Malaysia

Abstract

Malaysia has made huge strides in socioeconomic development over the past 4 decades, transforming itself from an underdeveloped country reliant on natural resources into a middle-income country with a vibrant manufacturing sector. Malaysia aims to achieve highincome country status by 2020, with its services sector as the main economic driver. Services now account for around 50% of economic activity and the government is continuing efforts to boost domestic demand and reduce the country’s dependence on exports. Growth is expected to remain positive in the near term, allowing Malaysia to continue with its development agenda under the Eleventh Malaysia Plan, 2016–2020. The Government of Malaysia introduced a tax on goods and services, and implemented reductions in energy and sugar subsidies. The central bank reduced in 2016 its policy rate and bank reserve requirement to support growth.