Malaysia’s economy: Getting closer to High-Income status

Salleh Said Keruak

“Malaysia’s economy: Getting Closer to High-Income Status,” said the IMF (International Monetary Fund) on 7th March 2018. “Malaysia’s economy continues to perform strongly, with higher than anticipated growth at 5.8 percent in 2017, and projected growth of 5.3 percent for 2018, according to the IMF. The country is well on its way to achieving high-income status. But to pass the finish line, the authorities will have to step up reforms to boost productivity and raise living standards for its 32 million citizens,” the IMF said.

The IMF added, “Malaysia’s economy is showing resilience and is performing strongly. Growth is running above potential, driven by strong global demand for electronics and improved terms of trade for commodities, such as oil and gas. On the domestic front, Malaysia’s strong employment is boosting private consumption, and investment is also helping to drive growth.”

This is very heartening to read and helps the new government to build up the country even further on the foundation of this very solid footing. The IMF concluded by saying that, “As Malaysia’s public debt continues to decline, the IMF is recommending that the government shift toward raising revenues, rather than achieving its goals through continued cuts in public spending.”