Malaysia - Productivity and Investment Climate Assessment Update
In the decades prior to the Asian financial crisis, the Malaysian economy experienced rapid growth and a significant structural transformation. It went from an economy that relied on agriculture and commodities to one dominated by manufacturing and...
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Language: | English |
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World Bank
2012
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Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20091108232259 http://hdl.handle.net/10986/3127 |
Summary: | In the decades prior to the Asian
financial crisis, the Malaysian economy experienced rapid
growth and a significant structural transformation. It went
from an economy that relied on agriculture and commodities
to one dominated by manufacturing and services. Since then,
however, Malaysia's growth has slowed to a level well
below its key competitors in Asia, including the large
labor-surplus economies of China and India. The economy
seems to be caught in a middle-income trap, unable to remain
competitive as a high-volume, low-cost producer and unable
to move up the value chain and achieve rapid growth by
breaking into fast growing markets for knowledge, and
innovation-based products and services. The Malaysian
authorities have expressed their commitment to regain their
earlier growth and reposition their economy as a rapidly
growing, knowledge-based, high value-added and high income
economy. A key element of their strategy is to encourage
Malaysians to invest more of their savings at home, instead
of abroad. Equally important is the need to improve the
quality of that investment. As part of this effort, the
Economic Planning Unit (EPU) of the Prime Minister's
Department launched a second Malaysia Productivity and
Investment Climate Survey in 2007 (PICS-II) to assess
whether and how the investment environment had changed since
the first survey in 2002 (PICS-I). This report presents the
analytical results of the second survey, which covers nine
manufacturing industries and five selected business support
services industries. |
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