MYR 45.324 billion in 2019 indicating that enough financial resources were made not available by the government to boost economic growth.
The current account balance for Malaysia was estimated to be at USD 7.993 billion for the year 2019 and is expected to decline at a CAGR of 16.27% and reach USD 2.703 billion by 2024. This positive current account balance indicates the Malaysia is net lender to the whole world.
In World Bank’s ease of doing business ranking Malaysia was ranked 15th out of 190 countries in 2018. Malaysia’s ease of doing business ranking has improved from 24th position in 2017.
*If Applicable.