Malaysia to become high-income nation | Daily News


Malaysia to become high-income nation

The macroeconomic challenges faced by Malaysia are expected to continue, but the World Bank has reaffirmed its confidence that Malaysia’s aspiration to become a high-income nation by 2024 remains possible, as long as the country’s gross national income (GNI) per capita continues to grow at a range of 4% to 4.5%.

The Washington-based World Bank also said Malaysia could exceed the high-income threshold as early as 2021.

Speaking after the launch of the 20th edition of the Malaysia Economic Monitor, lead economist for Malaysia Richard Record said Malaysia’s success in achieving the coveted high-income status also depends on the exchange rate dynamics and the movement of the high-income threshold based on the US dollar, among other factors. As of 2018, Malaysia’s GNI stood at US$10,460, which was US$1,915 below the threshold level of US$12,375 that the World Bank currently sets to define high-income country status. Record, however, said development “is not just about numbers”.

“In the numerical sense, Malaysia will certainly pass the threshold.

“But average income tells you nothing about the distribution of income. Of course, there are many other ways of measuring development progress, in terms of health, education, quality of public services and others,” he told reporters. The World Bank’s Malaysia Economic Monitor was launched yesterday in conjunction with the kick-off conference of the 12th Malaysia Plan. In the report, the World Bank lowered Malaysia’s growth forecast for 2019 slightly to 4.6% from 4.7% previously. As for 2020 and 2021, the World Bank expects Malaysia’s economic growth to remain steady at 4.6%. (The Star Online)


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