World Economy

Malaysia Maintains Strong Growth

Malaysia Maintains Strong GrowthMalaysia Maintains Strong Growth

Malaysia has been able to sustain its strong economic growth over the years, driven by measures introduced by the government including the National Transformation Program which was launched in 2010.

Under the NTP, there are seven National Key Result Areas under the Government Transformation Program, plus the 12 National Key Economic Areas and six Strategic Reform Initiatives under the Economic Transformation Program, which evidently have borne fruit, Bernama reported.

The 12 NKEAs comprise selected sectors of economic opportunities for the private sector, which is driving the country towards high-income status and global competitiveness.

The NKEAs constituted the largest share of the gross domestic product, accounting for RM865.3 billion ($202.29 billion), or 70%, of the country’s GDP of RM1.23 trillion in 2016.

Bank Islam Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid said the establishment of the 12 NKEAs was certainly helpful as the various stakeholders were able to view the industry in a structured manner. “That way, we could identify and single out issues which needed further attention and provide the solutions,” he told Bernama.

While Malaysia already has a competitive advantage in some sectors and the potential to carve a niche in others, the NKEAs underscore Malaysia’s targeted approach to achieving sustainable economic growth.

An immediate impact of this private sector-led growth is the creation of a wealth of employment opportunities for Malaysians. Since 2010 until last year, the economy has recorded 2.26 million new jobs.

In Invest Malaysia Kuala Lumpur 2017 recently, Prime Minister Najib Razak announced that the gross national income had increased by nearly 50% between 2009 and 2016, and GNI per capita using the Atlas method rose to $9,850.

Based on the World Bank’s latest high-income threshold, the country has narrowed the gap towards the high-income target to 19% from 33%.

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