The Southeast Asian economy is set to reach a significant milestone within four years, with Malaysia potentially becoming a high-income nation as early as 2028. This upbeat forecast comes after the World Bank raised Malaysia’s 2024 growth forecast to 4.9 percent, indicating that the country’s economy is on the right track. Lead economist for Malaysia, Apurva Sanghi, highlighted that Malaysia’s economy has grown by 12 percent since before the COVID-19 pandemic, positioning it ahead of most other Southeast Asian countries.
Apurva emphasized the importance of continued reforms to sustain this growth trajectory, including addressing underemployment and unwinding fuel subsidies. He urged the government to focus on improving living standards and ensuring that millions of Malaysians are not stuck in jobs for which they are overqualified. While acknowledging that Malaysia is currently in a good economic position, Apurva stressed that there is room for further improvement.
In 2023, Malaysia’s economy saw a growth of 3.7 percent, following an 8.7 percent expansion the year before. The World Bank classifies high-income countries as those with a gross national income per capita of $14,005 or higher. With the right reforms and policies in place, Malaysia is well-positioned to achieve high-income status by 2028, marking a significant milestone in the country’s economic development.
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