An Economic Leap Ahead
Speaking at the National Economic Forum 2023, Malaysia’s Economy Minister Rafizi Ramli projected that the nation could achieve high-income status by 2028. This transformation, however, hinges on a sustainable growth trajectory that takes into account all sectors of the population, with a keen focus on the country’s Gross Domestic Product (GDP).
Further Reading:
- Malaysia’s Bid to Be a Global Powerhouse Unveiled
- Domestic Demand Ignites Malaysia’s Q1 Growth: Are You Ready to Ride the Wave?
- Malaysia Rises in Tech World with Tesla and Amazon
- Malaysia Reigns Supreme in ASEAN Logistics: World Bank
Digital and Green Economy: Key Growth Drivers
Ramli identified significant investment in the digital and green sectors as a crucial part of this growth strategy. He cited data indicating that digital technologies bolster growth, productivity, employment, and efforts towards poverty reduction. This approach could prove crucial for Malaysia, a country grappling with productivity growth rates that have lagged behind its counterparts, particularly in the pre-pandemic era.
Environmental Sustainability and Economic Growth: A Harmonious Blend
Reinforcing the importance of environmental sustainability, Ramli highlighted the US$1.1 trillion channelled into energy transition globally last year. According to him, this illustrates how economic growth and environmental sustainability can go hand in hand.
Upskilling the Workforce: A Necessity for Growth
To ensure the country’s economic progression, Ramli stressed the importance of upskilling and reskilling Malaysian workers on a broad scale. Referencing a World Bank report, he underscored the need to create two million additional high-skilled jobs in Malaysia. Currently, only a third of the Malaysian workforce is high-skilled, with another half being mid-skilled — a situation that places them behind aspirational peers such as the countries in the Organisation for Economic Co-operation and Development (OECD), where high-skilled workers account for about 40 per cent.
Maintaining Growth Momentum
Rafizi had earlier speculated that Malaysia could cross the high-income threshold by 2026 if it could maintain a growth rate of over 4% for the next three years. With this in mind, the coalition government is zeroing in on devising policies aimed at raising salaries, a step that could potentially include the implementation of a national wage growth policy.
External Links: