Malaysia Economic Monitor, November 2009 : Repositioning for Growth
Malaysia is emerging from one of the worst export slumps in its economic history as manufacturing and exports have started growing again. With East Asia leading the recovery and advanced economies showing progressive improvement, the Malaysian econ...
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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=000334955_20091117012924 http://hdl.handle.net/10986/3132 |
Summary: | Malaysia is emerging from one of the
worst export slumps in its economic history as manufacturing
and exports have started growing again. With East Asia
leading the recovery and advanced economies showing
progressive improvement, the Malaysian economy is projected
to grow at 4.1 percent in 2010, following a contraction of
2.3 percent in 2009. The medium-term outlook remains
promising with growth reaching 5.6 and 5.9 percent in 2011
and 2012, respectively, though that will depend on sustained
global recovery from the crisis. The overriding medium-term
challenge is for the Malaysian economy to join the select
group of high-income countries. Malaysia has experienced
solid growth over the last decades, but has relied on an
economic model predominantly based on capital accumulation,
although private investment rates never recovered from their
20 percentage point fall after the Asian 1997/98 crisis and
are now among the lowest in the region. For Malaysia to
climb the next step up the income ladder, it needs to focus
on improving the investment climate to raise investment
rates and focus on productivity growth. Against this
backdrop, the authorities are developing a 'new
economic model,' which will be squarely centered on
boosting productivity. Promising reforms have already been
announced in the areas of services and foreign direct
investment, which will help revitalize private investment. |
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