On 18th December 2018, the latest edition of World Bank’s Malaysian Economic Monitor on ‘Realising Human Potential’ was launched at Sasana Kijang, Bank Negara Malaysia. The monthly Malaysia Economic Monitor (MEM) presents a review of the recent economic developments and the macroeconomic outlook for the country.
Several interesting findings of this report include:
i) Growing risks on the global front including rising concerns regarding the impact of US-China trade tensions, increased volatility in the financial and commodity markets weigh in on Malaysia’s economic prospects.
ii) Malaysia’s economic growth remains resilient, with private consumption as the main driver of growth due to zeroization of GST.
iii) Malaysia’s economy is projected to grow at a moderate pace of 4.7% in 2019, remaining strong as it rests on strong foundations. However, Malaysia should look towards undertaking structural reforms for inclusive and sustainable growth.
iv) To better prepare Malaysia for future macroeconomic shocks, restoring fiscal buffers is necessary. This includes a multi-year reform agenda to broaden the tax base, introducing greater progressivity, diversifying revenues away from unstable oil and gas revenues and also fiscal consolidation efforts driven by measures to reduce expenditure.
v) Further advances in education, healthcare and social protection systems are needed for Malaysia to fulfil its aspirations of achieving high-income and developed country status.
vi) Efforts to improve human capital and boost productivity include enhancing learning outcomes which are currently significantly lower than the average for high-income countries and regional peers, improving child nutrition by addressing child stunting and also providing adequate protection through social welfare programs.
Attached below is the full report of the Malaysian Economic Monitor, published by World Bank.