Country Coverage
Malaysia

Malaysia is a multi-ethnic society of 29m split between the Malay Peninsula and the island of Borneo. With a per-capita GDP that has hovered around $10,000 for the past decade, the country is struggling to escape a “middle-income trap” brought on by dependence on basic manufacturing and natural resource exports. An intensive Economic Transformation Programme spearheaded by the government aims to improve Malaysia’s human capital, develop a high-tech economy and incentivise advanced manufacturing. The country is also looking at a leadership position within the anticipated ASEAN Economic Community, as its banks, telcos and construction firms benefit from rapid economic growth in Malaysia’s neighbours. Making the shift from a government-driven to private sector-driven economy will be easier said than done, however, and a relatively small domestic markets may constrain Malaysia’s ambitious corporates.