Malaysia Economic Monitor, November 2009

Malaysia is emerging from one of the worst export slumps in its economic history as manufacturing and exports have started growing again. With East Asia leading the recovery and advanced economies showing progressive improvement, the Malaysian economy is projected to grow at 4.1 percent in 2010, following a contraction of 2.3 percent in 2009. The medium-term outlook remains promising with growth reaching 5.6 and 5.9 percent in 2011 and 2012, respectively, though that will depend on sustained global recovery from the crisis. The overriding medium-term challenge is for the Malaysian economy to join the select group of high-income countries. Malaysia has experienced solid growth over the last decades, but has relied on an economic model predominantly based on capital accumulation, although private investment rates never recovered from their 20 percentage point fall after the Asian 1997/98 crisis and are now among the lowest in the region. For Malaysia to climb the next step up the income ladder, it needs to focus on improving the investment climate to raise investment rates and focus on productivity growth. Against this backdrop, the authorities are developing a 'new economic model,' which will be squarely centered on boosting productivity. Promising reforms have already been announced in the areas of services and foreign direct investment, which will help revitalize private investment.

Bibliographic Details

Main Author:	World Bank
Language:	English
Published:	World Bank 2009-11
Subjects:	ACCOUNTING, ADVANCED ECONOMIES, ADVERSE IMPACT, AGGREGATE DEMAND, AGRICULTURE, ANNUAL GROWTH, ANTI-COMPETITIVE PRACTICES, ASSET POSITION, ASSET PRICE, ASSET PRICES, ASSET QUALITY, ASSETS, BALANCE SHEETS, BANK LENDING, BANKING INSTITUTIONS, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BILLS, BOND ISSUANCES, BUFFER, CAPITAL ACCOUNT, CAPITAL ACCUMULATION, CAPITAL ADEQUACY, CAPITAL FLOWS, CAPITAL GOODS, CAPITAL MARKETS, CAPITAL OUTFLOWS, CENTRAL BANK, COMMODITY PRICE, COMMODITY PRICES, COMPETITIVENESS, CONFIDENCE INDEX, CONSOLIDATION, CONSUMER CONFIDENCE, CONSUMER PRICE INFLATION, CONSUMPTION EXPENDITURE, CONSUMPTION GOODS, CONSUMPTION GROWTH, CORPORATE DEBT, CREDIBILITY, CREDIT ENHANCEMENT, CREDIT GUARANTEES, CREDIT POLICIES, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT SURPLUS, CURRENT ACCOUNT SURPLUSES, DEBT, DEBT RESTRUCTURING, DEBT SERVICE, DEFAULTERS, DEFLATION, DEMAND FOR CREDIT, DEPOSITS, DEPRECIATION, DISBURSEMENT, DISBURSEMENTS, DISPOSABLE INCOME, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKETS, DOMESTIC DEMAND, DOMESTIC LIQUIDITY, DURABLE, DURABLE GOODS, ECONOMIC CONDITIONS, ECONOMIC CONTRACTION, ECONOMIC CRISIS, ECONOMIC DEVELOPMENTS, ECONOMIC HISTORY, ECONOMIC MODEL, ECONOMIC OUTLOOK, EMERGING ECONOMIES, ENABLING ENVIRONMENT, EQUITIES, EQUITY INVESTMENTS, EQUITY MARKETS, EQUITY SECURITIES, EXCHANGE CONTROLS, EXCHANGE RATE, EXCHANGE RATE SYSTEM, EXPENDITURE, EXPENDITURES, EXPORT GROWTH, EXPORTS, EXPOSURE, EXPOSURES, EXTERNAL ASSETS, EXTERNAL DEMAND, EXTERNAL SHOCKS, FINANCIAL CONTAGION, FINANCIAL CRISIS, FINANCIAL DISTRESS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL SHOCK, FINANCIAL SUPPORT, FINANCIAL SYSTEMS, FISCAL BURDEN, FISCAL DEFICIT, FISCAL POLICY, FIXED INVESTMENT, FLOATING EXCHANGE RATE, FLOW OF CREDIT, FOOD PRICE, FORECASTS, FOREIGN ASSET, FOREIGN ASSET POSITION, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE CONTROLS, FOREIGN EXCHANGE RESERVES, FOREIGN INVESTORS, FOREIGN RESERVE, FOREIGN RESERVES, GDP, GDP PER CAPITA, GLOBAL DEMAND, GLOBAL SLOWDOWN, GLOBAL TRADE, GOLD, GOVERNMENT BOND, GOVERNMENT BOND YIELDS, GOVERNMENT EXPENDITURE, GOVERNMENT INTERVENTIONS, GOVERNMENT REVENUE, GROWTH RATE, GUARANTEE FUNDS, HIGH-INCOME COUNTRIES, IMPORT, IMPORT CONTENT, IMPORT DEMAND, IMPORT GROWTH, IMPORTS, INCOME, INCOME EFFECT, INCOME GROUPS, INCOME INEQUALITY, INCOME TAXES, INFLATION, INFLATION RATES, INFLATIONARY PRESSURES, INFORMATION TECHNOLOGY, INSURANCE, INTERNATIONAL BANK, INTERNATIONAL RESERVES, INVENTORIES, INVENTORY, INVESTMENT CLIMATE, INVESTMENT EXPENDITURE, INVESTMENT PROJECTS, INVESTMENT RATES, INVESTMENT STRATEGY, ISLAMIC FINANCE, KNOWLEDGE ECONOMY, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LIBERALIZATION, LIQUIDITY, LOAN APPLICATIONS, LOAN APPROVALS, M1, MARKET CONDITIONS, MARKET PARTICIPANTS, MATURITY, MONETARY FUND, MONETARY POLICY, MONEY SUPPLY, MULTINATIONAL CORPORATIONS, MULTIPLIER EFFECTS, NATIONAL INCOME, NET EXPORTS, NOMINAL WAGES, NONPERFORMING LOAN, NPL, OIL PRICE, PENSION, PORTFOLIO, PORTFOLIO INVESTMENT, POSITIVE SPILLOVERS, POTENTIAL OUTPUT, PRICE INDEX, PRICE SUBSIDIES, PRIVATE CONSUMPTION, PRIVATE FINANCE, PRIVATE INVESTMENT, PRODUCTIVITY GROWTH, PRUDENTIAL STANDARDS, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC SECTOR DEFICIT, PUBLIC SPENDING, REAL EXPORTS, REAL GDP, RECESSION, REMITTANCE, REMITTANCES, RESERVE, RESERVE REQUIREMENT, RESERVES, RETURN, RETURN ON ASSETS, RETURNS, SAFETY NETS, SECURITIES, SHORT-TERM EXTERNAL DEBT, STOCK MARKET, STOCK MARKET INDEX, STOCK MARKETS, STOCKS, SUPPLY SIDE, TAX, TAX EXEMPTIONS, TAX INCENTIVES, TOTAL EXPORTS, TOTAL RESERVES, TRADE SURPLUS, TRADING, TRADING PARTNERS, TROUGH, TURNOVER, UNCERTAINTIES, UNCERTAINTY, UNEMPLOYMENT, UNEMPLOYMENT RATE, VALUE INDEX, WAGES, WEALTH, WITHDRAWAL, WORKING CAPITAL,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20091117012924 https://hdl.handle.net/10986/3132
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