Introduction
In terms of GDP, Malaysia’s economy ranks third in Southeast Asia and is the 34th largest in the world. Malaysia has the third-highest labor productivity in ASEAN in 2018 with an estimated Int$55,360 per worker. Malaysia’s economy is ranked as the 25th most competitive in the world by the Global Competitiveness Report 2021.
Compared to many of its Southeast Asian neighbors, Malaysians live comparatively comfortable lives. The fast-growing export-oriented economy, the nation’s relatively low income tax, the cost of local food and transportation fuel, as well as the fully subsidized single-payer public healthcare system, are all factors in this. Malaysia has a market economy that is generally open and state-oriented and has only undergone industrialization. The Malaysian economy is very strong and well-diversified, and in 2020, the export value of high-tech goods was US$92.1 billion, ranking second in ASEAN. Following Indonesia, Malaysia exports palm oil products in both quantity and value.
The World Bank In Malaysia
Malaysia has effectively diversified its economy from one that was primarily agricultural and commodity-based to one that today hosts substantial manufacturing and service sectors, propelling the country to become a prominent exporter of electrical appliances, parts, and components.
Malaysia has one of the most open economies in the world, with a trade-to-GDP ratio that has averaged more than 130% since 2010. Openness to trade and investment has aided job creation and income growth, with export activities accounting for roughly 40% of Malaysian jobs. Malaysia’s economy has been on an upward trajectory since the Asian financial crisis of 1997-1998, averaging 5.4% growth since 2010, and is expected to transition from an upper middle-income to a high-income economy by 2024.