Malaysia is well on track with its economic plan to reach the objective of becoming a high-income country by 2020. With ambitious goals, the country is expected to achieve its new status and increase recognition from other regional and global economic powers. Doing so, it will also become an economic powerhouse in Southeast Asia.
In an interview related in a video by Astro Awani, the World Bank exposes how Malaysia can become a high income country by 2020. Through a series of reforms, Annette Dixon, the World Bank’s Country Director for Southeast Asia explains how Malaysia can achieve new growth through several levers.
Malaysia is well on its way to reach the status of High-Income Country as defined by the World Bank (Gross National Income per capita above 12,615 USD, as of 2012). The country went from 6,700 USD per capita in 2009 to 10,060 USD per capita in the end of 2013, and is expected to be able to grow further and richer.
On the same perdio, the rate of growth of private investments has been multiplied by 5. Investments coming into Malaysia have beaten expectations, and they have allowed to create a 1.3 Million jobs on the target of 3.3 Million to be created by 2020.
To attract all these investments, the Malaysian authorities have implemented the ideas of business people, directly responding to the needs of the private sector rather than deciding among politicians and implementing policies that could be out of touch with business needs and economic objectives.
Industries that are to drive the growth plan of Malaysia include:
- Oil and Gas
- Financial Services
- Health Sector
- Palm Oil
- Business Services
Malaysia offers lots of incentives to attract investments and businesses. Thanks to these incentives, Malaysia has been able to move from 29th World rank in terms of “Ease of doing business” in 2009 to 6th in 2013, and it is ranked number 1 for “Ease of getting credit” in 2013.