KUALA LUMPUR: Malaysia must be prepared to do forward-looking adjustments in the face of increasing challenges and global uncertainty.
UOB Bank economist Julia Goh said the external environment poses increasing challenges in the form of global policy uncertainty, protectionist sentiment, and geopolitical threats.
“Malaysia has to ensure sound macroeconomic management, market openness and liberalisation, drive new opportunities for growth, focus on innovation and technology, greater transparency and governance, fiscal and debt sustainability, human capital development, economic inclusion and social cohesion,” she said in a report ahead of the 60th Merdeka celebrations tomorrow.
The Malaysian economy has evolved from a low-income agriculture based economy with Gross National Income (GNI) per capita of US$240 in 1962 to an upper middle-income manufacturing and services driven economy with US$9,850 GNI per capita in 2016.
Malaysia has entered its next growth frontier underpinned by a new economic model that leverages on its core strengths - diversified economic structure, good infrastructure, supportive financial system, positive demographics, social and political stability, and strong geographic ties in the region.
Much of Malaysia’s early transformation is attributed to strategic vision, bold policy decisions, and ability to mobilise support from both public and private sectors. This involved experimental economic policy making and industrial promotion.