KUALA LUMPUR: Malaysia's economic growth accelerated in 2017 with year-on-year growth projected at 5.8 per cent, the highest annual growth rate since 2014.
The economy is also expected to remain strong in 2018, projected at 5.2 per cent, says World Bank through its latest Malaysia Economic Monitor report unveiled earlier today.
The estimate was based on accelerated growth fueled by strengthening domestic demand, improved labor market conditions, wage growth as well as improved external demand for manufactured products and commodity exports.
The report, titled "Turmoil to Transformation: 20 years after the Asian Financial Crisis", found that capital expenditure had also increased due to higher private and public investments.
Malaysia World Bank director Ulrich Zachau said Malaysia's progress over the last 20 years owes much to the sound policies being adopted during and since the Asian Financial Crisis.
"Continued sound macroeconomic management and further reforms to strengthen people's skills, competitiveness and equal opportunities will help secure gains from Malaysia's robust economic growth for all its people, especially low-income and lower-income families through access to more and better jobs," he said.
According to the report, Malaysia's stronger than expected growth create opportunities for deeper structural reforms that can lead to higher growth.
"These reforms include policies that enhance productivity and address constraints such as lack of competition in key markets and critical skills deficits.
"Such policies will enable access to more remunerative employment and real income gains for lower-income families," it stated.
The Malaysia Economic Monitor series provides an analytical perspective on the policy challenges facing Malaysia as it grows into a high-income economy.