OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
Malaysia’s economic success story and challenges
Malaysia has sustained over four decades of rapid, inclusive growth, reducing its dependence on agriculture and commodity exports to become a more diversified, modern and open economy. GDP per capita is now higher than in a number of OECD economies, while poverty and income inequality have declined considerably. Growth has also been remarkably resilient in the face of external shocks. Going forward, the Malaysian government’s 11th Malaysia Plan (2016-20) emphasises the need for greater inclusiveness. Continued, gradual fiscal consolidation is a key policy priority, building on earlier energy and food subsidy rationalisation and on the introduction of a goods and services tax. So is continued prudent monetary and financial policy. Further reforms are needed for Malaysia to become a high-income nation around 2020: productivity growth needs to be reinvigorated through various structural reforms while growth needs to become more inclusive.
Keywords: competition, education, fiscal consolidation, employment, productivity, monetary policy, ASEAN, commoditities
E50: Macroeconomics and Monetary Economics / Monetary Policy, Central Banking, and the Supply of Money and Credit / Monetary Policy, Central Banking, and the Supply of Money and Credit: General;
H20: Public Economics / Taxation, Subsidies, and Revenue / Taxation, Subsidies, and Revenue: General;
O40: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Economic Growth and Aggregate Productivity: General;
H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General;
H60: Public Economics / National Budget, Deficit, and Debt / National Budget, Deficit, and Debt: General;
G15: Financial Economics / General Financial Markets / International Financial Markets;
H30: Public Economics / Fiscal Policies and Behavior of Economic Agents / Fiscal Policies and Behavior of Economic Agents: General;
F1: International Economics / Trade;
E20: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data);
P48: Economic Systems / Other Economic Systems / Other Economic Systems: Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies;
G3: Financial Economics / Corporate Finance and Governance;
O1: Economic Development, Innovation, Technological Change, and Growth / Economic Development;
H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government;
I0: Health, Education, and Welfare / General