Kuala lumpur: Malaysia is now just 7.1 per cent below the World Bank's high-income threshold, thanks to a 5.8 per cent economic expansion in the second quarter of this year, according to Economy Minister Akmal Nasrullah Mohd Nasir. The minister emphasized the government's commitment to ensuring this growth is reflected in higher productivity, quality jobs, and rising incomes for Malaysians.
According to BERNAMA News Agency, Malaysia's economy showed a growth rate of 5.8 per cent, with inflation contained at 1.9 per cent and unemployment at 3.0 per cent. Akmal Nasrullah highlighted that while Malaysia is close to reaching the high-income threshold, the focus remains on whether growth leads to better wages, more quality jobs, and stronger purchasing power for citizens. His comments were made during the launch of the OECD Economic Surveys: Malaysia 2026.
Akmal Nasrullah stated that the OECD report is a crucial reference for implementing the 13th Malaysia Plan (13MP), set for 2026-2030, and for accelerating the country's structural economic reforms. In 2025, Malaysia's gross national income (GNI) per capita rose to RM57,200, approximately US$13,351, against the World Bank's high-income threshold of US$14,375.
He mentioned that the government maintains a full-year growth target of four to five per cent for 2026, driven by domestic demand, private investment, exports, and technology-intensive sectors. The OECD survey identified investments in education and training as key to boosting productivity and incomes, noting that 35.6 per cent of tertiary-educated workers are underemployed.
Under the 13MP, the government plans to align curricula with industry needs and expand technical and vocational education and training (TVET) and upskilling programs in semiconductors, artificial intelligence, and the digital economy. The federal fiscal deficit has also narrowed from 5.5 per cent of GDP in 2022 to 3.7 per cent in 2025, with aims to reduce it further to three per cent or lower by 2030.
The Government Service Efficiency Commitment Act 2025, known as the Iltizam Act, aims to reduce regulatory burdens by 25 per cent over three years. The Economy Ministry, through the Special Task Force to Facilitate Business (Pemudah), will review high-impact business approvals for greater efficiency.
The OECD Economic Surveys: Malaysia 2026 is the fifth OECD Economic Survey of Malaysia since 2016 and includes a chapter on improving skills, education, and training. Its findings are expected to guide the implementation of the 13MP in areas such as productivity, education, skills development, digitalization, and climate resilience.