Is Malaysia really trapped in the middle-income stage?

We asked Philip Schellekens, Chief Economist of UNDP Asia and the Pacific, whether Malaysia is in a “middle-income trap”. He explains that Malaysia is not in a “middle-income trap” and is expected to reach high-income status within the next few years. However, reaching that stage will only be the beginning.

The bigger challenge is to sustain growth and progress beyond it.

The focus now needs to be on making change happen. This means building political will, strengthening institutions and ensuring reforms can last. It also means improving the capacity of the civil service to put these changes into practice. Malaysia has no shortage of good ideas. The priority now is to move beyond knowing what needs to be done and focus on actually making change happen.